Fifty-four percent of charities raised more money in 2018 than they did in 2017, and 64 percent expect to raise more this year than last, according to a new survey.
Over all, eight in 10 charities did as well or better in 2018 than in 2017, and nearly nine in 10 — 87 percent — expect to do as well or better this year than last.
Though the results are encouraging, they nevertheless show a slowdown compared with recent years. Many fundraisers who participated in the survey by the Association of Fundraising Professionals said they had fewer donors than in 2017, though the donors they had in 2018 typically gave more. Several said that the fourth quarter of 2018 was quieter than usual in terms of donor activity.
Looking at similar surveys done in previous years, “we typically see 60 to 65 percent raising more money in a strong year — that’s cause for concern,” said Mike Geiger, president of the association, in a statement.
“On the other hand, many organizations did raise more money, and respondents pointed to some ways to find success.”
The online survey of 384 association members was conducted in January. Because it was voluntary and represented just a slice of fundraisers, the poll is not scientific. But its comparison between years is useful because it has been conducted the same way periodically.
Getting an Edge
Fundraisers who reported revenue increases in 2018 were more likely to indicate that factors specific to their organizations — such as additional staff or new campaigns — were responsible, Geiger said in his statement.
“The economy, tax changes, the government shutdowns, other external factors — they do have an effect,” he said. “That said, it’s what we decide to do, or don’t do, that has the greatest impact on reaching our fundraising goals.” Staying updated on industry trends, keeping up professional development and training, networking, and careful planning can help give fundraisers and their organizations an edge, he says.
Eighty-one percent of survey participants said few or none of their donors expressed plans to delay their giving until 2019 or use techniques like “bundling” their gifts — giving a big donation in one year intended to cover multiple years — to maximize their tax benefits.
Among the findings:
- Slightly more than one-third of survey takers said the economy had a positive impact on their fundraising; roughly the same percentage said it had little or no impact.
- Fifty-four percent said the new federal tax law, signed by President Trump in December 2017, had little or no impact on their fundraising. Only 9 percent reported that the new tax code had a positive impact on 2018 giving.
- Seventy-three percent said that few or none of their donors expressed confusion or uncertainty about the changes in the tax code.
- Only 18 percent said they saw decreases in their support last year. But fewer — 13 percent — expect to see decreases this year.
