2008 donorCentrics Internet Giving Benchmarking Analysis | npENGAGE

2008 donorCentrics Internet Giving Benchmarking Analysis

By on Mar 18, 2009

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Target Analytics, a Blackbaud Company, has released the 2008 donorCentrics™ Internet Giving Benchmarking Analysis. The report is featured in today's edition of The New York Times and covers some of its many findings.

This is a follow-up to the groundbreaking 2006 report and provides insights into the online and offline trends of donors. Over the past three years, Target Analytics has held a series of annual meetings with a total of twenty-four major national non-profit organizations on the subject of online fundraising.

Through these discussions, and aggregating their giving data, an updated picture of integrated fundraising is presented in the new report. The findings represent careful analysis of information from over 9.5 million donors and more than $747 million in donations to the nonprofits in the study.

Key Findings in the Report:

  • Online giving continues to grow rapidly in 2007 and 2008, even in the absence of major disasters which fueled the growth of online giving for relief and animal welfare organizations in previous years.
  • Over the past few years, online giving has become an increasingly significant source of new donor acquisition. These online donors give much larger gifts but have slightly lower retention rates than traditional donors.
  • Online giving is not a strong renewal channel; every year, large numbers of online donors migrate away from online giving and to other channels, primarily direct mail.
  • Donors to direct mail – the primary giving source for most organizations – rarely give online. In the relatively rare cases when mail donors do give online, they tend to give higher average gifts – both before and after their first online gift.
  • Offline donors who have an email address on file, and who have no record of giving online, give far more per year and retain and reactivate at higher rates than those who do not have an email address on file.
  • Donors in the southwest and mountain regions of the United States are disproportionately more likely to give online.

Channel Flipping Continues
The 2006 analysis highlighted the channel switching trend from online to offline, and the 2008 findings continue to show this trend. Online donors switch to offline giving channels, but offline donors rarely switch to online. This reinforces the importance of an integrated approach to managing your donor relationships. This is a trend that plays out over time as 37% of the donors acquired online in 2006 who gave in both 2007 and 2008 never gave online again in either of their subsequent years of giving after their acquisition year. The key is to leverage integrated multi-channel strategies to identify and cultivate these donors over time.

Online-only Donors are Less Loyal
While online giving continues to be a major growth engine for nonprofits there are some concerns around retention and donor loyalty. Over the past three years of analysis, online donors have consistently renewed at rates slightly lower than traditional donors. Online-acquired donors have significantly higher lifetime value in aggregate than mail-acquired donors because their larger initial gifts and greater gifts in later years compensate for their lower levels of loyalty. But online-acquired donors are actually underperforming their mail-acquired giving-level equivalents. By contrast, multi-channel donors have much better retention rates for organizations in the analysis.

Online Giving is Key to Long-Term Success
Online donors in the analysis represent less than 10% of the total donor file, but these organizations have been growing their online giving for several years now. They are embracing new channels and combining them with their existing fundraising practices to maximize their relationships with donors. These organizations understand what a critical role the Internet plays in their current and future fundraising programs.

Learn More
Nonprofits of all sizes can gain key insights from the findings of the 2008 donorCentrics™ Internet Giving Benchmarking Analysis. A webinar will be held on April 16th to review the findings in more detail. You can register online for the webinar here. This is one of many key Internet resources that Blackbaud makes available to the nonprofit community.

ABOUT THE AUTHOR

Steve MacLaughlin is the Vice President of Data & Analytics at Blackbaud and bestselling author of Data Driven Nonprofits.

MacLaughlin has been featured as a fundraising and nonprofit expert in many mainstream publications, including The New York Times, The Washington Post, The Los Angeles Times, The Boston Globe, The Chronicle of Philanthropy, USA Today, The NonProfit Times, Bloomberg, and has appeared on NPR.

He is a frequent speaker at events including the Association of Fundraising Professionals (AFP), Association for Healthcare Philanthropy (AHP), American Marketing Association (AMA), Council for Advancement and Support of Education (CASE), Direct Marketing Fundraisers Association (DMFA), Giving Institute Summer Symposium, National Association of Independent School (NAIS), Nonprofit Technology Network (NTEN), Institute of Fundraising National Convention, Civil Society Conference, Resource Alliance’s Fundraising Online, and a keynote speaker at such events as the Crescendo Practical Planned Giving Conference.

Steve serves on the Nonprofit Technology Network (NTEN) Board of Directors and supports its focus on both the growth and professionalism of the nonprofit technology field as well as building knowledge and information sharing capacity throughout the sector.

He is a frequent blogger, published author of a chapter in the book People to People Fundraising: Social Networking and Web 2.0 for Charities, and is a co-editor of the book Internet Management for Nonprofits: Strategies, Tools & Trade Secrets. His latest book, Data Driven Nonprofits, became a bestseller in 2016.

Steve earned both his undergraduate degree and a Master of Science degree in Interactive Media from Indiana University.

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