Overview
With $373.25 billion in charitable giving, 2015 was a record year for nonprofits according to Giving USA’s latest report. Staff at small and mid-sized nonprofits should be aware that giving by individuals, foundations and corporations went up across the board last year. Education received 15 percent of the country’s total charitable giving although Giving USA estimates that about 70 percent of that figure went to institutions of higher education.
It is important to point out that Giving USA’s report shows that the smallest organizations (throughout the sector) with budgets under $100,000 saw the largest losses in charitable revenue last year -- with declines of 11.8 percent. Medium sized organizations ($100,000-$500,000) saw a flat rate of change. Donor retention remains a key challenge for all nonprofits but particularly for small nonprofits that have limited resources to invest in donor acquisition.
Online giving continued to grow last year and giving days also showed steady growth, raising more money and a greater number of gifts in 2015 than in 2014.
5 Questions nonprofits should be asking:
1) What is our organization doing to reach out to donors born before 1965 (who account for almost 70 percent of charitable giving by individuals?)
2) What communication channels are we using to engage millennials (a growing force in the charitable sector -- and also a population that is grappling with college debt)?
3) Are we communicating effectively to all donors how our funding is being allocated? How are we recognizing the value of donors’ giving over time?
4) How is our organization engaging with corporations -- particularly via corporate volunteer programs and/or matching gift programs?
5) How easy is it to navigate our organization’s website in order to make an online gift? Is a monthly renewal option available?