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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.

fundraising campaign

5 things to know before starting a fundraising campaign.

Want to launch your online fundraising campaign? A little strategy is in order! From the beginning of a Fundraising campaign, it is important for non-profit organizations to be aware of certain elements:

  • Philanthropists want to see results from their gift. If they agree to help fund a project, it’s because they believe in the organization and its mission. Make it clear in your marketing and messaging why is your organization raising funds.
  • It is tricky to solicit donations for the sole purpose of balancing a budget. It is easier to convince donors to participate in the development of your organization, or in a specific mission that the institution intends to carry out. To get more donors to become involved, the funds sought must be used to move the nonprofit organization.
  • Soliciting prospective donors in a non-targeted manner (for example starting with the letter A of a directory) whether it is specialized or not, is not considered the most effective strategy while starting a fundraising campaign. It is better to turn to potential donors (companies or individuals) who are already connected in one way or another to the fundraising institution or its members.
  • As often in marketing disciplines, loyalty to a donor is easier than recruiting a new donor. For this, the process of traceability, thanking your donors,  follow-ups and information regarding the use of donations are essential.
  • According to several recent studies, there is generally a very large disproportion in the amount of donations obtained.The Pareto principle applies here in full: the fact that 90% of donations come from 10% of donors is a common pattern. This can even go further (95-5 etc.). In conclusion, it is not necessarily useful to look for a large quantity donors, it is necessary to be able to detect and convince the quality ones.
Let GiveCentral help you achieve financial fitness!

Financial Fitness: Tips to Keep your Fundraising in Good Shape

Strengthen your financial fitness

Seems like everyone is on a fitness plan these days, myself included. Which got me thinking… applying the same principle to work life makes a lot of sense. So this year, put a twist on an old new year’s resolution standby – to get in shape – and apply it to your nonprofit. Get your fundraising in shape by creating a health and wellness plan for your organization’s fundraising efforts. Here are some expert tips to get you started:

Related Topic: Facebook for Non-Profits: 10 tips for fundraising success

Bulk up your database.  

The path to long-term vitality is cultivating and growing your donor database.  Simply put, donors are the lifeline of your organization. That’s why it’s critical to have a donor (customer) relationship management system (CRM) in place. The world’s most successful companies wouldn’t dream of operating without a CRM system, and you shouldn’t either.And while growing your mailing list and donor database may seem intimidating, it may be easier than you think. You can ask your volunteer leaders to share the email addresses of their group members, or ask current members to invite a friend or three who might be interested in learning more about your mission.

Repetition.  

The key to success for any exercise is repetition and the same goes for your donors.  Do you have a way for your donors to easily make recurring donations? 

Flex your fundraising muscle.

Offering your donors flexibility is key. Anytime, anywhere they are ready to give, make it easy for them! Make sure to provide donors options so they can donate on their terms, not yours. 

Stay Active.

It’s no secret regular communication is an important driver of donation growth.  Keep your organization top of mind through consistent, compelling communications.  Make your first message of 2016 a big “Thank You!” Include a positive story about the great ways your donors have positively impacted the community by supporting your mission.


We can help you put these proven tips (and lots more) into action. Think of GiveCentral as your fitness trainer, a partner dedicated to keeping your fundraising in great shape!