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2011 State of the Nonprofit Industry Survey Executive Overview

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Page 1: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

2011 State of the Nonprofit Industry SurveyExecutive Overview

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom

About the Survey

Throughout the recent yearsrsquo global economic uncertainty nonprofits around the world have been

forced to do even more with even less than usual Still they maintained optimism and rose to meet

the challenges presented them And donors responded as well Giving USA 2011 reported that total

estimated charitable giving in the United States rose 38 in 2010 and is estimated to be $29089 billion

Charitable giving for 2011 continues to rise slowly but surely

The Blackbaud Index of Charitable Giving a broad-based fundraising index that reports overall giving

trends of more than 1300 nonprofits representing over $2 billion in charitable giving reports that giving

has risen 57 during the first 6 months of 2011 when compared to the same period last year Most of

the lift occurred in the second quarter While these results are encouraging any optimism for continued

increases during the second half of 2011 should be cautious given the volatile nature of the economy

In order to meet an increase in demand for services with relatively flat funding organizations have had to

tighten their fiscal belts Nonprofit leaders have had to carefully mind their staffing and scrutinize budgets

for excess Theyrsquove relied on their existing donors to carry their funding while using technology in new

and innovative ways to reach new donors and maintain or increase earned income All the while theyrsquove

been under a much higher amount of scrutiny as donors have come to expect that they report the impact

theyrsquove had with charitable dollars

To gauge the levels of optimism to help nonprofits benchmark their own forecasts and to report on

some of the key management strategies nonprofit leaders are using Blackbaud created the State of the

Nonprofit Industry Survey (SONI) Conducted annually for seven of the past eight years the SONI Survey

uncovers the degree to which nonprofits anticipate changes in their organizations this year and next

Included in the study are questions about

bull General operations (including staffing budgets and organizational challenges)

bull Fundraising

bull Technology and Internet usage

bull Impact reporting and board performance

2011 State of the Nonprofit Industry SurveyExecutive Overview

2011 State of the Nonprofit Industry Survey

Contents

About the Survey 2

Methodology 3

About Blackbaud and

Partners 3

The State of the Nonprofit

Industry in 2011 6

Five Questions with Andrew

Watt 7

Communication and

Fundraising Trends 9

Five Questions with Holly

Ross 11

Organizational Success

Opportunities 12

Five Questions with Adrian

Sargeant 15

Country Survey Results 16

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 3

2011 State of the Nonprofit Industry Survey

The survey provides an overview of information that can help nonprofits assess their operations and

compare their performance with that of other nonprofit organizations while offering valuable commentary

from experts in the field

Methodology

Invitations to participate in this online survey were widely distributed throughout the nonprofit community and

directly to Blackbaud customers via industry newsletters and targeted emails Responses were accepted for

the entire month of June 2011 2203 individuals responded to the survey Because this was a convenience

sample rather than a random sample of the entire nonprofit community results may not be statistically

representative of all nonprofits in these countries However because of the large number of responses the

results provide a useful basis for analysis and benchmarking Data on trends from year to year are provided for

some topics but it should be noted that the population sampled was not the same each year

About Blackbaud

Blackbaud is the leading global provider of software and services designed specifically for nonprofit

organizations enabling them to improve operational efficiency build strong relationships and raise

more money to support their missions Approximately 24000 organizations mdash including The American

Red Cross Cancer Research UK Earthjustice International Fund for Animal Welfare Lincoln Center

The Salvation Army The Taft School Tulsa Community Foundation Ursinus College the WGBH

Educational Foundation and Yale University mdash use one or more Blackbaud products and services for

fundraising constituent relationship management financial management website management direct

marketing education administration ticketing business intelligence prospect research consulting and

analytics Since 1981 Blackbaudrsquos sole focus and expertise has been partnering with nonprofits and

providing them the solutions they need to make a difference in their local communities and worldwide

Headquartered in the United States Blackbaud also has operations in Australia Canada Hong Kong

Mexico the Netherlands and the United Kingdom For more information visit wwwblackbaudcom

About LrsquoAssociation Franccedilaise des Fundraisers

The Association Franccedilaise des Fundraisers is the professional membership body for French fundraisers

Its mission is to support fundraisers through training education ethical codes and best practice

guidance representation standards-setting and updated information It promotes fundraising as a career

choice For more information visit wwwfundraisersfr

About Philanthropy Centro Studi

Philanthropy Centro Studi is a Research Centre of the University of Bologna dealing with Nonprofit

Fundraising and Social responsibility based on interdisciplinarity This is an excellence center combining

research and daily work of third sector professionals Philanthropy Centro Studi

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 4

2011 State of the Nonprofit Industry Survey

bull Organizes training courses based on people needs

bull Manages a series of information channels on fundraising and its tools

bull Provides consultancy services for the development of fundraising plans

bull Makes research on fundraising and social responsibility cooperating with the most important

university centres on nonprofit on a global scale

Philanthropys president is Dr Valerio Melandri Director of the Master Post-Graduate in Fundraising

University of Bologna For more information visit wwwphilanthropyit

About the German Fundraising Association (Deutscher Fundraising Verband)

The German Fundraising Association is a professional association representing and serving the needs

of fundraisers throughout Germany Founded in 1993 it currently has ca 1350 members and is thus

the second largest professional association for fundraisers in Europe Supporting the professional

development of fundraisers and maintaining ethical standards for fundraising in Germany are two primary

goals of the German Fundraising Association The German Fundraising Association is an active member

of the European Fundraising Association (EFA) For more information visit httpfundraisingverbandde

About the Fundraising Institute of New Zealand (FINZ)

The Fundraising Institute of New Zealand (FINZ) is the professional body for those employed in or involved

with fundraising sponsorship and events in the nonprofit sector Our aim is to promote and uphold

professional and ethical fundraising and encourage the development of philanthropy in New Zealand The

Fundraising Institute of New Zealand serves

bull Organizations providing services and raising funds in the charitable and nonprofit sector

bull Fundraisers and volunteers employed to assist charitable organizations to achieve their mission

bull The public of New Zealand who donate funds and obtain services from charitable organizations

For more information visit wwwfinzorgnz

About The Resource Alliance

The Resource Alliance is an international nonprofit organization helping to build the capacity of nonprofit

organizations to mobilise support for their causes and achieve greater financial sustainability It achieves

this through international and regional workshops through knowledge sharing via our website and

publications through awards in best practice through accredited qualifications via publications

and through our consultancy services These activities equip NGOs around the world with the skills

knowledge and resources to mobilize local support The flagship activity of the Resource Alliance is the

International Fundraising Congress held annually in Holland for the last 30 years and recognized globally

as the best fundraising conference in the world The Resource Alliance is a UK registered charity and has

501(c)(3) status in the US with regional staff members in India Uganda Brazil and the Czech Republic

For more information visit wwwresource-allianceorg

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 5

2011 State of the Nonprofit Industry Survey

The State of the Nonprofit Industry in 2011

Although the global economic climate remains uncertain there is once again a growing sense of optimism

in the nonprofit sector regarding growth in staffing and earned and charitable income especially when

looking forward to 2012 At the same time organizations anticipate an increased demand for services

and increased expenditures

The majority of organizations expect to see an increased demand for their services in 2011 and 2012

similar to last yearrsquos study To meet the projected increase in demand for services organizations are

primarily anticipating either constant or growing staffing levels in 2011 and are slightly more optimistic

about increased staffing in 2012

The percentage expecting overall staffing increases coincides with the percentage expecting fundraising

staff growth Similar to overall staffing organizations expect to maintain or increase fundraising staffing

levels in 2011 and 2012 For almost all countries the percentage expecting fundraising staffing to

increase is higher in 2012 than 2011 This reconfirms the finding from last yearrsquos survey that fundraising

is emerging as a widely-recognized profession around the globe It is clear that fundraising is no longer

someonersquos ldquopart-timerdquo responsibility

But while organizations expect to increase their fundraising staffing levels they also plan to hire people

for other job functions as well Virtually all organizations turn to volunteers to fill job functions and with

the exception of accounting most job functions are performed as part of someonersquos job

Correlating with the increase in fundraising staffing levels is a projected increase in charitable income

While a few countries reported an anticipated increase this year every country expects increases in

income from charitable donations in 2012 A majority of countries are growing more optimistic and more

respondents expect increases in the future year than they were in last yearrsquos study

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 6

2011 State of the Nonprofit Industry Survey

Nonprofits are looking to individuals as their main source of growth and are also optimistic about

corporate donations and special events When looking closer at fundraising contributions from individual

donors respondents were generally optimistic about seeing an increase in contributions through the

fundraising methods they currently use Many organizations are more optimistic about website donations

and major donor cultivation this year compared to last year Door-to-door collections and SMS (text

messaging) are the least utilized fundraising methods

As with charitable income most organizations expect an increase in total income this year and anticipate

continued growth in 2012 The majority also expects an increase in expenditures this year and next All

estimates are similar to last yearrsquos study In every country the percentage of respondents estimating that

2011 expenditures will increase is lower than the percentage of last yearrsquos respondents predicting 2011

expenditures would increase

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 2: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom

About the Survey

Throughout the recent yearsrsquo global economic uncertainty nonprofits around the world have been

forced to do even more with even less than usual Still they maintained optimism and rose to meet

the challenges presented them And donors responded as well Giving USA 2011 reported that total

estimated charitable giving in the United States rose 38 in 2010 and is estimated to be $29089 billion

Charitable giving for 2011 continues to rise slowly but surely

The Blackbaud Index of Charitable Giving a broad-based fundraising index that reports overall giving

trends of more than 1300 nonprofits representing over $2 billion in charitable giving reports that giving

has risen 57 during the first 6 months of 2011 when compared to the same period last year Most of

the lift occurred in the second quarter While these results are encouraging any optimism for continued

increases during the second half of 2011 should be cautious given the volatile nature of the economy

In order to meet an increase in demand for services with relatively flat funding organizations have had to

tighten their fiscal belts Nonprofit leaders have had to carefully mind their staffing and scrutinize budgets

for excess Theyrsquove relied on their existing donors to carry their funding while using technology in new

and innovative ways to reach new donors and maintain or increase earned income All the while theyrsquove

been under a much higher amount of scrutiny as donors have come to expect that they report the impact

theyrsquove had with charitable dollars

To gauge the levels of optimism to help nonprofits benchmark their own forecasts and to report on

some of the key management strategies nonprofit leaders are using Blackbaud created the State of the

Nonprofit Industry Survey (SONI) Conducted annually for seven of the past eight years the SONI Survey

uncovers the degree to which nonprofits anticipate changes in their organizations this year and next

Included in the study are questions about

bull General operations (including staffing budgets and organizational challenges)

bull Fundraising

bull Technology and Internet usage

bull Impact reporting and board performance

2011 State of the Nonprofit Industry SurveyExecutive Overview

2011 State of the Nonprofit Industry Survey

Contents

About the Survey 2

Methodology 3

About Blackbaud and

Partners 3

The State of the Nonprofit

Industry in 2011 6

Five Questions with Andrew

Watt 7

Communication and

Fundraising Trends 9

Five Questions with Holly

Ross 11

Organizational Success

Opportunities 12

Five Questions with Adrian

Sargeant 15

Country Survey Results 16

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 3

2011 State of the Nonprofit Industry Survey

The survey provides an overview of information that can help nonprofits assess their operations and

compare their performance with that of other nonprofit organizations while offering valuable commentary

from experts in the field

Methodology

Invitations to participate in this online survey were widely distributed throughout the nonprofit community and

directly to Blackbaud customers via industry newsletters and targeted emails Responses were accepted for

the entire month of June 2011 2203 individuals responded to the survey Because this was a convenience

sample rather than a random sample of the entire nonprofit community results may not be statistically

representative of all nonprofits in these countries However because of the large number of responses the

results provide a useful basis for analysis and benchmarking Data on trends from year to year are provided for

some topics but it should be noted that the population sampled was not the same each year

About Blackbaud

Blackbaud is the leading global provider of software and services designed specifically for nonprofit

organizations enabling them to improve operational efficiency build strong relationships and raise

more money to support their missions Approximately 24000 organizations mdash including The American

Red Cross Cancer Research UK Earthjustice International Fund for Animal Welfare Lincoln Center

The Salvation Army The Taft School Tulsa Community Foundation Ursinus College the WGBH

Educational Foundation and Yale University mdash use one or more Blackbaud products and services for

fundraising constituent relationship management financial management website management direct

marketing education administration ticketing business intelligence prospect research consulting and

analytics Since 1981 Blackbaudrsquos sole focus and expertise has been partnering with nonprofits and

providing them the solutions they need to make a difference in their local communities and worldwide

Headquartered in the United States Blackbaud also has operations in Australia Canada Hong Kong

Mexico the Netherlands and the United Kingdom For more information visit wwwblackbaudcom

About LrsquoAssociation Franccedilaise des Fundraisers

The Association Franccedilaise des Fundraisers is the professional membership body for French fundraisers

Its mission is to support fundraisers through training education ethical codes and best practice

guidance representation standards-setting and updated information It promotes fundraising as a career

choice For more information visit wwwfundraisersfr

About Philanthropy Centro Studi

Philanthropy Centro Studi is a Research Centre of the University of Bologna dealing with Nonprofit

Fundraising and Social responsibility based on interdisciplinarity This is an excellence center combining

research and daily work of third sector professionals Philanthropy Centro Studi

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 4

2011 State of the Nonprofit Industry Survey

bull Organizes training courses based on people needs

bull Manages a series of information channels on fundraising and its tools

bull Provides consultancy services for the development of fundraising plans

bull Makes research on fundraising and social responsibility cooperating with the most important

university centres on nonprofit on a global scale

Philanthropys president is Dr Valerio Melandri Director of the Master Post-Graduate in Fundraising

University of Bologna For more information visit wwwphilanthropyit

About the German Fundraising Association (Deutscher Fundraising Verband)

The German Fundraising Association is a professional association representing and serving the needs

of fundraisers throughout Germany Founded in 1993 it currently has ca 1350 members and is thus

the second largest professional association for fundraisers in Europe Supporting the professional

development of fundraisers and maintaining ethical standards for fundraising in Germany are two primary

goals of the German Fundraising Association The German Fundraising Association is an active member

of the European Fundraising Association (EFA) For more information visit httpfundraisingverbandde

About the Fundraising Institute of New Zealand (FINZ)

The Fundraising Institute of New Zealand (FINZ) is the professional body for those employed in or involved

with fundraising sponsorship and events in the nonprofit sector Our aim is to promote and uphold

professional and ethical fundraising and encourage the development of philanthropy in New Zealand The

Fundraising Institute of New Zealand serves

bull Organizations providing services and raising funds in the charitable and nonprofit sector

bull Fundraisers and volunteers employed to assist charitable organizations to achieve their mission

bull The public of New Zealand who donate funds and obtain services from charitable organizations

For more information visit wwwfinzorgnz

About The Resource Alliance

The Resource Alliance is an international nonprofit organization helping to build the capacity of nonprofit

organizations to mobilise support for their causes and achieve greater financial sustainability It achieves

this through international and regional workshops through knowledge sharing via our website and

publications through awards in best practice through accredited qualifications via publications

and through our consultancy services These activities equip NGOs around the world with the skills

knowledge and resources to mobilize local support The flagship activity of the Resource Alliance is the

International Fundraising Congress held annually in Holland for the last 30 years and recognized globally

as the best fundraising conference in the world The Resource Alliance is a UK registered charity and has

501(c)(3) status in the US with regional staff members in India Uganda Brazil and the Czech Republic

For more information visit wwwresource-allianceorg

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 5

2011 State of the Nonprofit Industry Survey

The State of the Nonprofit Industry in 2011

Although the global economic climate remains uncertain there is once again a growing sense of optimism

in the nonprofit sector regarding growth in staffing and earned and charitable income especially when

looking forward to 2012 At the same time organizations anticipate an increased demand for services

and increased expenditures

The majority of organizations expect to see an increased demand for their services in 2011 and 2012

similar to last yearrsquos study To meet the projected increase in demand for services organizations are

primarily anticipating either constant or growing staffing levels in 2011 and are slightly more optimistic

about increased staffing in 2012

The percentage expecting overall staffing increases coincides with the percentage expecting fundraising

staff growth Similar to overall staffing organizations expect to maintain or increase fundraising staffing

levels in 2011 and 2012 For almost all countries the percentage expecting fundraising staffing to

increase is higher in 2012 than 2011 This reconfirms the finding from last yearrsquos survey that fundraising

is emerging as a widely-recognized profession around the globe It is clear that fundraising is no longer

someonersquos ldquopart-timerdquo responsibility

But while organizations expect to increase their fundraising staffing levels they also plan to hire people

for other job functions as well Virtually all organizations turn to volunteers to fill job functions and with

the exception of accounting most job functions are performed as part of someonersquos job

Correlating with the increase in fundraising staffing levels is a projected increase in charitable income

While a few countries reported an anticipated increase this year every country expects increases in

income from charitable donations in 2012 A majority of countries are growing more optimistic and more

respondents expect increases in the future year than they were in last yearrsquos study

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 6

2011 State of the Nonprofit Industry Survey

Nonprofits are looking to individuals as their main source of growth and are also optimistic about

corporate donations and special events When looking closer at fundraising contributions from individual

donors respondents were generally optimistic about seeing an increase in contributions through the

fundraising methods they currently use Many organizations are more optimistic about website donations

and major donor cultivation this year compared to last year Door-to-door collections and SMS (text

messaging) are the least utilized fundraising methods

As with charitable income most organizations expect an increase in total income this year and anticipate

continued growth in 2012 The majority also expects an increase in expenditures this year and next All

estimates are similar to last yearrsquos study In every country the percentage of respondents estimating that

2011 expenditures will increase is lower than the percentage of last yearrsquos respondents predicting 2011

expenditures would increase

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 3: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 3

2011 State of the Nonprofit Industry Survey

The survey provides an overview of information that can help nonprofits assess their operations and

compare their performance with that of other nonprofit organizations while offering valuable commentary

from experts in the field

Methodology

Invitations to participate in this online survey were widely distributed throughout the nonprofit community and

directly to Blackbaud customers via industry newsletters and targeted emails Responses were accepted for

the entire month of June 2011 2203 individuals responded to the survey Because this was a convenience

sample rather than a random sample of the entire nonprofit community results may not be statistically

representative of all nonprofits in these countries However because of the large number of responses the

results provide a useful basis for analysis and benchmarking Data on trends from year to year are provided for

some topics but it should be noted that the population sampled was not the same each year

About Blackbaud

Blackbaud is the leading global provider of software and services designed specifically for nonprofit

organizations enabling them to improve operational efficiency build strong relationships and raise

more money to support their missions Approximately 24000 organizations mdash including The American

Red Cross Cancer Research UK Earthjustice International Fund for Animal Welfare Lincoln Center

The Salvation Army The Taft School Tulsa Community Foundation Ursinus College the WGBH

Educational Foundation and Yale University mdash use one or more Blackbaud products and services for

fundraising constituent relationship management financial management website management direct

marketing education administration ticketing business intelligence prospect research consulting and

analytics Since 1981 Blackbaudrsquos sole focus and expertise has been partnering with nonprofits and

providing them the solutions they need to make a difference in their local communities and worldwide

Headquartered in the United States Blackbaud also has operations in Australia Canada Hong Kong

Mexico the Netherlands and the United Kingdom For more information visit wwwblackbaudcom

About LrsquoAssociation Franccedilaise des Fundraisers

The Association Franccedilaise des Fundraisers is the professional membership body for French fundraisers

Its mission is to support fundraisers through training education ethical codes and best practice

guidance representation standards-setting and updated information It promotes fundraising as a career

choice For more information visit wwwfundraisersfr

About Philanthropy Centro Studi

Philanthropy Centro Studi is a Research Centre of the University of Bologna dealing with Nonprofit

Fundraising and Social responsibility based on interdisciplinarity This is an excellence center combining

research and daily work of third sector professionals Philanthropy Centro Studi

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 4

2011 State of the Nonprofit Industry Survey

bull Organizes training courses based on people needs

bull Manages a series of information channels on fundraising and its tools

bull Provides consultancy services for the development of fundraising plans

bull Makes research on fundraising and social responsibility cooperating with the most important

university centres on nonprofit on a global scale

Philanthropys president is Dr Valerio Melandri Director of the Master Post-Graduate in Fundraising

University of Bologna For more information visit wwwphilanthropyit

About the German Fundraising Association (Deutscher Fundraising Verband)

The German Fundraising Association is a professional association representing and serving the needs

of fundraisers throughout Germany Founded in 1993 it currently has ca 1350 members and is thus

the second largest professional association for fundraisers in Europe Supporting the professional

development of fundraisers and maintaining ethical standards for fundraising in Germany are two primary

goals of the German Fundraising Association The German Fundraising Association is an active member

of the European Fundraising Association (EFA) For more information visit httpfundraisingverbandde

About the Fundraising Institute of New Zealand (FINZ)

The Fundraising Institute of New Zealand (FINZ) is the professional body for those employed in or involved

with fundraising sponsorship and events in the nonprofit sector Our aim is to promote and uphold

professional and ethical fundraising and encourage the development of philanthropy in New Zealand The

Fundraising Institute of New Zealand serves

bull Organizations providing services and raising funds in the charitable and nonprofit sector

bull Fundraisers and volunteers employed to assist charitable organizations to achieve their mission

bull The public of New Zealand who donate funds and obtain services from charitable organizations

For more information visit wwwfinzorgnz

About The Resource Alliance

The Resource Alliance is an international nonprofit organization helping to build the capacity of nonprofit

organizations to mobilise support for their causes and achieve greater financial sustainability It achieves

this through international and regional workshops through knowledge sharing via our website and

publications through awards in best practice through accredited qualifications via publications

and through our consultancy services These activities equip NGOs around the world with the skills

knowledge and resources to mobilize local support The flagship activity of the Resource Alliance is the

International Fundraising Congress held annually in Holland for the last 30 years and recognized globally

as the best fundraising conference in the world The Resource Alliance is a UK registered charity and has

501(c)(3) status in the US with regional staff members in India Uganda Brazil and the Czech Republic

For more information visit wwwresource-allianceorg

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 5

2011 State of the Nonprofit Industry Survey

The State of the Nonprofit Industry in 2011

Although the global economic climate remains uncertain there is once again a growing sense of optimism

in the nonprofit sector regarding growth in staffing and earned and charitable income especially when

looking forward to 2012 At the same time organizations anticipate an increased demand for services

and increased expenditures

The majority of organizations expect to see an increased demand for their services in 2011 and 2012

similar to last yearrsquos study To meet the projected increase in demand for services organizations are

primarily anticipating either constant or growing staffing levels in 2011 and are slightly more optimistic

about increased staffing in 2012

The percentage expecting overall staffing increases coincides with the percentage expecting fundraising

staff growth Similar to overall staffing organizations expect to maintain or increase fundraising staffing

levels in 2011 and 2012 For almost all countries the percentage expecting fundraising staffing to

increase is higher in 2012 than 2011 This reconfirms the finding from last yearrsquos survey that fundraising

is emerging as a widely-recognized profession around the globe It is clear that fundraising is no longer

someonersquos ldquopart-timerdquo responsibility

But while organizations expect to increase their fundraising staffing levels they also plan to hire people

for other job functions as well Virtually all organizations turn to volunteers to fill job functions and with

the exception of accounting most job functions are performed as part of someonersquos job

Correlating with the increase in fundraising staffing levels is a projected increase in charitable income

While a few countries reported an anticipated increase this year every country expects increases in

income from charitable donations in 2012 A majority of countries are growing more optimistic and more

respondents expect increases in the future year than they were in last yearrsquos study

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 6

2011 State of the Nonprofit Industry Survey

Nonprofits are looking to individuals as their main source of growth and are also optimistic about

corporate donations and special events When looking closer at fundraising contributions from individual

donors respondents were generally optimistic about seeing an increase in contributions through the

fundraising methods they currently use Many organizations are more optimistic about website donations

and major donor cultivation this year compared to last year Door-to-door collections and SMS (text

messaging) are the least utilized fundraising methods

As with charitable income most organizations expect an increase in total income this year and anticipate

continued growth in 2012 The majority also expects an increase in expenditures this year and next All

estimates are similar to last yearrsquos study In every country the percentage of respondents estimating that

2011 expenditures will increase is lower than the percentage of last yearrsquos respondents predicting 2011

expenditures would increase

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 4: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 4

2011 State of the Nonprofit Industry Survey

bull Organizes training courses based on people needs

bull Manages a series of information channels on fundraising and its tools

bull Provides consultancy services for the development of fundraising plans

bull Makes research on fundraising and social responsibility cooperating with the most important

university centres on nonprofit on a global scale

Philanthropys president is Dr Valerio Melandri Director of the Master Post-Graduate in Fundraising

University of Bologna For more information visit wwwphilanthropyit

About the German Fundraising Association (Deutscher Fundraising Verband)

The German Fundraising Association is a professional association representing and serving the needs

of fundraisers throughout Germany Founded in 1993 it currently has ca 1350 members and is thus

the second largest professional association for fundraisers in Europe Supporting the professional

development of fundraisers and maintaining ethical standards for fundraising in Germany are two primary

goals of the German Fundraising Association The German Fundraising Association is an active member

of the European Fundraising Association (EFA) For more information visit httpfundraisingverbandde

About the Fundraising Institute of New Zealand (FINZ)

The Fundraising Institute of New Zealand (FINZ) is the professional body for those employed in or involved

with fundraising sponsorship and events in the nonprofit sector Our aim is to promote and uphold

professional and ethical fundraising and encourage the development of philanthropy in New Zealand The

Fundraising Institute of New Zealand serves

bull Organizations providing services and raising funds in the charitable and nonprofit sector

bull Fundraisers and volunteers employed to assist charitable organizations to achieve their mission

bull The public of New Zealand who donate funds and obtain services from charitable organizations

For more information visit wwwfinzorgnz

About The Resource Alliance

The Resource Alliance is an international nonprofit organization helping to build the capacity of nonprofit

organizations to mobilise support for their causes and achieve greater financial sustainability It achieves

this through international and regional workshops through knowledge sharing via our website and

publications through awards in best practice through accredited qualifications via publications

and through our consultancy services These activities equip NGOs around the world with the skills

knowledge and resources to mobilize local support The flagship activity of the Resource Alliance is the

International Fundraising Congress held annually in Holland for the last 30 years and recognized globally

as the best fundraising conference in the world The Resource Alliance is a UK registered charity and has

501(c)(3) status in the US with regional staff members in India Uganda Brazil and the Czech Republic

For more information visit wwwresource-allianceorg

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 5

2011 State of the Nonprofit Industry Survey

The State of the Nonprofit Industry in 2011

Although the global economic climate remains uncertain there is once again a growing sense of optimism

in the nonprofit sector regarding growth in staffing and earned and charitable income especially when

looking forward to 2012 At the same time organizations anticipate an increased demand for services

and increased expenditures

The majority of organizations expect to see an increased demand for their services in 2011 and 2012

similar to last yearrsquos study To meet the projected increase in demand for services organizations are

primarily anticipating either constant or growing staffing levels in 2011 and are slightly more optimistic

about increased staffing in 2012

The percentage expecting overall staffing increases coincides with the percentage expecting fundraising

staff growth Similar to overall staffing organizations expect to maintain or increase fundraising staffing

levels in 2011 and 2012 For almost all countries the percentage expecting fundraising staffing to

increase is higher in 2012 than 2011 This reconfirms the finding from last yearrsquos survey that fundraising

is emerging as a widely-recognized profession around the globe It is clear that fundraising is no longer

someonersquos ldquopart-timerdquo responsibility

But while organizations expect to increase their fundraising staffing levels they also plan to hire people

for other job functions as well Virtually all organizations turn to volunteers to fill job functions and with

the exception of accounting most job functions are performed as part of someonersquos job

Correlating with the increase in fundraising staffing levels is a projected increase in charitable income

While a few countries reported an anticipated increase this year every country expects increases in

income from charitable donations in 2012 A majority of countries are growing more optimistic and more

respondents expect increases in the future year than they were in last yearrsquos study

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 6

2011 State of the Nonprofit Industry Survey

Nonprofits are looking to individuals as their main source of growth and are also optimistic about

corporate donations and special events When looking closer at fundraising contributions from individual

donors respondents were generally optimistic about seeing an increase in contributions through the

fundraising methods they currently use Many organizations are more optimistic about website donations

and major donor cultivation this year compared to last year Door-to-door collections and SMS (text

messaging) are the least utilized fundraising methods

As with charitable income most organizations expect an increase in total income this year and anticipate

continued growth in 2012 The majority also expects an increase in expenditures this year and next All

estimates are similar to last yearrsquos study In every country the percentage of respondents estimating that

2011 expenditures will increase is lower than the percentage of last yearrsquos respondents predicting 2011

expenditures would increase

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 5: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 5

2011 State of the Nonprofit Industry Survey

The State of the Nonprofit Industry in 2011

Although the global economic climate remains uncertain there is once again a growing sense of optimism

in the nonprofit sector regarding growth in staffing and earned and charitable income especially when

looking forward to 2012 At the same time organizations anticipate an increased demand for services

and increased expenditures

The majority of organizations expect to see an increased demand for their services in 2011 and 2012

similar to last yearrsquos study To meet the projected increase in demand for services organizations are

primarily anticipating either constant or growing staffing levels in 2011 and are slightly more optimistic

about increased staffing in 2012

The percentage expecting overall staffing increases coincides with the percentage expecting fundraising

staff growth Similar to overall staffing organizations expect to maintain or increase fundraising staffing

levels in 2011 and 2012 For almost all countries the percentage expecting fundraising staffing to

increase is higher in 2012 than 2011 This reconfirms the finding from last yearrsquos survey that fundraising

is emerging as a widely-recognized profession around the globe It is clear that fundraising is no longer

someonersquos ldquopart-timerdquo responsibility

But while organizations expect to increase their fundraising staffing levels they also plan to hire people

for other job functions as well Virtually all organizations turn to volunteers to fill job functions and with

the exception of accounting most job functions are performed as part of someonersquos job

Correlating with the increase in fundraising staffing levels is a projected increase in charitable income

While a few countries reported an anticipated increase this year every country expects increases in

income from charitable donations in 2012 A majority of countries are growing more optimistic and more

respondents expect increases in the future year than they were in last yearrsquos study

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 6

2011 State of the Nonprofit Industry Survey

Nonprofits are looking to individuals as their main source of growth and are also optimistic about

corporate donations and special events When looking closer at fundraising contributions from individual

donors respondents were generally optimistic about seeing an increase in contributions through the

fundraising methods they currently use Many organizations are more optimistic about website donations

and major donor cultivation this year compared to last year Door-to-door collections and SMS (text

messaging) are the least utilized fundraising methods

As with charitable income most organizations expect an increase in total income this year and anticipate

continued growth in 2012 The majority also expects an increase in expenditures this year and next All

estimates are similar to last yearrsquos study In every country the percentage of respondents estimating that

2011 expenditures will increase is lower than the percentage of last yearrsquos respondents predicting 2011

expenditures would increase

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 6: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 6

2011 State of the Nonprofit Industry Survey

Nonprofits are looking to individuals as their main source of growth and are also optimistic about

corporate donations and special events When looking closer at fundraising contributions from individual

donors respondents were generally optimistic about seeing an increase in contributions through the

fundraising methods they currently use Many organizations are more optimistic about website donations

and major donor cultivation this year compared to last year Door-to-door collections and SMS (text

messaging) are the least utilized fundraising methods

As with charitable income most organizations expect an increase in total income this year and anticipate

continued growth in 2012 The majority also expects an increase in expenditures this year and next All

estimates are similar to last yearrsquos study In every country the percentage of respondents estimating that

2011 expenditures will increase is lower than the percentage of last yearrsquos respondents predicting 2011

expenditures would increase

Expected changes in charitable donations in 2011

62

62

62

44

36

56

39

47

54

33

24

26

38

38

37

30

29

29

6

14

12

18

27

7

31

23

17

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

79

72

73

58

50

65

48

51

65

17

23

19

29

29

30

35

31

27

4

5

7

13

21

5

17

18

9

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Increase Stay the same Decrease

Expected changes in charitable donations in 2012

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 7: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 7

2011 State of the Nonprofit Industry Survey

Five Questions with Andrew Watt FlnstF President and CEO AFP

1 Blackbaud The findings show that there is a growing sense of optimism in the nonprofit sector How

does the anticipated growth in staffing and income correlate with increased demand and expenditures

Watt There is a very real sense of optimism growing in the sector Studies such as the Nonprofit

Research Collaborative which AFP is a part of and others indicate economic conditions are

improving albeit slowly and leading to increases in giving overall Rising giving levels are what is

driving the sense of optimism and in turn anticipated growth in staffing

While charities do respond to significant increases in demand by expanding staff the demand for

charitable services will always be high I think the major drivers of staffing levels are revenue and

giving projections Given that a majority of charities are smaller and many operate with little reserves

they need to be careful about hiring staff and expanding programs They tend to hire staff when

theyrsquore certain theyrsquoll have the funds to do so

2 Blackbaud Respondents in almost all countries expect to hire more fundraising staff and more staff

in general next year What will this mean for nonprofits and the professional role of the fundraiser

Watt Wersquove been seeing some significant increases in the number of job ads on our website which

tends to mirror demand Wersquove also found in the latest Nonprofit Research Collaborative studies that

increasing fundraising staff wonrsquot necessarily ensure that a charity reaches its goal But reducing

fundraising support almost guarantees that a nonprofit WONrsquoT reach its goal

What this says to me is that therersquos a rolling effectmdashhiring fundraising staff leads to results which

leads to more revenue which leads to more staff and so on Hiring fundraising staff is a strong

signal that organizations are confident and looking at additional programming and staffing

3 Blackbaud Organizations in all countries are projecting an increase in charitable income next year

To what do we owe this optimism

Watt To a certain extent charitiesmdashand especially fundraisersmdashtend to be optimistic Wersquove seen in

our State of Fundraising Surveys a strong sense of optimism most every year even when the giving

environment was challenging Part of that optimism is the nature of our missionsmdashnonprofits work to

create change and inspire the public We tend to be optimists but with a healthy dose of realism

But in this case I think the economy is a major factor 2008 and 2009 were two of the worst years

for giving that wersquove experienced in decades We had long-time members and fundraisers say they

had never seen a more challenging time than those two years

So in that context 2010 seemed a little brighter and while some countries are struggling more than

othersmdashand a double-dip recession in the US is quite possiblemdashthere is a feeling we may have

come through the worst

ldquoMany feel like wersquove been through the worst of it but economists predict very flat levels of giving for the next several years The future requires clear and confident leadership from charities their executives and chief volunteersrdquo

Andrew WattPresident and CEO

AFP

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 8: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 8

2011 State of the Nonprofit Industry Survey

4 Blackbaud Why do you think nonprofits are optimistic about individual giving as well as corporate

donations and special events specifically

Watt Special events tend to be affected heavily in an economic downturn but can also rebound

relatively quickly as well Attendance at special events often hinges on disposable income so if

people are worried about the economy they tend not to participate If special events tend to start

doing well again thatrsquos a good sign for the economy and charitable support

Individual giving and especially corporate giving suffered in general during the recession and

optimism here tends to reflect the overall optimism in the sector

5 Blackbaud What is your general feeling about the State of the Nonprofit Sector as we head into 2012

Watt Therersquos a lot of optimism but also a lot of uncertainty as we head into 2012 Many feel like

wersquove been through the worst of it but economists predict very flat levels of giving for the next

several years The future requires clear and confident leadership from charities and their executives

and chief volunteers

Itrsquos important to remember that fundraising success is still very possible even in this uncertain

environment Over 2008 and 2009 we still found 60 percent of charities raised more fundsmdashor the

same amountmdashthan in the previous year Many charities reached their goals And we know that

when charities invest in fundraising they are much more likely to meet their goals

Thatrsquos a reason we have to be optimistic We can still be very successful and have a lot of impact

Thatrsquos a key message we have to carry to our donors and supporters Now is not the time to hang

our heads but work diligently focus on stewardship and create the connections and partnerships

that make fundraising and philanthropy possible

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 9: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 9

2011 State of the Nonprofit Industry Survey

Communication and Fundraising Trends

One of the key findings in the 2010 State of the Nonprofit Industry report was that new fundraising and

communication channels although growing are not replacing traditional channels That remains the case

in 2011 as most organizations continue to leverage traditional channels even while they are increasingly

using new interactive channels

When it comes to communicating with donors in general email and web are the most commonly used

vehicles with SMS (text message) being the least common Traditional postal mail is also frequently used

for conveying information to existing donors and sometimes potential donors

Nearly all nonprofits believe in the importance of measuring and reporting their organizationsrsquo impact

and they are leveraging the web to do so According to the survey an organizationrsquos website is the most

popular avenue to tell constituents about their accomplishments and impact followed by their annual

report thank you letters and newsletters One of the least likely way organizations reported marketing

their impact is through social media channels

An organizationrsquos website is also the most popular way to communicate with potential donors Websites

are also a frequently used method to communicate with program recipients volunteers and existing

donors Organizations in all countries use email as the primary method to communicate with volunteers

and board members Email is also commonly used to communicate with program recipients and in some

countries existing donors Online newsletters are used more in Australia Netherlands and the US and

are primarily targeted at existing donors

Although the majority of respondents reported using social media they are not actively using it to

communicate with their constituent groups When they do it is mainly directed towards potential

donors Private social networks are uncommon (with the exception of in Italy) but approximately 20 of

respondents plan to set them up in the future Communicating via phone is not as popular in Europe as

it is in other regions It is more frequently used to communicate to board members Call campaigns and

SMS are the least likely way to communicate to every constituent group

While several people may contribute to an organizationrsquos website content the largest percentage of

respondents indicated that the marketingcommunicationspublic relations group typically owns this

function and is responsible for managing the content and driving the direction of the organizationrsquos website

While web channels are used for general communications traditional channels are considered most effective

for fundraising The majority of respondents rated traditional methods of fundraising as very effective at driving

individual donations especially one-on-one solicitation of donors special events and direct mailing In general

more than half of the organizations surveyed raise funds online and organizations in most countries have

shown growth in percentage raised online from 2010 to 2011

The majority of the respondents indicate that they commonly use emails to current donors to drive online

donations However they rated newer methods of fundraising such as social networking and online

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 10: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 10

2011 State of the Nonprofit Industry Survey

fundraising as being ineffective for individual donations Compared with last yearrsquos survey respondents

universally reported that they have become slightly more effective at using social media However few

respondents expect to see increases this year in their organizationrsquos fundraising contributions because

of social media Still nonprofits are not giving up on social media and many plan to use it to drive online

donations There is potential to see increased value for social media if organizations understand how to

best utilize it

Percentage of Respondent Organizations that Actively Raise Funds Online

67

51

53

45

38

51

47

62

58

63

50

64

49

32

41

35

63

64

0 20 40 60 80 100

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

2011 2010

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 11: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 11

2011 State of the Nonprofit Industry Survey

Five Questions with Holly Ross Executive Director Nonprofit Technology Network (NTEN)

1 Blackbaud Why are organizations turning to the web to communicate yet still canrsquot replicate the

success of offline fundraising

Ross Two reasons First direct mail fundraising is at the core of most nonprofits Entire institutions

processes and support systems have been built to support the direct mail empire in our sector Its baked

into our DNA and changing that is tough Second direct mail has been around for a century now By

comparison this online stuff is still really new Nonprofits are still experimenting finding what does work

and our donors are still getting used to the idea of giving online So at the end of the day nonprofits

arent replicating the success of offline fundraising but they are defining success in a new venue

2 Blackbaud Nearly all nonprofits believe in the importance of measuring and reporting their

organizationsrsquo impact Where do you see the opportunities lying to communicate impact ndash do you

feel this is going to be an increasingly important issue

Ross Storytelling visualizing and immersing Its not enough to measure and report numbers you

have to tell the story behind those numbers With so many digital tools at our disposal theres no

excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data

into stories Related to that visualizing data is a related but distinct way to tell those stories Freeing

your data from the tyranny of the bar chart will help your stakeholders get so much more meaning

out of it Finally you need to immerse your stakeholders in the datamdashallow them to explore it and

find personal meaning in the data When they can make it personal they will share it and you will

reach more people Take Feeding America as an example Map the Meal lets people get inside the

data from their own perspective

3 Blackbaud Although respondents reported that they donrsquot widely use social media to communicate

with constituent groups when they do they are targeting potential donors What advice do you have for

nonprofits regarding the potential of social media from both a communications and fundraising perspective

Ross I think its less about particular social media toolsmdash like LinkedIn or Twittermdashand more about

the way we are using social tools to communicate now Transparency immediacy and integrity

are the new norm If nonprofits can embrace that then they will be prepared for the future of

communications and fundraising The potential is undoubtedly there but its even newer than email

fundraising so it will just take some time

4 Blackbaud SMS (text messaging) was cited as the least commonly used tool for communications

and fundraising Wersquove all seen the success of SMS campaigns following disasters for large

organizations what will it take to make text-to-give a viable option for the average nonprofit

Ross SMS has certainly been a game changer for how we think about fundraising What does

it mean when you can recruit low-dollar donors easily en-masse That said I dont actually see

SMS as the future here though mobile certainly is The mobile webmdashwebsites optimized for mobile

viewingmdashare going to have a larger impact overall With mobile sites people can give any amount

Holly Ross Executive Director

Nonprofit Technology Network (NTEN)

ldquoIts not enough to measure and report numbers you have to tell the story behind those numbers With so many digital tools at our disposal theres no excuse not to do so Photos videos even plain text blog posts can do it But we have to turn data into storiesrdquo

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 12: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 12

2011 State of the Nonprofit Industry Survey

not amounts restricted by the mobile carriers and they can get a richer experience more closely tied

to the organization

5 Blackbaud As someone who focuses on empowering nonprofit with technology what role do you

see technology playing in the future of communications and fundraising

Ross It wont play a role It IS communications and fundraising Even if youre focused on traditional

PR strategies or direct mail fundraising technology is driving your efforts and essential to your

evaluation You use databases to properly segment web site URLs to track responses and social

tools to amplify the impact There is nothing that happens offline that doesnt have a tie to technology

Organizational Success Opportunities

There are many factors that drive organizational successmdashspanning the areas of staffing fundraising and

technology To understand the practices that nonprofits find essential to their success respondents were

asked to rate the importance to their nonprofit of eight business practices They were then asked to rate

their organizationrsquos performance in each area

The practices evaluated were

bull Ensuring operational efficiencies bull Retaining current donors

bull Maintaining organizational data bull Retaining staff

bull Managing relationships with supporters bull Showing impact of organizationrsquos activities

bull Recruiting new donors bull Utilizing social media

In general nonprofit organizations throughout the world feel that managing relationships with

supporters is one of the most important business practices for their organizationrsquos success Despite the

importance however nonprofits do not feel their organizations are doing a great job managing these

vital relationships This large gap in importance vs performance reveals an opportunity and desire for

organizations to improve supporter management

Another area where there is a key improvement opportunity is new donor recruitment In all countries the

largest disparity between importance and performance was in recruiting new donors While not every

country felt this was the most critical business practice for success they all felt they were not performing

nearly up to the importance level

Of the practices evaluated retaining staff and utilizing social media were considered the least important

factors to an organizationrsquos success For every country the smallest gap between importance and

performance was in staff retention suggesting that focusing more attention in this area will not

dramatically impact organizational success

Nonprofits in all countries view having a single database that contains all information on donors and other

supporters as very important but their organizations have not properly achieved this process This ties with

managing supporter relationships which can be more seamlessly done when all supporter information is

easily accessible Managing supporter relationships is more complex than before A supporter can interact

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 13: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 13

2011 State of the Nonprofit Industry Survey

with a nonprofit in many different ways ndash donating funds serving as a volunteer or board member joining

as a member attendee or advocatehellipthatrsquos a lot of relationships to manage Itrsquos also pretty likely that these

supporters fall into more than one category Respondents know that the ability to see a holistic view of all

the ways an individual interacts with their organization is vitally important The large gap in importance and

organizational performance exposes an opportunity for these organizations to improve if they work towards

having a single database containing all the information on their donors and supporters

To explore how organizations are fundraising respondents were asked to rate the effectiveness their

organization had experienced with each of the following tactics

bull Banner advertisement Pay-per-click bull Events

bull Community fundraising bull Search engine optimization

bull Direct mail promotions bull SMSText messaging

bull Email to current donors bull Social networking (Twitter Facebook etc)

bull Email to potential new donors bull Television or radio promotions

It appears that most organizations are finding traditional fundraising approaches (such as events direct

mailing etc) more effective than newer fundraising methods (such as email social networking etc) Direct

mail promotions events and community fundraising were commonly cited as very effective Because

these are more established ways to fundraise it makes sense that respondents feel theyrsquore more successful

utilizing these methods One ldquonewrdquo area organizations do feel effective is with emailing current donors

Importance vs Performance of Having a Single Database for DonorSupporter Information

17

26

20

21

20

28

27

15

26

77

65

64

62

66

65

58

73

64

94

91

85

83

86

93

85

88

90

0 1 2 3 4 5 6 7 8 9 10

USA

UK

New Zealand

Netherlands

Italy

Germany

France

Canada

Australia

Rating1 Not ImportantTerrible 10 Extremely ImportantExcellent

Gap Average Performance Average Importance

It appears that most organizations are finding traditional fundraising approaches (such as events direct mailing etc) more effective than newer fundraising methods (such as email social networking etc)

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 14: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 14

2011 State of the Nonprofit Industry Survey

Along with respondents rating their organizationsrsquo performance in utilizing social media poorly it was not

surprising that many respondents felt their organizations were not effective at using social networking

as a fundraising approach Other methods stated as ineffective were emails to potential new donors

and search engine optimization We should note that an organizationrsquos statement that the method is

ineffective for their organization does not necessarily indicate that it will be ineffective at all ndash in some

cases training and strategic guidance could enhance impact Very few respondents said that their

organization uses SMStext messaging

Donors worldwide want to see evidence that their money is being spent well and that nonprofit

organizations are being run as efficiently as possible Most countries surveyed place high value on

measuring and reporting organizational impact This is consistent with the previous findings that show

that nearly all nonprofits drive impact information to the public

While nearly all organizations report their impact to the public they find it difficult to know which

measurements to use to assess their performance The majority of the surveyed nonprofits (excluding

German respondents) agree that there are externally established impact benchmarks for their type of

organizations Despite the availability of external metrics in no country do nonprofits feel they have all the

impact metrics needed for public reporting and marketing

My Organization Has All the Impact Metrics it Needs for Public Reporting and Marketing

0 20 40 60 80 100

USA

Canada

Australia

New Zealand

Netherlands

France

Italy

Germany

UK

Percentage of Respondents

9

6

5

8

2

6

8

5

9

21

31

20

30

24

34

29

32

28

40

34

45

35

38

32

31

37

36

29

30

30

27

35

27

33

25

27

Strongly agree Somewhat agree Somewhat disagree Strongly disagree

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 15: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 15

2011 State of the Nonprofit Industry Survey

Five Questions with Adrian Sargeant Fundraising Professor and Consultant

1 Blackbaud The SONI survey revealed an opportunity and desire by organizations to improve

supporter management What are some of the challenges nonprofits face and how can they best

address them with technology

Sargeant The single biggest challenge is campaign integration Nonprofits need to do more to

integrate the online with their offline and their fundraising with their advocacy and campaigning

Donors want one coherent relationship with the organizations they support not multiple relationships

with half a dozen different teams

2 Blackbaud How important is multi-channel fundraisingsupporter management

Sargeant Itrsquos absolutely critical Donor loyalty is built through meaningful communications and

meaningful opportunities to engage The only way to achieve this is to drive an integrated approach

allowing supporters to pick and mix what they want to receive and giving them opportunities to create

their own media too Donors who engage through multiple channels are significantly more loyal and we

need to manage our communications in a way that encourages and facilitates such action

3 Blackbaud Donor recruitment was another area that organizations found important but didnrsquot feel

they were doing a good job at Do you feel now that nonprofits have ldquoweathered the economic stormrdquo

that they again should start turning their sights more towards acquisition

Sargeant Yes but smarter acquisition is the key We should move away from short term measures

of acquisition performance such as the cost per donor response rate average donation etc and

focus on spending a little more to recruit in donors that will have a higher lifetime value

4 Blackbaud While nearly all organizations report impact to the public they find it difficult to know which

measurements to use to assess their performance Why is that and what impact metrics would help

Sargeant It isnrsquot possible to answer that in a generic sense We need different categories of

nonprofits to come together to create their own dashboards of relevant performance metrics

Donors and other stakeholders can then be given a rounded picture of how well the organization is

doing in fulfilling its mission

5 Blackbaud Where do you see the largest opportunities for nonprofits to make an impact on their

operations as we enter the next year

Sargeant Two words Monthly giving Regularmonthly or sustained gift programs are currently

revolutionizing the economics of fundraising If your nonprofit doesnt have onemdashit should get one

Lifetime values are 600-800 higher than would be the case in traditional annual fund giving Itrsquos

also more resilient in the face of changes in the economy

ldquo[Multichannel fundraising is] absolutely critical Donor loyalty is built through meaningful communications and meaningful opportunities to engage The only way to achieve this is to drive an integrated approach allowing supporters to pick and mix what they want to receiverdquo

Adrian Sargeant Fundraising Professor and

Consultant

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 16: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 16

2011 State of the Nonprofit Industry Survey

Nonprofits in Australia are

anticipating increases in income

expenditures demand for their

organizationrsquos service and staffing

Very few Australian respondents

expect decreases in any area

They are one of the most optimistic

countries when asked about staffing

levels More than half of Australian

respondents expect increases in

overall staffing level No other country

surveyed has higher expectations for

increasing overall or fundraising staff

Increases in staffing levels may

be expected because Australian

nonprofits are less likely than other

countries surveyed to use volunteers

to fulfill job roles

Australian respondents cited more

traditional methods of fundraising (community fundraising direct mail and special events) as the most

effective ways to drive individual donations With 73 of respondents anticipating increases in website

donations it appears that an effort is being made to transition newer methods of fundraising Currently

58 of the Australian respondents report that their organization raises funds online

2011 State of the Nonprofit Industry SurveyAustralia Survey Results

ldquoWebsite donations are also expected to grow as many more nonprofits take their fundraising activities online and work to build this into an integral part of their fundraising strategyrdquo

- Leo Orland Chair of The Fundraising Institute

of Australia

Australia - Expected changes in 2012

Australia - Expected changes in 2011

52

43

85

83

79

77

42

52

14

11

17

20

7

4

1

6

4

3

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

51

38

79

70

62

72

42

57

21

24

33

22

8

4

0

6

6

7

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 17: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 17

2011 State of the Nonprofit Industry Survey

Australia - Expected fundraising contribution changes in 2011

57

3

32

23

55

27

37

63

3

36

43

17

73

27

10

35

14

24

34

35

25

12

15

30

7

17

1

1

5

3

8

3

7

3

15

86

33

63

16

37

20

13

85

46

20

73

10

Direct mail

Door-to-door

Email

Face-to-face

Major donors

Matching gifts

Planned gifts

Recurring giving

SMS texts

Social networking

Special events

TelemarketingPhone-athons

Website donations

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 18: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 18

2011 State of the Nonprofit Industry Survey

Nonprofits in Canada are optimistic

about increasing their total income

versus decreasing or remaining

constant in 2012 Expectations for

the demand of their organizationsrsquo

services are fairly consistent in

2011 and 2012 which could

indicate that respondents feel

the Canadian economy is more

stable The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

nonprofits expect to increase their

fundraising staffing levels they also

plan to hire people for other job

functions as well

The main tactics Canadian nonprofits

are anticipating the largest growth

in fundraising contributions from are

website donations and major donor cultivation

Canadian nonprofits are more likely than most other countries to focus on major giving Only 6 of

respondent report having no one working in a major gifts job role One-on-one solicitation of major

donors is also cited as the most effective fundraising effort at driving individual donations

2011 State of the Nonprofit Industry SurveyCanada Survey Results

ldquoCanadian charities are preparing for a rebound in major giving during this period of relative stability Careful donor stewardship sustained some charities through the recession and may pay off now But charities must remain aware that global economic volatility could change donor perceptions and intentions overnightrdquo

- Janet Gadeski Editor of Canadian Fundraising amp Philanthropy and Hilborn eNEWS

Canada - Expected changes in 2012

Canada - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

42

34

72

72

72

65

52

63

26

23

23

30

5

2

2

5

5

5

36

32

70

61

62

52

53

62

27

29

24

38

11

6

2

10

14

10

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 19: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 19

2011 State of the Nonprofit Industry Survey

62 of Canadian respondents report actively raising funds online A ldquoDonate Nowrdquo button is the most

popular online tool used and is currently being utilized by 84 of Canadian nonprofits Social media is

used by the majority of Canadian respondents but less than half of use social media as a channel to

market their impact

Canada - Expected changes in contributions in 2011

67

12

48

32

7

51

40

23

67

16

37

3

49

24

16

36

24

3

38

35

50

21

17

36

10

30

1

3

5

2

1

1

4

2

6

4

4

4

8

69

11

43

89

9

21

25

6

63

27

84

17

Website donations

TelemarketingPhone-a-thons

Special events

Social networking

SMS (text messaging)

Recurring giving

PlannedgiftsBequests

Matching gifts

Major donor cultivation

Face-to-face fundraising

Email

Door-to-door collections

Direct mail

Increase Stay the same Decrease No revenue from this source

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 20: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 20

2011 State of the Nonprofit Industry Survey

French nonprofits are anticipating

increases in income expenditures

demand for their organizationsrsquo

service and staffing Very few

French respondents expect

decreases in any areas in 2012

They are one of the most optimistic

countries when asked about staffing

levels The percentage expecting

overall staffing increases coincides

with the percentage expecting

fundraising staff growth But while

organizations expect to increase

their fundraising staffing levels they

also plan to hire people for other job

functions as well

Perhaps hiring or assigning staff

to online fundraising is in Francersquos

future

While 57 of the French

respondents expect increase in website donations they are currently one of the least likely countries

surveyed to commit anyone in that role

Without any staff focused on online fundraising itrsquos not a surprise that the majority of French nonprofits

feel that more traditional fundraising methods (direct mail special events and major donors) are the most

effective at driving individual donations

2011 State of the Nonprofit Industry SurveyFrance Survey Results

ldquoThese results are not

that surprising We have

very skilled fundraisers

that execute traditional

fundraising methods

extremely effectively yet

the internet is perceived by

boards as low budget and

seen as something that can

work without management

Fundraisers and

development directors have

a major role to play they

have to develop interactive

amp online strategies and

convince their board

to recruit experienced

emarketing employees

Organisations such as

Association Franccedilaise des

Fundraisers can also play

a role through training

fundraisers in these digital

and mobile technologies

and give them the skills to

present its importance to

the boardrdquo

- Yaeumlle Aferiat Directrice Association Franccedilaise des

Fundraisersd

France - Expected changes in 2012

France - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

47

39

60

76

73

68

45

60

39

12

19

25

8

1

1

12

7

6

41

29

60

65

62

60

48

70

38

20

26

26

10

2

2

15

12

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 21: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 21

2011 State of the Nonprofit Industry Survey

While 47 of French respondents report that their organization raises funds online they are not utilizing

that many tools and tactics On top of not currently employing many of the website tools and tactics

they also have no plan to do many of them either Mobile website peer-to-peer fundraising retail private

social network retail and blogs are the least utilized and least likely to be performed in the future

France - Website tools and tactics usage

40

24

50

57

41

15

13

21

19

49

47

51

10

19

16

23

16

16

18

9

11

18

29

19

49

57

34

20

43

68

69

70

69

33

24

31

Advocacy

Blogs

Event registration

FundraisingDonations (Donate Now)

Member acquisition

Mobile enabled website

Peer-to-peer fundraising

Private social networks

Retail (online)

Search engine optimization

Social networking

Website analytics

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 22: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 22

2011 State of the Nonprofit Industry Survey

Nonprofits in Germany are optimistic

about increasing their income

from charitable donations versus

decreasing or remaining constant

in 2012 There are fewer German

respondents that expect demand

for their organizationrsquos services to

increase in 2012 than in 2011 The

majority of nonprofits in Germany

anticipate staffing levels to remain

constant for 2012

When asked about expected

changes in funding from various

sources for 2011 German

respondents are less optimistic

than other countries surveyed and

expect funding from most sources to

stay the same rather than increase

German nonprofits expected the

largest increase in fundraising

contributions to come from recurring giving

51 of German respondents say they actively raise funds online When compared to the other countries

surveyed the respondents from Germany were more likely to say they are currently using social

networking and the majority (89) feels their organization is effective at social media

While most countries surveyed place high value on measuring and reporting organizational impact

Germany is the exception Less than half of the respondents in Germany strongly or somewhat agree that

2011 State of the Nonprofit Industry SurveyGermany Survey Results

2011 State of the Nonprofit Industry Survey

ldquoFollowing the financial crisis of 2008 and several years of slow economic growth the first half of 2011 began on an optimistic note in Germany Key economic figures were strong and experts predicted a strengthening of important sectors of the economy This positive attitude was clearly shared by German nonprofit organizations The use of social media by German nonprofit organizes has been continually rising for some time now bringing with it a new level of confidence with respect to the implementation and effective usage of social media tools to mobilize communitiesrdquo

- Becky Gilbert Head of Development

European School of Management and Technology

Germany - Expected changes in 2012

Germany - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

31

25

43

57

58

53

61

71

52

31

29

42

8

4

5

12

13

5

44

25

47

56

44

57

48

69

51

25

38

29

9

5

3

19

18

14

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 23: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 23

2011 State of the Nonprofit Industry Survey

their organization regularly uses impact metrics to assess performance Few German nonprofits report

that externally established impact metrics exist

Germany - Tactics and Tools

20

17

29

9

10

13

17

18

20

7

16

44

52

29

41

33

16

10

18

6

15

12

1

10

7

20

7

6

33

65

27

78

55

37

7

40

49

5

30

50

26

17

15

40

80

0 10 20 30 40 50 60 70 80 90 100

Direct mail

Special events

Major donor solicitation

Planned giftsBequests

Online donations

TelemarketingPhone-a-thons

Email

Community fundraising

SMS

Social networking

Face-to-face fundraising

Door- to-door collections

Percentage of Respondents

Very effective Somewhat effective Not effective NA - Donrsquot use

17

24

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 24: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 24

2011 State of the Nonprofit Industry Survey

Nonprofits in Italy are optimistic

about increasing their income

from charitable donations and

total income versus decreasing

or remaining constant in 2012

Unfortunately more Italian

respondents expect decreases

in total income than in total

expenditures Even so a higher

percentage expects increases

in total income than decreases

Expectations for the demand of their

organizationrsquos services are fairly

consistent in 2011 and 2012 which

could indicate that respondents feel

the Italian economy is stabilizing

Special tactics were cited as the

most effective fundraising effort

Italian nonprofits performed to

drive individual donations Only

38 of Italian nonprofits report raising funds online This is the lowest percentage reported when

compared to all other surveyed countries However Italian respondents did report utilizing their

organizationsrsquo websites as the most popular method to drive awareness and show impact

Italian respondents are less likely than many of the other countries surveyed to expend any resources on

major gifts online fundraising or planned gifts Currently nonprofits in Italian are more likely to rely on

volunteers for many of their job functions This may be temporary since more respondents are anticipating

overall staffing levels to increase in 2012 compared to 2011

2011 State of the Nonprofit Industry SurveyItaly Survey Results

Italy - Expected changes in 2012

Italy - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

36

30

63

55

50

55

50

60

28

24

29

33

13

10

8

21

21

11

28

29

63

40

36

50

51

64

27

37

38

34

21

7

10

23

27

16

ldquoThe optimism of Italian nonprofit organizations on fundraising over the next year despite the economic situation is linked to the fact that the market for donations in Italy is below its real potential you just need to think that half of Italians have never made a donation While 63 of respondents expect an increase in funds raised less than half that number (30) are anticipating that their organisation will invest more in fundraising staff This confirms a theory that the reluctance of nonprofit organizations to invest in fundraising is because they dont think it ethical to spend money to raise moneyrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 25: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 25

2011 State of the Nonprofit Industry Survey

Italy - Job roles

13

13

10

18

15

45

22

13

18

4

16

9

23

28

18

27

25

10

33

31

27

11

33

24

3

7

1

8

13

6

9

9

3

2

9

7

14

31

14

24

27

27

22

27

25

14

26

16

4

5

2

5

4

7

4

4

4

3

8

5

42

16

55

17

17

4

11

16

23

66

8

40

0 10 20 30 40 50 60 70 80 90 100

Major Gifts

Prospect Research

Planned GiftsBequests

Online Marketing

Marketing

Accounting

Grant Writing

Direct Mail

Stewardship

Telemarketing

Special Events

Online Fundraising

Percentage of Respondents

Full-time position Part of someones job Part-time position Volunteer position Outsourced NA

ldquoWe have to change the mind set and define a new paradigm where we reward those who get results and not those who spend less Its only in this way that nonprofit organisations will be able to optimise their fundraising capacityrdquo

- Valerio Melandri Professor

University of Bologna

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 26: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 26

2011 State of the Nonprofit Industry Survey

The majority of nonprofits in the

Netherlands anticipate staffing

levels to remain constant in 2012

For all surveyed countries except

the Netherlands the percentage

expecting fundraising staffing

to increase was higher in 2012

than 2011 Respondents from

the Netherlands are optimistic

about increasing their income

from charitable donations and

total income versus decreasing or

remaining constant in 2012 More

Dutch nonprofits anticipate an

increase in total expenditures than

in total income for 2011 however

this is not the case in 2012 Very few

respondents from the Netherlands

feel that demand for their services

will decrease

While only 45 of nonprofits in the Netherlands raise funds online they are active in their website tools

and tactics When compared to the other countries surveyed the respondents from the Netherlands

were more likely to say they are currently using social networkingmedia blogs retail and member

acquisitionmanagement

2011 State of the Nonprofit Industry SurveyNetherlands Survey Results

ldquoThe social networking market in the Netherlands is really quite unique and full of interesting storylines It is one of the few markets remaining where a local social networking player [Hyves] continues to lead Facebook but that lead is becoming increasingly tenuous Another interesting facet to this market is that the Netherlands has the highest Internet penetration worldwide for two of the other key global social networking sites Twitter and Linkedin The Netherlands is in many ways a nexus of global social networking behaviorrdquo

- Mike Read Senior Vice President and

Managing Director comScore Europe

Netherlands - Expected changes in 2012

Netherlands - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

20

28

53

62

65

52

64

70

46

18

30

34

16

2

2

20

5

13

39

30

57

53

56

46

46

70

38

25

37

36

15

5

22

7

18

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 27: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 27

2011 State of the Nonprofit Industry Survey

Not only are many nonprofits using social networking compared to the other countries surveyed

respondents from the Netherlands are very comfortable using social networkingmedia 83 report that

their organization is effective at utilizing social networking

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 28: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 28

2011 State of the Nonprofit Industry Survey

Nonprofits in New Zealand expect

demand of their organizationsrsquo

services to be fairly consistent in

2011 and 2012 which could indicate

that respondents feel the economy

is more stable Itrsquos worrisome that

more respondents expect an increase

in total expenditures than in total

income for both 2011 and 2012

This does not necessarily mean

that expenditures are going to be

more than their income but there

is concern about the increase in

expenditures While nonprofits expect

to increase their fundraising staffing

levels they also plan to hire people

for other job functions as well

More than half of the organizations

(53) surveyed in New Zealand

report raising funds online Only 13 of the respondents from New Zealand claim to receive no

funding from website donations Events are the most popular tactic used to drive online donations Itrsquos

not surprising that many nonprofits in New Zealand also report that their organization is effective at

performing events

2011 State of the Nonprofit Industry SurveyNew Zealand Survey Results

ldquoEvent-based fundraising is still very much a key piece of the fundraising pie in New Zealand While over half of the organisations surveyed raise funds online traditional fundraising methods are very much still key Itrsquos not surprising therefore that many organisations report that they are very effective at running events for fundraising purposesrdquo

- James Austin Chief Executive Officer

FINZ - Fundraising Institute of New Zealand

Continued hellip

New Zealand - Expected changes in 2012

New Zealand - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

38

29

75

60

48

66

50

64

24

21

35

24

12

7

1

19

17

10

33

19

76

43

39

55

45

71

21

32

30

34

22

11

2

25

31

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 29: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 29

2011 State of the Nonprofit Industry Survey

New Zealand - Tools and tactics used to drive online donations

33

64

73

14

60

78

45

73

75

61

36

33

13

15

25

29

15

43

17

10

19

22

33

23

12

61

11

7

13

10

15

19

42

Other

Television or radio promotions

Social networking

SMS texts

Search engine optimisation

Events

Email to potential new donors

Email to current donors

Direct mail promotions

Community fundraising

Banner advertisementPay-per-click

Yes No but plan to No and do not plan to

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 30: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 30

2011 State of the Nonprofit Industry Survey

Respondents in the UK are more

conservative with their estimates

about their general operations than

respondents from other countries

While many of the other countries

foresee increases in 2012 UK

respondents donrsquot anticipate much

to change in 2012 compared to

2011 Organizations in the UK are

more likely than in other countries to

expect decreases in staffing levels

even so a higher percentage expects

increases than decreases For 2011

more UK nonprofits anticipate an

increase in total expenditures than in

total income

Based on last yearrsquos study there is

little growth in the number of UK

nonprofits that raise funds online

(50 in 2010 and 51 in 2012) Currently the UK reports the lowest number of mobile enabled

websites compared with the other countries but more than half of the UK respondents plan to have

them in place in the future

Social networking is cited by many respondents in all countries as a website tool they use While less

than half of UK nonprofits report using social media as a channel to market their impact 81 report

using social networking to drive donations That is a larger percentage than many of the other countries

are reporting

2011 State of the Nonprofit Industry SurveyUK Survey Results

ldquoThis research is a welcome addition and will help aid our understanding of what is happening in the UK voluntary sector Of particular concern is the 72 of respondents who expect an increased demand for their organisations services at the same time as nearly half reported that their organisations income will either stay the same or decrease The issue of doing more with less is a real worry for the voluntary sector at the current timerdquo

- Jenny Clark Research Manager

NCVO

UK - Expected changes in 2012

UK - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

30

30

70

47

47

49

40

60

24

23

29

29

30

10

6

30

23

23

29

29

72

54

51

53

46

63

21

23

31

28

24

9

6

23

18

19

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 31: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 31

2011 State of the Nonprofit Industry Survey

61

67

47

49

52

81

74

71

74

28

25

29

28

23

10

11

20

17

11

7

24

23

25

8

15

9

8

0 20 40 60 80 100

Australia

Canada

France

Germany

Italy

Netherlands

New Zealand

UK

US

Percentage of Respondents

Yes No but plan to No and do not plan to

Using social networking to drive online donations

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 32: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 32

2011 State of the Nonprofit Industry Survey

The majority of respondents in the

in the USA nonprofit sector are

anticipating to do more without

significant increases to staffing

levels The majority of respondents

expect staffing levels to stay the

same while at the same time predict

an increase in demand for their

organizationrsquos services income

expenditures and donations While

itis encouraging to see that few

respondents feel there will be

decreases in staffing level current

staffers will be expected to take on

more responsibilities With the

exception of accounting USA

respondents report that the

majority of job functions are part of

someonersquos job instead of their full

time focus

Effective fundraising is vital to a nonprofitrsquos success while they are relying on the same resources to do

more One-on-one solicitation of major donors is cited as the most effective fundraising effort at driving

individual donations It is no surprise that major donor cultivation is also a fundraising tactic that many

respondents expect to see help increase their contributions this year compared to last year

While online donations are not seen as the most effective fundraising effort respondents are expecting

increases in fundraising contributions from this source in 2011 67 of USA respondents currently raise

funds online A ldquoDonate Nowrdquo button is the most popular online tool used followed by social networking

2011 State of the Nonprofit Industry SurveyUSA Survey Results

ldquoOnline giving has become an essential part of a nonprofitrsquos fundraising strategy clearly in the US and around the world Not only because of the tremendous growth rates and higher average gift amounts but also because it allows nonprofits to reach a broader set of supportersrdquo

- Steve MacLaughlin Director of Internet Solutions

Blackbaud

USA - Expected changes in 2012

USA - Expected changes in 2011

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

Total income

Income from charitable donations

Total expenditures

Increase Stay the same Decrease

Overall stafng level

Fundraising stafng level

Demand for your services

29

24

69

53

54

52

55

68

28

28

29

32

16

8

3

19

17

16

36

27

73

64

65

60

51

67

24

24

27

29

13

5

2

12

9

11

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners

Page 33: 2011 State of the Nonprofit Industry Survey...2011 State of the Nonprofit Industry Survey Nonprofits are looking to individuals as their main source of growth and are also optimistic

copy October 2011 | 2000 Daniel Island Drive Charleston SC 29492 T 8004439441 E solutionsblackbaudcom W wwwblackbaudcom 33

2011 State of the Nonprofit Industry Survey

USA - How effective are the following fundraising efforts at driving individual donations

26

84

33

5

62

69

88

38

62

4

82

52

7

6

32

7

17

21

4

3

16

3

7

7

67

11

36

88

21

10

8

59

23

92

11

41

TelemarketingPhone-a-thons

Specia l events

Socia l Networking

SMS texts

Planned gi fts

Onl ine donations

Major donors

Face-to-face

Emai l

Door-to-door

Direct mai l

Community fundrais ing

Very-somewhat effective Not effective Dont use

copy October 2011 Blackbaud Inc

This white paper is for informational

purposes only Blackbaud makes no

warranties expressed or implied

in this summary The information

contained in this document

represents the current view of

Blackbaud Inc on the items

discussed as of the date of this

publication

All Blackbaud product names

appearing herein are trademarks or

registered trademarks of Blackbaud

Inc The names of actual companies

and products mentioned herein

may be the trademarks of their

respective owners