Tough Times Ahead for Fund Raisers?

An analysis of fund raising during the last three months of 2006 has prompted The Agitator to warn charities that they could soon be facing some tough conditions.

Roger Carver and Tom Belford, two long-time charity fund-raising consultants, analyzed Target Analysis Group’s Quarterly Index of National Fundraising Performance and found that while many charities are raising more money than in the past, they are getting those dollars from an increasingly small number of people.

According to the Target report, the median number of donors supporting the charities in the survey declined 2.8 percent from 2004 to 2006. Over the past five years, the number of donors has dropped 1.4 percent.

The report’s authors say the decline is the result of a decrease in successful efforts to attract and keep new donors.

“So far, most organizations have been able to compensate for these donor declines with increases in revenue per donor, enough to keep revenue growth ahead of inflation,” the Agitator’s authors write. “But the report warns that at some point these increases alone may not sustain overall donor growth.”

(For more about the challenges charities face in keeping donors loyal, read “The Vanishing Donor,” an article from The Chronicle of Philanthropy.)

Is your charity having trouble attracting new donors? What have you done to counter that trend?

Click on the comments link just below this posting to share your thoughts.

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