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Published by Kelvin Alfaro

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Published by: Kelvin Alfaro on Jul 27, 2011
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Te Fundraising MethodsTat Worked Best in 2010—and Could Work Best in 2011
Prepared by GuideStar USA, Inc.
The Fundraising Methods That Worked Best in 2010
Fundraising is the backbone o the nonprot sector. Althoughyear-to-year undraising—and ullling budget needs accord-ingly—has never been a “sure thing,” the economic climate o late has put development in a more precarious—and indispens-able—role than ever beore. Knowing what undraising methodshave worked or nonprots in the past, especially the recent pastas we emerge rom the recession, is key to planning or success-ul undraising in 2011. In this paper, we’ll review the results o the Nonprot Research Collaborative’s 2010 Fundraising survey, what those results suggest or undraising in 2011, and ways ornonprots to maximize undraising potential.
2010 in Review
Overall, 2010 was positive or undraising compared to 2009, which proved to be a rather dicult year as nonprots—andthe donors and oundations that sustain them—struggled toemerge rom the recession o 2008. Highlights o some o the good news to emerge rom the 2010 undraising survey include:· wo-thirds o respondents saw contributions increase or stay the same in 2010 as compared to 2009; every subsector saw more respondents reporting growth in giving in 2010 than adecline, with human services and arts organizations havingthe lowest percentages o respondents reporting growth (38and 41 percent, respectively) and international and religiousorganizations having the greatest (63 and 52 percent,respectively). Te results rom the international andreligious organizations may not be representative, however,as there were ewer than 100 respondents in each category.· Medium-sized nonprots (those with expenditures o $1million or more) to larger-sized nonprots (expenditures o $3million or more) were more likely to see undraising increases.· Last quarter undraising was important, but not dominant. About 50 percent o respondents received more than one‐quarter o the year’s contributions in the last quarter o theyear. For the other 50 percent, giving was spaced out overthe entire year.· Individual giving was the largest single source o contributions or the majority o organizations thatparticipated in the survey, highlighting the importance o engaging and connecting with donors or all organizations,regardless o size or subsector.· More organizations relied on volunteers or undraising thanever beore: Increased use o volunteer time or undraisingrose by more than 15 percent or 12 percent o respondents,and by 1 to 15 percent or another 24 percent o survey participants. At the same time, the correlation betweenvolunteers assisting with undraising and a nonprot’s ability to meet undraising goals was the weakest o all methods o investing in development or 2010—the strongest was ornancial investment, ollowed by stang.
Which Types of Fundraising Worked Best(and Worst) in 2010
Te survey identied 10 undraising techniques:· elephone appeals· Payroll giving· Planned gits· Online giving· Corporate gits· Major gits· Direct mail/e-mail· Foundation grants· Special events· Board givingEach technique’s efectiveness, or lack thereo, provides essentialinsight into what to expect or 2011.
The Fundraising Methods That Worked Best in 2010
What Yielded the Most Growth
Growth, meaning an increase in unds raised per respectivecategory as compared to unds raised using the same techniquein 2009, was most oten reported in the ollowing categories:
Online Giving
Online giving rose at 58 percent o the organizations using it.It should be noted, however, that it has been reported elsewherethat online giving accounts or 10 percent or less than totalcontributions received at most charities that use it—thoughthis amount grows each year.
Major Gifts and Special Events
Fundraising through major gits and special events both rose50 percent or the organizations using them. Analysis o 10years o undraising shows, however, special events to be amongthe most variable o undraising techniques when it comes torevenue growth each year.· Although major gits and special events were successulin terms o returns as compared to the previous year,they did not necessarily bring in the most revenue or thenonprots surveyed.· Sources that generated the most revenue overall includeoundations, bequests, and other charities (with theexception o very small nonprots with annual expenditureso less than $250,000, or whom individual donors providedthe most revenue). Although these sources may not have seensignicant growth (depending on the nonprot category) ascompared to 2009, they remained reliable sources o incomein 2010 overall and should not be overlooked.
What Didn’t Grow (or Stayed the Same)
Board giving:
Although 87 percent o reporting organizationsreceived donations rom board members, just 39 percent saw revenue increase rom this source in 2010, while 49 percent saw it stay the same.
Corporate gifts
Just over one‐third (34 percent) o organiza-tions receiving corporate contributions (grants or gits) saw anincrease rom this undraising vehicle. Almost our in ten (44percent) saw revenue rom this vehicle remain stable, but nearly one‐quarter (22 percent) saw a decline.
Telephone, payroll giving, planned giving
For most orga-nizations, these were not only the three least-used undraisingvehicles, but or the nonprots that used them, 50 to 60 per-cent reported that these techniques generated the same revenueas compared to 2009.
Looking Ahead: Fundraising in 2011
2011 looks positive, but not overwhelmingly so—we’re not outo the woods yet. Organizations surveyed were generally opti-mistic about 2011, although the largest portion anticipated thatstang and expenditures or undraising will remain the sameas or 2010. Knowing that stable stang and expenditurescorrelates with undraising levels staying the same, it’s expectedthat 2011 undraising levels will remain airly similar to thosereported or 2010. Here are the trends we oresee or 2011:

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