Summer 2017 Nonprofit Fundraising Study - Nonprofit Research ...

Summer 2017 Nonprofit Fundraising Study (NFS) Charitable Receipts at Nonprofit Charitable Organizations in the first half of 2017 in the United States and Canada Plus What Nonprofits are Doing to Reach People of Different Generations

A Study From

Acknowledgements The Nonprofit Research Collaborative (NRC) thanks all respondents who took the survey in August and September 2017. Your willingness to share information about your organization makes it possible for this report to appear.

Members of the Nonprofit Research Collaborative are

©S ummer 2017 Nonprofit Fundraising Survey Nonprofit Research Collaborative

PowerPoint slides with the graphs are also available, at npresearch.org for a small fee.

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For permission to cite or reproduce, please contact Melissa Brown at [email protected]. This report, PowerPoint slides based on graphics in this report, infographics on selected NRC findings, and links to earlier reports can be found at www.NPResearch.org.

i | Nonprofit Fundraising Survey

October 2017

Contents WHAT WE STUDIED...................................................................................................................................... 1 STRONG RESULTS MID-YEAR SUGGEST A GOOD YEAR OVERALL......................................................2 Nearly 6 in 10 organizations saw an increase in charitable receipts................................................................. 2 Historically at mid-year a lower percentage report increased charitable revenue than we see by year-end................................................................................................................................... 2 Mid-year results average 9 pts lower than year-end findings............................................................................. 3 Smallest organizations continued to struggle to increase charitable revenue............................................. 3 There were no differences by region of the U.S. or between U.S. and Canada............................................4 Half or more of organizations of all types, except religion, reported increased charitable revenue from January to June 2017......................................................................................................... 5 THREE-QUARTERS OF CHARITIES REPORTED BEING ON-TRACK TO MEET THEIR 2017 FUNDRAISING GOAL..............................................................................................6 Historically, the share mid-year that are on-track to meet goal is very close to year-end result......................................................................................................................................................6 Larger charities were more likely to be on track to meet goal than were the smallest organizations................................................................................................................................................. 7 Based on percentage on track to meet goals, the U.S. West led....................................................................... 7 Arts organizations were more likely to be struggling to meet goal as of mid-2017................................... 8 Percentage of organizations reporting increased revenue is lower in 2017 for nearly all methods when compared to prior years................................................................................................ 10 RESULTS FOR METHODS TO REACH DIFFERENT GENERATIONS....................................................... 11 Three-quarters (76%) reported adapting some fundraising method(s) to reach people of different generations..........................................................................................................................11 Tactics range from 32% creating a “Young Professionals” group to 78% using photos in printed materials..............................................................................................................................................12 Small organizations are more likely to be reaching out for volunteers in the younger generation(s).......................................................................................................................................................12 By sub-sector, Health organizations are most likely to be engaging in numerous approaches to reach different generations...............................................................................................................13 Response to fundraising methods appears to be driven by the individual, not the generation.............................................................................................................................................................. 14 CONCLUSION............................................................................................................................................... 15 METHODOLOGY.......................................................................................................................................... 16 ABOUT THE NONPROFIT RESEARCH COLLABORATIVE..................................................................... 21

2 | Nonprofit Fundraising Survey

October 2017

WHAT WE STUDIED The Nonprofit Research Collaborative (NRC) asks the same questions twice a year, and each time, adds question on a special topic. This report covers the survey that was in the field in late August and early September 2017.

Regular questions ask participants to compare fundraising results with the prior year at the same time The NRC’s regular questions ask study participants to report their fundraising receipts compared with a year previously. For the survey we sent out in August 2017, we asked organizations about charitable receipts for January through June. This excludes any disaster giving that might have occurred from Hurricane Harvey and later events, in August and September. The regular questions asked about total fundraising receipts, whether the organization is on track to meet its fundraising goal, and whether receipts are increased, decreased, or the same by different fundraising approaches. The approaches ranged from major gifts and board giving to online giving and corporate funding.

Special questions focused on efforts to communicate with different generations We also asked participants to tell us about what they are doing to reach people in different generations that are now part of the donor population. For the purposes of this survey, generations are defined as:

n “Mature” represented people in the Silent Generation and the Greatest Generation, or 71 and over. n Boomers are roughly ages 53 to 71 (born 1946 through 1964). n Generation X covers people who are now about 38 to 53 (born 1965 through 1980) n Millennials are roughly 22 to 37 (born 1980 through 1995) n “Gen Z,” with people roughly 7 to 22 (born 1995 through 2010)


October 2017

STRONG RESULTS MID-YEAR SUGGEST A GOOD YEAR OVERALL The NRC began its mid-year surveys in 2011. Consistently since then, the share of organizations with an increase in charitable revenue has been lower in summer than we see in the endof-year survey conducted after December. The results suggest that, even before any disaster relief giving that has occurred since the survey, 2017 will finish strong for charitable fundraising.

Nearly 6 in 10 organizations saw an increase in charitable revenue in the first half of 2017.

Decreased 20%

Increased 57%

Historically, at mid-year a lower percentage report increased charitable revenue than we see by year-end.

Stayed the same 23%

The NRC began asking about mid-year results in 2011. For every year, the share of organizations with an increase in charitable revenue as of June has been lower than the percentage of organizations that report a growth in charitable revenue by December. The average gap is 9 percentage points, although the range is from 4 points to 13 points. 2011 2012

44% 53% 46% 58% 58%

2013 2014

62% 52% 65% 59%

2015 2016

65% % with increased receipts mid-year 49%* % with increased receipts by year-end

60%

*In 2016, the NRC believes—but cannot prove—that there was an effect due to the U.S. elections.


October 2017

Mid-year results average 9 pts lower than year-end findings Since 2011, year-end charitable receipts have increased at between 4% and 13% more organizations than report growth mid-year. If this holds true for 2017, NRC estimates a robust year-end, with between 61% and 66% of organizations reporting increased charitable giving compared with 2016. This range does not include any adjustments for disaster relief giving.

Smallest organizations continued to struggle to increase charitable revenue.

Fewer than half of the organizations with a budget of less than a million reported an increase in charitable revenue compared with a year ago. At these sample sizes, the difference from 48% and all of the other groups is statistically significant. However, the visible differences between 60% and 69% are not statistically significant.

Charitable revenue Jan - June 2017 compared with a year before 23% 29%

48%