Sunday, June 13, 2010

Charitable Donations Decline; Direct Mail Still Key to Fundraising

By Chantal Tode on June 9th, 2010

Overall charitable donations fell 3.6% in 2009 for a total of $303.75 billion while individual giving fell an estimated 0.4%, according to a new report from Giving USA Foundation.

Overall, the results were better than expected for a year beset by economic turmoil and predictions that non-profit organizations would be among those most hurt by the financial pinch.

Education, grant making foundations, arts and culture organizations and public-society benefit organizations all saw a decline in giving last year while donations were up for human services, health, international aid and environmental/animal-related charities, according to the report.

A separate report from Target Analytics reviews fundraising performance by channel. Direct mail was the channel of delivery for 68% of fundraising revenue in 2009, according to Target Analytics’ report on direct marketing fundraising. While the proportion of revenue coming in online has been growing steadily, it accounted for only 9% of fundraising revenue in 2009 while 3% came in through telemarketing.

Most new donors are acquired through the mail, according to the Target Analytics report, with 87% of all new donors acquired via direct mail. While the proportion of donors acquired online is growing rapidly, only 12% of new donors were acquired online in 2009.

For some interesting ideas on how non-profits are effectively using direct mail, check out this article on the Association of Fundraising Professionals Web site, which discusses the growing importance of mail-recruited monthly donors, using direct mail to get close to donors and how direct mail plays well with other channels.

At AlphaGraphics we have designed and implemented several direct mail campaigns. Examples include variable data programs, PURL campaigns and regular direct mail programs. If you are interested in increasing donations to your favorite charity then we need to have a conversation.

Duane Hampton, President of AlphaGraphics

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