Fundraising Returns to Pre-Recession Levels


Blackbaud debuts new specialty index focused on public, society benefit organizations

CHARLESTON, SC – January 19, 2012 – Blackbaud, Inc. (Nasdaq: BLKB) announced that fundraising has returned to pre-recession levels. Through the first 11 months of 2011, overall giving is up 3.4% over 2010, and is now officially above the level of giving last seen in 2007.

Chuck Longfield, Blackbaud’s chief scientist and creator of The Blackbaud Index noted that while giving is up, the increase is not uniform across all sub-sectors. However, most nonprofits saw greater stability and predictability in their 2011 fundraising than in the past few years. “Total U.S. charitable giving appears to finally be back to its pre-recession levels,” said Longfield. “Fundraising remains challenging but hopefully the worst is behind us, and nonprofits will continue to see positive growth in 2012.

Blackbaud also released a report today focused on fundraising trends based on monthly findings from The Blackbaud Index and featuring commentary from representatives of Association of Fundraising Professionals and Paralyzed Veterans of America. In addition, a new specialty index focused on public, society benefit organizations was launched today and will be updated monthly going forward.
    ◦    Download this quarter’s Blackbaud Index report

The Blackbaud Index of Charitable Giving and The Blackbaud Index of Online Giving are updated on the 15th of each month (or the next business day) and are based on a three-month moving average of year-over-year percent changes in charitable giving. They represent the most comprehensive and timely sources of charitable giving available. To subscribe to monthly email or text alerts or to read more about the methodology, visit www.blackbaud.com/blackbaudindex.

The Blackbaud Index of Charitable Giving

The Blackbaud Index of Charitable Giving reports that overall charitable revenue grew 1.4% for the three months ending November 2011, as compared to the same period in 2010. This trend is based on $2.5 billion in 12 months’ revenue from 1,281 nonprofit organizations. 

Blackbaud also releases additional data and analysis that reports on organizations by size. The Index found that three-month overall charitable revenue for small organizations (prior year revenue of < $1 million) decreased 2.5% in November, while overall charitable revenue at medium organizations (prior year revenue of $1 – 10 million) increased 8.2%, and overall charitable revenue at large organizations (prior year revenue > $10 million) decreased 0.4 %.

The Blackbaud Index of Online Giving

The Blackbaud Index of Online Giving reports that online revenue increased by 12% for the three months ending November 2011, as compared to the same period in 2010. This trend is based on $383 million in 12 months’ online revenue from 1,769 organizations.

The Index found that three-month online revenue for small organizations (prior year revenue of < $1 million) increased 15.4% in November, while online revenue at medium organizations (prior year revenue of $1 – 10 million) increased 12.1%, and online revenue at large organizations (prior year revenue > $10 million) increased 10.8%.

NEW: The Blackbaud Index – Public, Society Benefit
Blackbaud introduced a new specialty index this month, focused on the public, society benefit sub-sector, which will be updated monthly going forward. These organizations are defined by Giving USA as organizations that collect funds for redistribution to multiple kinds of charities, organizations focused on civil rights, voter education and registration, public policy research, social science research and community and neighborhood economic and civic development. It also includes leadership programs. Organizations include United Ways, Jewish federations, and freestanding donor-advised funds. (Note: community foundation donor-advised funds are not included). Blackbaud used these organizations’ National Taxonomy of Exempt Entities (NTEE) codes as reported on their 990 tax returns for grouping purposes.

The Blackbaud Index of Charitable Giving reports that public, society benefit organizations had an overall charitable revenue increase of 5.4% for the three months ending November 2011, as compared to the same period in 2010. This trend is based on $180 million in 12 month revenue from 95 organizations.

The Blackbaud Index of Online Giving reports that public, society benefit organizations had an online revenue increase of 11.9% for the three months ending November 2011, as compared to the same period in 2010. This trend is based on $14 million in 12 month revenue from 105 organizations. For historical charts, visit www.blackbaud.com/blackbaudindex.

Views from the sector

“Challenge the status quo.” That’s the advice that Andrew Watt, president and chief executive officer of the Association of Fundraising Professionals shares as fundraisers head into 2012, uncertain how to grow their fundraising beyond the minimal growth trajectory that is hovering on flat. “We’ve been getting quite positive messages from our members, who are optimistic, but I don’t think anyone feels they are going to see spectacular growth in 2012,” he said. “If the economy continues to stagnate, I cannot see that people can afford to hold off on investing in growth.”Veterans service organization Paralyzed Veterans of America has been in existence for more than 60 years, and has seen its share of economic ups and downs. Like many nonprofits in the public, society benefit sub-sector, the organization does not receive government funding, but gets all its support from corporations and the general public. This puts the organization in a unique position according to Nichole Krieger, senior director corporate and direct marketing, Paralyzed Veterans of America.

“There is more competition than there has ever been before, and it is getting harder and harder to fundraise,” she said. “It makes it challenging because the government seems to be providing fewer programs to the public at large and the need for nonprofits to fill this role is greater than ever.” 

Visit www.blackbaud.com/blackbaudindex for further information on The Blackbaud Index and additional industry subsets, for monthly updates on the 15th (or next business day) or to subscribe to email or text alerts, and to download the latest report. Share your feedback at [email protected].

About Blackbaud
Serving the nonprofit and education sectors for 30 years, Blackbaud (NASDAQ: BLKB) combines technology and expertise to help organizations achieve their missions. Blackbaud works with more than 25,000 customers in over 60 countries that support higher education, healthcare, human services, arts and culture, faith, the environment, independent K-12 education, animal welfare, and other charitable causes. The company offers a full spectrum of cloud-based and on-premise software solutions and related services for organizations of all sizes including: fundraising, eMarketing, social media, advocacy, constituent relationship management (CRM), analytics, financial management, and vertical-specific solutions. Using Blackbaud technology, these organizations raise more than $100 billion each year. Recognized as a top company by Forbes, InformationWeek, and Software Magazine and honored by Best Places to Work, Blackbaud is headquartered in Charleston, South Carolina and has employees throughout the US, and in Australia, Canada, Hong Kong, Mexico, the Netherlands, and the United Kingdom. For more information, visit www.blackbaud.com.