Scary, Inspiring Donation Trends
First the scary stuff
Canadians are donating less money. From 2010 through to 2012 the total donation amount fell $1 billion. In 2011, 5.6 million Canadians donated, down from 5.8 million in 2008. The average donor is now 53 years old and the median donation has increased from $190 to $250 over the last decade. Combine the later statistic with a shrinking donor base and a grim picture emerges- less people are donating more money.
Now- Get Inspired
These statistics inspire a challenge- how do we overcome an aging demographic? how do we increase our donor base?
Let’s bust open some market trends for answers. The median year-over-year growth rate for online giving has grown at rate of 15.8%. The median age for donating online is 40- a full 13 years younger than the overall median donor age. If you breakdown the composition of online donations you find that 94% occur in increments of $100 or less and 97.4% of online donors are first time donors.
Crowdfunding is leading this change. The industry segment grew from $530 million in 2009 to $2.806 billion in 2012 and will top $5.2 billion in 2013.
The take home point is simple: Demographic trends are a challenge not a death knell for not-for-profits. Younger generations are willing and able to contribute to not-for-profits and causes they care about- you just need to engage them.
Online fundraising and crowdfunding speak to these audiences and open up your organization to new and sustainable revenue streams. Online fundraising and crowdfunding flips the problem of too few people donating money and allows you to effectively engage many people donating a little money!