understanding donor behavior: insights from firstgiving 2007 - 2010

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Understanding Donor Behavior Presented February 17, 2010 Fundraising insights 2007 - 2010

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The first comprehensive study of FirstGiving donors and fundraisers from 2007 through 2010. The presentation includes insights and trending about who gives to online fundraisers, the timing of donations throughout the year, which types of nonprofits receive the most donations, how much money FirstGivers raise, and the demographics of FirstGiving donors and fundraisers.

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Page 1: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Understanding Donor Behavior

Presented February 17, 2010

Fundraising insights 2007 - 2010

Page 2: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

How This Webinar Works

• A link to the slides and a recording will be sent after the webinar

• If you’d like to ask a question during the webinar, you can type it in the box on the right side of your screen

• Use the hashtag #fgwebinar to tweet about this webinar

Page 3: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Next Webinar March 30, 201110am PST/1pm EST

The Power of Like: Understanding Facebook Plugins and other Social Sharing Tools

Register for the webinar at http://bit.ly/gVZuB4

See our blog

www.OnlineFundraisingBlog.com for a complete list of past and upcoming webinars

Page 4: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

About the presenters

Andrew UrbanHead of Sales and Business [email protected]

Debra AskanaseCommunity Engagement [email protected]

Page 5: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Who is FirstGiving

82% - the average year over year increase in online donations a nonprofit sees that utilizes FirstGiving

Page 6: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Fundraising solutions

Online Donations

Peer-to-Peer Fundraising Pagesand Event Registrations Donor Analytics and

Market Research

Personal Support for your nonprofit, donors, and fundraisersEasy, tested, and secure transaction processes for the donor

Page 7: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Webinar Overview

• Event and direct donor trends 2007 – 2010• When donors give• Amounts and frequency of donations• Where donors give• Demographics and donor activity• The Future of Online Fundraising• FirstGiving Insights Donor Profile Report

Page 8: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

The 10,000 foot view

Event and direct donation trends

http://www.flickr.com/photos/flickrmarcus/3382920952/in/photostream/

Page 9: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Total event donations 2007 – 2010: 130% growth

2007 2008 2009 2010

$22,349,601.29

$31,356,784.10

$40,482,682.00

$51,466,531.06

Total dollars donated 2007 - 2010

27%growth

Page 10: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Total direct donations 2008 – 2010: 175% growth

2008 2009 2010

$279,055.16

$499,761.38

$767,095.35

Direct Donations 2008 - 2010

Direct Donations 2008 - 2010

59% growth

Page 11: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Number of event donations over time

2007 2008 2009 2010 -

100,000 200,000 300,000 400,000 500,000 600,000 700,000 800,000 900,000

1,000,000

386,266

552,587

744,148

920,505

Number of Donations 2007 - 2010

Number of Donations 2007 - 2010

Page 12: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Average event donation

2007 2008 2009 2010 $50.00

$50.50

$51.00

$51.50

$52.00

$52.50

$53.00

$52.02

$52.66

$50.96

$52.44

Average Donation 2007 - 2010

*overall event average donation is $51.38

2.9% growth

Page 13: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Grassroots events receive larger average donations

2007 2008 2009 2010

$64.37 $65.61 $63.74 $66.08

$49.51 $49.75 $48.45 $50.11

Average Donation

Grassroots Official

Page 14: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Average direct donation 2008 - 2010

2008 2009 2010

$104.38

$106.36

$108.37

Average Direct Donation2008- 2010

Average Direct Donation

Page 15: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Donation Trends Takeaways

• Overall online event donation dollars grew 27% in 2010, and 130% from 2007 - 2010

• Overall direct donation dollars grew 59% in 2010, and 175% from 2007 - 2010

• Average event donation dropped in 2009 with the economy but average direct donation did not

• Encourage direct donations• Grassroots event average donations are higher than for

official events• Encourage fundraisers to create grassroots events!

Page 16: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

The 5,000 foot view

When donors give

http://www.flickr.com/photos/38117207@N03/4947207018/#/

Page 17: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Event donors are driven by events

Jan Feb Mar April May June July Aug Sept Oct Nov Dec0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Total number of event donations by month

*total number of event donations mirrors the monthly totals

Page 18: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Direct donors are driven by tax incentives to give

Jan Feb

Mar

AprilM

ayJu

neJu

lyAug

Sept

OctNov

Dec0

50000100000150000200000250000300000350000400000450000

Total number of direct donations by month

Total

Dol

lars

28% of all annual direct donations are given in December

Page 19: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Average event donations are highest in the summer and December

Jan Feb Mar April May June July Aug Sept Oct Nov Dec0.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Aggregate average donation 2007 - 2010

Total

$69.96

$46.26

Page 20: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Average direct donations are highest in November and December

Jan Feb Mar April May June July Aug Sept Oct Nov Dec0.00

20.00

40.00

60.00

80.00

100.00

120.00

140.00

160.00

Average donation by month

Page 21: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Event donations by the week: the week of the year affects the donation amount

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 520.00

10.0020.0030.0040.0050.0060.0070.0080.0090.00

100.00

Average donation amount by week

Total

$44.79

$92.49

$63.11

*calculated on a 53 week year

Page 22: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Last week of the year is the most popular direct donation week

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 520

20000400006000080000

100000120000140000160000180000200000

Total dollars donated by week

Page 23: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Most donate Mon – Fri to event pages

Sunday Monday Tuesday Wednesday Thursday Friday Saturday0

5000000

10000000

15000000

20000000

25000000

30000000

Total donations by day of the week

Page 24: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Most direct donors give during the work week

Sunday

Monday

Tuesday

Wednesd

ay

Thursday

Friday

Satu

rday

0

50000

100000

150000

200000

250000

300000

Total amount donated by day of week

Page 25: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Most event donors give from 9am to 3pm

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

$3,500,000

$4,000,000

$4,500,000

Total number of donations by the hour

2007200820092010Axis Title

Page 26: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

…but event donation amounts are highest in the middle of the night

* Central Standard Time

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 230.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Average donation amount by time of day$67.76

Page 27: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Weekend donors give more to event pages

Sunday Monday Tuesday WednesdayThursday Friday Saturday48.00

49.00

50.00

51.00

52.00

53.00

54.00

55.00

56.00Average donation by day of the week

$50.71

$54.88

Page 28: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Most direct donors give from 8am - 4pm

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 230

200

400

600

800

1000

1200

1400

Total number of donations by hour

Page 29: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

A great time to ask direct donors is 5pm CST

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 230.00

20.0040.0060.0080.00

100.00120.00140.00160.00180.00

Direct average donation by hour

*times are in CST

Page 30: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Event and direct donors give more generously the last month of the year:• Event donation Dec average is $69.86• Direct donation Dec average is $140.34Last week of the year:• Event donor average donation is $92.49• Direct donor average donation is $228.86

• Think about creating an event in December!

Timing of Donations Takeaways

Page 31: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Timing of Donations Takeaways (2)

• Send reminder donation emails during the week and sometime Friday – Sunday Weekend donors are more generous

• Ask direct donors to give before Wednesday

Page 32: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

The 1,000 foot view

Amounts and frequency of

donations

http://www.flickr.com/photos/98214568@N00/485888204/

Page 33: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

99.72% of all donations are less than $1,000

0.281434213120719; 0%

99.72%

Total event donations

No. of donations equal to or greater than $1,000No. of donations less than $1,000

Page 34: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Furthermore, most event donors give less than or equal to $100

6%

94%

Total event donations 2007 - 2010

No. of donations greater than $100

No. of donations equal to or less than $100

Page 35: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Popular event donation amounts

$1.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

$40.00

$50.00

$60.00

$75.00

$100.00 0

50000

100000

150000

200000

250000

Donation Amounts $0 - $100

2007200820092010

Page 36: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

The majority of total event and direct dollars donations are

equal to or less than $100

• Primarily in $25, $50, and $100 increments = 55% of the total dollars raised 2007 – 2010

• Most online donations are less than $1,000

Page 37: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Most direct donors give in $25, $50, and $100 amounts

65%

35%

Total number of direct donations

top 3 donation amountsother donation amounts

Page 38: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

However, direct donors will give large donation amounts online

• Five donors gave $5,000• Single donations of $9,000, $7,500, $6,200

and $6,000 appear• Two donors gave $10,000

Page 39: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Breakdown of common donation amounts from $101 to $1,000

$125.00

$150.00

$175.00

$200.00

$250.00

$300.00

$350.00

$400.00

$500.00

$1,000.00 02000400060008000

10000120001400016000

Donations $101 - $1,000

2007200820092010

Page 40: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Donation Amount Takeaways

• Encourage fundraisers to ask for specific donation amounts of $25, $50, and $100

• Consider setting up projects that can be funded for these amounts ($50 buys a week’s worth of food for one person)

• Don’t be afraid to ask for higher amounts: $200 is the most popular amount over $100

Page 41: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Donation amount takeaways (2)

• People ARE willing to give large sums online but the overall percentage, however, is small

• Large dollar donors could bring in a significant percentage of overall revenue

• Know your donor base, and what amounts to ask for

Page 42: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Most donors give only once

1 6 11 16 21 26 31 36 41 51 650

100000

200000

300000

400000

500000

600000

700000

800000

900000

1000000

Number of times an event donor has donated

2007200820092010

1 2 3 4 5 7 8 9 11 12 13 15 21 25 31 40 420

2000

4000

6000

8000

10000

12000

14000

16000

Number of times direct donors donate 2007 - 2010

Page 43: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

More than 12 donations/year…it’s a very long tail

7 11 15 19 23 27 31 35 39 43 47 51 56 66 78 940

100

200

300

400

500

600

700

800

Frequency of repeat event donations 6 - 125 times

Total

Page 44: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

In general, repeat event donors donate at higher amounts

1 2 3 4 5 6 7 8 9 10 11 120.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Average donation of repeat event donors

*event donations 2007 - 2010

Page 45: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Donor Frequency Takeaways

• Most donors are unique. They probably donate because a friend asked them to Huge opportunity to turn one-time donors into regular fundraisers

• Those who give at least twice a year, give more generously

• How can you turn unique donors into loyal repeat donors?

Page 46: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

The 500 foot view

Where donors give their dollars

http://www.flickr.com/photos/97844770@N00/3481448984/

Page 47: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

4%1% 0%

1%

1%

6%

0%

1%

0%

34%

0%

15%

3%

8%

1%

0%

5%

0%

1%

3%2%

0%

0%

2%

11%

2%

Where donors give their money – total dollars donated

Animal-Related Arts, Culture & HumanitiesCivil Rights, Social Action & Advocacy Community Improvement & Capacity BuildingCrime & Legal-Related EducationEmployment EnvironmentFood, Agriculture & Nutrition Health CareHousing & Shelter Human ServicesInternational, Foreign Affairs & National Security Medical ResearchMental Health & Crisis Intervention Mutual & Membership BenefitPhilanthropy, Voluntarism & Grantmaking Founda-tions

Public & Societal Benefit

Public Safety, Disaster Preparedness & Relief Recreation & SportsReligion-Related Science & TechnologySocial Science UnknownVoluntary Health Associations & Medical Disciplines Youth Development

Page 48: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Higher average donations from community Improvement, Medical Research, and International NTEE category donors, lowest from Animal-related

donors

0.0020.0040.0060.0080.00

Avg event donation of most popular NTEE categories

Total

*most popular NTEE categories had at least 10,000 donations per category

Page 49: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Community Improvement, Human Services receive highest average direct donations

0.0040.0080.00

120.00160.00200.00

Average direct donation by parent NTEE

Page 50: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Largest average donations go to grassroots events

Anniversa

ries

Birthday

s

Bowling

Christenings

Cyclin

g

Memoria

ls

Moto

rcycli

ng

Other O

ccasio

ns

Other s

porting e

vent

Running

Swim

mingTreks

Triath

lons

Ultram

arath

onsW

alk

Weddings

0.00

20.00

40.00

60.00

80.00

100.00

Average event donation amount 2007 - 2010

Total

*walk and running are the two most popular event types on FirstGiving

Page 51: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Donor Dollars Takeaways

• Encourage grassroots fundraisers, which tend to bring in much higher average donations!

• If your nonprofit category does not receive high average donations, plan more events and/or encourage grassroots fundraisers

• Use NTEE average donations to set fundraising event goals

• Consider partnering with other NPOs that receive higher average donations, or more yearly donations

Page 52: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

The 100 foot view

Demographics and donor

activity

http://www.flickr.com/photos/pandiyan/2154937296/

Page 53: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

40-49 year-olds donate the most to events

18 21 24 27 30 33 36 39 42 45 48 51 54 57 60 63 66 69 72 75 78 81 84 87 90 93 96 990

500000

1000000

1500000

2000000

2500000

3000000

3500000

Total event donation dollars by donor age

Total

Page 54: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

But donors age 64+ give more, on average

18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 92 94 96 980.00

10.00

20.00

30.00

40.00

50.00

60.00

70.00

80.00

Average event donation by age

Page 55: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Event donors with HH Donor income between $50K - $125K, $250K give the most dollars to events

$1,000 - $14,999

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $124,999

$125,000 - $149,999

$150,000 - $174,999

$175,000 - $199,999

$200,000 - $249,999

$250,000 +$0

$5,000,000$10,000,000$15,000,000$20,000,000$25,000,000

Total donations by HH income

Total

Page 56: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Average event donation increases with HH income

$1,000 - $14,999

$15,000 - $24,999

$25,000 - $34,999

$35,000 - $49,999

$50,000 - $74,999

$75,000 - $99,999

$100,000 - $124,999

$125,000 - $149,999

$150,000 - $174,999

$175,000 - $199,999

$200,000 - $249,999

$250,000 +$0.00

$10.00$20.00$30.00$40.00$50.00$60.00$70.00$80.00

Total

Total

Page 57: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Demographics Takeaways

• Most donors and fundraisers are over age 30• The higher the household income, the higher the

average donation• Household income of FirstGiving fundraisers is

primarily between $50,000 and $125,000• Event donors age 65+ give higher average donations

online (online donors are not all young!)• Direct donors, as a whole, tend to be younger than

event donors

Page 58: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010
Page 59: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

FirstGiving Insights

• Uses data from Experian ® and Donor Trends• Identifies the hidden philanthopic potential and

interests of your donors• Offers analysis of key demographic and giving

trends from amongst your nonprofit donors• Paid report specifically identifies your donors,

segmenting them into FirstLeaders, FirstGivers, and reveals their charitable gifts

Page 60: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010
Page 61: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010
Page 62: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Applying Trends to the Future of Online Fundraising

• Emphasize online fundraising in your fundraising plan: this segment continues to grow yearly, both peer to peer and direct

• Partner with your fundraisers to create grassroots fundraising opportunities: receive higher average donation amounts

• Target donation amounts: targeting specific donation amounts that occur naturally, and suggested amounts

Page 63: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Applying Trends to the Future of Online Fundraising

• Unique donors: missed opportunity not capturing them and turning them into repeat donors

• Targeting who donates: largest number of donors are in their 40s, earning from $50K to $150K

• Targeting when donations occur: create events in December, remind donors to donate over the weekend

Page 64: Understanding Donor Behavior: Insights from FirstGiving 2007 - 2010

Thank you!

Community Engagement Manager, Debra [email protected]@askdebra, @firstgiving

Andrew Urban, Head of [email protected] inquiries: [email protected]

FirstGiving Insights specialist, Debbie [email protected]