The State of the Nonprofit Industry (SONI) Survey

Two weeks ago, I had the good fortune of attending the "Better Together" Conference sponsored by Blackbaud.  There were over 2,200 people at the conference.  During the conference I attended a press event in which a few results of The State of the Nonprofit Industry Survey were reviewed.  I found it interesting that such a broad survey could be conducted (worldwide) and that there could be found "global" trends in nonprofit management.  Given the cultural and social differences between us, the nonprofit community is unique as a unifier worldwide!  And, we all face similar challenges when it comes to accomplishing our mission.  Bunnie

The State of the Nonprofit Industry Survey

from a Press Release by Melanie Mathos, Public Relations Manager, Blackbaud

Blackbaud, Inc. (Nasdaq: BLKB) today announced the release of the results from The State of the Nonprofit Industry (SONI) Survey, a global report covering general operations, fundraising, technology and Internet usage, and accountability and stewardship. Responses were received from 2,383 individuals in Australia, Canada, France, Germany, Italy, India, the Netherlands, New Zealand, the United Kingdom, and the United States. The survey was conducted in partnership with L’Association Française des Fundraisers, the Fundraising Institute of New Zealand (FINZ), the German Fundraising Association, Philanthropy Centro Studi, and the Resource Alliance.


“There is an increasing interest in the nonprofit sector in improving governance, planning, and fundraising, and investing in training and equipment to enhance organizational performance,” said Amy Comer, Blackbaud’s director of market research. “Blackbaud has conducted the State of the Nonprofit Industry Survey for six years to provide an overview of trends that can help nonprofits assess their operations and compare their performance with other organizations.”

Four global trends that emerged from the data include:

1. New fundraising and communication channels, although growing, are not replacing traditional channels.

Most organizations continue to leverage traditional channels, even while they are increasingly using new interactive channels. This use of new channels is placing a tremendous strain on organizations because revenue has not risen significantly in aggregate and yet costs for each communication channel have risen. This situation creates a demand for more integrated communication tools and database platforms.

2. ROI and organizational effectiveness are under scrutiny and more important than ever.

Baby boomers, which have entered their prime giving years in the United States, are not as trusting of government and institutions to solve problems and want to see greater evidence. However, this trend is clearly not just a United States phenomenon. Donors worldwide want to see evidence that their money is being spent well and that nonprofits are being run as efficiently as possible.

3. There is a new focus on the total supporter journey vs. traditional “donor management.”

In light of an increased focus on donor retention coupled with increasing costs for acquisition, constituent relationship management (CRM) is transitioning from transactional fundraising to a relationship-focused supporter journey. To have a constituent-centric focus, nonprofits need to consolidate data on supporters and eliminate silos so everyone in the organization has the same view of the many ways supporters interact with their organization. Technology is essential for helping them track the supporter journey, from service recipient to volunteer to event participant to donor.

4. Fundraising is emerging as a widely-recognized profession around the globe.

The vast majority of nonprofits around the world are expecting to increase their investment in fundraising staff, according to the SONI survey. It is clear that fundraising is no longer someone’s “part-time” responsibility. Techniques and data are becoming more complex, and the rate of change is increasing. What was once mostly art is rapidly becoming science, requiring new tools and techniques, partnerships, and better skilled staff.

To download the complete report, which includes an in-depth look at general operations, fundraising, technology and Internet usage, and accountability and stewardship around the globe, visit State of the Nonprofit Industry Survey
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 24,000 organizations — including University of Arizona Foundation, American Red Cross, Cancer Research UK, The Taft School, Lincoln Center, Tulsa Community Foundation, Ursinus College, Earthjustice, International Fund for Animal Welfare, and the WGBH Educational Foundation — 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, Blackbaud’s 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, the Netherlands, and the United Kingdom. For more information, visit www.blackbaud.com.

Independent Fundraising Events Bring Big Returns for Nonprofits

Everyone is scrambling for money these days.  Traditional fundraising is being challenged as more organizations have to become creative and perhaps try new things.  Blackbaud and Event 360 have completed a study on Independent Fundraising Events that you can download from their website.  There is also a February 3rd FREE seminar they are conducting that you might find interesting.  If you click on the title of this announcement above, it will take you straight to the whitepaper.  I hope this helps!  Bunnie

Independent Fundraising Events Bring Big Returns for Nonprofits:  Special Study from Blackbaud and Event 360.

(Online registrations, donations and fundraising per participant increasing in Blackbaud
and Event 360 analysis of 30,000 donors and 4,000 individual fundraisers)


In a time when overall fundraising is on the decline, independent fundraising events are raising more money and growing in participation and donors, according to a recent Blackbaud, Inc., (Nasdaq: BLKB) and Event 360, Inc. study. Independent fundraising events (IFE) are activities designed and run by volunteers to raise money on behalf of a specific nonprofit organization.

Blackbaud partnered with Event 360 on a research project to better understand the common denominators of a successful programmatic approach to third-party fundraising. The research team analyzed data from nearly 30,000 donors and 4,000 individual fundraisers who organized or participated in independent fundraising events on behalf of leading nonprofits including Alzheimer’s Association, Autism Speaks, Canadian Cancer Society’s BC and Yukon Division, Christopher and Dana Reeve Foundation, Lance Armstrong Foundation, and The Michael J. Fox Foundation for Parkinson’s Research.

The analysis showed that online registrations, donations and fundraising per participant are increasing, and that IFEs represent a growing revenue source, especially online, for many organizations. Based on a Blackbaud assessment, there was an estimated $300 million raised in 2008 in the United States from these types of events, indicating that organizations should find better ways to cultivate these fundraisers and provide the solutions they need to succeed.

Mark Davis, Blackbaud’s director of technical solutions, and co-author of the study said that these trends support the need for a strong online user experience and justify the investment in sophisticated online tools, communications, and reporting.

“Typically, nonprofit organizations do not have the resources to hold events in every community or to invest in mass advertising and marketing efforts,” he said. “Through these IFEs, the organizational mission and message can be brought to communities across the nation. By offering an IFE program, an organization can build stronger, more loyal supporters, acknowledge their personal struggle, and honor supporters’ desire to act in impactful ways that match their passion with a nonprofit’s mission.”

In 2008, The Lance Armstrong Foundation supported 1,078 grassroots fundraisers in raising over $3.8 million with almost no cost to the organization. The average independent fundraiser raised more than $3,200 compared to the average $500 raised by participants in the organization’s signature fundraiser, the LIVESTRONG Challenge.

“Despite today’s difficult economic climate,” says Colleen R. Wilson, events fundraising manager for the Lance Armstrong Foundation, “we expect 2009 revenue totals in grassroots fundraising to outpace the 2008 total of $3.8 million at essentially zero cost to the organization.”

According to Meghan Dankovich, Event 360’s director of consulting and co-author of the study, the most successful IFE programs were found in organizations that embrace their “super volunteers.” “Traditional event organizers need to view independent fundraising as supplementary, not competitive, to their existing development portfolio,” she said. “In fact, 64 percent of the IFE participants we surveyed reported that they were first-time fundraisers for the organization. Most are directly impacted by the cause they support and are looking to take action in a more personal way than is available through the organization’s traditional event offerings.”

The Michael J. Fox Foundation embraces its super volunteers by encouraging its supporters to find unique and creative ways to raise funds for Parkinson’s research. Team Fox provides guidance, tools, and resources for the thousands of individual fundraisers who are walking, running, blogging, jogging, paddling, pedaling, eating, drinking, shopping and dancing to raise funds and awareness for Parkinson’s research.

One particular super volunteer is Mary Anne O. of Illinois. First diagnosed in 2001 with early onset of Parkinson’s, she heard Michael J. Fox speak at a conference in 2006. His speech energized her to become a supporter for the cause. She combined her passion of gardening with an idea for a Garden Walk. Her success has grown from raising $25,000 in 2007 to over $52,000 in 2009 with help from a team of 25 volunteers.

Additional key findings from the study include:

• An IFE program offers a nonprofit the opportunity to raise money at a relatively low cost of fundraising, while providing a deeper level of engagement with the organization’s strongest supporters. The cost of fundraising for these programs was recorded between $0.10 and $0.15 per dollar raised – lower than any traditional fundraising methodology in a nonprofit’s development portfolio.

• Independent fundraisers are able to reach donors otherwise unattainable by the organization through their personal social networks.

• These “super volunteers” also spread awareness beyond the reach of the organization through these activities.

• With online activity increasing as a whole, managing an IFE program primarily via a website with online tools is feasible, effective, and significantly reduces the cost of operation.

• Because “the ask” is very personal from this type of supporter, it is also a more dependable source of income in tough economic times.

• An IFE program offers a nonprofit’s target audience a very personal form of involvement at an emotional level, where the passion of their fundraising typically raises more than the traditional fundraising event participant.

Visit http://www.blackbaud.com/IFE or http://www.event360.com/resources to download the entire study and to register for the February 3 web seminar, “Raising More Money Online from Independent Fundraising Events.” In addition, Cause Minded, will feature Mark Davis and Colleen Wilson in a February 23 webisode discussing managing and supporting third-party events. For more information, visit http://www.causemindedonline.com/, or register here.

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 22,000 organizations — including University of Arizona Foundation, American Red Cross, Cancer Research UK, The Taft School, Lincoln Center, In Touch Ministries, Tulsa Community Foundation, Ursinus College, Earthjustice, International Fund for Animal Welfare, and the WGBH Educational Foundation — 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, Blackbaud’s 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, the Netherlands, and the United Kingdom. For more information, visit http://www.blackbaud.com/.


About Event 360


Event 360 is a event fundraising company helping nonprofits create powerful experiences that inspire record levels of interest, giving and loyalty. This strategy builds on over seven years of experience in event fundraising and production, strategic consulting, and technology services that have helped nonprofits raise over $500 million. Visit http://www.event360.com/ to learn how Event 360 can help your organization connect more donors with your cause.

You can contact Melanie Mathos at 843.216.6200 x3307 or melanie.mathos@blackbaud.com

Ideas That Work--Donor Relations

When it comes to fundraising, there are two schools of thought. One, just throw enough spaghetti at the wall, something will stick. Two, be precise and work smart. Lawrence Henze lays out the second (and more effective) approach. Read his article and then take a few minutes to take inventory, are you spaghetti or are you working smart? Bunnie

Ideas That Work--Donor Relations

by Lawrence Henze
Managing Director of Target Analytics
Blackbaud

Regardless of the state of the economy, I find that the majority of colleges, universities, and nonprofit organizations I interact with do not have an accurate reading on the number of communications initiated by them with each of their constituency groups in any given year. Are you able to answer that question, not just for areas of your own responsibility, but for the institution as a whole? Is it not reasonable to assume that the relationship any individual has with the organization is impacted by the entirety of the messaging he or she receives?

There are many historical reasons that explain why we don’t look at the length and breadth of our donor communications. These include but are not limited to:

1. A narrow view of donor relations focusing on communications directly related to fundraising efforts

2. A siloed approach to the structure of our development operations which encourages compartmentalized communication plans

3. The willingness to not account for, or even seek, the donor’s opinions of all of our communication streams

I am frequently bombarded by three, four, or five direct mail contacts per month from organizations I support with my gifts, particularly during peak fundraising months, such as October or November. I wonder if anyone in that organization is aware of that number, or is interested in knowing what I think of the frequency of these contacts?

My thoughts rest on simple solutions the organization could employ:

1. Determine and chart the average number of contacts — direct mail, telephone, and email — the different constituents receive from your organization each month for the entire year. Move outside your own area of operations to view the entirety of its communications stream from your organization as a whole

2. Analyze the content and purposes of each communication and chart accordingly (for example, cultivation, solicitation, information, or recognition)

3. Identify areas in which these communications overlap, looking for opportunities to consolidate or eliminate individual pieces

4. Ask your donors, through surveys via email, direct mail, or the telephone, which communications they value, as well as those that are not personally important to them

5. Implement a communication plan reflecting the donor’s wishes

Remember that knowledge is both powerful and enabling, and the insights your donors and prospect share with you create opportunities for stronger relationships. Do not assume that an individual’s request to receive fewer communications is a sign of declining interest in your organization. It is equally, if not more, likely to be a thoughtful response indicating the elements of your mission that are of particular interest, thus defining that person as a better prospect. In the end, fewer touch points may create a more meaningful relationship, particularly if you communicate your interest in being more cost effective.

Finally, special events often serve a dual purpose of building donor relationships and ongoing fundraising. During a recession, you may want to think twice about introducing new special events, particularly those of the “gala” genre. And take a look at ongoing events as well to ensure that these activities are successfully addressing stated goals. For example, if the primary purposes of your annual ‘Harvest Ball’ are to cultivate and solicit major donor prospects, and if you observe little post-event staff interaction with attendees, it may be time for a makeover.

In all honesty, my personal and professional bias is that most events lose focus over time. Recession or not, it is a worthwhile undertaking to annually review each event to ensure that its original goals and objectives are being met. Are you seeing growth in annual and major giving from event attendees, or doesn’t their giving match the event fee?

Perhaps this is a topic worthy of its own paper for another time.

Find Blackbaud at http://www.blackbaud.com