PURSUANT’S ANNUAL

GIVING
OUTLOOK
2021

Go Beyond
On the
Verge
While the door of opportunity is wide open
to fundraisers, donors have more choice
than ever, driven by the innovations that
have carried us to a post-pandemic world.

Here is the plan to ensure

that your organization
makes the right moves to
serve your donors.
Struggling to regain our balance, many
economists forecast the U.S. economy will
grow by more than 6% in 2021, at least
four percentage points faster than its
pre-pandemic trend. The US jobs market
is edging closer to its pre-pandemic self,
and a $1 trillion infrastructure agreement is
close to approval by bipartisan legislators.
America is on the verge of a post-
pandemic boom, and the door of
opportunity to fundraisers is wide open.1

A study published by the National Bureau

of Economic Research found that the
1918 influenza pandemic gave way to
“increased expressions of risk-taking”
while the number of startups boomed
as the epidemic subsided. The world will
likely observe a similar response in 2021
as America’s innovation engine has been
propelled into action to meet the needs of
a highly disrupted marketplace.

For fundraisers, 2020 will forever remain

an outlier and a year without comparison.
It was the highest year of charitable
giving on record. Philanthropic giving
took a swift departure from its relationship
with the economic trends—an indication of
both the immense need of those affected
by the pandemic as well as the inequality
of those impacted by the associated
recession.
 While a sense of normalcy is returning
to philanthropy as we round out 2021,
we also observe that patterns of
a highly disruptive fundraising
landscape have continued.
Currently, we find that:

ACTIVE DONORS The solid growth of 2020 has sustained through

GREW Q1 2021. Active donors grew 10% over the same
10% first quarter last year, and donors are at an all-
time 10-year high. Revenue is up 6% over 2020.

Performance has been sustained in part by

NEW
DONORS retained donors. Many of the crisis donors who
RETAINED were drawn to new organizations early last year
have chosen to stick around and give again—at a
higher rate than traditionally acquired donors.

NEW GENERAL
New donors are giving primarily at the general-
LEVEL DONORS level, in particular with gifts less than $100—and
GREW
they are giving at this level like never before.
10% These donors represent 64% of all donors and
have grown 8% over last year. Online giving will
continue to play an increasingly important role
in reaching and acquiring these lower-dollar
donors.

While revenue is up for general-level donors,

REVENUE
FROM MID TO revenue from mid to major-level donors is down
MAJOR-LEVEL
DONORS IS DOWN between 3% and 8% from last year. Additional
analysis over time will enable us to determine
whether higher-dollar crisis donors have pulled
back this year.
 Gift frequency is on the rise—with double
SUSTAINER
GIVING ON digit growth over last year of donors giving
THE RISE more than two gifts annually. Sustainer
giving is making its mark—and importantly—
these donors will likely provide a much
needed boost for long-suffering industry
retention rates. It’s notable that sustainers
typically retain at 85% annually versus Key
Multi-Year donors who typically retain at a
robust 57% each year.2

Reviewing these indicators with a wider lens, the Lilly

Family School of Philanthropy forecasts 4.1% growth in
overall charitable giving for 2021 and 5.7% in 2022. Total
giving is expected to be higher than the historical 10-year,
25-year, and 40-year annualized average rates of growth.3
Researchers advise that Americans should expect broad
philanthropic growth in the coming years as regular business
conditions resume.
Without a doubt,
it’s a fascinating time
to be a fundraiser.
While these patterns show strength and resiliency in the
philanthropic sector, the environment remains complex
and uncertain. As consumers shift their unspent money
toward buying more goods—inflation has arrived, and
travel and service economies have yet to fully rebound.
Inequality among workers is likely to continue to worsen.
Low vaccination rates persist in pockets of the country. A
COVID-free future is far from assured.

These broad risks affect nonprofit organizations,

requiring continuous insight and adaptation. Winners
and losers will emerge based on how well
organizations navigate the “great resumption.” The
actions that we take today to begin again—leaning into
both new strategies as well as the tried and true—will
determine where organizations emerge. Knowing when
to activate fundraising teams and tools at the right time
will make the difference.

Is your organization equipped to make

these moves?
Table of Contents

8 | State of the Donor

10 | Observing Change

12 | Industry Direction

22 | Looking Back

40 | Making Your Move

 State of the Donor

As fundraisers work to stabilize

and reset programs, it’s vital that
they have the ability to engage and
connect with donors.
We know that the preferences and behaviors of
donors changed radically during the pandem-
ic. Consider that the only Peer-to-Peer Fundraising
Thirty events that grew in 2020 were already virtual.4
These events were in the right place at the right time
for event participants who required social distance.
Similarly, Pursuant determined in a recent major donor
study that none of the study participants had heard
of Zoom prior to 2020—and participants were all
frequent users now. Donors in 2021 and beyond are
unlikely to drop these learned behaviors.

As we relaunch and build fundraising programs, we

must understand which of these behaviors will persist
and which will fade away. We get to those answers by
understanding what drives our supporters’ motivation
and connection to us as we enlist and elicit their sup-
port. What role will in-person events play? Can major
donor experiences be delivered digitally? Which of
these tactics drives connection most to the communi-
ty and our shared cause?

8
While many organizations received an
influx of new donors in 2020, it is uncer-
tain if these individuals were entirely new
to philanthropy. But what if they are?
Will they respond to traditional direct
response channels as “business as usual”
communication streams resume—or will
we be challenged to engage this phil-
anthropic cohort in a manner yet to be
determined?

Looking more broadly, if 2020 spending

was marked by consumer frugality, we
should expect a loosening of assets in
2021. It’s likely that pent up demand will
be released in addition to exuberance
for newfound freedom of a society out
of lockdown. Americans will replan trips,
parties, and reunions because the oppor-
tunity and ability to do so exists. Nonprof-
its play a role in facilitating this resumed
community and connection-building.

At the same time, economic and social

inequality will persist if not deepen. Grow-
ing demands for responsibility are being
called for from institutions that serve us—
including nonprofits. A movement led by
people of color will continue to drive gov-
ernments, companies, organizations, and
nonprofits to question their own practices.
And our constituencies will require that
we are accountable and do so.

9
 Observing Change
The Pursuant Giving Outlook highlights many of the
very best sources of nonprofit benchmark data—for
overall fundraising, direct response, online programs,
and with insights by vertical—along with perspectives
on growth and innovation. We have compiled a recap
of philanthropy’s 2020 path and perspectives on
the most available data at hand. We hope you’ll find
yourself within this data, and we welcome discussion
to take you where you want to go.

How has your fundraising program changed?

The GivingDNA Platform decodes the personal
experiences that inspire your donors to find, engage
and give more than ever before. It’s purpose-built
for fundraisers, designed to answer your toughest
fundraising questions. It’s the way supporters engage
with nonprofits today.

Request a free demo of the

GivingDNA Platform at
pursuant.com/demo.

10
11
 Industry Direction

While there is good reason to

be optimistic, even enthusiastic,
toward the prospects for
growth in this year’s outlook,
nonprofits should proceed with
appropriate care.
After connecting with our clients and thought
leaders in the marketplace, we have identified four
strategic moves nonprofit leaders are taking in the
post-pandemic era and beyond.

1. Resetting Fundraising Strategies

2. Taking Command of Data
3. Focusing on Donor Experience
4. Accelerating the Shift to Omnichannel

12
13
 1
Resetting Fundraising Strategies
During the pandemic, donors changed their behavior and
preferences. Nonprofits have changed their strategies
as well. Leaders are adjusting how they prioritize
channels and organize their teams.

Not surprisingly, many organizations with event programs

have not simply applied the 2019 playbook to 2021—but
instead are seeking to understand the trends that were
driving event programs and use the disruption as an
opportunity for change. Specifically, nonprofits sought to
replace new names typically sourced from events—and
acquisition strategy was directed to direct mail and digital.

Many organizations are restructuring teams to pursue

growth and opportunity ahead. Specifically, the mid-level
gifts officer is often a frequent and recognized role within
the development office, creating a path for donors who
desire to make a larger impact than within an annual fund
or individual giving program. Digital is returning to the
development office with a focus on email list acquisition,
social engagement, and donor conversation. Automated
marketing solutions are being introduced to serve as the
foundation for strengthened donor experience.

14
“
“While the pandemic forced us to pause
our traditional annual giving fundraising
practices, it also gave us an opportunity to
analyze and rethink them. We thoroughly
analyzed our donor behavior, revealing a
need to invest in relationship building and
connect our donors to our mission. We
explored the profile of our current donors
along with their connection to Children’s
Health. From there, we developed a strategy
to focus on strategic segmentation of our
communication and improved stewardship
practices to improve the overall donor
experience.”

Harmonie Farrow
Director, Annual Giving
Children’s Medical Center Foundation

15
 2
Taking Command of Data
Donor data has long served as the lifeblood of nonprofit
relationships—telling us who our supporters are, how and
how long they have supported us. As third-party audience
tracking has become more difficult, this first-party data
has become more valuable than ever. Nonprofits are
prioritizing data capture and data augmentation to
maintain control and drive value from their donor
relationships.

Data enrichment is an important step in maximizing

the value of donors. It gives organizations additional
data points on demographics, giving outside of your
organization and giving capacity—insights that were not
likely offered by each of your constituents.

Organizations are also leaning into the use of more

sophisticated AI models (both augmented and artificial) to
drive better acquisition and performance. By analyzing data
of your most responsive supporters, models can be honed
to identify and target prospects across all channels that are
most likely to respond.

Without the ability to capture, enrich, and analyze their

own constituent data, nonprofits will lose the ability to
manage and deliver a donor experience of their own
design. Organizations who lose the ability to manage
their constituent relationships will need to rely on opaque
ad networks—from Google, Facebook or otherwise—for
access to donors and donor segments for each and every
touchpoint they desire with their constituents.

16
“
“As we continue to build our individual giving
program at PAN, we realize that data is so
much more than just names, numbers, and
emails. For us, data is the community of
people who make up PAN: those we serve,
those who donate to our mission, and those
who advocate alongside us. We have and will
continue to prioritize data capture and data
enrichment, particularly as the landscape
for third-party audience tracking evolves.
Clean first-party data is more valuable than
ever and is the key for delivering a top-notch
donor experience for every donor across our
various fundraising efforts.”

Leena Patel
Vice President of Development
PAN Foundation

17
 3
Focusing on Donor Experience
For many nonprofit organizations, a key growth strategy
lies inward—a focus on current donors and bolstering
the experience and connection with these individuals.
Nonprofit organizations are driving retention, multi-
year relationships, and value by improving this
experience.

There is substantial room for improvement. Consider

that new donor retention averages 19% for nonprofit
organizations—it’s vitally important that new donors are
welcomed to your organization as quickly as possible with
your best foot forward. Consider that mobile/desktop
website traffic is evenly split—but 75% of revenue is driven
from desktop users—mobile users must have friction
removed from their online experience.

A donor experience improvement can begin by assessing

how well you are fulfilling donors’ needs—retention—and
focusing on areas of delight and disappointment for
this audience and how its members engage with your
organization at every touchpoint.

18
“
“As we work to create a more donor-centric
organization at Patrick Henry Family Services,
understanding the profile of our supporters
is the first step to creating programs and
communications that can deepen connection.
In 2021 we are leveraging fundraising
intelligence tools and technology to learn
more about our supporters. We will do this
by enriching our donor database and first-
party data with insights about capacity and
giving to other organizations—and will then
prioritize our strategies based on those most
likely to support us.”

Wendy F. Adams
Director of Donor Engagement
Patrick Henry Family Services

19
 4
Accelerating the Shift
to Omnichannel

While it’s likely that digital screen time has declined from
pandemic highs, reliance and expectation of integrated dig-
ital experiences will continue among consumers and non-
profit constituents. Whether that omnichannel experience
is defined as event streaming or quite simply an appeal that
recognizes donor history in email and direct mail, channels
are blurring. Americans’ preferences have evolved.

These omnichannel preferences will continue. The

age-old marketing principle of seven touches—that
seven touches are required before a message is inter-
nalized and/or acted upon—persists in the digital age.
Younger consumers are even less likely to think in terms of
traditional channel boundaries and increasingly rate organi-
zations based on the seamlessness of their experience.

As nonprofits move increasingly to deliver and develop

omnichannel experiences, fundraisers and marketers need
to have a clear perspective on channel attribution. Direct
marketing attribution—the conversions yielded in direct
response to every push campaign activity—are generally
not sufficient for measuring the true impact of omnichannel
campaign efforts. As additional channels are introduced to
support direct response efforts, attribution must be expand-
ed to value indirect channel impacts of upstream activi-
ties—including increased site traffic and social media likes
or shares. An appropriate omnichannel attribution model
can help to correlate these activities to revenue and support
informed strategic planning.

20
“
“While social distancing forced us to retool our
2020 event schedule, it also gave us the oppor-
tunity to explore new engagement methods
with our donors. We evolved or created a variety
of events—most notably our Cleveland Clinic
Experience program and a new donor call—to
offer digital interactions between donors and our
thought leaders. These events also emphasized
education as we found that in high demand. Our
donors told us that these virtual events are eas-
ier to attend, but they miss the fun of meeting
in person and look forward to getting together
soon. Our events in the second half of 2021 and
into 2022 will offer options with both virtual and
in-person events that provide the fun and the
opportunities for learning.”

Mary Beth Pate

Executive Director, Marketing &
Philanthropy Communications
Cleveland Clinic

21
 Looking Back
Despite the uncertainty, angst, and disruption that
hit fundraising programs, 2020 was remarkably the
highest year of charitable giving on record. Overall
5
philanthropic giving reached $471.44 billion , a
5.1 percent increase over the previous year in
current dollars.

This metric includes Overall

giving by individuals, philanthropic
foundations, bequests giving reached
and corporations.
$471.44 billion.
Foundations were the
fastest-growing source of giving, with grantmaking
soaring 17.0 percent over 2019. However, giving
by corporations fell 6.1 percent, reflecting declines
in corporate pre-tax profits and GDP. Growth in
individual giving increased between 2019 and 2020
at 2.2 percent in current dollars.

The public-society benefit sector—which includes

United Ways and many organizations that focus
on community development and civil rights—
experienced the strongest growth of the year.

22
23
 Giving by Sector
The overall growth pattern has been
echoed to a greater extent by the eight
industry sectors tracked by the Giving
USA Annual Report on Philanthropy.
Specific performance was varied across sectors as each
was affected in different ways by organizational strategy,
natural disasters, economic factors, and relative proximity
to COVID-19 need and response.

Religion Public Society

Benefit
Education Arts, Culture,
Humanities
Human Services International
Affairs
Health Environment/
Animals
Foundations

24
The Current Shifts in Charitable Giving
Contributions by Organization Type, 2011 to 2020
Total Percent Change (%) in Current Dollars

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

OVERALL 3.6 11.4 0.0 7.5 5.3 5.4 8.2 -0.3 4.7 5.1

Religion 4.3 3.9 4.4 5.0 2.8 3.9 1.0 0.3 3.6 1.0

Education 1.7 9.2 -5.1 11.1 7.7 0.7 5.0 4.6 11.1 9.0

Human 1.7 10.0 0.0 6.3 7.2 4.4 7.7 8.6 3.8 9.7
Services

Health -6.6 1.2 23.2 2.5 3.6 11.2 1.0 6.2 6.3 -3.0

Public
Society 11.1 7.2 6.1 6.5 5.8 13.2 11.6 11.4 8.0 15.7
Benefit
Arts,
Culture, -4.2 8.3 5.4 8.7 11.3 -2.9 5.5 4.2 11.3 -7.5
Humanities

International 9.3 5.5 21.2 4.2 16.1 -8.0 16.9 -5.0 -1.0 9.1
Affairs

Environment/
2.9 9.3 -4.0 12.2 11.5 5.6 6.6 9.5 9.6 11.6
Animals

Foundations 15.8 32.9 1.7 9.3 -12.0 3.8 28.5 -5.6 15.3 2.0

25
 Religion

Religious organizations received the

greatest share of charitable dollars in 2020,
with 28 percent of all donations. Adjusted for
inflation, giving to religion stayed relatively flat.

» For most congregations, in-person services were disrupted

due to the COVID-19 pandemic. Many adapted by launching
online services and promoting online giving—no longer
requiring geography as a requirement for attendance.

» Religious organizations found new ways to encourage

participation and giving after the start of the pandemic.

» Many religious organizations were at the heart of the

response to the needs that emerged as part of 2020 public
health and social justice issues.

» The largest organizations in this sector by cash

contributions include Cru, Young Life, and Christian
Broadcasting Network.

26
 Education

The Education sector received the second-largest

share of charitable dollars in 2020, at 15 percent
of the total. The total amount contributed
to education in 2020 reached its highest
inflation-adjusted value ever.

» Students within all areas of education faced increased

hardships during the pandemic, and both public and
private institutions pivoted quickly to provide relief to
students.

» Philanthropic investment in education was viewed in

2020 as a way to make positive change in the areas of
racial justice and the needs of students as a result of the
pandemic.

» Giving to education has reached the highest inflation-

adjusted value ever, and mega-gifts continue to support
this growth.

» The largest private colleges and universities in this sector

by cash contributions include Harvard University, Stanford
University, and Columbia University. The largest public
colleges and universities are University of California at
Los Angeles, University of California at San Francisco, and
University of California at Berkeley.

27
 Human Services

Human Services organizations received 14 percent

of total charitable dollars in 2020, ranking third
in total gifts received.

» The sector experienced significant giving in 2020, even

after nearly a decade of steady growth. Human services
charities became a central priority for many donors, often
to the detriment of their traditional charity of choice.
Sustaining this growth for the sector will be challenging.

» As human services organizations seek to recover and

return to a “new normal,” online giving will serve as a
central opportunity for continued growth and acquisition.
The key to sustaining this approach will be a clear plan for
the ongoing care and stewardship of donors.

» The largest organizations in this sector by cash

contributions include United Way Worldwide, Salvation
Army, and American Red Cross.

28
 Health

The Health sector received 9 percent of the

total giving, ranking fifth in total gifts received.

» COVID-19 caused meaningful shifts in giving to healthcare.

Led by the Gates and Rockefeller foundations’ gifts totaling
$2.75 billion, big foundations focused on funding to address
the pandemic. Medical research funding continued a notable
three-year decline, the largest decline of all the sectors.

» Causes to accelerate early-stage research and

development of a COVID-19 vaccine attracted major
philanthropic investments in 2020. The urgency of finding
a vaccine for COVID-19 may have eclipsed previous
comparable giving to causes related to other disease
outbreaks.

» Causes that address mental health and Alzheimer’s,

Parkinson’s, and other neurodegenerative diseases saw
notable large gifts, including Melinda Gates’ Pivotal
Ventures $10 million gift to create the Upswing Fund for
Adolescent Mental Health.

» The largest organizations in this sector by cash

contributions include American Cancer Society, American
Heart Association, and Planned Parenthood Federation of
America.

29
 Public Society Benefit

Public-Society Benefit organizations received 10

percent of total giving in 2020 and amounted to
the sixth-largest share of charitable dollars.

» The power of the sector was on full display in 2020. Donors’

response to both the COVID-19 pandemic and the racial justice
movement through nonprofits showed that the collective
impact model supported by organizations like United Way and
Jewish Federations is critical to rapid, well-organized, impactful
response in times of significant crisis.

» Donor-advised funds continued to be a popular form of giving,

resulting in another year of increases in both dollars contributed
to and dollars given from these funds. As DAFs grow, some are
calling for legislation that encourages fundholders to engage in
meaningful grant making in a timely fashion.

» Individual and institutional funders responded to the movement

for social and racial justice with grants to civil rights groups
and community development financial institutions that support
underserved communities.

» The sector includes a variety of organizations with widely

varying results. The largest organizations in this sector by cash
contributions include Jewish Federation of North America,
Pew Charitable Trusts, and American Civil Liberties Union
Foundation.

» Gifts to Donor-Advised Funds are counted in the public-

society benefit sector. Total contributions in 2019 reached
$38.81 billion, representing 12.1 percent of total giving by
individuals for 20196.

30
 Arts, Culture,
Humanities

The Arts, Culture, and Humanities sector received

the seventh-largest proportion of charitable
dollars in 2020, at 4 percent of
the total.

» Arts and cultural institutions experimented with creative

fundraising strategies as the pandemic canceled
performances, induced shutdowns, and spurred some
funders to shift their philanthropic priorities. Nonprofits in
the sector donated tickets, hosted virtual fundraisers, and
increased online offerings.

» The sector reckoned with questions of equity and inclusion

in 2020. As movements around social and racial justice
grew, large funders prioritized racial equity and social
justice by investing heavily in initiatives that promoted
access to art, supported persons of color, and advanced
understandings of racial justice.

» Many nonprofits found that emergency- and pandemic-aid

campaigns inspired new broad-based donors to contribute
for the first time.

» The largest organization in this sector by cash

contributions is the Metropolitan Museum of Art.

31
 International Affairs

Gifts to the International Affairs sector received

the eighth-largest share of gifts in 2020, with 9.1
percent of the total.

» The pandemic shined a light not just on global health

challenges, but on humanitarian concerns, social
inequalities, and economic development challenges. The
need for pandemic relief on a global scale drove the
development of novel approaches to philanthropy that
impacted giving to international areas of need.

» Cross-border philanthropy is on the rise driven by the

growth, globally, of both middle-income and high-net-
worth individuals, alongside technology that makes cross-
border collaboration easier and more efficient than ever
before.

» The largest organizations in this sector by cash

contributions are Compassion International, Catholic Relief
Services, and United States Fund for UNICEF.

32
 Environment/Animals

Environment/Animals organizations received

3 percent of total charitable dollars in 2020,
ranking ninth in total gifts received. For the year
2020, contributions to environmental and
animal organizations totaled the highest value
ever recorded with six years of consecutive
growth, far outpacing growth in overall giving.

» As social movements focused on climate change and

conservation efforts continued to grow, organizations that
address these challenges received outstanding support.
However, supporting these causes was carefully scrutinized,
with some corporate gifts and recipients facing criticism.

» Successful environmental and conservation efforts continued

to demand joint public and private efforts. Fundraising
campaigns are increasingly complemented by partnerships
with government and/or private sector agencies.

» Organizations that serve animal welfare benefitted from

a number of positive trends—the sector’s overall growth,
increasing active donors, improved donor retention rates,
a large share of all monthly online donations, and a donor
base more likely to make charitable bequests.

» The largest organizations in this sector by cash

contributions are Nature Conservancy, ASPCA, and
Environmental Defense Fund.

33
 Foundations

Gifts to independent, community, and

operating grantmaking Foundations amounted
to the fourth-largest share of charitable dollars in
2020, with 12 percent of the total.

» Under pressure exerted by the pandemic, community

foundations created 713 funds and distributed over $1.29
billion in relief.

» Over the past five years, the annualized average growth

rate of giving to foundations was 8.2 percent, nearly twice
the rate of total giving.

» The Giving Day concept by community foundations

continues to build local and regional momentum as many
foundations showed good growth in 2020.

» The largest community foundation in this sector by cash

contributions include the Greater Kansas City Community
Foundation, who attributes strong performance in part
to their donor-advised fund program and referrals from
donors’ financial advisors.

34
Giving by Source
Giving by individuals totaled an estimated
$324.10 billion, increasing 2.2 percent from 2019
(in current dollars). Giving by individuals and
households comprised 69 percent of total giving in
2020—by far the largest source of giving. Even as
the economy suffered, donors of all levels rallied to
support pandemic relief efforts as well as social and
racial justice causes.

Giving by foundations increased 17.0 percent

(in current dollars) to an estimated $88.6 billion in
2020. Buoyed by a rebound in foundation assets by
the end of 2020, giving by foundations represented
19 percent of total giving in 2020, the largest share
for this sector on record.

Giving by bequest totaled an estimated $41.91

billion (in current dollars) in 2020. From both a long
and short-term perspective, bequest giving has grown.
Federal tax law changes have likely impacted planned
giving—while the pandemic increased interest in and
conversations about estate planning.

Giving by corporations is estimated to have

decreased by 6.1 percent in 2020 (in current
dollars), totaling $16.88 billion. The Gross Domestic
Product (GDP) declined 2.3 percent over 2019—a
key economic indicator found to affect corporate
giving. A recovering economy and corporate tax
incentives related to coronavirus relief could signal
stronger corporate giving as the corporate engine
restarts.

35
 Giving Online

Will digital growth slow now that the

pandemic is receding? It’s unlikely.
Close to 150 million new shoppers came online as the pandemic
raged—attracted by a massive flood of small shop owners
who were forced to set up online storefronts as the pandemic
raged7. Instead, as the world opens and consumers have more
choices, buyers will move to a hybrid model, combining pre-
pandemic preferences for physical channels with the new
digital skills they acquired, imposed by social distancing.

Americans are using digital services to shop for food, receive

medical care, and attend church services like never before.
Consumers have had their eyes opened to new brands and
experiences, and they will remain discerning, taking more
control over the buying process than ever. They will direct their
business to companies that best meet these needs. To succeed,
companies will have to expand their markets from national/local
alone to digital as well.

For nonprofits, the story is much the same. Donors will choose
to support the charities that deliver the best experiences—
whether that experience is delivered in the physical, digital,
or “phygital” world—one that is completely connected. The
imperative to nonprofits will be to understand the desire
of their donors and then fulfill them. This could include
a FaceTime call from a major gifts officer to a donor, live
streaming the finish line of an endurance race, or removing
friction from online giving by recognizing and remembering a
past donor and enabling a one-click gift.

36
 Online Fundraising
Changes Landscape
Fundraising migration trends to online are evident
in a look at integrated revenue across sectors. A
median of 13% of all revenue to nonprofits came
in through online sources for the donorCentrics
Index for data last analyzed in 2020. Organizations
participating in the index consist of large direct
marketing nonprofits, typically with robust direct
mail programs. Election and disaster-response
surge giving has, at times, driven online as high as
27% of overall revenue.

Percent of Total Fundraising from Online Giving by

Industry Sector, 20208

OVERALL 13.0%

Animal Welfare 12.3%

Arts & Culture 9.9%

Environment 8.1%

Faith-Based 17.7%

Healthcare 4.5%

Higher Education 5.2%

Human Services 10.9%

International Affairs 7.4%

K-12 Education 13.5%

Medical Research 8.0%

Public & Society Benefit 6.6%

37
 As we continue to make sense of the
staggering fundraising performance of 2020,
online performance tells us much of the
story. As Americans were glued to their screens
seeking both news updates and connection,
they also chose to respond to those in need
through that channel.

Online revenue grew by 32% in 2020. This is 3x the rate of

typical annual growth. This growth is significant now that the
digital channel has matured and highlights continued migration
at an accelerated pace.

Hunger and Poverty groups reported a substantially

higher 173% increase in online revenue over the
previous year.

Monthly giving revenue online increased by 25%, while

revenue from one-time gifts increased by 37%. Substantial
giving in 2020 can likely be described as one-off and episodic,
whereas monthly giving revenue in previous years has typically
represented a larger share of overall giving.

Monthly giving revenue fell slightly to 19% of all online

revenue in 2020.

38
Most email metrics went up—including open rates, click-
through rates, response rates, and page completion rates—as
organizations embraced the channel for sharing updates and
urgent COVID-19 response appeals—and email recipients were
more welcoming in their inboxes.

For every 1,000 fundraising messages sent, nonprofits

raised $78. This marks a 35% increase over 2019.

Nonprofit spending on digital ads increased by 33% in

2020, with nonprofits spending an average of $0.10 for every
dollar raised in online revenue.

Direct fundraising ads accounted for 60% of all ad

spending. Branding, awareness, or education ads
accounted for 25% and lead generation for 14%.

Half of all nonprofit website visits came from users on

mobile devices. The traffic share for mobile devices increased
by 9% in 2020. Yet, users on desktop devices made up most of
donation transactions (61%) and revenue (72%). This highlights
the need for mobile-optimized user experiences to include
responsive donation forms and designs, along with payment
technologies that simplify the checkout process—such as Pay-
Pal, Apple Pay, and Google Pay.

The average gift made on a desktop device was $80; for

mobile users, the average gift was $42.

Organic traffic comprised 42% of all nonprofit website

visits in 2020. This is website traffic that is generated by unpaid
search results and illustrates the importance and impact of con-
tent that you make available to online audiences.

39
 Making Your Move
As you choose your post-
pandemic path, what moves will
you make to serve your donors?
Pursuant has developed tools and solutions designed
to drive strategic fundraising growth and position
fundraisers for success.

Join the conversation.

Learn more.

40
41
 1
Map the GivingDNA of your donors
As you focus on strategic planning in the year ahead, start by listening
to your donors at scale through the Pursuant GivingDNA™ Platform. The
approach identifies real-time key audiences within your donor database
and helps to prioritize those who are ready for a more meaningful
relationship—and it starts by simply uploading constituent and gift files
to the platform.

Augmented intelligence is then applied to explore and understand your

file. You will be able to explore and describe your donors based on
motivation and behavior, rather than departmental silo, hypothesized
marketing segments, or website personas.

Forecast potential growth

2
scenarios
What impact would a mid-level program launch have on your
fundraising program in 2022? Would an online monthly donor program
make more sense? What role would a new event play in acquisition?
What if we did nothing? Generating outlook scenarios for the future is a
fundamental component of strategic planning.

Pursuant continuously works with clients and prospects to generate and

refine growth strategies of direct response programs. Our sophisticated
projections calculators take the very best aspects of that experience
and enable us to support our clients with data-driven insights that drive
scenario planning and decision making.

Contact us today to support growth and scenario

planning at your organization.

42
3
Reevaluate your program to
ensure it is meeting needs
With a firm understanding of your current program—as well as the
what-if opportunities that growth scenarios could provide, we can now
compare and contrast program opportunities with revenue and budget
outcomes in mind.

Our clients use these insights to inform strategic-decision making,

assessing investment of current fundraising vehicles while considering
the impact of new programs within a broader philanthropic portfolio.

Additional tactics that can inform campaign planning and design include
journey mapping, experience design, contact, and content strategies.

4
Create a culture of execution
and optimization
Anchored by both insights and growth imperatives, focus shifts to
execution, ongoing measurement, and optimization as your efforts
are realized through results. These efforts include development and
deployment of your strategies to improve marketing and fundraising
results of your organization.

Pursuant delivers compelling direct response campaigns through direct

mail, digital, phone, media, and more.

Contact us today to learn how we can engage and grow

your supporters.

Endnotes
1 “What history tells you about post-pandemic booms” The Economist, May 1, 2021 Edition
2 https://data.givingtuesday.org/fep-report/https://afpglobal.org/fepreports
3 The Philanthropy Outlook, 2020
4 Peer-to-Peer Fundraising Thirty, 2020 Survey
5 Giving USA 2021, The Annual Report on Philanthropy for the Year 2020
6 National Philanthropic Trust’s 2020 Donor- Advised Fund Report
7 5 Digital Marketing Trends You Should Act On Going Forward
8 Blackbaud Institute 2020 Charitable Giving Report

43
Go Beyond

Inform,
Influence,
and Innovate
the Power of Giving

Pursuant unleashes the power of data with

its GivingDNA, as well as aligns nonprofit
organizations with teams of strategists and
creative marketers who can target, engage,
and influence their best donor audience.

Build strategies for success by leveraging

third party insights about your donors
with GivingDNA. Schedule a demo
at pursuant.com/demo.

Pursuant.com