Digital Giving Index 2011

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The Network for Good

Digital Giving Index 2011

Insights and Trends on Charitable Engagement


© 2012 Network for Good

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Network for Good, the Internet’s leading nonprofit giving platform,
About the Index has a unique perspective on the experience and behaviors of
charitable giving across several distinct channels including: individual
charity websites, charity portals and social giving (peer-to-peer)
websites and applications. Network for Good created this Digital
Giving Index with insights and trends to inform charitable
engagement for nonprofits seeking to strengthen relationships with
donors and corporate partners seeking to integrate giving in online
consumer or employee initiatives.

This update to the Network for Good Digital Giving Index includes
trends and analysis on $138 million in donations to more than 40,000
charities through the Network for Good platform in 2011. This
includes donations to Network for Good’s nonprofit customers
through their own websites and to other nonprofits through more than
25 corporate partner websites and Network for Good’s giving portals
at www.NetworkforGood.org and www.SixDegrees.org.

Quarterly updates to this Index are available at


www.onlinegivingstudy.org/quarterlyindex.
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© 2012 Network for Good | 1
Charity Websites. Many charities use Network for Good as the giving
engine behind their websites. There are two types of charity website giving Definitions
experiences:

1)  A charity website with a generic giving page that does not
visually match the charity’s website but goes to a Network for
Good-branded multi-step checkout process featuring the charity’s
name and address.

2)  A charity website with a branded giving page that is integrated


with the charity’s own website. Other than the NetworkForGood.org
URL, it is not evident that the donor has left the charity’s website to
make a gift.

Portal Giving. Network for Good powers giving portals, where donors can
search and support any charity registered with the IRS. These include
NetworkforGood.org, GuideStar, Charity Navigator and the Capital One®
No Hassle Giving Site, among others.

Social Giving. Network for Good powers social networks for social good,
where donors can give to many charities and, in many cases, fundraise
among their friends and family. Such sites include Causes.com, Crowdrise
and SixDegrees.org, among others.
Note on Data: All growth rates, average donation amounts,
and breakdowns by channel are calculated based on a
Portals and social networks provide compelling platforms for cause consistent sample of partners and nonprofit customers year
over year.
marketing campaigns that engage consumers or employees to do good,
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including corporate responses to humanitarian disasters. © 2012 Network for Good | 2
Online Giving increased across all channels in 2011, in keeping
with overall migration of individual giving toward online and other
Online Giving Up Across All Channels for 2011
digital channels.

Charity Websites saw year over year donation growth across


Donation Dollar ($) Index 2011 vs. 2010
EXCLUDES DISASTER RELIEF DONATIONS both generic and branded donation pages by 5% and 11%
respectively. Similar to 2010 results, charity websites with a
Overall Giving 17% branded donation page received more donations and at higher

Charity Websites (Generic) 5% average values than those with a generic donation page.

Charity Websites (Branded) 11%


Portal Giving grew 9% year over year excluding disaster relief
Portal Giving 9% donations. Factoring in disaster donations, portal giving grew
15%. Disaster giving for Japan tsunami relief in March 2011
Social Giving 29%
accounted for a quarter of total 2011 portal giving. Japan relief
Source: Network for
Good giving resulted in a 50% increase in donation dollars versus Haiti
earthquake relief in January 2010. December giving accounted
for almost half of total 2011 portal giving, an increase of 2% over
2010 (reference page 10).

Social Giving increased year over year by 29%, consistent with


the trend of peer-to-peer giving opportunities becoming more
mainstream on social networks. Additionally, many nonprofits
are embracing social media as a way to cultivate supporters.
Social giving is driven by giving events (such as giving
challenges and cause marketing campaigns) that rally vast
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networks to drive donations and by personal fundraising
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campaigns in which individuals ask friends and ©family to support
2012 Network for Good | 3
-
Key Trends in Giving 2011
Breakdown of Donation Dollars 2011 vs. 2010

Most charitable giving through the Network for Good platform is via charity websites, followed by portals and social networks. Giving through
charity websites consistently makes up over 60% of all donations. Historically, giving via portals outpaced giving via social networks, but the gap is
narrowing as peer-to-peer giving gains in popularity. Portal giving is particularly relevant during humanitarian disasters and at the end of the year,
when donors look for a convenient way to support one or more charities in one place. Social giving is marked by bursts of donation activity driven
by campaigns and fundraisers .-

2011 2010
Other
2% Social
Social
Giving
Giving
15% 15%
Portal
Portal Giving
Giving Charity 17%
17% Websites Charity
65% Websites
67%

Source: Network for Source: Network for


Good Good
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© 2012 Network for Good | 4
Key Trends in Giving 2011
Growth in Donations through Network for Good

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$625M
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Source: Network for
Good

Network for Good processed 1.6 million donations in 2011, resulting in $138 million in funds for more than
40,000 charities of all types and sizes – that includes everything from the American Red Cross to a local animal
shelter or neighborhood PTA. The value of 2011 indexed donations grew 17% year over year, excluding one-time
donation events like the Japan tsunami response. In just over 10 years of operation, Network for Good has
processed more than $625 million in funds for more than 83,000 charities.
-

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© 2012 Network for Good | 5
Key Trends in Giving 2011
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Annual Average Gift Size By Channel
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Source: Network for
Good

Charity Websites: Dollars donated through charity websites Portal Giving: In 2011, a large Social Giving: In 2011, social giving
increased 10% over 2010 and accounted for more than half (65%) number of donors gave to charity made up 15% of all donations
of all donations through Network for Good in 2011. Donation online, especially in response to the through Network for Good, up from
dollars through websites with custom donation pages saw the most tsunami in Japan and at the end of 10% in 2009 and virtually 0% prior to
growth year over year (11% increase in funds compared to only 5% the year. The average gift on portal 2008. Social fundraising efforts may
for charities with generic donation pages). When a charity has sites tends to be higher than those on result in lower average gifts (around
created a branded donation experience that reinforces its connection social networks, but not quite as high as $50), but sites like Causes .com and
to its supporters, the results speak for themselves: higher average those on a branded giving page directly Crowdrise give individuals a way to
gifts that grow over time. In 2011, Network for Good saw a 4% through a charity website – that’s where connect their social networks to their
increase in average gift size for charities with a branded donation the relationship is strongest. The favorite causes and provide resources
page, versus a 2% increase for those with a generic donate page. average gift size for portal donations that charities wouldn’t have achieved
Further, an average charity with a branded donation page received 5 increased by 23% in 2011 versus the otherwise through their normal
times more donations and raised an average of almost $15,000 more year prior. supporter cultivation activities. The
than an average charity with a generic donate page raised in 2011. average gift size on peer-to-peer and
-
The impact of a branded donation page can increase to 6 or 7 times social platforms increased 27% in 2011
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during year-end peak fundraising season. versus 2010.
© 2012 Network for Good | 6
Online Giving increased across all channels in Q4 2011, in
Online Giving Up Across All Channels for Q4 2011 keeping with overall migration of individual giving toward
online and other digital channels.

Donation Dollar ($) Index Q4 2011 vs. Q4 2010 Charity Websites saw year over year Q4 donation growth
across generic and branded donation pages by 4% and 9%
Overall Giving 15%
respectively. Similar to Q4 2010 results, charity websites

Charity Websites (Generic) 4% with a branded donation page received more donations and
at higher average values than those with a generic donation
Charity Websites (Branded) 9%
page.
Portal Giving 12%

Social Giving 5% Portal Giving, driven by December donations, grew 12%

Source: Network for


year over year in Q4 2011. December giving accounted for
Good
almost half of total 2011 portal giving, an increase of 2%
over 2010.

Social Giving in Q4 2011 increased year over year by 5%.


Peer-to-peer giving occasions at year-end are growing
through social media outlets such as Causes.com and
Crowdrise, but remain a small contributor to total year-end
giving. Social giving is driven by giving events (such as
giving challenges and cause marketing campaigns) that
rally vast networks to drive donations and by personal

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- family to support their favorite charity.
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© 2012 Network for Good | 7
Key Trends in Giving Q4 2011
Breakdown of Donation Dollars Q4 2011 vs. Q4 2010

At the end of the year, most charitable giving through the Network for Good platform is via charity websites, followed by portals and social
networks. Giving through charity websites consistently makes up over 65% to 70% of all donations. December is nonprofit fundraising
season and many donors are accustomed to responding to direct appeals from the nonprofits they routinely support. Portals tend to play a
bigger role at the end of the year than social networks because donors look to make habitual gifts to their favorite charities before the tax
deadline on December 31. -

Q4 2011 Q4 2010
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Source: Network for Source: Network for


Good Good
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© 2012 Network for Good | 8
Spotlight on 2011 December Giving
Roughly one-third of annual giving through the
Network for Good giving system occurs in the
December Giving Compared to Rest of Year
month of December alone; and in 2011, over
Last 3 10% of donation dollars came in on the last
days three days of the year. In December 2011, about
of Dec.
13% more donation dollars were contributed to
December charities through Network for Good compared to
1-28
December 2010. The vast majority of those
donation dollars were contributed directly on charity
websites.
January-November

Source: Network for


Good

December Donation $ Amounts by Day


$10,000,000 2003
2004
2005
$8,000,000 2006
2007
2008
$6,000,000 2009
2010
2011
$4,000,000
$2,000,000
$0

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Source: Network for
Good © 2012 Network for Good | 9
Spotlight on 2011 December Giving
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December Average Gift Size By Channel
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Source: Network for
Good

Charity Websites: More than 70% of all Portal Giving: About one-quarter of December Social Giving: In December 2011, social giving
donation dollars contributed in December 2011 donations dollars were contributed through made up 4% of overall giving. Average donation
2011 were made on charity websites. Donors a charity portal such as NetworkforGood.org, amounts on these sites at year-end tend to be lower,
who gave through generic donation pages on Charity Navigator, GuideStar or The Capital One® but can be increased with the right campaign call to
charity websites averaged $174 per gift and Giving Site, where it is easy to research charities action. In fact, the average gift on social giving sites
donors engaged in a branded giving experience and give to multiple organizations at once. The in December 2011 increased 52% year over year and
on a charity website averaged over $200. In average donation through portals in December 2011 was over $15 higher than the average for 2011
sum, donors were about 80% more generous in increased 5% to $160 versus December 2010. overall. Examples of holiday fundraising on peer-to-
December than over the rest of the year, when However, that average is over 60% higher than for peer sites with compelling calls to action include: the
average gift size was closer to $100. Further, a portal donations made January through November Mozilla Firefox Challenge on Crowdrise, the Holiday
typical charity with a branded donate page 2011 (when the average remains around $100), Wish social fundraiser on Causes.com and the Six
received 6 times more donations and raised an demonstrating that similar to individuals making Days of Good for Hunger campaign on
average of $5,000 more than a typical charity contributions directly on charity websites, portal SixDegrees.org.
with a generic donate page raised in December. donors are generous at year-end. -
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© 2012 Network for Good |
About Network for Good Media Contacts

#$%!&'(- )&'- *&&+- 16- ;- 2&28'&Q%- 6&31;4- $2%$'8'16$- %0;%- Katya Andresen
$78&!$'6- 3&'8&';%$- 8;'%2$'6- ;2+- 2&28'&Q%6- %&- 524$;60- Chief Strategy Officer
katya.andresen@networkforgood.org
,$2$'&61%9- !1%0- 63;4;L4$- !;96- %&- ;+:;23$- ,&&+- 3;56$6"-
O: 240-482-3208
#$%!&'(-)&'-*&&+-!&'(6-!1%0-3&78;21$6-%&-0$48-'$Q2$-;-
M: 202-577-1932
3;56$- 6%';%$,9- 8$')$3%49- 651%$+- %&- L5612$66- ;2+-
8014;2%0'&813- ,&;46- ;2+- 1784$7$2%- $R$3<:$- 3;56$-
Kate Olsen
121<;<:$6-8&!$'$+-L9-&5'-8'&:$2-+&2;<&2-84;S&'7"-We Director of Partnerships
also help nonprofits raise funds for their missions kate.olsen@networkforgood.org
through simple, affordable and effective online O: 240-482-3209
fundraising services and offer free training through M: 847-612-7772
our online learning center (www.Fundraising123.org),
interactive community (www.TheNetworkforGood.org)
and webinar series (www.Nonprofit911.org). Network
for Good has processed more than $625 million in
donations for more than 83,000 nonprofits since its
2001 founding by AOL, Cisco and Yahoo!.
www.networkforgood.org

!!!"#$%!&'()&'*&&+"&',-
© 2012 Network for Good |

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