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Online Giving Reaches Record High in 2016

Location Manila , Philippines   |   views 206   |   Line Others

Author: Terry Alan Farris on April 7, 2017 04:14 AM Help us by Sharing:      

Online giving in the United States increased 7.9 percent in 2016, while overall giving was up a modest 1%, a Blackbaud report finds.

Nonprofit organizations of all sizes grew their online giving in 2016 as compared to 2015. However, medium-sized nonprofits with annual total fundraising between $1 million and $10 million benefited the most, with an increase of 11.4% in their online fundraising.

The Blackbaud Institute for Philanthropic Impact’s Charitable Giving Report: How Nonprofit Fundraising Performed in 2016 found that the percentage of total fundraising that came from online giving reached a record high in 2016 with about 7.2% of overall fundraising revenue, excluding grants, were raised online.

Of all online donations in 2016, 10% were $1,000 or more. 41% of nonprofits received at least one online donation of $1,000 or more in 2016.

In 2016, 17% of online transactions were made using a mobile device as compared to 14% in 2015 and 9% in 2014.  Blackbaud found that mobile transactions peaked in August 2016. With sharp increases in using mobile devices, nonprofits will need to adjust their fundraising strategies that incorporate mobile-friendly email messages, websites, and donation options.

December remains the largest giving month of the year for online donations. 21.8% of all online giving occurs in December with November accounting for 9.7%.

Continued growth in #GivingTuesday (occurs in late November) also demonstrates how social good movements continue to increase their impact on charitable giving. Blackbaud processed more than $47.7 million in U.S. online donations on #Giving Tuesday in 2016. Overall, online giving during this campaign increased by 20% from 2015. 22% of digital donations were made on mobile devices during #GivingTuesday in 2016. Interestingly, there are trends that #GivingTuesday donations are shifting from large to medium and smaller sized organizations.

While Arts & Culture was the second in overall fundraising growth rate of 3.7%, this sector represented the highest growth in online giving with a 15.4% increase.

Beginning with this year’s report, Blackbaud started looking into some of the most common questions asked by fundraising and nonprofit professionals. For example, the report found that the average age of donor in the U.S. is 62 and the average online donation amount is $128.

The report includes overall giving data from over 6,800 nonprofit organizations representing $23 billion in total fundraising from 2016 and online giving data from over 5,000 nonprofits representing $2.6 billion in online fundraising.

Jason Lee, Interim President & CEO of Association of Fundraising Professionals says that “…over the course of the past five years, we are seeing more giving, but fewer donors. That speaks to the work that charities must do to improve their retention and cultivation of donors by creating a culture of philanthropy and telling their stories of impact and change.”

With such tremendous growth in online giving, nonprofits must invest in mobile and online friendly platforms to meet donor trends. Nonprofits have many options and they need not do it alone. Technology platforms like Pass It Forward can help nonprofits reach more donors and raise funds in a much more efficient and effective way.

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