Huge online giving growth reveals new research

Online charitable giving has risen by a massive 85% in the past three years despite an ongoing economic downturn, according to new research produced by leading not-for-profit sector research consultancy nfpSynergy, working with MissionFish UK, eBay for Charity and the Institute of Fundraising.

Delegates at the Institute of Fundraising’s annual Digital Fundraising Conference, to be held in London today will hear the most up to date findings about online fundraising, including how online social networks like Facebook and Twitter are changing the giving landscape.

The research – contained in the second edition of the report Passion, persistence and partnership: the secrets of earning more online – explores the dramatic rise in use of social media, smartphones and mobile internet, both by the public and by charities, in particular in relation to supporter engagement and fundraising.

Online communication is becoming more immediate and more personal. Now nearly half of all mobiles are smartphones and already 40% of smartphone owners use mobile internet each month.

At the same time, use of social media has become more widespread, with social networking now accounting for 1 in 8 of all UK internet visits, arguably now the single biggest activity online in the UK.

Charities are seizing the opportunity to reach out to their supporters, rather than waiting for visitors to arrive at charity websites.

Latest figures show that 71% of charities now use Facebook, with 62% using Twitter and 50% using YouTube – showing charities can now engage far more frequently with their friends and followers, often in real time.

The research highlights how online fundraising is now generating a similar return on investment to other forms of income generation.

Charities raise £170k per staff member in their online fundraising team, ranking between donor recruitment (£137k) and major gifts (£210k).

Nick Aldridge, MissionFish CEO and chairing the Digital Fundraising conference, said: “While online donations remain some way behind online retail - at almost 10% of UK retail - our research indicates that many charities are beginning to generate real returns from their online activities.

"At the same time, our report also clearly shows that charities are taking a more sophisticated and holistic approach to online communication – looking beyond the money at how to develop deeper relationships with potential supporters”

Tom Lodziak, digital media manager at the Institute of Fundraising and member of a specialist panel who will be taking questions from delegates, commented: ”We are seeing increasing numbers of younger donors embracing digital giving options. Social networks like Facebook and Twitter seem to be driving charitable behavior amongst certain groups and this research shows that online giving has risen massively despite a tough economic climate.”