Giving Online
Recession’s Impact on Charitable Giving Online
There has been much talk regarding the impact of the credit crunch on the charity sector and giving online. Charities worldwide have suffered to some degree as Donors cutback their online donations.
But how serious is the cutback? Has giving online really taken a plummet? Have Donor dollars really decreased as drastically as we think?
A 2008-2009 charity analysis report was recently released: Rapidata’s Charity Direct Debit Tracking Report 2009 answers these questions and addresses the following key points regarding online giving:
- The monthly cycle of online giving trends: patterns of giving online over a 6 year retrospect
- Impact of recession on online giving: donor cancellation rates (pre and post recession)
- Donor retention: measures to retain donor commitment to giving online
Whether you’re a nonprofit, or a single individual fundraising – insight into such patterns can help both nonprofits and individuals understand donor behavior to be more successful raising donations online (even under grim economic circumstances).
We’ve taken the meat and potatoes of the report and serving it up for you here:
The monthly cycle of online giving trends: Patterns of giving online over a 6 year retrospect
Giving online seems to fluctuate in annual cycles: rising increasingly throughout the summer and peaking around August. Trend reports indicate that online giving falls around December, picks back up in January, and plummets in February and March until the arrival of the start of the next fiscal year shortly after April.
Here is a graph that illustrates online giving trends and average monthly cancellation rates over the last six years (April 2003 – January 2009):
| Year | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Jan | Feb | Mar |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Average | 3.13 | 3.32 | 3.32 | 3.64 | 3.74 | 3.72 | 4.00 | 3.67 | 2.81 | 4.04 | 3.12 | 3.30 |
Impact of recession on online giving: Donor cancellation rates (pre and post recession)
Giving online makes giving to charity easier, however it also makes it easier for donors to withdraw or discontinue online giving. Cancellation rates have consistently decreased from pre/post recession.
Here is a graph illustrating Donor cancellation rates before and after the recession, and what these online giving statistics look like as a percentage:
| Year | Apr | May | Jun | Jul | Aug | Sept | Oct | Nov | Dec | Jan | Feb | Mar |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Pre-Rec. Avg | 3.04 | 3.13 | 3.18 | 3.33 | 3.61 | 3.39 | 3.74 | 3.34 | 2.32 | 3.65 | 3.06 | 3.14 |
| 2008 – 2009 | 3.60 | 4.00 | 4.02 | 5.16 | 4.40 | 5.16 | 5.52 | 4.77 | 3.89 | 5.63 | na | na |
| % Difference | 18.42 | 31.95 | 26.42 | 54.95 | 21.88 | 52.2 | 47.59 | 42.81 | 67.67 | 54.25 | na | na |
“Cancellations rates skyrocketed from the summer of 2008″ “For instance, in December 2008, 67 per cent more people cancelled their direct debits than for an average December in the pre-credit crunch/recession period. And a statistical analysis shows that these cancellations rates were so high that they were unlikely to have ever occurred under the conditions that were driving cancellations prior to September 2007.” -Rapidata’s Charity Direct Debit Tracking Report 2009
Donor retention: measures to retain donor commitment to giving online
“The process of reactivating a cancelled donor starts from the very moment they cancel.” -Rapidata’s Charity Direct Debit Tracking Report 2009
Rapidata’s donor cancellation report identifies some very interesting findings regarding donor behavior and giving online trends. What are your thoughts on this report?
- Have you cut back on giving online due to present economic circumstances?
- Nonprofits/ Charities/ Fundraisers – Have you experienced a decrease in donations within the past year?
- What are some additional ways you can encourage people to commit to giving online despite present circumstances?
If you enjoyed this post, check out a few others:
Feeding The Hungry: A bus driver’s tale of good deed
Could You Feed Yourself On $5.83 A Day?
Tags: giving online
30. May 2009 at 11:14 pm :
With the way the economy is going right now i think $5.83 would be i bit steep to live on a daily basis.
I assume to have one healty meal a day cost approximately about $6.00. Also the cost of living are vary in different states. So we have to take into consideration the state you live in, you may can live on $5.83 a day.
This topic i would love to try to do some research or experiment to see how is the best way possible to live on this particular amount daily basis.
31. May 2009 at 2:12 am :
Unfortunately i never partisipate in giving online due to my medical and family financial situation. But cant wait for a full recovery to do the best of my ability to do all i can, And will partisipate in giving online to various charity, Since January 2008 i have learn to realize the importance of giving to people in need and wants online.
With that said, I do think because of the present economic crisis there is definately a decline with giving online, But we must ajust and accept these unfortunately circumstances without malice or grudge. Bacause times is so rough with lot of good kind-hearted and gracious loving people, I know there are a lots of people in this great nation who would love to do more for the less fortunate.
Some ways we can try additional way to encorage to giving online even though we are in this crisis. We have to try reach out to people who we assumed Can Afford to give even though we are in this crisis.
We can also do a promotional drive where we can reach out to these particular group, companies or person in all state and major cities.
Set up a online advertisment website personally for people who can afford online giving but never get the time realy look into these charity organization on most of these social websites.
31. May 2009 at 4:47 am :
At the end of this month we find ourselves making family meals that are under $5.00 a day because I have had to borrow for grocery money. We don’t want to borrow too much because I have to pay this all back on the first as well as cover all the bills, late fees and new penalties put on my truck because this was a really bad month for us. We are still able to do it. In fact just tonight we grilled up some perch for 3 adults. The package cost $3.57 and I bought a bag of rice as a side dish for .99 and tonight we ate fish and rice for under $5.00 last night it was Turkey hot dogs and spiniach and that meal for 3 adults was $4.00, tomorrow will be grilled potatoes with green onion and that meal cost me $3.50. We have popcorn and rice to snack on throughout the day so we are not hungry.
I have donated this month though, and I have next months donations budgeted as well. I can’t say that the economic stress has caused me to donate less because I am a micro-giver. I have never been able to donate large amounts and there is always a way to pull 10-20 dollars out of my monthly budget to help others in need.
The way I encourage giving online or locally is to remind people that pennies have value and every dollar begins with one cent. Even if you can’t give over a penny…give the penny, it all counts.
2. June 2009 at 2:38 am :
I have not given on line.I due not no if i could live on $500 a day, but it probably
could be done. food is very exppensive these day’s, I hear my mon and dad
speak about how much things have gone up at the stores. My family used to shop once a month for food but know they shop like every week. I guest this is some think I should be thinking about but I really dont because I still live at home, and
my mon and dad take care of those things.
2. June 2009 at 3:38 am :
Antonio, it is always good to learn about these things. I’m glad you are taking part in the blogs and thinking about them. While I too take care of these things for my sons are they are both special needs…they understand the situation on their own level.
You said you don’t know if you could eat on 5.00 a day. That is a good thing to think about because someday you might have to and knowing about it could even help your parents try out recipies and ideas that could save them money. One of my sons came to me with a recipe for Ramen Noodle cassarole he found online. It’s ramen noodles, a meat product and a few bags of veggies. Simple, cheap and can be made under $5. When I made the meal my son felt real good since he helped his family save on the grocery bill. He then became a part of the solution and didn’t feel so much like a part of the problem.
Think about ways you can help your parents save money
It might make you feel good.
6. June 2009 at 4:43 pm :
I worked in a grocery store until I had to go on disability this past October and I can tell you the food prices have sky rocketed. Gas is steadily on the rise and so is everything else. We struggle to make it day to day and feeding two teen age boys is not easy. I think everyone is feeling the crunch and its become hard for everyone to find extra money to do anything so I think that would cut out of charitable giving. I think most of the giving comes from the smaller people and they are the ones feeling the cut backs, the loss of jobs, the sky rocketing prices. Its hard when you want to give but you have to choose between giving and starving. Its sad that our economy is in such poor shape mostly due to over spending by the people we trust to lead us. I think when things are so bad in the economy people have to look forward and say if I give this now will I be able to have the money to eat next week. Its sad but its true.
21. July 2009 at 1:15 am :
I think the recession has had a huge impact on charitable donations. I started trying to raise donations right before the economy got really bad. I got one donation before the recession and I haven’t gotten any online donations since the recession. My friends are telling me that they are hurting too and need money, so they can’t donate. Just recently I’ve gotten a donation though and I’m hopeful the economy will turn around and that I will get more donations soon. I know a lot of charities are hurting right now too and the food banks.
23. July 2009 at 11:52 pm :
I think the economy has indeed made it very tough to give as freely as we would like at times. I still think people give when they can. I’ve seen a huge decline in trying to sell my graphics this past month verses a few months ago. I was selling and making a few dollars here and there, but now I have not made one sell in about 2 months. People are spending more money on food and gas. I clip coupons, search the internet for freebies and samples, just to get things for the home sometimes. With 3 teen boys, it’s getting harder everyday to make sure they have what they need. It’s getting to the point where even people who did not have to worry about money as much are having to chose to buy meds, eat, or walk to work. I’m hopeful the economy will start looking up, and that’s another reason I decided to go back to school.
Hugs, Lois