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Direct-Mail Returns Continue to Slide

July 1, 2008, 6:41 pm

Donations made in response to direct-mail appeals declined in the first three months of this year, continuing a downward trend that began in 2006 and has accelerated since then, according to an analysis released today.

The quarterly analysis, conducted by Target Analytics, a Boston research company, looked at gifts to 72 large charities, mostly made through direct mail. Those charities reported gifts exceeding $1.8-billion from more than 36 million donors over the preceding 12 months.

From January to March, the total number of donors fell by 4 percent, compared with the first quarter of last year, and the overall amount raised declined by 1.8 percent.

The decline in total contributions was even more evident when the analysts examined donations for the year-long period ending in March of this year, compared with the same period in 2006. “When adjusted for inflation, revenue has actually declined 3.6 per cent in real dollars,” they write.

For most organizations, the dwindling number of donors demonstrates the trouble charities have in attracting new contributors, although some organizations are also failing to attract money from people who gave in the past, the report said. The worsening economy is also partly to blame.

A full summary of the Index of National Fundraising Performance: 2008 First Calendar Quarter Results is available on Target’s Web site.

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