Online fundraising: growing fast, getting harder to do

A new study, the 2008 eNonprofit Benchmarks Study, (done by NTEN and M+R Strategic Services has some useful facts, culled from the experiences of a number of nonprofits online:

• The total amount raised online increased by 19% from 2006 to 2007.
  
• Open rates have fallen from 21.3% to 17.6%.
  
• Click-through rates have dropped from 4.9% to 3.8%.
  

My experience is similar. Revenue coming to nonprofits through the web is growing by double digits every year. We no doubt have a few more years of that to look forward to before it slows down.

On the other hand, raising funds by means of e-appeals is getting tougher -- no doubt because our donors' inboxes are getting fuller. Growth of online files tends to more than make up for lower response numbers.

Lesson: If you aren't actively at work online, you are losing money. And if you aren't experimenting with tactics and strategies for online fundraising, you are painting yourself into a corner.

Press release here, full study available for download here (registration required).

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