July 2, 2009 | Read Time: 2 minutes
Donations to 79 of the nation’s largest charities fell by a median of 7.8 percent in the first quarter of this year, compared with the same period in 2008, according to a survey released last week.
From January through March, the total number of donors giving to organizations in the survey also fell by a median 5.8 percent, while the number of first-time donors dropped by nearly 13 percent, compared with the same three months in 2008.
The first quarter of this year has deepened a downward trend, particularly over the last three years, in charities’ ability to raise money, hang onto existing donors, and recruit new ones, the survey found.
Conducted quarterly by Target Analytics, the research arm of the fund-raising software company Blackbaud, the survey is based on computerized records of transactions with millions of donors who give $5,000 or less, primarily in response to direct-mail solicitations.
In the five years since 2004, contributions to charity have fallen by a median of 9 percent for organizations in the survey, while the number of people who donate has declined by 0.4 percent, and the number of new donors has dropped by 13.8 percent.
Size of Gifts Don’t Increase
In past years, charities have successfully increased the amount individuals have given, thereby offsetting declining numbers of supporters and first-time donors and translating into a net gain in their contributions.
But for the first time since the survey began in 2002, contributions per donor fell by a median 2.1 percent in the first quarter, contributing to the 7.8-percent median decline in contributions.
Target officials cited the lengthy recession as just one reason for worsening direct-marketing trends. Other likely contributors: changing giving habits among younger donors and intensified efforts by charities to seek gifts of $10,000 or more from individuals.
A report on the survey, “Index of National Fundraising Performance: 2009 First Calendar Quarter,” is available on Blackbaud’s Web site under “Nonprofit Resources.”
