Blackbaud, Inc. : Online Giving to Nonprofits Grew 13 Percent in 2011
02/16/2012| 11:35am US/Eastern
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Small and medium-sized organizations leading the way
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,"
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.
About Blackbaud
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.
Forward-looking Statements
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.
Blackbaud
Melanie Mathos, 843-216-6200 x3307
media@blackbaud.com
© Business Wire 2012
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