Here are two studies that, when considered together, tell important parts of the U. S. nonprofit sector’s story.
1. Underdeveloped is the first report ever documenting the 3rd sector strengths and weaknesses as reported by U.S. nonprofit leaders and development professionals. Since the report was published, I hear more professional conversations about building “cultures of philanthropy”, which is a really great result of this study’s findings. It’s a quick read and super valuable.
https://www.giarts.org/sites/default/files/Underdeveloped-National-Study-of-Challenges-Facing-Nonprofit-Fundraising.pdf
2. The second set of data is from Giving USA’s Annual Report.
You can buy the full report here and their Highlights Report is free: store.givingusa.org/collections/2018-products
If you aren’t already using this report, the data is a great for educating board members on the value of annual campaign fundraising – even though campaign fundraising is not necessarily within your board’s comfort zone. The report shows that about 80 percent of the money received by nonprofits in America each year is donated by individuals. And according to the Indiana University School of Philanthropy, individuals give for these top two reasons: They are asked, and for the joy of giving. Your annual campaign meets donors where they give.
So, this study says to me, we need to strategically assess our organization’s focus on asking individuals as compared to grant writing, seeking corporate gifts, indirect “ask” at our events, and our other revenue sources. That said, every npo is different and has its own unique balance of revenue streams. So, please use the data with a lot of flexibility. If your grant writing is going well, please don’t feel like you need to limit your time allocation by a formula based on “averages”. Does that make sense? If you don’t currently have an annual campaign, add one as needed and as fits your strategic planning schedule, and keep your grant writing, direct mail, and other successful fundraising efforts in place.
When I first consulted with a local humane society, they had never done an annual campaign. They were funded well through other revenue sources, including grants, a fun and well-established annual event, fees for services, etc. When they added their campaign, their annual revenue was quickly and sustainably boosted by 25%. They have added a new van and veterinary services. Yay! Part of that success was due to their board’s openness to trying something new, another part was the depth of their well-established donor base and commitment, and then they worked with me on how to run their new campaign.
As always, I am hoping for your every success!
Get your free “How to Start a Nonprofit” booklet here: