1Avalon Consulting Group, Inc.

All rights reserved, 2016 Cover Page

Avalon Consulting Group

www.avalonconsulting.net

Client Training DayDirect Marketing 101: Industry Outlook

September 7, 2017

©2017 Avalon Consulting Group.

All Rights Reserved.

2

State of the Industry

3

Industry Benchmarks

Using readily available benchmarking reports allows for

comparison to the industry and individual sectors.

Provides annual online

benchmarking tools.

Provides online and other

benchmarking information.

Provides industry-level

trends and insights.

Provides quarterly industry

updates and offers individual

organization benchmarking.

4

Source: Giving USA 2017

Industry Benchmarks

5

Industry Benchmarks

Source: Giving USA 2017

6

Overall Giving Trends

Overall giving grew approximately 1.0% in

2016. This is the fifth consecutive year to

show an increase in giving.

While there were numerous reports of

increased giving to a number of nonprofits

after the U.S. presidential election, there is

no evidence that this resulted in a significant

rise in overall giving.

Online giving grew 7.9% in 2016.

Online donations represented 7.2% of

all fundraising in 2016.

17% of online donations were made on

a mobile device in 2016.

Source: Blackbaud’s 2016

Charitable Giving Report includes

overall giving data from 6,845

non-profit organizations.

7

Overall Giving Trends - Giving by Generation

GENERATION YEARS % OF TOTAL % OF DONOR % OF U.S.

GIVING POPULATION POPULATION

Greatest Generation 1900–1927 6.7% 4.2% 1.5%

Silent Generation 1928–1945 30.5% 28.1% 11.3%

Baby Boomers 1946–1964 41.6% 41.6% 30.2%

Gen X 1965–1980 15.7% 19.0% 26.6%

Gen Y 1981–1997 5.4% 7.1% 30.4%

Currently, 72% of all giving comes from the Silent Generation and Baby

Boomers.

The average age of a donor is 62.

Source: Blackbaud’s 2016 Charitable Giving Report includes overall giving data from 6,845

non-profit organizations.

8

Overall Giving Trends – Highlights from

Target Analytics

Target Analytics donorCentrics Index

of Direct Marketing Fundraising

analyzes direct marketing giving for

many large nonprofit organizations.

Overall revenue for the index grew

significantly in Q1, increasing a median

10.0% from the same period a year before.

Overall donors increased a median 5.6%

year-over-year reversing an 11-year trend

of decline.

In early 2017, many organizations

experienced increased giving which is

likely related to concern over the polices of

the current presidential administration.

Note: Target Analytics evaluated transactions from 68

organizations, including more than 34 million donors and more

than 80 million gifts totaling over $3 billion in revenue.

9

Source: Target Analytics donorCentrics Index of Direct

Marketing Fundraising, 2017 First Quarter Results

• Rolling 12-month revenue growth

can provide longer-term context

for year-to-year trends.

• Over the past five years, the

index has generally seen

halting, inconsistent revenue

growth punctuated by periodic

disaster-related revenue spikes.

• In the most recent two quarters,

roughly a quarter of the

organizations had spikes in

revenue and donors which are

likely related to the results of the

November presidential election.

• The end result is that overall

index revenue has grown a

cumulative median 11.5% from

the twelve months ending Q1

2012 to the twelve months

ending Q1 2017.

Overall Giving Trends – Highlights from

Target Analytics

10

Nonprofit website traffic grew by 4%.

Nonprofit email lists grew by 10%.

Nonprofits sent 10% more messages/subscriber.

On average, subscribers received 69 separate email messages

from a single nonprofit.

Nonprofit social media audiences also increased.

Facebook: 23%+

Twitter: 50%+

Instagram: 101%+

Nonprofits digital ad spending increased by 69%.

Overall Giving Trends – 2016 Online Trends:

More, more , more!

Source: 2017 M+R Benchmarks Study

11

Overall Giving Trends – Online Revenue

Source: 2017 M+R

Benchmarks Study

12

Benchmarks: Email Revenue

Source: 2017 M+R Benchmarks Study

13

Traffic to nonprofit websites grew by about 4% over 2015 totals.

Nonprofit email lists grew by 10% in 2016, building on 16% growth the

previous year.

Nonprofits sent 10% more messages per subscriber in 2016 than in 2015.

On average, a subscriber could expect to receive 69 separate email

messages from a single nonprofit in 2016.

Nonprofit social media audiences also increased.

Facebook, 23% growth.

Twitter, 50% growth.

Instagram, 101% growth, with nonprofits doubling their audiences in a

single year.

Nonprofits increased digital ad spending (including paid search, display, and

social media advertising) by 69%.

Online Trends

Source: 2017 M+R Benchmarks Study

representing 133 nonprofit organizations

14

2016 Email Metrics from M+R Benchmarks

Source: 2017 M+R Benchmarks Study

15

Avalon Analytics®

Observations and Trends

16

Individual Giving - cornerstone of funding mix

Individuals represent 72% of funding mix.

Provides revenue diversification and

reliability.

Unrestricted funds.

Supporters can be quickly

mobilized to bridge a funding gap.

Individual donor outreach can be a first line of

defense against program funding cuts.

Increase organizational visibility and reach --

engage the public more broadly in

supporting the broad scope of your mission

17

Growth is possible!

18

Investment is Half the Battle

0

500,000

1,000,000

1,500,000

2,000,000

2,500,000

3,000,000

Acquisition MailQuantity

MAIL QTY

FILE GROWTH

19

Online Growth is Driven by Multiple Join Channels

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

$700,000

$800,000

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

DM Joins Online Joins Other

ONLINE INCOME MATCHED TO JOIN CHANNEL

20

Membership/Donor programs are a pipeline to the Major

Donor Program

First Gift Distribution of $1,000+ Donors

21

Multi-channel donors are the best donors

22

Thank you!Allison Porter

President

Avalon Consulting Group

805 15th Street NW, Suite 700

Washington, DC 20005

202-627-6502

allisonporter@avalonconsulting.net

Connect with Avalon Today!