Online Giving Increases Despite Drops in Overall Giving
June 11th, 2009
The case for moving to an online fundraising strategy just became even more compelling.
According to a report recently released by the Giving USA Foundation, donations to charitable causes in the United States reached an estimated $307.65 billion in 2008, marking a 2% decline over 2007. This is the first decline in giving since Giving USA began publishing annual reports in 1956.
The report reveals that two-thirds of public charities receiving donations saw decreases in 2008, while demand for services increased at 54% of human services charities in the same year. In spite of the widespread increase in demand, 60% of the human services organizations surveyed were planning to cut staff or services in 2009 due to funding shortages.
While online giving represents just 5% of the total $307 billion donated in 2009, there are clear indications that many donors are moving online. According to a Blackbaud analysis of Giving USA data, over $15 billion was given online to US non-profits in 2008– marking a substantial increase over the estimated $6.9 billion given online in 2006 (ePhilanthropy Foundation).
Online giving is not only favored by younger generations. A 2008 study entitled “The Wired Wealthy” revealed that 51% of wealthy donors said they prefer to give via the Internet and 46% of those surveyed intend to make more of their donations online in the coming years. An article in the Christian Science Monitor further emphasizes the benefits of online donations: “first gifts given online are 1-½ times larger than first gifts via mail; repeat gifts are also larger.”
New technologies and interactive websites are increasingly engaging new donors and offering individuals ways to get directly involved in their favorite causes. This approach is working well for many non-profits, particularly small and medium-sized organizations who can now reach more people with fewer resources. For larger organizations, it results in significant cost-savings as fewer personnel are required to manage mailings, checks, and other administrative details associated with traditional fundraising campaigns.
An online fundraising strategy will become increasingly critical in the coming years, as traditional fundraising activities become more expensive, resources become more scarce, and newer generations flock to the Internet to give to their favorite charities.
And for those organizations who aren’t ready to invest in an online fundraising strategy, it is important to at least make sure that their online presence is up to par. About 75% of individuals who donate do research online before they give– regardless of whether they end up giving online or not.
By Elizabeth Beachy, Upleaf Co-Founder. Upleaf is dedicated to helping non-profits increase their social impact through strategic online communications.
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