I have been asked by a number of clients and colleagues what results organizations have seen across the board for 2008 year-end giving. As expected … the results have been varied.
Nick Allen, one of the top consultants in online fundraising, and his team from Donordigital has just released some results they have seen for December 2008 vs. December 2007, in their latest enewsletter.
DONORS STEADY, AVERAGE GIFTS DOWN
Average gifts were down 20% to 35% in December 2008 compared to December 2007, but the number of donations was about the same. That’s what we’ve seen for several clients. The good news is that most donors continue to believe in the organizations they support. They continue to give, but – no surprise — they’re not giving as much as they did last year, especially at higher giving levels.
At the Target Analysis Internet Benchmarking meeting last week in New York, some organizations reported the same trend, while others reported year-end 2008 hit projections. Many groups were seeing a drop in $500+ gifts, which can have a big impact on average gift!
Search marketing showed similar trends — fewer Google users were searching to make donations. Those who did gave less on average than last year. Even so, search remains a vital part of many organizations’ year-end campaigns with ROI ranging from 5:1 to 20:1. Most search donations come from search on “brand terms.”
Because as many as half of search-driven donors may already be on an organization’s donor database, some believe it’s not worth buying brand terms (or getting them free via a Google Grant). But in the same way that Comcast buys “Comcast”, you want to do everything you can to make it easy for donors to find you, whether they are looking at organic or paid search results. And the ROI numbers prove it.
So if you fall into the 20% - 35% in average gifts raised, it appears that you are not alone! And to no one’s surprise your loyal donors continue to remain your loyal donors … just perhaps not at the level they have donated to in the past.
And, along with other online techniques and strategies, “Search” continues to play a significant role in online gifts. It is evident that everyone is continuing to be more conservative in their donating patterns … and I think it is safe to say that, until we see a significant shift in the economy, this will continue to be the rule rather than the exception.
Best advice … continue to use the tools, strategies and techniques that have made your your fundraising plans successful in the past … cultivate and steward your donors, build trust in your brand, and share your challenges and successes with your donors.
Regards,
Sue