CHARLESTON, S.C.--(EON: Enhanced Online News)--Blackbaud, Inc. (Nasdaq: BLKB) today released its annual 2011 Online Giving Report featuring the most comprehensive analysis of online giving trends in the nonprofit sector.
“2011 did not have the 35% year-over-year growth rate in online giving that happened in 2010, but online fundraising did not lose its mojo”
- Download the report at www.blackbaud.com/onlinefundraising.
“2011 did not have the 35% year-over-year growth rate in online giving that happened in 2010, but online fundraising did not lose its mojo,” said Steve MacLaughlin, co-author of the Report and Blackbaud’s director of Internet solutions. “Every sector in the analysis has had double-digit growth since 2009, but as with all large numbers, the bigger the overall percentage gets, the slower it tends to grow.”
In 2011, online giving was up 13% on a year-over-year basis when large International Affairs organizations are removed from the analysis. International Affairs is the only sector that didn’t experience positive growth in 2011, due to the tremendous amount of online giving in 2010 in response to the Haiti earthquake. When these organizations are included in the analysis the overall online fundraising growth rate drops to 0.3%.
The percentage of total fundraising that comes from online giving decreased to 6.3%. The decrease is directly related to the drop in online giving to International Affairs organizations in 2011 compared to 2010.
With the exception of International Affairs and Public/Society Benefit, all other sectors increased online revenue as a percent of total revenue. Fueling the growth in online giving is an increase of large online gifts to nonprofits. In 2011, 87% of organizations had at least one online gift of $1,000 or more. The median online gift of $1,000 or more was $1,200 and the largest amount given online in the analysis was $260,000. 43% of these donations were between $1,000 and $5,000.
According to the Report, end-of-year giving continues to account for most of all online donations. 34.8% of online giving happened in October, November, and December of 2011. December represented 20.3% of this total and was up on a year-over-year basis.
MacLaughlin advises nonprofits that even given the trend, there is risk in relying too much on year end giving. “It is possible to build an online giving program that avoids the make-or-break end of year fundraising crunch,” he said. “This is evidenced by the education and healthcare sectors that have benefited from concerted online fundraising efforts during other parts of the year.”
Growth by size and sector
There were differences between how organizations of different sizes performed in 2011. Large nonprofits, with annual total fundraising greater than $10 million, grew their online fundraising 8.6% on a year-over-year basis. When large International Affairs organizations are included in this group, the year-over-year trend shows a 15.5% drop in online giving further illustrating the impact of Haiti relief giving during 2010.
Medium-sized nonprofits, with annual total fundraising between $1 million and $10 million had a year-over-year increase of 13.1% in their online fundraising. Small nonprofits, with annual total fundraising less than $1 million, had online giving grow 12.8% on a year-over-year basis.
“Medium organizations accounted for more than 40% of all online giving in 2011,” said MacLaughlin. “They had the most room to grow since they had the slowest growth rate in 2010, but matured in 2011, most likely due to the ability to efficiently execute multichannel campaigns.”
The report also looks at giving by sector, including Arts, Culture, and Humanities; Education (and Higher Education as a subset); Environment and Animals; Healthcare; Human Services; International Affairs; and Public and Society Benefit.
Education organizations had the biggest year-over-year growth in online fundraising. Online giving to the Education sector is up 40% since 2009. Higher Education groups had the second largest increase in online giving during 2011.
International Affairs organizations had the biggest decrease in year-over-year online fundraising. These organizations were down 55% from 2010, but are still up over 75% from online giving in 2009. Annual Growth in online giving for both the Environment and Animals and Human Services sectors slowed in 2011 when compared to 2010 but nonetheless showed positive growth of 10% and 12.5% respectively.
About the 2011 Online Giving Report
The intent of the Report is to provide data that is useful in helping nonprofits understand their online giving performance and to drive conversations and analyses among organizational leadership that uncover opportunities to improve performance. The 2011 Online Giving Report includes 24 months of online giving data from 1,895 nonprofit organizations from The Blackbaud Index of Online Giving, online major giving data from 2,387 nonprofits, and both online and offline data representing $5.1 billion in total fundraising from 1,560 nonprofits. Read more about the methodology and learn how to use the data to assess individual organization performance by downloading the report at www.blackbaud.com/onlinefundraising.
To stay up-to-date on the latest fundraising trends as reported by The Blackbaud Index, visit www.blackbaud.com/blackbaudindex where you can sign up for monthly email and text alerts.
Serving the nonprofit and education sectors for 30 years, Blackbaud (NASDAQ: BLKB) combines technology and expertise to help organizations achieve their missions. Blackbaud works with more than 25,000 customers in more than 60 countries that support higher education, healthcare, human services, arts and culture, faith, the environment, independent education, animal welfare, and other charitable causes. The company offers a full spectrum of cloud-based and on-premise software solutions, and related services for organizations of all sizes including: fundraising, eMarketing, social media, advocacy, constituent relationship management (CRM), analytics, financial management, and vertical-specific solutions. Using Blackbaud technology, these organizations raise more than $100 billion each year. Recognized as a top company by Forbes, InformationWeek, and Software Magazine and honored by Best Places to Work, Blackbaud is headquartered in Charleston, South Carolina and has employees throughout the US, and in Australia, Canada, Hong Kong, Mexico, the Netherlands, and the United Kingdom.
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud's investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.