Online Giving Is Growing: Is Your Nonprofit Taking Full Advantage?
Fundraising has always been an interpersonal, interactive activity between nonprofit/fundraiser and donor. But now that the digital boom has made its way into the nonprofit sector, it seems it’s here to stay. While traditional fundraising methods, like face-to-face and direct mail, still remain the most effective ways to fundraise and build relationships with donors, donors are also looking for easier, quicker, more convenient ways to interact with their favorite charities.
This is where online fundraising has the potential to be an incredible asset for every nonprofit. Cultivating and stewarding donor relationships isn’t as simple as it was before — mainly because many nonprofits are strapped for resources and time. Engaging with donors through different social platforms enables nonprofits to communicate more efficiently with their constituents, but it also meets donors where they already are: online.
The recent “Charitable Giving Report: Using 2019 Data to Transform Your Strategy” from the Blackbaud Institute shows that online giving is climbing at a steady pace. When looking at the data of 5,204 nonprofits, it showed that online giving in 2019 grew 6.8% year after year. Specifically, online giving grew 4.9%, 7.1% and 8.3%, respectfully, for large nonprofits (over $10 million in annual revenue), mid-sized nonprofits (between $1 million and $10 million in annual revenue) and small nonprofits (under $1 million in annual revenue). When taking a more longitudinal view, online giving grew 9.6% overall in a three-year period.
Seeing as though online giving is showing steady growth, are nonprofits also expanding their digital programs to keep up with the growth? The report found that 8.7% of total fundraising came from online giving, with small nonprofits growing their digital programs the most (14.1%), compared to mid-sized nonprofits (7.7%) and large nonprofits (4%).
“In truth, if electronic transfers, especially those for larger major gifts, were included in this category, then digital giving is certainly greater than 10% of giving,” as said in the report.
It’s no argument that our sector is continuing to evolve, offering more and more opportunities for nonprofits to connect with their constituents. How is your organization’s digital program? Does your online giving data match with what was found in this report?
It’s important to also recognize that because online giving is growing doesn’t mean you should abandon all of your other fundraising efforts. These findings should encourage you and your organization to continue to implement multichannel strategies, giving your constituents the best personalized interaction with your organization.
To download the full study, click here.