January 15, 2012 | Read Time: 7 minutes
A late surge of contributions in the last weeks of 2011 has made many charities hopeful of continued fundraising growth this year. But the picture is mixed.
A Chronicle survey of 153 charities found that 55 percent raised more last year than in 2010, while one-third took in less and 12 percent stayed even. What worries many organizations is that nearly 40 percent of nonprofits say contributions have not bounced back to the amount they raised before the recession started in 2007, and many groups say demand for aid is rising in the still-unsettled economy.
The split between charities that did well and those that did not could be the result of the uneven recovery from the downturn. Interviews by The Chronicle with other nonprofits also point to fundraising strategies that have made a difference. Charities that have focused on online giving and promoted their appeals through social networks, as well as those that have reached out to people who had stopped giving during the previous year, seemed to have a fundraising edge.
Internet Gains
The steady growth in online giving is clear from data provided by two other organizations that collected national totals:
n Convio, the fundraising-software company, says its nonprofit clients received $253-million in online donations in November and December, an 18-percent jump from $215-million raised during those months in 2010. In December alone, online donations grew 19 percent, from $158-million in 2010 to $188-million last year.
n Network for Good, a giving portal that allows donors to contribute to any charity in the country, says gifts in November and December grew by 15 percent over the same months in 2010. In December 2011, Network for Good processed $42-million in donations, up 14 percent over 2010.
On the other hand, Sage Fundraising Online, a software company, had mixed results: its clients’ average online fundraising totals decreased 2.4 percent in November and 20 percent in December compared with 2010. But the size of the average online gift rose 45 percent, to $100, in November and 36 percent, to $230, in December from the same months in 2011.
And another analysis of donations predicted that all types of giving were on the rebound.
Atlas of Giving, an independent forecasting service, says giving in November increased 6.3 percent, to $29.19-billion over November 2010. Although it did not have final figures by The Chronicle’s press time, it projected a 4.8-percent increase, to $29.25-billion, in December 2011 from 2010. Additionally, it expects total 2011 giving results to show an increase of 7.5 percent from 2010; its 2012 growth projection is more modest, at 3.5 percent over 2011.
Smartphone Giving
Although the Salvation Army is still calculating year-end donations from some 7,000 community centers in the U.S., it’s on track to match last year’s haul of $142-million from its nationwide Red Kettle campaign. Online giving during the holidays rose 22 percent, to $17-million, says Maj. George Hood, national community-relations and development secretary.
“People are getting more comfortable with online giving and using the channel more than the traditional mail response,” Major Hood says. He says the Salvation Army is waiting to hear results from a device that allowed donors to donate by credit card using their smartphones this holiday season before testing it some more this year. The charity experimented with the device in just four areas: Chicago, Dallas, New York, and San Francisco.
Another charity betting on mobile giving is the Humane Society of the United States. In November and December, 2 to 3 percent of all donations came via a mobile device, and the charity is hoping to expand such gifts. It recently hired a full-time employee dedicated solely to seeking money through mobile devices.
During the last two months of 2011, the Humane Society raised 25 percent more than it did during year-end 2010 by highlighting three animal stories over the first three weeks in December and making videos of its accomplishments with the animals during the year’s final week. The group promoted those efforts online and through video, e-mail, social networks, paid ads, mobile technology, telemarketing, and direct mail. Another reason for the success, say officials, was that it started its promotions earlier in November than it had in the past.
Mini Campaigns
The increased focus of using social networks proved a boon to Volunteers of America Chesapeake, a Maryland affiliate of the national charity. Before introducing its “Five Weeks of Giving” campaign in late November, the organization aggressively sought new fans on social networks, such as Facebook and Twitter. And with those supporters, the nonprofit announced mini-social-media-campaigns on weekdays during the holiday season, such as “Make a Difference Monday” and “Tell Us Tuesday.” Each week it released two videos, taking viewers behind the scenes at the charities it serves. Volunteers of America also asked people to donate during “Fund Friday.”
The result? Year-end giving donations rose almost 70 percent, from $75,000 in 2010 to $126,000. In December alone, it raised $104,000, a 65-percent increase from December 2010.
“We asked our fans to interact with us,” says James Wynn, assistant vice president for development. And “we made that viral.”
He says the organization will continue with the “Five Weeks of Giving” later this year but will start promoting it at least a month earlier, in October.
Making cutting-edge technology a focus of fundraising helped the Fred Hutchinson Cancer Research Center, in Seattle, spiff up its 36th annual Hutch Holiday black-tie gala in December. Guests checked in by using an interactive tablet and then bid on items at an auction using similar devices. And when it was time for dinner, they were seated in a room enveloped by a 244-foot video screen that showed images of the center’s research labs. By the end of the night, the event raised more than $6.1-million, a half-million more than the same event raised in 2010.
The center says it’s considering using those same technologies again for this December’s gala, especially the electronic-bidding system.
Getting E-Mail Addresses
The Trust for Public Land points to its efforts to reach out to past donors and to connect with new ones for the 18-percent gain in year-end gifts..
One big help: a creative approach to getting e-mail addresses from potential supporters. It featured an interactive quiz on its Web site called “What’s Your Park Personality?” before the year-end fundraising season started. To find out if they were a “green thumb” or an “urban adventurer,” 2,000 people completed the multiple-choice quiz, which required that they provide their e-mail addresses. Those people were then added to the group’s database of potential donors.
As a result of the increased number of e-mail appeals it was able to send, the number of online gifts to the trust grew by more than 25 percent, with an average gift of $140. In 2010, average online gifts were about $108.
“The donors like our message,” says Margie Kim Bermeo, chief philanthropy officer. “They feel strongly about the mission. We had a lot of donors that were lapsed, and we were able to re-engage them.”
Good Publicity
Perhaps the groups that are struggling the most to meet growing demand are those that focus on social services.
The Oregon Food Bank says year-end donations increased 6 percent over last year’s holiday giving season, but it still sees a disturbing trend that is hobbling its ability to serve all who need help. Its most loyal donors are giving smaller sums because of the hard times, so last year’s increase stems mostly from new or wealthy donors.
Laura Golino de Lovato, director of development, says the group hopes to keep the food bank’s needs top of mind with supporters by using social media and other technologies.
Another social-service group, the Men’s Shelter of Charlotte, says year-end donations dropped about 2 percent.
The North Carolina emergency shelter for homeless men had hoped for better returns after a yearlong effort to woo donors. In late 2010, a glowing newspaper article about the nonprofit boosted donations by at least $20,000. Much of that came from a donor, who walked in to the charity’s office with a $15,000 check after reading the article, says Trish Hobson, associate executive director for community development. Last year, the same donor gave only $1,000.
“It’s not a good feeling to be behind,” Ms. Hobson says. “December is usually a make-it-or-break-it month.”
This year, the organization plans to reach out personally to some 600 donors who gave in 2010 but didn’t in 2011, in addition to its wealthiest supporters. “We’re optimistic,” she says. “It may take a year or so to see the benefits, but I do hope we will.”
Peter Bolton and Marisa López-Rivera contributed to this article.
