Online Giving Still Fastest Growing Fundraising Channel with Almost 16 Percent Increase in 2011; Mirrors Retail E-Commerce Gr...
April 03 2012 - 6:00AM
Business Wire
Americans and Canadians like to engage nonprofits online. The
Convio Online Marketing Nonprofit Benchmark Index™ Study shows that
online engagement continues to rise in importance for nonprofit
organizations, with 2011 data highlighting that online fundraising
jumped at a 15.8 percent median growth, with 73.4 percent of all
organizations raising more money than they did in 2010.
Small organizations, those with files containing 10,000 or fewer
email addresses, experienced even stronger momentum with the median
online giving growth rate measuring in at 26.7 percent. Hospitals
and food banks also significantly outpaced the median rate at 45.1
percent and 24.2 percent, respectively. Other growth areas are
online legislative advocates at 17 percent, email files at 17
percent and web traffic at 11 percent. The full study is available
at http://www.convio.com/2012benchmark.
“At a macro-level, online engagement is continuing to grow at a
healthy clip. In fact, the past six years of data illustrates that
online fundraising is mirroring the growth rate of retail
e-commerce, which is good news for nonprofits,” said Vinay Bhagat,
founder and chief strategy officer for Convio. “I am particularly
encouraged to see strong acceleration in monthly giving – a new
metric we added to the study this year – as it points to donors
being more financially secure in support of a rebounding
economy.”
The Convio Online Marketing Nonprofit Benchmark Index Study is
designed to help nonprofit professionals evaluate beneficial
marketing metrics, evaluate the effectiveness of their organization
compared to similar organizations and determine strategies for
future success. Areas of focus are website traffic and
registration, email file health, online revenue and advocacy.
Key Findings of the Study Include:
- Online fundraising continues to grow
robustly: The median online revenue growth rate in 2011 was
15.8 percent, compared to 20 percent in 2010. The primary drags in
growth are attributed to the reduction in funds raised by the
Disaster & International Relief segment after a very strong
response to Haiti in 2010, and a slowing in the pace of special
event fundraising.
- Online represents a strong donor
acquisition channel: First time online gifts represented 37
percent of total median online revenue.
- Online giving continues to grow
fastest for small organizations: Organizations with 10,000 or
fewer email addresses grew median revenue by 26.7 percent, compared
to those with email files greater than 250,000 that grew at only
half that rate.
- Sustainer (monthly giving) programs
are growing very strongly: The median growth in online revenue
from sustainer programs was 38.7 percent. Sustainer programs
represented 6.9 percent of total online giving and 18.8 percent of
all online gifts. Verticals with significant recurring giving
programs include Association & Membership, Canadian
Organization, Food Bank and Public Broadcasting Stations.
- Advocacy continues to play key role
in online engagement: Online legislative advocate counts grew a
median of 17 percent. Advocates represented 12 percent of total
email files.
- Cross-over between fundraising and
advocacy is increasing: The median number of online donors also
advocating grew 14.6 percent. Advocates that donate online
increased by 24.6 percent, a nearly fourfold increase from
2010.
Canada
For the first time, Canadian nonprofits are included in the
study. Canadian organizations experienced tremendous growth in
online engagement, including a 77 percent increase in online
advocates and a 7.4 percent median increase in average monthly
gift. Future studies will continue to track Canadian organizations
to provide the most complete picture of online engagement in North
America.
Vertical Sectors
The study also looks at 19 different nonprofit sectors. The
verticals are: Animal Welfare; Association & Membership;
Canadian Organizations; Christian Ministries; Disaster &
International Relief; Disease & Health Services; Environment
& Wildlife; Food Bank; Higher Education; Hospital Foundation
& Medical Research; Hospitals; Human & Social Services;
Jewish; National Nonprofit Mailer; Performing Arts & Libraries;
Public Affairs; Public Broadcasting Stations; Team Event; and
Visitation.
Food Bank, Human & Social Services, Hospitals and Higher
Education experienced the greatest growth in a few different
categories, while Animal Welfare, Disaster & International
Relief, and Performing Arts & Libraries experienced declines in
some categories.
Online Fundraising and Retail E-Commerce
For the last six years, since 2006, online fundraising growth
rates have mirrored the growth rates in retail e-commerce:
Online Fundraising Growth Rates
Retail E-Commerce Growth
Rates(based on data from eMarketer)
2006 – 27 percent 2006 – 23.5 percent
2007 – 26 percent 2007 – 20.8 percent
2008 – 14 percent 2008 – 18.6 percent
2009 – 14 percent 2009 – 17.2 percent
2010 – 20 percent 2010 – 16.0 percent
2011 – 16 percent 2011 – 15.0 percent
Additional Media
- Video interview with Vinay Bhagat
- Infographic
Methodology
This year’s study analyzes data compiled from more than 700
nonprofit organizations in the U.S. and Canada that have at least
24 months of online usage data, and who collectively raised more
than $1.22 billion online in 2011. The study aggregates results
into benchmarks that nonprofit organizations can compare against
their peer group and the industry as a whole. In addition the study
provides separate benchmarks for 19 nonprofit industry sub-groups,
or verticals.
About Convio
Convio is a leading provider of on-demand constituent engagement
solutions that enable nonprofit organizations to maximize the value
of every relationship. With Convio constituent engagement
solutions, nonprofits can more effectively raise funds, advocate
for change and cultivate relationships with donors, activists,
volunteers, event participants, alumni and other constituents.
Convio offers two open, cloud-based constituent engagement
solutions: Convio Common Ground® for small- and mid-sized
nonprofits and Convio Luminate™ for enterprise nonprofits.
Headquartered in Austin, Texas with offices across the United
States and United Kingdom, Convio serves more than 1,600 nonprofit
organizations globally. Convio is listed on the NASDAQ Global
Market under the symbol CNVO.
Forward-looking Statements
This press release may contain forward-looking statements
intended to convey expectations as to the future based on plans,
estimates and projections. Although we believe that the
expectations reflected in such forward-looking statements are
reasonable, future circumstances might differ from the assumptions
on which such statements are based. In addition, these statements
can be affected by inaccurate assumptions and the impact of a
variety of risks and uncertainties that could cause actual results
to differ materially from those described in this press release
including, among others: unfavorable economic and business
conditions, in particular with respect to the nonprofit market in
which we operate; challenges and risks relating to attracting and
retaining customers; a loss of significant customers or a
substantial reduction in orders from our existing customers; a
reduction in usage of our systems by our customers or their clients
and a corresponding reduction in usage revenue; an inability of
customers to pay for our solutions and services; risks related to
challenges associated with developing new and enhanced solutions
that meet the needs of our clients; risks related to technological
changes or alternative technologies that could make our products
and services less competitive; risks associated with successful
implementation of multiple integrated software products; risks
associated with acquisitions and their integration; and the ability
to attract and retain key personnel. Other risks that could impact
our business adversely are those risks generally associated with
management of growth; lengthy sales and implementation cycles;
intellectual property infringement claims and other litigation;
reliance on certain third-parties, including hosting facilities,
software and application providers; the ability to access
sufficient funding to finance desired growth and operations; and
legislative actions which could reduce the effectiveness of our
solutions and increase the costs of our business. These factors and
other risks and uncertainties are described in more detail, from
time to time, in Convio’s filings with the Securities and Exchange
Commission which are available free of charge at www.sec.gov or on
our website at www.convio.com/investor. Should one or more of these
risks materialize, or should underlying assumptions prove
incorrect, actual results may vary materially from those expressed
or implied in any forward-looking statements. Investors are
cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof. Convio does not
undertake to update or revise any of these statements as a result
of new information, future events or otherwise.
For more information: www.convio.com
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