Tuesday, April 24, 2012

Australians gave more to charity in 2011 than ever before

The latest Pareto Benchmarking figures - derived from looking at actual transactions across 45 charities in Australia and New Zealand - revealed that Australians gave more money to charity in 2011 than ever before. Double checking annual reports of the largest fundraising organisations not in benchmarking confirms it was a good year.

Regular giving (automatic debits) has grown enormously over the past ten years. In fact, for professional fundraising organisations such as Cancer Council NSW and WWF regular giving accounts for more income than 'one-off' donations.


As you can see from the chart above, across the group, around a third of individual gifts came from bequests, a third from regular giving and a third from occasional donations such as those sent in response to direct mail.

Direct mail had been pretty flat over the last few years, but has begun a new resurgence in growth as new creative approaches lift response rates from around 1% to over 4% for many charities. This is from sending letters to people who had not previously donated to the charity.

We expect this growth to accelerate as more and more charities have recently succeeded with their early tests. However, it can take a long time for them to accelerate their programs so the growth will most likely be reflected in 2013 data (to be presented in 2014).

Face to face (people on the street and knocking door to door and asking for monthly pledges) goes from strength to strength, with these 45 charities acquiring more donors through face to face last year than any previous. The only thing holding back further growth in this area is capacity from the face to face providers - they are mostly full up.

But it is not all rosy on the face to face front - one charity in the group lost 60% of its new face to face donors within one year. The average is around 45% but the best manages to keep most of its donors, with only 36% attrition.

Australian and New Zealand charities can join Pareto Benchmarking for free - email bm@paretofundraising.com.

Sean

1 comment:

Adrian Abrate said...

This is a great sign of things to come. We give regularly and I think it is important to support causes that you can connect with.

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