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Monthly Archives: February 2013

Blackbaud in the news: The Nonprofit Quarterly, The Huffington Post, GuideStar Blog

Each week, we post articles featuring Blackbaud news and articles penned by Blackbaud staff – here is this week’s Blackbaud in the News:

  • The Huffington Post: “Nonprofit Trends: Charitable Giving in 2013″

Earlier this month, the company I have the privilege of leading released its 2012 Charitable Giving Report. Although we look at giving all the time, releasing a charitable giving index every month, this report was a time for us both to reflect on the year behind us and to hear from experts from a variety of nonprofit sub-sectors.

The headline from the report wasn’t overly optimistic: charitable giving in 2012 was nearly flat, up 1.7 percent (not adjusted for inflation) as we all continue what’s turning out to be a very slow economic recovery. Read the full article

  • The Nonprofit Quarterly: “Bellwether or Anomaly? Giving and Endowments at Colleges Stagnant”

Trying to make sense of the current funding environment? Good luck. According to a study released yesterday by the Council for Aid to Education, giving to colleges increased by 2.3 percent in 2012 – although, indexed for inflation, the increase is 0.2 percent. Gifts for operations were up by 6.2 percent while capital gifts actually declined by 3.2 percent. This, according to survey director Ann Kaplan, will likely be a hit to student financial aid. “In restricted endowments, student financial aid is the largest portion of those gifts by a long shot; it’s 33.6 percent this year.” Read the full article

  • GuideStar Blog: “The 2012 Charitable Giving Report’”

The following is a cross-post by Steve MacLaughlin, director of Blackbaud’s Idea Lab.

The 2012 Charitable Giving Report includes 24 months of overall giving data from 3,144 nonprofit organizations representing $7.9 billion in total fundraising. The report also includes online giving data from 2,581 nonprofits representing $512 million in online fundraising. It is the largest analysis of overall and online giving trends in the nonprofit sector. Read the full article

  • Retail Times: “Royal Horticultural Society gets closer to members with Blackbaud CRM solution”

The Royal Horticultural Society (RHS) is looking to gain a better understanding of its members, visitors and supporters with the implementation of a new Customer Relationship Management (CRM) solution by software and services firm Blackbaud.

The RHS is dedicated to advancing horticulture and promoting good gardening, and runs a number of high profile events such as the RHS Chelsea Flower Show. In order to meet its 2013 strategic objectives, centred on being known, loved and trusted as the charity for all gardeners, it was clear the organisation needed an integrated CRM system, said Blackaud. Read the full article

Blackbaud in the news: The Huffington Post, The Agitator, and The Nonprofit Times

Each week, we post articles featuring Blackbaud news and articles penned by Blackbaud staff – here is this week’s Blackbaud in the News:

  • The Huffington Post: “Nonprofit Brands in the Age of Supporter Shift (Part 1)”

In the Supporter Shift series, Blackbaud CEO Marc Chardon and outcomes guide Hal Williams continued their discussion about nonprofit results, exploring the effects of generational shift — and a related shift in expectations. In this series, the authors return with a focus on the nonprofit brand, an essential ingredient in supporters’ search for meaning.

When we were kids, no one talked about branding, that is, unless they meant cows. They did talk about individual brands here and there, but not about brands in the broader sense, about what they stood for or the value they held for those who aligned with them. In a very general sense, brands were associated with a handful of specific products that have taken a nostalgic place in our memories… like Campbell’s or Wrigley. Read the full article

  • The Agitator: “Why Chuck Longfield Is Worried”

When Chuck Longfield is worried, it’s time for fundraisers to wake up, pay attention, and begin making some serious changes.

Chuck is the Founder of Target Analytics and Chief Scientist at Blackbaud. For purposes of this post, he’s a first-rate innovator who is more intimately familiar with direct response fundraising trends than anyone I know.

So, when Chuck sounds the alert it’s time to take note. And he did just that at the Direct Marketing Association’s Washington Conference last week in a fact-packed session on Acquisition and Retention Trends. Read the full article

  • The Nonprofit Times: “Majority Of Adults Want Charitable Deduction Protected’”

With the specter of Congressional hearings and an eye on the charitable sector’s revenue streams, a majority of Americans want the charitable deduction left out of negotiations on how to reduce the nation’s debt, according to the results of a new survey.

Some 75 percent of respondents value the deduction at 35 percent, with 61 percent indicating they feel “strongly” about maintaining the current deduction. That number is up from the January 2012, when 56 percent of respondents said they thought that way. Read the full article

  • NorthJersey.com: “Estimates of charitable giving in 2012 vary widely”

Charitable giving across the nation began to recover last year, rising nearly $25 billion — or 6.7 percent. Or: Charitable giving barely budged in 2012, going up just 1.7 percent — less than the rate of inflation.

Those conflicting analyses released in the past two weeks by a pair of non-profit consulting firms demonstrate one constant: how difficult it is to come up with firm numbers about American philanthropy.

This is not simply a problem for organizations whose reputations rest on how accurately they estimate the amount of charitable giving in the U.S. With Congress again approaching decisions on tax policy that have included suggestions to limit deductions for charitable donations, getting an accurate picture of how much is given and the impact of those funds is critical. Read the full article

  • Miratel Solutions: “Overall Nonprofit Fundraising Results Flat in 2012 According to Latest Report”

I have been anxiously awaiting the latest Blackbaud Index results for the final month of 2012 and happily realized they went a step further and released a year-in-review report called “Charitable Giving Report, How Nonprofit Fundraising Performed in 2012”. The report which analyzes overall and online giving results over a two year period from 2011 to 2012 had some great insights into what was a very unpredictable year. As I wrote last month in the post Nonprofit Fundraising Show Slight Increase According to Latest Blackbaud Index, the slight increase which occurred in November continued into December with an increase of 2.6%.  Read the full article

Charitable Giving to Nonprofits Was Nearly Flat in 2012


The Blackbaud Index shows overall giving was up 2 percent, while online giving grew 11 percent

Charleston, S.C. (February 4, 2013) — Blackbaud, Inc. (Nasdaq: BLKB) today released a Charitable Giving Report, featuring the sector’s first look at how nonprofit fundraising performed in 2012. The Report draws from The Blackbaud Index, which tracks $8 billion in U.S.-based charitable giving on a monthly basis to provide the largest analysis of overall and online giving trends in the nonprofit sector.

“2012 continued to show signs of a slow recovery for overall fundraising,” said Steve MacLaughlin, co-author of the Charitable Giving Report and director of Blackbaud’s Idea Lab. “Online fundraising’s return to significant growth rates is an encouraging sign, although online giving still makes up less than 10 percent of overall giving.

“Looking ahead, overall giving is not likely to increase significantly until there is sustained growth in new donors, nonprofits rebuild their multi-year donor base, and overall donor retention improves.”

Key findings from the Charitable Giving Report include:

  • Overall giving continued its slow recovery and grew approximately 2% in 2012
  • Online giving grew by about 11% in 2012 compared to 2011
  • Online fundraising accounted for 7% of all giving in 2012, an increase from 2011
  • Small nonprofits had the greatest increase in overall fundraising in 2012, while medium-sized organizations led online
  • Giving throughout 2012 hovered on flat and Superstorm Sandy relief efforts helped boost year-end

Nonprofit fundraising performance differed greatly based on the size and sector of the organization.

Overall giving by size and sector

Small nonprofits, with annual total fundraising less than $1 million, grew their fundraising 7.3% compared to 2011. Medium-sized organizations, with annual total fundraising between $1 million and $10 million, had an increase of 2.7% in 2012. Fundraising by large organizations, with annual total fundraising more than $10 million, was up by 0.3%.

Giving to faith-based organizations grew by 6.1% and education institutions also had a positive year with 1.9% growth in fundraising compared to 2011. These two sectors combine for 45% of charitable giving in the US. Arts and culture, as well as environment and animal welfare organizations were the only other sectors to experience fundraising growth in 2012.

International affairs, healthcare, and human services organizations struggled throughout 2012 to achieve fundraising growth. These three sectors all had negative growth rates in 2012 compared to 2011. Public and society organizations had a slight decrease in overall fundraising in 2012.

Online giving by size and sector

Medium-sized nonprofits led the way with a year-over-year increase of 14.3% in their online fundraising. Small nonprofits grew their online fundraising 11.8% compared to 2011. Large organizations grew their online fundraising by 7.2% in 2012 compared to 2011.

Education organizations grew their online fundraising the most in 2012 with an increase of 17.9%. These nonprofits continued to have the largest growth rate for the second consecutive year. Nonprofits in the public and society benefit sector grew 17.1% and human services grew 15.7%. These organizations continued to demonstrate the need for support to donors during challenging economic times. Several of these organizations also saw online giving increase in relation to Superstorm Sandy relief efforts.

About the 2012 Charitable Giving Report

The aim of the Charitable Giving Report is to provide a benchmark for giving and help inform nonprofits’ fundraising strategies in 2013. The findings in this report are based on giving data from 3,144 nonprofit organizations and more than $7.9 billion in fundraising revenue. The online fundraising findings are based on data from 2,581 nonprofit organizations and more than $512 million in online fundraising revenue. View more charitable giving trends, and take a closer look at strategies for success by downloading the report at www.blackbaud.com/charitablegiving.

To stay up-to-date on the latest fundraising trends as reported by The Blackbaud Index, visit www.blackbaud.com/blackbaudindex where you can sign up for monthly email and mobile alerts.

About Blackbaud
Serving the nonprofit and education sectors for 30 years, Blackbaud (NASDAQ: BLKB) combines technology and expertise to help organizations achieve their missions. Blackbaud works with more than 27,000 customers in over 60 countries that support higher education, healthcare, human services, arts and culture, faith, the environment, independent K-12 education, animal welfare and other charitable causes. The company offers a full spectrum of cloud-based and on-premise software solutions and related services for organizations of all sizes including: fundraising, eMarketing, advocacy, constituent relationship management (CRM), financial management, payment services, analytics and vertical-specific solutions. Using Blackbaud technology, these organizations raise more than $100 billion each year. Recognized as a top company by Forbes, InformationWeek, and Software Magazine and honored by Best Places to Work, Blackbaud is headquartered in Charleston, South Carolina and has operations in the United States, Australia, Canada, Mexico, the Netherlands and the United Kingdom. For more information, visit www.blackbaud.com.

Media Contact
Melanie Mathos
Blackbaud
843.216.6200 x3307
media@blackbaud.com

Forward-looking Statements
Except for historical information, all of the statements, expectations, and assumptions contained in this news release are forward-looking statements that involve a number of risks and uncertainties. Although Blackbaud attempts to be accurate in making these forward-looking statements, it is possible that future circumstances might differ from the assumptions on which such statements are based. In addition, other important factors that could cause results to differ materially include the following: general economic risks; uncertainty regarding increased business and renewals from existing customers; continued success in sales growth; management of integration of acquired companies and other risks associated with acquisitions; risks associated with successful implementation of multiple integrated software products; the ability to attract and retain key personnel; risks related to our dividend policy and share repurchase program, including potential limitations on our ability to grow and the possibility that we might discontinue payment of dividends; risks relating to restrictions imposed by the credit facility; risks associated with management of growth; lengthy sales and implementation cycles, particularly in larger organization; technological changes that make our products and services less competitive; and the other risk factors set forth from time to time in the SEC filings for Blackbaud, copies of which are available free of charge at the SEC’s website at www.sec.gov or upon request from Blackbaud’s investor relations department. All Blackbaud product names appearing herein are trademarks or registered trademarks of Blackbaud, Inc.

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