Online Fundraising: Slow To Develop

yoav@negevdirect.com 07/06/2009 "Need to Know" for Jewish non-profits, web 2.0
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Thanks to eJewish Phialanthropy and our old friend and direct mail maven Chuck Pruitt for this interesting set of factoids on the “Email vs Snail Mail” debate.
Fact: The growth of online fundraising is happening but it is happening much more slowly than many predicted.

Evidence: According to the Chronicle of Philanthropy’s survey, online fundraising accounts for about 2% of the $306 billion raised by nonprofit organizations. For funds raised via direct mail, all agree that the direct mail channel accounts for at least 15 times and perhaps as much as 25 times more than the online channel.

According to the Chronicle, online gifts grew by a median of 28 % from 2007 to 2008 – a slower growth rate than the previous two years. Not all organizations are growing at the same pace. For 101 groups in the survey, online giving accounted for less than 1% of donations.

In short, the evidence shows that we are still a long way from online fundraising supplanting other forms of fundraising for nonprofit organizations. Fortunately, there are significant opportunities out there for smart fundraisers to exploit in the years ahead.

The conclusion: direct mail is not headed for the exit. At least not in the near future.
David

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