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Philanthropic Giving Towards Education Keeps Growing

Giving to education has a huge gain in the year-round philanthropic giving, per the third edition of The Philanthropy Outlook. The trend suggests the growth will continue in 2017- 2018. Donor behavior seems to be the major factor propagating the trend. How do modern donors give? What motivates them and how does that behavior change how development teams plan their asks?

Donating to higher education has increased in particular via online giving. Both private and public institutions have witnessed successful fundraising campaigns.

In the recent years philanthropists in America have shown a growing interest in supporting education in the country. In fact, education was indicated as a priority for the philanthropic community. More and more charitable contributions are made to better education by training teachers, funding schools, inventive education programs and other likewise initiatives.  Many people find it critical to support higher education, private K-12 schools, libraries and many more educational institutes. In 2014, about 15 per cent of the total charitable donations in America were made to educational organizations. Not only was it an increase in the donation to education but also propelled education sector to be the second largest recipient of charitable giving in America.

The study finds that giving to education includes all cash and non-cash donations from itemizing and non-itemizing U.S. households to U.S. education charities, including institutions of higher education, private K-12 schools, vocational schools, libraries, educational research and policy, and many other types of organizations serving an educational purpose.

According to the report, giving to education will be higher in 2017 and 2018. The current projections predict it to be higher than it has been in the previous ten years. It will still be lower than the previous twenty-five and forty-year average. Giving to education is predicted to increase by 6.3% in 2017 and 6.0% in 2018.

Here are some of the factors that will significantly affect giving to education institutions in the year 2017 and 2018:

  • GDP growing above the average
  • Expenses of education services incurred by the consumer increasing in the coming year
  • Consumer’s expenditure on health

These three factors will be responsible for the majority increase in donating to education in coming years. How a charity grows also depends on the previous growth in specific economic variables. Other factors affecting giving to education in 2017-2018 include recreation services, nonprofit service output, healthcare services and rate of consumption.

With the increase in the giving to education another equally growing phenomenon are fundraising campaigns between the institutions of higher educations that are continuously growing and becoming billion-dollar endeavors. These campaigns provide philanthropists an opportunity to give and in a generous way, which otherwise will be hard to come about. This only means that there is a direct relation between the increase in a number of these fundraising campaigns and increase in donations. If such campaigns continue in 2017 and 2018 it will only give more opportunity for the people to donate to education.

HISTORICAL ANNUALIZED AVERAGES FOR GIVING

Graph_education

Charitable giving to education is expected to increase as a percentage of total giving, from an estimated 15% in 2014 to 17% in 2018.

These data are drawn from historical giving data found in Giving USA 2016: The Annual Report on Philanthropy for the Year 2015. Data are adjusted for inflation to 2015 dollars.

Donors these days seek more control of their philanthropic interests. Each and every year donors are getting more intelligent about how and where their money goes to.  Many fundraising campaigns are hence based on donor-centric behavior. Understanding what drives donors today will help improve and build strong sentiments for fundraisers in future.

Donor Giving

Generosity Varies by Time of Day – When Do Your Donors Give?

When you’re appealing to the generosity of your donors, every second counts… and when that second happens matters, too. Your donors are busy, and their time is just as valuable as their money.So what’s a nonprofit to do? Make it easy for your donors to give when it’s most convenient for them by offering online giving!GiveCentral’s recent survey of over 800 American donors told us that people are far more likely to donate in the evenings (36 percent) or on weekends (26 percent) than during the “normal” business nine-to-five. That’s a lot of generosity you might be missing if you’re not ready for off-hours giving.

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GiveCentral's latest survey report: 2016 Insights on Nonprofit Giving

New Study Reveals Insights on Donor Giving Habits

Get The Survey ReportKnowing your audience is critically important. Understanding their habits, interests, what motivates them and their charitable preferences are important pillars of your fundraising strategy. Knowing how, when, where and why donors give are key building blocks and questions you need to be able answer to successfully raise money for your organization.That’s why GiveCentral launched a benchmark national study to uncover and track Americans’ charitable giving habits. GiveCentral’s 2016 Insights on Nonprofit Giving report reveals key insights and motivators behind the more than $358 billion American’s give to charity annually.* Here are some highlights from the benchmark study:

Digital Dollars

One out of three Americans indicated a preference for online giving. What’s more, of those respondents, 34 percent said they are likely to donate MORE when using electronic payment methods.

Tech Age of Giving

Forty-three percent of Americans have used a computer, smartphone or tablet to make a donation.

More Dollars Digitally

When asked the dollar amount of their most recent contribution, those who prefer to donate online gave an average of $115 versus an average donation of $82 for those who prefer cash or check. Similarly, those donors who prefer online giving gave an average of $781 annually compared to a $559 average for those who prefer cash or check.

Motivating Factors

Approximately 30 percent of Americans donate for religious reasons. Other motivating factors include: To help people in need (58 percent), feel fortunate and want to give back (39 percent).

Time Out

Evenings (36 percent) and weekends (26 percent) are the most likely time in which donations are made. For 18 percent of survey respondents, early morning is the ideal time.

Moving Story

Storytelling is an art, and an a must-have part of fundraising. That’s because nearly 20 percent of survey respondents said they were emotionally moved to donate by someone’s story. Get your copy of the full report here:Get The Survey ReportGiveCentral’s 2016 Insights on Nonprofit Giving report reveals other interesting and actionable findings along with recommendations how you can put them into action to benefit your fundraising efforts.


*Giving USA 2015: The Annual Report on Philanthropy for the Year 2014

A group of parishioners in gloves and aprons, preparing food for a charitable dinner

Great Things are Happening! The Value of a Hands-On Approach

I get a great deal of pleasure and fulfillment sharing the success stories of our clients, and I’ve started to document some of the more notable successes I’m seeing in a series I’m calling “Great Things are Happening!”Recently, I shared the story of Fr. Wayne Watts and St. John Berchmans parish in Chicago’s Logan Square neighborhood, and how the two C’s of Communication and Community had such wonderful, positive impact on their fundraising efforts.

Today’s Great Things are Happening! success story is all about the value of a hands-on approach with members. Not just to help in fundraising efforts, but also because caring for each other is so important to our community’s health and happiness.

St. Teresa of Avila in Chicago’s Lincoln Park neighborhood recently enjoyed over 200 percent growth in their donor base, and it was due in no small part to a message of caring.

Case study: growth in giving and donors, year over year, at St. Teresa of Avila
A hands-on approach helped the church grow in online donations, number of donors, and Sunday Offertory from one year to the next.

Rebecca O’Brien, who heads up stewardship for St. Teresa, had realized the church would benefit from growing donor base, and that to do it, they needed to take a very personal approach to helping parishioners learn and understand how to use the GiveCentral online donation platform.

Fortunately, GiveCentral is remarkably easy to use. Still, for some, the leap from offering plate to the digital world can feel daunting without a little love and attention, which is exactly what St. Teresa gave.They went “all-in” as I like to say, offering assistance on how to register in the system, get payment information uploaded, create a donor profile, and set up giving preferences.

Meanwhile, the church stayed in near constant communications with donors new to the system, making them feel at ease, and demonstrating the benefits of how much more connected to the church parishioners feel when using the online giving platform.And the results bear witness to the success of their efforts.

Over 30 new donors were registered in the first week of the push, and ultimately, their Sunday Offertory increased by an amazing 433 percent!We can talk about the importance of online giving platforms in increasing donor contributions, and there’s no doubt GiveCentral played a role in this success, however the kind of care and attention the leadership at St. Teresa gave to their drive is the real meat on the bone in this success, and it makes me proud to have them as a partner.

I believe that no matter who we are, we are lifetime learners, and a few insights here and there about why we succeed can go a long way.

Download a case study of this great success story here.