Online fundraising grows

May 13, 2008

The Internet is continuing to become a key tool in both fundraising and advocacy for large nonprofits, a new study says.

The Internet-based fundraising appeals of 21 major national nonprofits grew 19 percent in from 2006 to 2007, says the "2008 eNonprofit Benchmarks Study," produced by M+R Strategic Services and the Nonprofit Technology Network.

That rise occurred in spite of a decline in email open rates, which dropped to 17.6 percent from 21.3 percent, and slumping click-through rates, which fell to 3.8 percent from 4.9 percent.

However, the average churn rate, which the report defines as the rate at which an email list "goes bad," saw a slight improvement, falling to 19 percent from 21 percent.

On average, the nonprofits analyzed in the study sent slightly more than four emails to each subscriber monthly in both 2006 and 2007, the study says.

And while large gifts are relatively rare, they are important, with donations of $1,000 or more representing 1 percent of all online donations last year, but accounting for one-fifth of all dollars raised online.

The average response rate for online fundraising appeals in 2007 was 0.13 percent, the report says, while emails encouraging advocacy activities reached 7.5 percent.

However, almost six in 10 subscribers did not participate in any online advocacy activities during 2007.

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