This document summarizes trends in the nonprofit industry based on data from Blackbaud. It discusses trends such as a decline in the number of donors but leveling off recently. Online giving is growing faster than any other channel and mobile is becoming increasingly important. Nonprofits have responded by investing more in stewardship, mid-level donors, and predictive modeling tools. The document also introduces the presenters and their relevant experience and publications.

1. 
Trends in the Nonprofit Industry
Steve MacLaughlin - Director, Internet Solutions
Roger Craver - Founder, DonorTrends / Editor, The Agitator
Blackbaud
© 2010 Blackbaud

2. 
Director of Internet Solutions @ Blackbaud
Working on the Internet since Al Gore invented it
Book: Internet Management for Nonprofits
Twitter: smaclaughlin
Blog: www.blackbaud.com/connections
About Steve
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Blackbaud
© 2010 Blackbaud

3. 
Blackbaud Index of Charitable Giving
Reports revenue trends of more than 1.364
nonprofit organizations
Represents $2.2 billion in yearly online
revenue reported on a monthly basis
Includes large, medium, and small sized
organizations
www.blackbaud.com/blackbaudindex
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Blackbaud
© 2010 Blackbaud

4. Blackbaud
© 2010 BlackbaudSource: Blackbaud Index of Charitable Giving, www.blackbaud.com/blackbaudindex
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5. Blackbaud
© 2010 BlackbaudSource: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex
Large $10M+
Medium $1M - $10M
Small Under $1M

6. 
Blackbaud Index of Online Giving
Reports online revenue trends of more than
1,676 nonprofit organizations
Represents $406.6 million in yearly online
revenue reported on a monthly basis
Includes large, medium, and small sized
organizations
Online pledges and recurring gifts are excluded
from the analysis
www.blackbaud.com/blackbaudindex
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Blackbaud
© 2010 Blackbaud

7. Blackbaud
© 2010 BlackbaudSource: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex
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8. Blackbaud
© 2010 BlackbaudSource: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex
Large $10M+
Medium $1M - $10M
Small Under $1M

9. 
Haiti Earthquake
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Blackbaud
© 2010 Blackbaud

10. 
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Blackbaud
© 2010 Blackbaud

11. 
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Blackbaud
© 2010 Blackbaud
Percentage of Fundraising from Online
Large ($10M+) 5.1%
Medium ($1M - $10M) 7.0%
Small (Under $1M) 7.3%
Source: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex

12. 
Human Services Sector
Reports online revenue trends of more than 511 Human Services
organizations
The Human Services organizations are defined by Giving USA as
charities focused on courts and legal services; employment and
vocational training; food and nutrition; long-term housing and
temporary shelter; public safety and community disaster relief;
recreation and sports; youth development; family and children’s
services; emergency assistance for families; and independent
living and self-sufficiency for women, seniors, veterans, and
individuals with disabilities. Blackbaud used these organizations’
National Taxonomy of Exempt Entities (NTEE) codes as reported
on their 990 tax returns for grouping purposes.
www.blackbaud.com/blackbaudindex
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Blackbaud
© 2010 Blackbaud

13. Blackbaud
© 2010 BlackbaudSource: Blackbaud Index of Online Giving, www.blackbaud.com/blackbaudindex

14. 
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Blackbaud
© 2010 Blackbaud
Source: http://mashable.com/2010/09/18/social-good-infographic/

15. 
Blackbaud analyzed ~1,700 nonprofits with YOY data
65% of nonprofits had positive YOY growth
The median YOY growth rate was 21%
Year Over Year Growth
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Blackbaud
Source: Blackbaud
© 2010 Blackbaud

16. 
Year Over Year Growth
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Blackbaud
Source: Blackbaud
Amount Raised Online YOY Growth Rate
$1,000,000 + 35%
$500,000 - $999,999 19%
$100,000 - $499,999 28%
$50,000 - $99,000 13%
$10,000 - $49,999 3%
All Organizations 21%
© 2010 Blackbaud

17. 
2009 Average Gift Trends
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Blackbaud
Source: Blackbaud
Business / Corporations $194.05
Cultural $112.47
Family / Human Services $154.13
Foundations $209.53
Healthcare $95.21
Hospitals $120.16
Higher Education $204.05
Independent Schools $371.62
Other $110.04
Recreational / Social $134.31
Religious $196.44
All Organizations $144.72
© 2010 Blackbaud

18. 
77% of nonprofits had at least one gift ≥$1000
Largest online gift was $60,000
Median online major gift was $3,500
2009 Online Major Giving
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Blackbaud
Source: Blackbaud
© 2010 Blackbaud

19. 
A lawyer by training, a copywriter and
strategist by trade, and a curious and
optimistic guy by nature
Founder of DonorTrends
Twitter: donortrends
Editor of TheAgitator - www.theagitator.net
About Roger
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Blackbaud
© 2010 Blackbaud

20. 
Growing far faster than any other channel
Significant channel migration among donors
35+% of online gifts triggered by other direct
response channels
85+% of all donors ‘research’ first online
Start thinking about the Hidden Giant –MOBILE
Far, far more than text-to-give
Why is Online Important
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Blackbaud
© 2010 Blackbaud

21. Blackbaud
© 2010 Blackbaud
Blackbaud Index of Charitable Giving
Blackbaud Index of National Fundraising Performance
Blackbaud Index of Online Giving
Giving USA
Chronicle of Philanthropy and and and other industry
publications
What to look for:
- Overall changes
- Sector changes
- Acquisition rates
- Retention rates
- Change in net income per donor
- Regional/geographic changes
- Other- Size of organization, external events
How to Watch Trends

22. 
Steady decline in number of donors
Acquisition rates declining 2.2 % annually for past
six years and 5.5% in recession
Retention rates declining
Arts/cultural hardest hit at 12.2%
Health down 7.2%
BUT…according to most recent Blackbaud Index
the decline is leveling off—up 1.4% in latest release
of Index
Some Significant Trends
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Blackbaud
© 2010 Blackbaud

23. 
Great Board Room fodder
Monitor the competition
Understand best practices
Spot opportunities
Avoid panic
What Good Does this Do for Me?
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Blackbaud
© 2010 Blackbaud

24. Blackbaud
© 2010 Blackbaud
Greater investment in stewardship/loyalty
More investment in high-yield programs
- Mid-Level Donors
- Planned Gifts
- Monthly Giving
More Sophisticated Tools
- Propensity screening
- Predictive Models
- Reinstatement
- Mid-level giving
- First year donors
- Planned giving
- Channel predictors
How is the Industry Responding

25. 
Blackbaud
© 2010 Blackbaud

26. 
Thank You
Steve MacLaughlin
Director, Internet Solutions
www.blackbaud.com/connections
Roger Craver
Founder, Donor Trends
Editor, TheAgitator
www.theagitator.net
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Blackbaud
© 2010 Blackbaud