Nearly seven out of 10 charities expect to raise more money in the coming year, with 15 percent of groups projecting growth of more than 15 percent, a survey released Monday has found.
Sixty-five percent say their 2015 fundraising revenue increased compared with the year before, continuing the upward trend tracked over the past seven years by the Nonprofit Research Collaborative, a group of organizations that advise charities on fundraising and conduct studies.
Nonprofits that saw increased support are developing a comprehensive fundraising plan and investing in staffing, donor databases, and donor cultivation and stewardship, says Keith Curtis, chairman of the Giving USA Foundation, a sponsor of the Nonprofit Research Collaborative.
Though some online fundraising methods saw the most rapid growth, charities that embraced tried and true strategies centered on building donor relationships proved the most successful.
Less than half the groups surveyed reported using social media as a fundraising tool, but 84 percent of those that did reported increasing revenue — a higher success rate than any other method. Just 10 percent of charities said they raised money by text message, yet 79 percent of those groups saw increased revenue.
These methods can help build a charity’s support base but “should not be the main focus of what you’re doing,” Mr. Curtis said.
“It can help enhance what you’re doing. It can help get your message out there,” he added. “But most of those gifts aren’t going to be your large gifts.”
The Nonprofit Research Collaborative’s latest biannual survey was based on responses in January and February from nearly 1,200 charities in the United States and Canada.
Small Groups Lag
Six out of 10 charities saw an increase in big donations from 2014 to 2015. Those that reported overall revenue declines were less likely to have seen growth from some of the most frequently used fundraising methods, including major gifts, special events, and board giving.
“The groups focusing on those things are really seeing success,” Mr. Curtis said. “Donor retention is important and continues to be a challenge.”
And that’s part of the reason smaller organizations, whose fundraisers may wear many hats and have less face time with donors, are slightly lagging. Larger charities were more likely to meet their 2015 fundraising goal: About 80 percent of charities with budgets of more than $3 million met their goals, while fewer than 70 percent with budgets less than $1 million met theirs.
Groups that expect their 2016 fundraising to remain flat (32 percent of charities) and those that predict declines (14 percent) cited a host of barriers to success: economic challenges, disengaged or unsupportive leadership, and difficulties recruiting and retaining donors. Many also raised concerns about an aging donor pool.
Other findings:
- Organizations in the South were most likely to see their fundraising drop in 2015 compared to the previous year: Twenty-eight percent reported declines. Charities in the West were the most likely to see an increase, with 74 percent saying their revenue jumped.
- Seventy percent of health organizations increased revenue in 2015, up from the 56 percent that said the same the year before.
- Fewer arts nonprofits reported an increase in 2015 than in the previous year: 61 percent, down from 70 percent in 2014.
Types of Fundraising That Generated Less Money in 2015
| Method | Percentage of nonprofits reporting a decrease from 2014 |
| Federated campaigns | 22% |
| Special events | 22% |
| Planned gifts | 21% |
| Telephone | 21% |
| Direct mail | 18% |
Source: Nonprofit Research Collaborative survey of 1,197 of organizations
Types of Fundraising That Generated More Money in 2015
| Method | Percentage of nonprofits reporting an increase from 2014 |
| Social media | 84% |
| Text messaging | 79% |
| Email | 70% |
| Other online giving | 70% |
| Major gifts | 63% |
Source: Nonprofit Research Collaborative survey of 1,197 of organizations
