March 30, 2009
Fund-Raising Returns Reach New Low Point, Study Finds
By Holly Hall
New Orleans
Forty-six percent of nonprofit organizations raised more money last year compared with 2007, according to preliminary findings of an annual survey, released here today by the Association of Fundraising Professionals.
Reflecting the toll exacted by the economic downturn, the percentage of fund raisers whose institutions raised more money last year was a new low in the eight years the survey has been conducted. In a typical year, 60 percent of fund raisers in the survey report being able to raise more money.
And only 28 percent of the 481 fund raisers surveyed believe their organizations will raise more money this year, the lowest level of optimism found in the history of the survey. One-third of the organizations predicted they will raise less money in 2009.
While 14 percent of the fund raisers surveyed said their organizations raised about the same amount in both 2008 and 2007, 40 percent said that their organizations raised less last year. The decreases, the researchers said, were widespread across all types of organizations, encompassing charities of differing sizes and geographic locations.
In previous downturns, small organizations were more adversely affected than larger, more sophisticated organizations with well-rounded fund-raising programs, said Paulette Maehara, president of the Association of Fundraising Professionals. That is not the case with this recession, which appears to be negatively affecting organizations across the board, she said.
All Fund-Raising Techniques Show Decline in Results
Among those organizations that did manage to raise more last year, the increases shrank substantially compared with previous years. Two-thirds of the fund raisers reported that contributions to their causes rose by 20 percent or less. Only 5 percent of fund raisers said that donations grew by 50 percent or more, down from 23 percent two years ago.
The survey also found evidence that all fund-raising approaches suffered a decline in effectiveness.
For example, the percentage who reported raising more money last year in direct mail declined from 51 percent in 2007 to 38 percent. Those relying on big gifts from individuals dropped from 63 percent to 43 percent.
A full report on the survey, “2008 State of Fundraising Survey,” will be available from the association in May.
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This is a great time to be a professional fundraiser! Boards and leadership willing, today we have an opportunity to dispense with the conventional and think outside of the box. Test new ways to reach donors and motivate them to give. As long as it’s ethical, let no idea be too absurd.
— Kevin D. Feldman Mar 30, 11:46 PM #
It’s a good reminder for those who cling to their mentality of being in the “wooden bucket” business versus believing they’re a water distribution source. Here’s to new ideas and opportunities to allow all voices to be heard.Once it hits bottom the only way to go from there is up!
— Vikki Walton Apr 1, 04:19 PM #
All bets are off – the current economic situation is transforming philanthropy.
— Judith Katz Apr 4, 02:02 AM #
“Be courageous. I have seen many depressions in business. Always America has emerged from these stronger and more prosperous. Be brave as your fathers before you. Have faith! Go forward!”
Thomas A. Edison
“And consider a house-party marketing program.”
Richard Meier
Party2win.com
— Party2Win.Com Apr 9, 11:51 AM #
“In previous downturns, small organizations were more adversely affected than larger, more sophisticated organizations with well-rounded fund-raising programs…”
Compound the trending towards impact on ALL orgs of all sizes, and the case for launching aggressive donor retention plans is stronger than ever.
— Jana Byington-Smith, occamsraiser.wordpress.com Apr 11, 07:18 PM #