Online Giving Surges 20.4% Over Summer

The Blackbaud Index of Charitable Giving reports that overall revenue increased by 1.4% for the 3 months ending August 2010 as compared to the same period in 2009. This was a move back into positive territory from July’s 4.5% decline. This trend is based on $2.2 billion in 12-month revenue accumulated from 1,364 nonprofit organizations.

Additionally, the Index found that three-month overall revenue for small organizations (prior year revenue of < $1 million) increased 11.2 percent during the 3 months ending August 2010, while overall revenue at medium organizations (prior year revenue of $1 – 10 million) decreased 1.9 percent, and overall revenue at large organizations (prior year revenue > $10 million) decreased 0.2% percent during the same period.

The Blackbaud Index of Online Giving

The Blackbaud Index of Online Giving reports that overall revenue increased by 20.4% for the 3 months ending August 2010 as compared to the same period in 2009. This was an increase over July’s positive trend of 12.4% growth. This trend is based on $407 million in 12-month online revenue from 1,676 organizations.

The Index found that three-month online revenue for small organizations (prior year revenue of < $1 million) increased 28.7 percent in August, while revenue at medium organizations (prior year revenue of $1 – 10 million) increased 14.3 percent, and revenue at large organizations (prior year revenue > $10 million) increased 23 percent.

Lynn Edmonds, president of LW Robbins, a direct response fundraising agency serving nonprofits, provided commentary on The Blackbaud Index in a report that accompanied this month’s update. “The summer months were particularly difficult as the economy took a hit and people’s attention was brought back to the economy,” said Edmonds. “The economy was starting to show some good signs, and then in May through July, the market dropped thousands of points, people stopped spending, and unemployment hit a high; that particular period was very difficult. The economy is bouncing back a little now. People who have some discretionary income will hopefully support their charities in the final months of 2010.”

According to Edmonds, online giving in general (without emergency giving) is a small percent of overall giving, but is becoming a channel that donors are becoming more comfortable with. “For a while, it was almost optional, but now, it is essential,” she said. “Most donors give to five to seven like-minded organizations.” She commented that organizations need to stay in front of the donor in multiple channels to keep their awareness and brand front and center.