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DECISIVE DONORS RESHAPING FUNDRAISING

Cygnus Applied Research Survey of 15,000 North American Donors Reports on Changing Trends in Philanthropy

(Chicago) – August 6, 2010

The days when donors wouldgive unconditionally to every charity that knocked on their door, are gone for good.  In an age of information overload, The Cygnus Donor Survey...Where Philanthropy is Headed in 2010 has marked a definite shift in giving, paving the way for a new, independent donor.   “They do their research on line and make confident choices” remarked Penelope Burk, president of Cygnus Applied Research.  “Fundraising needs to adapt to this pro-active donor who won't be told when and how to give.”

The 2010 Cygnus Donor Survey is the second annual national survey on how donors' philanthropy is changing and what they expect from charities they choose to support. This year's study surveyed 8000 Americans and 7000 Canadians of all ages and giving levels.

Dedication to Philanthropy Unwavering
Three out of four donors said they could be inspired to give even more to charitable causes this year. While this is very good news for fundraisers, Burk cautions that this dedication to philanthropy is not unconditional. Young and middle-aged donors referenced their growing preference for supporting fewer not-for-profits. In fact, donors over 65 support twice the number of charities as donors between 35 and 64 and forty times the number of charities that donors under 35 years of age support. Burk points out that not-for-profits which rely heavily on high volume of donors rather than on high gift value, will find it increasingly difficult to run profitable fundraising operations.

Online Giving Rising to New Heights
"Online giving has surpassed the tipping point,” says Burk.  One out of every two donors will transact at least one gift online in 2010.  That figure rises to three out of four among donors under the age of 35.  Particularly interesting, though, is that among donors over the age of 65, one out of three will also give online this year, challenging the assumption that older donors still confine their giving transactions to older technologies.   

Shining a Light on Future Philanthropists
Of all donors in the Cygnus Study, young donors (under 35) are the most optimistic about the future and the most willing to increase their giving over the next year. "But," says Burk, "They're on the sidelines of giving and volunteering because they communicate and connect with not-for-profits differently. As well, the amount of money they currently give is well below what their demographic profile and their own comments suggest it could be if fundraisers paid more attention to this younger demographic. "  69 percent of young donors are academics, managers or entrepreneurs; 52 percent of those between 25 and 34 years of age (those less likely to still be in college) have household incomes over $70,000; and 70 percent are not supporting dependents. "Young donors are also willing but under-utilized volunteers at a decision-making level," says Burk. Only 17 percent have experience on Boards of Directors, versus 46 percent of survey respondents 35 years of age or older.  Burk suggests that... "Boards need a strong voice from younger donors and volunteers in order to bring new ideas to the table, to help not-for-profits adapt to new technologies, and to communicate in ways that resonate with this generation."

Over-Solicitation Causing and Cost of Fundraising Are Big Concerns
According to survey respondents, not-for-profits could raise more money by asking less often. This may seem like a contradiction, but 72 percent of donors said they now drop charities or give less than they could to those that over-solicit. This can be a dilemma for fundraisers who wrestle with the question, "How often is too often?" According to Burk, "Ensuring that meaningful information on their past contributions is always provided to donors before asking again, improves donor retention and gift value (ie, increases profit) while limiting the number of solicitations (reducing cost.) This is a win/win for both charities and donors.”

Measurable Results – the Key to Success!
And, what is that "meaningful information" that donors want?  According to the Cygnus Donor Survey, 73 percent of respondents are more likely to favor giving to not-for-profits that provide them with "measurable results on what has been or is being achieved with donors’ contributions".  Even after twelve years of research by Cygnus in which donors have been citing this issue as a primary concern, "failure to receive measurable results on their gifts-at-work" remains the number one reason why they stop giving or give less than they could.  “Nothing is more important than getting this right," notes Burk. "It’s the key that unlocks the door to sustainable fundraising, regardless of the economy."

To access a media copy of The Cygnus Donor Survey...Where Philanthropy is Headed in 2010, contact Theresa Horak at Cygnus Applied Research (800) 263-0267, t.horak@cygresearch.com  or visit www.cygresearch.com.

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About the Survey
Between March 8 and April 2, 2010, Cygnus Applied Research, Inc.partnered with forty-two American and Canadian not-for-profit organizations in the second annual Cygnus Donor Survey. The Study reached out to more than 335,000 people with a known recent giving history to learn more about how they were managing their philanthropy and about their expectations of the charities they support. Over 15,000 donors from across North America responded, answering fifty-two questions about their recent experiences and longer term intentions.  

About Cygnus Applied Research, Inc.
Cygnus Applied Research, Inc. is a research-based fundraising consulting firm serving the not-for-profit sector.  President, Penelope Burk, a renowned author, speaker and researcher, leads the company which is best known for its flagship strategy for sustaining donor loyalty and increasing gift value -- "Donor-Centered Fundraising".  The company’s training programs and client services are devoted to helping professional fundraisers, managers and leadership volunteers increase profitability by adopting a more customer service-oriented approach to fundraising.  Cygnus has offices in Chicago, Toronto and the United Kingdom.  For further information, please visit www.cygresearch.com.