October 27, 2008
Survey: Donors Plan To Give This Holiday Season
Despite the crash on Wall Street and the national economic recession, more than half of Americans polled say that they plan to give to charity this holiday season and only about a third of them will donate less than last year. That’s good news for charity officials holding their breaths about fundraising this holiday season. They might be looking at a $3 billion bonanza from online giving.
A national survey conducted for online fundraising firm Convio by JupiterResearch, a Forrester Research company, shows that of the 175.6 million online adults (age 18+) in the U.S., more than half (51%) plan to donate to charities during the upcoming holiday season.
Nearly 7 out of 10 people surveyed plan to donate the same amount or more in the 2008 holiday season than they donated in the 2007 holiday season. Some 33 percent say they will donate less this holiday season.
Human and social services, faith-based, and disease and health related nonprofits are the most likely recipients among donors of all levels. People who plan to donate find the charity/organization’s Web site most helpful in deciding which charity to support (27%) followed by email from friend or family member asking for support (15%), according to the survey results.
By analyzing and comparing the self-reported giving plans of survey participants with historic and actual online giving patterns, Convio officials estimate that online consumers will donate nearly $3 billion via the Internet this holiday season. Just two years ago, $3 billion was the estimate of all online giving for a 12-mopnth period.
Survey results included:
1) More than half of online consumers plan to donate via the Internet this holiday season.
“More than 50 percent of online consumers say that they plan to donate online during the 2008 holiday season,” said Vinay Bhagat, chief strategy officer and founder of Convio. “This level of online support shows that nonprofits of all sizes need to make sure that their Web sites and other electronic communications meet consumer expectations. It is also important to make sure that traditional appeals such as direct mail, television and events provide people with the option to give online. If it is difficult to give to your organization online consumers will find an alternative.”
Among those who said that they find online resources helpful in selecting a charity, they are 20 percent more likely to donate than the average online user. It is also important to make sure that traditional appeals such as direct mail, television and events provide people with the option to give online, according to Gene Austin, CEO at Convio.
Who said that they plan to give?
- 54% of women plan to donate versus 48 percent of men.
- 64% of people with household income of more than $100K plan to donate online with 9% donating more this holiday season.
- 46% of 18-24 year olds and 50% of 25-34 year olds plan to donate online, with 13% of 18-24 year olds planning to donate more this holiday season than last.
- 53% of 55-64 year olds plan to donate online showing that it is no longer just for the younger age groups.
- 83% of people who say their financial situation has remained the same in the past 12 months plan to give the same amount or more this holiday season.
- 46% of the group who said their financial situation became substantially worse during the past 12 months still plan to donate online this holiday season
- 67% of online users plan to donate the same amount or more this holiday season than last holiday season.
- 14% of blacks/African Americans and 16% of Asian Americans plan to give more this holiday season than last holiday season.
- 13% of 18 to 24 year olds plan to give more online this holiday season than last, with 25% planning to give less.
Among those who plan to donate, 42% plan to give $100 or less, 20% plan to give between $100 and $1,000 and 4% claimed that they will give $1,000 or more, 35% are not sure of the amount but plan to donate.
Although online 55-64 year olds are more likely to donate online than online adults age 65+, more of them said they will be donating less than last holiday season as compared to those age 65+ (38% versus 27%, respectively).
2) What kinds of charities do online consumers plan to donate to this holiday season?
While no charity type tends to standout during the rest of the year, during the Holiday Giving Season human and social services (food banks, homeless shelters, etc.), faith based organizations (churches and ministries) and disease and health non-profits (cancer, heart, etc.) are the most likely recipients among donors at all donation levels. While there are differences in the types of charities donors plan to support based on age, ethnicity and the amount a person plans to donate, human and social services and faith-based organizations stand to be the largest recipients of online consumer generosity.
The overall top five charities of choice:
41% plan to give to human and social service organizations.
34% plan to give to faith-based organizations.
33% plan to give to disease and disorder organizations.
24% plan to give to animal welfare organizations.
22% plan to give to disaster and international relief organizations
Demographic and income differences:
51% of blacks/African Americans plan to give to human and social services with 34% giving to disease and disorder groups and 32% to faith-based organizations.
48% of households making less than $35,000 plan to support human and social services compared to 38% of households making more than $100,000 who plan to donate to human and social services.
39% of households making $100,000 planned to support disease and health services compared to 26% the households making less than $35,000.
49% of people who plan to begin looking for gifts early in the season, also plan to support human and social service organizations, so staring online appeals early is warranted for those organizations.
Those who will donate $251+ are likely to distribute their donations among several types of charities:
53% of them plan to donate to faith-based organizations.
43% plan to donate to human and social services.
37% plan to donate to disease and health services.
37% plan to donate to animal welfare charities.
31% plan to donate to disaster and international relief organizations.
3) What types of online communication/marketing tools help online consumers make their giving decisions?
People who plan to donate to a charity this holiday season find the organization’s website most helpful in deciding which charity to support, followed by an email from a family member or friend asking for support.
For people planning to give more than $50 and people with a household income greater than $100,000, charity evaluator websites also play a role in their giving decision.
Online tools aid in decision making for those that plan to donate:
27% said the organization’s website is most helpful in deciding which organization to support.
29% of the people who plan to give more than $251 said the organization’s website is most helpful in deciding which organization to support.
15% said that an email from a family member or friend would make them more likely to give.
10% said a charity evaluator site would help them decide which charity to support.
9% said a request or opportunity on a consumer shopping site would make them likely to give.
57% of people who said an email from the organization helped them make a decision also viewed the Website as a resource.
Type of organization and demographics affect tools that aid in decision-making. According to the survey data:
- 8% of women said that an appeal on a consumer website such as Walmart.com, bestbuy.com, etc., was a useful resource in their decision.
- 12% of women also said an email from a family member of friend was valuable.
- 24% of online consumers with a household income of more than $100K said the organization’s website helps them decide which charity to support while 14% said an email from family and friend helped them decide which organization to support.
- 6% of males said an email or electronic newsletter from the organization influenced their decision to give.
- 79% of those 65+ said nothing influenced their decision to give.
Organizations can get a copy of the report by registering at www.convio.com/holiday2008_npt or by emailing info@convio.com
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This article is from NPT Weekly, a publication of The NonProfit Times.
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