Just as more jobs are being created, and the economy continues to lurch forward in a recovery, the outlook for charitable giving is trending upwards, according to the 2011 Cygnus Donor Survey that came out in April.
Here are the "aha" moments from that incredibly thorough and wide-reaching survey.
Charitable Giving Up
- Respondents to the survey were optimistic, with 79% expecting to give the same or more to charitable causes in 2011, and only 7% planning to give less.
- The youngest donors, under the age of 35, are most likely to say they will give more. 23% of the most generous of donors (giving $10,000 or more last year), plan to give more in 2011, while a mere 10% expect to give less
Recommendation: The researchers point out that while younger donors typically give less than older donors simply because they have fewer resources, their willingness to up their giving is reason for charities to not ignore younger donors as they often do by gearing their efforts toward higher gift value donors.
Clues to Donor Attrition or Loyalty
- 86% of the survey respondents said they have supported at least one cause for five years or longer. Why? Reputation and trustworthiness ranked first as characteristics of charities that garner loyalty.
- 53% of these loyal respondents said that "achieving and communicating measurable results" are very important in gaining their long term support.
- Of those who stopped supporting one or more charities, 41% said that their priorities had shifted, and "over-solicitation" was cited by 32% of respondents
Recommendation : Pay special attention to follow-up communications with donors. Those should be well written and emphasize measurable results. Think of your thank you letters, newsletters, and annual reports as ways to consistently communicate those results.
Online vs. Direct Mail
- Direct mail is declining, but certainly is not dead. 48% of respondents to this survey made at least one gift last year as a result of a direct mail appeal. The older the donor, the more likely he or she will welcome direct mail. Two out of three donors, in fact, used mail to make a donation. But, 29% went to the charity's website to contribute. There is a growing trend among donors, the survey researchers noted, to "take advantage of the various ways in which they can make a gift regardless of how they are solicited."
- This survey found a continuing decline in donors wanting to give through the mail. 26% of those who gave through the mail last year say they will give less in this way in 2011...only 1%said they plan to give more through direct mail this year.
- The most common reasons for giving less or not at all through the mail are over-solicitation (78%) and excessive cost (54%). Donors are increasingly sensitive to the cost to charities of direct mail programs.
- Online giving continues to rise (note that sometimes this is in response to direct mail). 65% of donors in this survey plan to make at least one gift online this year. For young donors, this rises to 86%; while 69% of those between 35 and 64 will do so. Astonishingly, even 53% of those 65 plus will donate online.
Recommendation: The researchers note that being able to distinguish between two types of online donors may become crucial. One group (about 35% of online givers) use online giving as just one of several ways in which they transact their donations. The other group (61% of online givers) demonstrates a marked preference for online giving. Among that latter group, soliciting them through mass direct mail may well be counterproductive. Cost-effectiveness is the major reason why dedicated online givers prefer this method of charitable giving.
Social Media and Giving
- There are mixed signals about social media and how it influences donors. While 69% of the respondents to this survey say they have one or more social media accounts, the majority does not follow any charities. But, among those who do follow charities, 65% do so because they consider the charity to be an expert in its field, and 62% do so because the charity posts relevant updates on its work.
- 17% of social media account holders have made a first-time gift after following a nonprofit; and 17% have been influenced to give again to one they already support and follow.
Recommendation: The value of social media for fundraising is at best minimal for now. But nonprofits must establish their presence and visibility on social media now. As younger donors, who tend to be most active in social media, become more able to donate, these channels will become more important.
Communication Preferences Among Donors
- This survey found that 69% of donors of all ages now prefer electronic over print communication. Even among older donors, there is more interest in receiving information electronically.
Recommendation: Understand the difference between giving preferences and communication preferences. Older donors may well be resistant to providing their credit card information online in order to make a donation. But, they may at the same time, prefer electronic communications that do not carry that barrier. Fundraisers need to set the stage for giving (whatever the method) by providing up-to-date and timely information through electronic means. There is much to be gained as well through the analytics available electronically.
The Connection Between Board Member Education and Fundraising
- The most generous donors say that "being asked to give by a leadership volunteer" influences them the most to give. However, this survey found that board members are not confident about their fundraising abilities and are unsure of their responsibilities when it comes to fundraising.
- Only 52% of board members at organizations that have fundraising staff said that giving was a requirement. 27% of board members that have no fundraising staff said that giving was a requirement.
- Only 18% of boards represented in this survey evaluate their performance in fundraising, contributing to the confusion about the responsibilities and lack of commitment to fundraising. Only 62% of board members even received a board package or manual when they took their positions; and only 40% took part in any kind of orientation or training.
Recommendation: It really is important to have clear guidelines about fundraising when recruiting board members, and to provide adequate orientation and help in fulfilling fundraising participation and duties.
Don't Leave Money on the Table
Perhaps the most "aha" moment from the Cygnus Donor Survey comes in the fact that 49% of the survey respondents said they could have given more to charitable causes last year, and that they have and are holding their philanthropy back. There is opportunity to raise more funds from every category of donors. How can your nonprofit tap that reservoir of charitable giving?
Note: The findings above were pulled from the Executive Summary of the Cygnus Donor Survey 2011.
Survey Methodology: The 2011 Cygnus Donor Survey was conducted between February 7th and March 6th. Approximately 552,000 donors who made one or more gifts in 2010 and/or 2009 were invited to complete an online questionnaire. Over 22,000 donors responded from all over North America, including 17,605 from the United States.
