about the survey

Nonprofit organizations are often on the front lines in providing societal benefits -- social services, healthcare, arts and culture, and
many more. Nonprofits may be criticized, however, for not investing enough in building their capacity to effectively perform and
sustain the services they provide. Nonprofit leaders are frequently required to manage upstream, against countless obstacles –
inadequate budgets, staff shortages, volunteers and staff with good intentions but little management experience, outdated
equipment and software. Burnout is not uncommon as staff try to do too much with too few resources.

There is increasing interest in the nonprofit sector in improving governance, planning, and fundraising, and investing in training
and equipment to enhance organizational performance. The foundation community has weighed in with capacity-building grants
and requirements that grantees demonstrate the impact of their programs on target populations. Authors, educators and
researchers have explored ways to draw on management techniques used by successful for-profits to help nonprofit organizations
become more effective and more accountable to their constituents and the general public.

Blackbaud has conducted its North American State of the Nonprofit Industry Survey annually for six of the past seven years. The
study asks nonprofit leaders to report on some of the management strategies they’re using, and the degree to which they anticipate
changes in their organizations this year and next. Included in the study are questions about:

General operations (including staffing, budgets, and organizational challenges)

Fundraising
Technology and Internet usage
Accountability and stewardship

The survey report provides an overview of information that can help nonprofits assess their operations and compare their
performance with that of other nonprofit organizations.

methodology
Invitations to participate in this online survey were widely distributed throughout the nonprofit community in the United States
and Canada and directly to Blackbaud customers in these areas via industry newsletters and targeted emails. Responses were
accepted for approximately one month, in June and July 2010. One thousand two hundred forty-five individuals completed the
survey. Because this was a convenience sample rather than a random sample of the entire nonprofit community, results may not be
statistically representative of all nonprofits in these countries. However because of the large number of responses, the results
provide a useful basis for analysis and benchmarking. Data on trends from year to year are provided for some topics, but it should
be noted that the population sampled was not the same each year.

1
contents
About the Survey ............................................................................................................................................................................... 1 

Methodology....................................................................................................................................................................................... 1 

About Blackbaud ............................................................................................................................................................................... 4 

Key Findings ....................................................................................................................................................................................... 5 

General Operations .................................................................................................................................................................... 5 

Fundraising ................................................................................................................................................................................... 5 

Technology and Internet Usage ............................................................................................................................................... 5 

Accountability and Stewardship .............................................................................................................................................. 5 

The State of the Nonprofit Industry in 2010: How Organizations Are Dealing with Key Issues ................................... 6 

General Operations .................................................................................................................................................................... 6 

Expected Staffing Changes This Year vs. Next Year ............................................................................................................................6 

Expected Change in Demand for Organization's Services This Year vs. Next Year.....................................................................7 

Expected Change in Total Income This Year vs. Next Year ..............................................................................................................8 

Expected Change in Charitable Income This Year vs. Next Year .....................................................................................................9 

Expected Change in Total Expenditures This Year vs. Next Year ................................................................................................. 10 

Percentage of Respondents Expecting an Increase, by General Operations Category ............................................................. 11 

Assignment of Fundraising and Other Responsibilities ................................................................................................................... 12 

Funding Sources in 2010 .......................................................................................................................................................................... 14 

Percentage of Those Receiving Revenue from Each Source Who Expect a 2010 Revenue Increase from that Source .... 15 

Percentage of Respondents Projecting Changes in Funding in 2008 and 2010, by Source ...................................................... 16 

Rating of Importance vs. Performance for Business Practices ........................................................................................................ 18 

Fundraising ................................................................................................................................................................................. 19 

Top Drivers of Donations ........................................................................................................................................................................ 19 

Donor Acquisition Activities in 2010 ................................................................................................................................................... 20 

Fundraising Methods Used to Drive Donations, 2010 ..................................................................................................................... 21 

Percentage of Those Receiving Revenue from Each Fundraising Method Who Expect a 2010 Funding Increase from that Method ......... 22 

Projected Change in Investment in Fundraising in 2010 ................................................................................................................. 23 

Most Commonly Used Donor Communication Methods .............................................................................................................. 24 

Technology and Branding Practices of Respondent Organizations .............................................................................................. 25 

Technology and Internet Usage ............................................................................................................................................. 26 

2
 Rating of Importance vs. Performance for Organization's Technology Systems ....................................................................... 27 

Importance of Communication with Donors and Supporters via Web and Email ................................................................... 28 

Importance of Website Activities to Respondent Organizations .................................................................................................. 29 

Use of Online Tools by Respondent Organizations .......................................................................................................................... 31 

Effectiveness of Organization's Website in Meeting Strategic Internet Goals............................................................................ 32 

Primary Groups of People Who Visit Respondent Organization's Website ............................................................................... 33 

Management of Organization's Website.............................................................................................................................................. 34 

Functional Areas with Primary Responsibility for Website Content and Direction ................................................................. 35 

Percentage of Respondent Organizations that Actively Raise Funds Online .............................................................................. 36 

Top Drivers of Online Donations Last Year and This Year ............................................................................................................ 37 

Accountability and Stewardship ............................................................................................................................................ 38 

Percentage of Organizations Whose Donors Asked to Be Updated on How Their Contributions Were Spent ............... 38 

Percentage of Organizations Whose Donors Asked that Their Contributions Be Restricted ................................................ 39 

Effects of Increased Restricted Gifts on Respondent Organizations ............................................................................................. 40 

Accountability and Stewardship Practices of Respondent Organizations ................................................................................... 42 

Demographics of Respondents ..................................................................................................................................................... 43 

Respondent Organizations by Country ................................................................................................................................................ 43 

Respondent Organizations by Industry ................................................................................................................................................ 44 

Respondents by Revenue Size in Last Fiscal Year .............................................................................................................................. 45 

Respondents by Charitable Contributions in Last Fiscal Year........................................................................................................ 46 

Functional Area of Survey Respondent ................................................................................................................................................ 47 

3
about blackbaud
Blackbaud is the leading global provider of software and services designed specifically for nonprofit organizations, enabling them to
improve operational efficiency, build strong relationships, and raise more money to support their missions. Approximately 24,000
organizations — including University of Arizona Foundation, American Red Cross, Cancer Research UK, The Taft School, Lincoln
Center, In Touch Ministries, Tulsa Community Foundation, Ursinus College, Earthjustice, International Fund for Animal Welfare,
and the WGBH Educational Foundation — use one or more Blackbaud products and services for fundraising, constituent
relationship management, financial management, website management, direct marketing, education administration, ticketing,
business intelligence, prospect research, consulting, and analytics. Since 1981, Blackbaud’s sole focus and expertise has been
partnering with nonprofits and providing them the solutions they need to make a difference in their local communities and
worldwide. Headquartered in the United States, Blackbaud also has operations in Australia, Canada, Hong Kong, the Netherlands,
and the United Kingdom. For more information, visit www.blackbaud.com.

4
key findings
General Operations
A majority of survey respondents from nonprofit organizations in Canada and the United States expect their organization’s total
income, income from charitable giving, and expenses to increase in 2010 and 2011. Most expect demand for the organization’s
services to increase, but nearly half say their staffing levels will remain static despite the increased demand.

Fundraising
Individual donations and special events were cited by the largest percentage of survey participants as sources of funding. When
asked to rate the importance of various business practices related to fundraising, participants chose maintaining relationships with
supporters and retaining current donors as most important. Retaining donors and retaining staff were ranked highest in terms of
organizational performance. The largest gap between importance and performance is in the area of recruiting new donors. Nearly
60 percent of respondents expect to increase organizational investment in donor recruitment in the coming year.

The top drivers of donations are direct mail, one-on-one solicitation of major donors, and special events, all of which, with website
donations, are predicted by most respondents to produce increased revenue in 2010. Special events and direct mail are the most
frequently cited ways of reaching out to new potential donors.

Technology and Internet Usage

Many survey participants use online tools in their communication and fundraising efforts. Websites are most frequently used to
market the organization and educate the public about the organization’s mission. The second most frequently cited use of the
organizational website is for acquiring new supporters and donors. Mail and email are the most frequently used methods of
communicating with constituents. The top driver of online donations is email to current donors, followed by direct mail promotion
of online giving and special events. Organizations also use online tools for online payments, electronic newsletters, social
networking (Facebook, Twitter, etc.), and web analytics.

Findings from the 2010 survey suggest that technology is becoming increasingly important to nonprofit organizations in
implementing their marketing and fundraising activities effectively. More than half of survey respondents have a technology
budget, a data services budget, a branding/marketing strategy, and employees who work remotely. When asked to rate the
importance of various technology systems, respondents indicated that having a unified database that contains all information on
donors and other supporters is the most important technology system, followed by having a database that can be accessed remotely
by employees.

Accountability and Stewardship

Forty-two percent receive requests from donors for reports on how donations are spent, and 60 percent receive requests to have
contributions restricted for a particular purpose. For the organizations that report increasing requests for gift restrictions, about a
third are having trouble obtaining funds for general operating support. Strategies for counteracting negative effects of increased gift
restrictions include specifically soliciting unrestricted gifts and seeking additional grants and non-grant revenue.

Respondent organizations have a good track record on practices to ensure accountability and good stewardship. Nearly 90 percent
of survey participants report their organizations have audited financial statements, and most report they have an audit committee
and they communicate proactively on the impact of programs and how donations were spent. A majority also have policies and
practices to protect donor privacy.
5
the state of the nonprofit industry in 2010: how organizations are
dealing with key issues
General Operations
Respondents were asked about anticipated changes in overall staffing levels, demand for their organizations’ services, revenue,
expenses, and income from charitable donations.

Staffing: Most expect levels to stay the same.

Fifty-three percent of respondents expect staffing levels to stay the same this year, 29 percent expect staffing levels to increase, and
19 percent expect a decrease. The picture is a little more optimistic for next year. Fifty-two percent expect staffing levels to remain
static, 35 percent expect an increase, and 12 percent expect staffing levels to decrease.

Projections for staffing levels have shown a steady decline during the years the study has been conducted, from 47 percent expecting
an increase in 2007 to only 29 percent in 2010.

Expected Staffing Changes This Year vs. Next Year

N=1218

60%
53% 52%
Percentage of Respondents

50%

40%
30%
30%
22%
20% 16%
11%
10%
5% 4%
2% 1% 2% 1% 1% 0%
0%
Increase Decrease
Increase Increase Stay the Decrease Decrease
more than more than
16%-30% 1%-15% same 1%-15% 16%-30%
30% 30%
This Year 2% 5% 22% 53% 16% 2% 1%
Next Year 1% 4% 30% 52% 11% 1% 0%

6
Demand for Services: Most expect a slight increase this year and next.
A majority (more than 70 percent) of respondents reported they expect demand for their organization’s services to increase this
year and next year. Approximately a quarter expect demand to stay the same.

Projections for increased demand have shown a slight but steady decline during the years the study has been conducted, from 80
percent expecting an increase in 2007 to 71 percent in 2010.

Expected Change in Demand for Organization's Services This Year vs. Next Year
N=1199

60%
52%
50%
Percentage of Respondents

43%

40%

30%
24%24%
21%
20%
15%

10% 7%
6% 5%
3%
0% 0% 0% 0%
0%
Increase Decrease
Increase Increase Stay the Decrease Decrease
more than more than
16%-30% 1%-15% same 1%-15% 16%-30%
30% 30%
This Year 7% 21% 43% 24% 5% 0% 0%
Next Year 6% 15% 52% 24% 3% 0% 0%

7
Total Income: Most expect increases this year and next.
Approximately half of respondents expect total income to increase this year. Twenty-five percent expect total income to stay the
same, and 28 percent expect a decrease. Next year, 60 percent expect total income to increase, 26 percent expect income to remain
static, and 13 percent expect income to decrease.

During the years the study has been conducted, projections for increases in total income declined from 77 percent expecting an
increase in 2007 to 47 percent in 2010.

Expected Change in Total Income This Year vs. Next Year

N=1196

60%

49%
50%
Percentage of Respondents

39%
40%

30%
25%26%
23%
20%
12%
9%
10% 6%
2% 2% 4%
1% 1% 0%
0%
Increase Decrease
Increase Increase Stay the Decrease Decrease
more than more than
16%-30% 1%-15% same 1%-15% 16%-30%
30% 30%
This Year 2% 6% 39% 25% 23% 4% 1%
Next Year 2% 9% 49% 26% 12% 1% 0%

8
Charitable Income: Most expect increases this year and larger increases next year.
Respondents to the survey are optimistic about charitable income this year and next year. Approximately 46 percent expect income
to increase this year, while 29 percent anticipate charitable income will remain the same, and 24 percent expect a decrease. The
percentage who expect an increase in charitable income next year rises to 61 percent, with only 12 percent expecting a decrease.

During the years the study has been conducted, projections for increases in charitable income declined from 75 percent expecting
an increase in 2007 to 46 percent in 2010.

Expected Change in Charitable Income This Year vs. Next Year

N=1184

60%
49%
Percentage of Respondents

50%

40% 37%

29%
30% 27%
20%
20%
10% 10%
10% 7%
2% 2% 3%
1% 1% 1%
0%
Increase Decrease
Increase Increase Stay the Decrease Decrease
more than more than
16%-30% 1%-15% same 1%-15% 16%-30%
30% 30%
This Year 2% 7% 37% 29% 20% 3% 1%
Next Year 2% 10% 49% 27% 10% 1% 1%

9
Total Expenditures: Most expect increases each year comparable to those in charitable income.
Approximately 49 percent of respondents expect expenditures to increase this year, 27 percent think they will remain static, and 23
predict expenditures will decrease. Next year, 56 percent anticipate expenditures will increase, 32 percent predict they will remain
the same, and 12 percent expect a decrease.

Projections for total expenditures have shown a steady decline during the years the study has been conducted, from 75 percent
expecting an increase in 2007 to 49 percent in 2010.

Expected Change in Total Expenditures This Year vs. Next Year

N=1194

50% 47%
45%
40%
Percentage of Respondents

40%
35% 32%
30% 27%
25% 21%
20%
15%
11%
10% 7% 8%
5% 2% 1% 2% 1%
0% 0%
0%
Increase Decrease
Increase Increase Stay the Decrease Decrease
more more
16%-30% 1%-15% same 1%-15% 16%-30%
than 30% than 30%
This Year 2% 7% 40% 27% 21% 2% 0%
Next Year 1% 8% 47% 32% 11% 1% 0%

10
General Operations: Respondents are optimistic about projections.
In summary, respondents are optimistic about all general operations categories this year and next year, 28-72 percent expecting
increases in 2010, and 36-73 percent expecting increases in 2011.

Percentage of Respondents Expecting an Increase, by General Operations Category

N=1218

2010 2011
80%
72% 73%
70%
60% 61%
60% 56%
Percentage of Respondents

48% 49%
50% 47%

40% 36%

28%
30%

20%

10%

0%
Income from charitable donations
Overall staffing level

Demand for your organization's services

Total income

Total expenditures

11
Job Assignments: In most organizations, fundraisers wear many hats.
Respondents were asked how a variety of job functions are represented in their organization. Most reported that specific
fundraising-related job functions such as stewardship, direct mail, endowments, major giving and prospect research are performed
in combination as components of an individual’s job and not considered full-time positions in themselves. A larger percentage
reported that functions such as accounting, marketing, and data/computer systems are full-time. The data/computer system
function is the most likely to be outsourced.

Sixty-five percent reported that telemarketing is not applicable to their organization. Other functions reported as not applicable
include endowments (27 percent), planned gifts/bequests (21 percent), and online fundraising (webpage, Facebook, Twitter, email)
(17 percent).

Assignment of Fundraising and Other Responsibilities

N=1222

Full-time position Part of someone's job Part-time position

Volunteer position Outsourced

Online Fundraising 7% 70%

Recurring giving 11% 71%
Special Events 25% 58%
Telemarketing 3% 19%
Face to Face Fundraising 25% 60%
Donor Care (data hygiene) 16% 67%
Stewardship 15% 68%
Direct Mail 11% 67%
Grant Writing 22% 57%
Accounting 63% 19%
Marketing 32% 54%
Data/Computer Systems 38% 40%
Online Marketing 12% 73%
Endowments 7% 61%
Planned Gifts/Bequests 14% 59%
Prospect Research 11% 68%
Major Gifts 27% 59%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Respondents

12
 Part of someone's job

Volunteer position
Part-time position
Full-time position

Outsourced
Job Function

N/A
Major Gifts 27% 59% 2% 2% 0% 10%

Prospect Research 11% 68% 3% 3% 3% 12%

Planned Gifts/Bequests 14% 59% 2% 3% 2% 21%

Endowments 7% 61% 1% 2% 2% 28%

Online Marketing (webpage,

12% 73% 3% 3% 3% 6%
Facebook, Twitter, email)

Data/Computer Systems 38% 40% 4% 3% 13% 2%

Marketing 32% 54% 3% 3% 4% 4%

Accounting 63% 19% 7% 3% 8% 1%

Grant Writing 22% 57% 5% 2% 5% 9%

Direct Mail 11% 67% 2% 2% 5% 13%

Stewardship 15% 68% 2% 3% 0% 12%

Donor Care (data hygiene) 16% 67% 3% 2% 1% 10%

Face to Face Fundraising 25% 60% 2% 5% 1% 7%

Telemarketing 3% 19% 2% 3% 6% 66%

Special Events 25% 58% 4% 5% 2% 6%

Recurring giving 11% 71% 2% 2% 1% 14%

Online Fundraising 7% 70% 1% 2% 3% 17%

13
Funding: Respondents receive funding from a variety of sources.
Funding sources cited most frequently by respondents are total individual donations (98 percent), individual donations from major
giving (92 percent), memberships (89 percent), government grants (88 percent), individual donations from recurring giving (86
percent), individual donations from planned giving/bequests (86 percent), fees for program services (85 percent), and corporate
donations (84 percent). Sources least frequently cited are online events (37 percent), special events (53 percent), and for-profit
business ventures (54 percent).

Funding Sources in 2010

N=1052

Individual donations - total 98%

Individual donations from major giving 92%

Memberships 89%

Government grants 88%

Individual donations from recurring giving 86%

Individual donations from planned giving/bequests 86%

Fees for program services 85%

Corporate donations 84%

Retail sales 81%

Foundation grants 80%

Individual donations from payroll giving 75%

Investments 65%

For-profit business ventures 54%

Special events 53%

Online events 37%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Respondents

14
Funding: Virtually all expect all types of funding to increase in 2010.
When asked about expected changes in funding sources, respondents reported the sources most likely to increase in 2010 are total
individual donations (55 percent), individual donations from major gifts (45 percent), special events (42 percent), and individual
donations from recurring giving (37 percent).

Decreases in funding are expected in corporate donations (21 percent expect a decrease), foundation grants (19 percent expect a
decrease), total individual donations (18 percent expect a decrease), and investments (18 percent expect a decrease).

Percentage of Those Receiving Revenue from Each Source Who Expect a 2010 Revenue Increase from that Source
N=1052

Individual donations - total 55%

Individual donations from major giving 45%
Memberships 20%
Government grants 20%
Individual donations from recurring giving 37%
Individual donations from planned… 30%
Fees for program services 27%
Corporate donations 34%
Retail sales 12%
Foundation grants 32%
Individual donations from payroll giving 21%
Investments 33%
For-profit business ventures 8%
Special events 42%
Online events 18%

0% 20% 40% 60%

Percentage of Respondents

15
The following chart illustrates the changes in projections since the 2008 survey. Respondents were more optimistic about projected
increases in 2008 than in 2010 in nearly all funding categories, with the exception of investments, where a slightly larger percentage
expect increases in 2010. Decreases in funding were predicted by slightly more respondents in 2010 than in 2008 in the categories
of corporate donations, foundation grants, and government grants.

Percentage of Respondents Projecting Changes in Funding in 2008 and 2010, by Source

2008 Increase 2010 Increase 2008 Decrease 2010 Decrease

61%
55%
Individual donations - total 17%
18%
49%
42%
Special events 11%
12%
49%
34%
Corporate donations 15%
21%
26%
33%
Investments 28%
18%
47%
32%
Foundation grants 11%
19%
34%
Individual donations from planned 30%
6%
giving/bequests 8%
36%
27%
Fees for program services 5%
9%
24%
20%
Memberships 4%
7%
26%
20%
Government grants 14%
20%
13%
12%
Retail sales 4%
5%
8%
8%
For-profit business ventures 1%
2%
Percentage of Respondents

Business Practices: Most see a gap between importance and performance except in relation to competing with
other nonprofits.
Respondents were asked to rate the importance of various business practices on a scale of 1-10 where 1 is not important at all and
10 is extremely important. Then they were asked to rate their organization’s performance related to those practices. The following

16
chart shows average ratings of both importance and performance, and the gap between the two scores. In general, respondents
rated their performance 1-2.5 points lower than importance, except in the case of competition with other nonprofits, an area where
they rated performance higher than importance.

Areas with the highest average importance rating are retaining current donors (9.2), managing relationships with supporters (9.2),
recruiting new donors (8.9), and showing impact of the organization’s activities (8.9). Areas with the highest performance ratings
are retaining staff (7.6), retaining current donors (7.5), managing relationships with supporters (7.5), and managing organizational
data (7.4). The largest gaps are in recruiting new donors (2.6), showing impact of the organization’s activities (1.7), managing
relationships with supporters (1.7), and retaining current donors (1.7).

17
 Rating of Importance vs. Performance for Business Practices
N=1101

Average Importance Average Org Rating Gap

8.9
Recruiting new donors 6.4
2.5
9.2
Retaining current donors 7.5
1.7
5.5
Competing with other not-for-profits 6.6
-1.0
8.2
Retaining staff 7.6
0.6
8.9
Showing impact of organization's activities 7.1
1.7
8.7
Ensuring operational efficiencies 7.3
1.4
9.2
Managing relationships with supporters 7.5
1.7
8.7
Maintaining organizational data 7.4
1.2
6.8
Utilizing social media 5.4
1.4

-2.0 0.0 2.0 4.0 6.0 8.0 10.0

Rating

18
Fundraising
Several questions on the survey asked for information about fundraising, including top drivers of donations, methods for reaching
out to new potential donors, expected changes in contributions from a variety of fundraising activities, expected changes in the
organization’s financial investment in fundraising, methods of communicating with donors, and technology and branding practices
that affect fundraising.

Fundraising Drivers: Direct mail, one-on-one solicitation, and special events are seen as the most important.

When asked to rank the fundraising efforts that are the top drivers of donations to the organization, respondents give direct mail,
one-on-one solicitation of major donors, and special events the highest overall ratings. These results correlate with the job
functions chart on page 13, which indicates that direct mail, major gifts, and special events are more likely than some other
fundraising activities to be full-time positions or part of an individual’s full-time position. The lowest ranked fundraising activities
are SMS (text messaging), door-to-door collections, and social networking (Facebook, Twitter, etc.).

Top Drivers of Donations

Direct mail

One-on-one solicitation of major donors

Special events

19
Donor Acquisition: Special events and direct mail are most frequently used; major donor cultivation and face-
to-face fundraising are next.
Respondents were asked to describe methods used to reach out to new potential donors. The most frequently used methods are
special events (66 percent), major donor cultivation (52 percent), and direct mail (51 percent). These results are consistent with
findings on the job functions chart on page 13, which indicates that direct mail, major gifts, and special events are more likely than
some other fundraising activities to be full-time positions or part of an individual’s full-time position.

The methods used least frequently are SMS (text messaging) (4 percent) and telemarketing (20 percent). Eighteen percent
indicated they use other methods, including grant proposals, DRTV and newspaper advertising, leaflets, shops and services, and a
giving website to attract new potential donors.

Donor Acquisition Activities in 2010

N=1027

Special events 81%

Direct mail 73%

Major donor cultivation 57%

Face-to-face fundraising 57%

Online donations 54%

Email 51%

Social Networking (Twitter, Facebook, etc.) 41%

Community fundraising 33%

Planned gifts/Bequests 30%

Telemarketing/ Phone-a-thons 13%

Other 6%

SMS (Text Messaging) 2%

0% 20% 40% 60% 80% 100%

Percentage of Respondents

20
Donation Drivers: Major donor cultivation, face-to-face fundraising, website donations and special events top
the list.
Respondents use a variety of fundraising methods to drive donations. The methods cited most often are major donor cultivation
(93 percent of respondents), face-to-face fundraising (92 percent of respondents), website donations (91 percent of respondents),
and special events (89 percent of respondents). Methods least frequently used are door-to-door collections (13 percent of
respondents) and SMS (text messaging) (18 percent of respondents).

Fundraising Methods Used to Drive Donations, 2010

N=974

Major donor cultivation 93%

Face-to-face fundraising 92%

Website donations 91%

Special events 89%

Direct mail for single gifts 86%

Matching gifts 86%

Recurring giving (i.e. automatic donations at
85%
regular intervals)

Planned gifts/Bequests 79%

Email 72%

Social Networking (Twitter, Facebook, etc.) 56%

Telemarketing/Phone-a-thons 32%

SMS (Text messaging) 18%

Door-to-door collections 13%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Respondents

21
Contributions: All forms of giving are expected to increase in 2010.
The majority of respondents are optimistic about changes in contributions in 2010. Fifty-nine percent expect contributions from
major donor cultivation to increase, and 59 percent expect website donations to increase. Other methods projected to produce
increased contributions are face-to-face fundraising (52 percent) and special events (49 percent). In 2008, the percentage projecting
increases was higher in all categories. The lower percentage in 2010 may reflect lower expectations for contributions due to the
economic downturn.

The 2010 results are consistent with findings on the job functions chart on page 13, which indicates that major gifts, special events,
and online fundraising are more likely than some other fundraising activities to be full-time positions or part of an individual’s full-
time position. It is also consistent with findings on the importance of communication with donors and supporters via the web (see
chart on page 29), and the importance of website activities to the organization (see chart on page 30).

Decreases in contributions are predicted much less frequently. Nine percent expect decreases for matching gifts, 9 percent expect
decreases for special events, and 8 percent expect decreases for direct mail for single gifts.

Percentage of Those Receiving Revenue from Each Fundraising Method Who Expect a 2010 Funding Increase from that
Method
N= 974

Major donor cultivation 59%

Website donations 58%
Face-to-face fundraising 52%
Special events 49%
Direct mail for single gifts 41%
Recurring giving 36%
Email 35%
Social Networking… 31%
Planned gifts/Bequests 30%
Matching gifts 20%
Telemarketing/Phone-a-thons 9%
SMS (Text messaging) 6%
Door-to-door collections 2%

0% 20% 40% 60% 80%

Percentage of Respondents

22
Investment: Most expect increased investment in new donor recruitment in 2010, no change in direct mail and
fundraising staff investment.
Reflecting organizations’ changing fundraising strategies, respondents report changes in projected investment in fundraising.
Increases are most frequently projected for recruiting new donors (59 percent), retaining current donors (50 percent), face-to-face
fundraising (44 percent), data enrichment (40 percent), and social networking (Facebook, Twitter, etc.) (34 percent). Results were
similar in 2008, although the percentages expecting increases in investment in fundraising/direct marketing consulting, direct mail,
and fundraising staff are lower in 2010.

Static investment is projected more frequently than increases in the areas of fundraising staff (62 percent), direct mail (57 percent),
data enrichment (36 percent), retaining current donors (45 percent), and face-to-face fundraising (43 percent).

Projected Change in Investment in Fundraising in 2010

N=1005

Increase No change Decrease

Recruiting new donors 59% 36% 1%

Retaining current donors 50% 45% 2%

Face-to-face fundraising 44% 43% 1%

Data enrichment 39% 48% 1%

Social Networking (Twitter, Facebook, etc.) 34% 30% 1%

Fundraising staff 26% 62% 7%

Direct mail 24% 57% 7%

Fundraising/direct marketing consulting 18% 36% 5%

SMS (Text messaging) 7% 17% 0%

Telemarketing 6% 25% 3%

Door-to-door collections 1% 14% 1%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Respondents

23
Donor Communications: Mail and email are the most commonly used; personal meetings and phone are next.
When asked to rank the donor communication methods most commonly used by their organization, respondents give mail and
email the highest overall ratings. The lowest ranked donor communication methods are SMS (text messaging), call campaigns, and
social networking (Facebook, Twitter, etc.).

Most Commonly Used Donor Communication Methods

N=1024

Mail

Email

Personal meetings

24
Technology and Branding: Most organizations have a technology budget; fewer than half have a written
strategy or plan.
Many respondent organizations are employing technology and branding practices that affect organizational management and
fundraising, including technology budgeting (72 percent), data services budgeting (56 percent), having a branding/marketing
strategy (54 percent), and having employees who work remotely (52 percent). There has been a slight increase in the percentage of
organizations that report employing each of these technology and branding practices over the course of the study from 2007-2010.
The biggest increase was in the percentage who reported having a branding/marketing strategy (from 45% in 2006 to 54% in 2010).

Business practices most commonly reported as in-development are branding/marketing strategy (29 percent), having a written
online strategy (25 percent), and having a written technology plan (20 percent).

More than 50 percent report their organization has no plans to implement a written online strategy (56 percent), a technology
training budget (55 percent), or a written technology plan (52percent).

Technology and Branding Practices of Respondent Organizations

N=960

Yes In development No

A technology budget 72% 8% 20%

A data services budget 56% 9% 35%

A branding/marketing strategy 54% 29% 18%

Employees who work remotely 52% 3% 45%

A technology training budget 37% 8% 55%

A written technology plan 28% 20% 52%

A written online strategy 19% 25% 56%

0% 20% 40% 60% 80% 100%

Percentage of Respondents

25
Technology and Internet Usage
In this section of the survey, respondents were asked questions related to technology systems, use of the organization’s website, and
use of online tools.

Technology Systems: Most rate their importance higher than their performance.
Respondents were asked to rate the importance of various technology systems. Then they were asked to rate their organization’s
performance related to those systems on a scale of 1-10 where 1 is not important at all and 10 is extremely important. The
following chart shows average ratings of both importance and performance, and the gap between the two scores. In general,
respondents rate performance 0-2 points lower than importance.

Areas with the highest average importance rating are having a unified database (9.1) and having a database that can be accessed
remotely by staff (8.0). These are also the areas in which respondents rate their organization’s performance the highest (7.1 and 6.4,
respectively). The largest gaps between perceived importance and organizational performance are in having a unified database (2.0)
and real-time integration of online marketing and online fundraising with the donor management database (2.0).

26
 Rating of Importance vs. Performance for Organization's Technology Systems
N=972

Average Importance Average Org Rating Gap

6.7
Real-time integration of online marketing
and online fundraising with donor 4.8
management database
2.0

7.2
Real-time integration of systems rather than
5.5
an interface with periodic data transfers
1.7

8.0
Consolidated reporting of operational
6.4
results
1.6

5.8
Databases that can be accessed remotely by
5.6
employees in other geographies
0.3

9.1
A unified database that contains all
7.1
information on donors and other supporters
2.0

0.0 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Rating

27
Donor Communication: Virtually all rate communicating via the Web and email as important.
On a scale of 1-10, where 1 is not important at all and 10 is extremely important, 81 percent of respondents report that
communicating with donors and other supporters is important to their organization (rating 7-10 in the scale of importance). Only
4 percent report that communicating with donors and supporters via web or email is unimportant or slightly important (1-3 on the
scale of importance).

Importance of Communication with Donors and Supporters via Web and Email
N=967

35% 33%

30%
Percentage of Respondents

25%
19%
20%
16%
15% 13%

10%
7%
5%
5% 2% 2%
1% 1%
0%
1 - Not important at all

10 - Extremely important
2

28
Website Activities: All rate websites important, especially for marketing and educating the public about the
organization’s mission.
Respondents reported that their websites are important to their organizations, with average ratings of website activities ranging in
importance from 6.5 to 9.0 on a 1-10 scale where 1 is not important at all and 10 is extremely important. Respondents indicated the
most important website activity is marketing the organization and educating the public about the organization’s mission (9.0
average rating), followed by communicating with supporters (7.9), acquiring new donors and supporters (7.8), raising funds (7.7),
serving program recipients (6.7), and promoting campaigns (6.5).

Importance of Website Activities to Respondent Organizations

N=999

Market your organization/Educate the public

9.0
about your organization's mission

Communicate with supporters (e.g. hyperlink

7.9
to targeted web pages)

Acquire new supporters/donors 7.8

Raise funds 7.7

Serve program recipients (beneficiaries) 6.7

Promote campaigning 6.5

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0 10.0
Rating Average

29
Online Tools: Organizations use email, online payments, fundraising, and electronic newsletters the most;
discussion groups and retail sales the least.
Use of various online tools is common among respondent organizations. It is most frequently used for email (90 percent, up from
78 percent in 2008), followed by online payments (80 percent), fundraising (78 percent, up from 68 percent in 2007 and 72 percent
in 2008), and electronic newsletters (75 percent, up from 61 percent in 2008).

Online tools most frequently reported as in the planning stage are discussion groups/message boards (34 percent), polls and surveys
(31 percent), supporter profile updates (29 percent), and weblogs (28 percent).

A number of respondents indicated their organizations have no plans to use certain online tools, including retail (62 percent),
“sponsor me” or group fundraising (49 percent), and volunteer management (44 percent).

30
 Use of Online Tools by Respondent Organizations
N=934

Yes No, but plan to No, and do not plan to

Email 90% 7% 3%

Online payments 80% 13% 8%

Fundraising 78% 16% 6%

Electronic newsletters 75% 20% 5%

Social networking 68% 21% 11%

Website analytics 63% 18% 19%

Event registration 59% 24% 17%

Search engine optimization 51% 26% 23%

Advocacy 42% 21% 37%

Polls/surveys 41% 31% 28%

Campaigning 37% 26% 37%

Member acquisition and management 36% 22% 42%

Weblogs (blogs) 34% 28% 38%

Volunteer management 31% 25% 44%

Supporter profile updates 29% 29% 42%

"Sponsor me" or group fundraising 27% 25% 49%

Retail (sell goods online) 26% 13% 61%

Discussion groups/message boards 25% 34% 42%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Percentage of Respondents

31
Website Effectiveness: Half rated their website very effective in meeting their strategic Internet goals.
Respondents were asked to rate the effectiveness of their organization’s website in meeting organizational strategic Internet goals.
Twenty-six percent rated the website very effective (8 or higher on a scale of 1-10 where 1 is not effective at all and 10 is extremely
effective). Only 13 percent rated the website ineffective or somewhat ineffective (1-3 on the effectiveness scale).

Effectiveness of Organization's Website in Meeting Strategic Internet Goals

N=943

25%
23%
Percentage of Respondents

20%
17% 17%
15%
15%

10%
8%
6% 7%

5%
2% 3% 2%

0%
1 - Not effective at all

10 - Extremely effective

32
Website Visitors: Supporters are the most frequent visitors; program recipients and volunteers are next.
According to respondents, the primary groups of people who visit their website are supporters (79 percent), program recipients (52
percent), volunteers (50 percent), and members (39 percent). Alumni visitors are relevant only to respondents from education
organizations; the percentage of alumni vs. other visitors may be higher in that segment.

Primary Groups of People Who Visit Respondent Organization's Website

N=940

Supporters (donations) 79%

Program recipients 52%

Volunteers 50%

Members 39%

Alumni 24%

Fundraisers 20%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Percentage of Respondents

33
Website Management: More than two-thirds of organizations manage their website in-house.
Most respondents (70 percent) report that their organization’s website is managed in-house. Twenty-three percent report the
organization’s website is managed by a third-party provider. Among the 6 percent who indicated neither of these options, most
report that the website is managed jointly by in-house staff and a third-party provider.

Management of Organization's Website

N=947

Other
6%
By a third-party
provider
24%

In-house
70%

34
Website Content and Direction: Most assign responsibility to marketing/communications/public relations
departments.
Asked which functional area has primary responsibility for managing website content and direction, 51 percent of respondents
indicated this is a marketing/communications/public relations function. Seventeen percent reported it is a
fundraising/development function, and 17 percent said it is an executive function. A smaller percentage reported that content and
direction are managed by technology services staff (9 percent).

Functional Areas with Primary Responsibility for Website Content and Direction
N=949

Membership Other
4% Technology
0% services
8%

Fundraising/
Development
15%

Marketing/
Communications Executive
/Public Relations 21%
52%

35
Online Fundraising: Nearly two-thirds of organizations actively raise funds online.
Sixty-three percent of respondent organizations actively raise funds online.

There has been a significant increase in the percentage who report active use of the Internet for fundraising, from 35 percent in
2005 to 63 percent in 2010.

Percentage of Respondent Organizations that Actively Raise Funds Online

N=968

Do not
actively raise
funds online
37%

Actively raise
funds online
63%

36
Online Donation Drivers: Email to current donors is rated top driver by far.
The largest percentage indicated the top driver of online donations last year was email to current donors, followed by direct mail
promotions and events. This year respondents anticipate a similar pattern.

Top Drivers of Online Donations Last Year and This Year

N=591

Last Year This Year

Email to Email to
current current
donors donors

Direct mail Direct mail

promotions promotions

Events Events

Email to Email to
potential potential
new donors new donors

Social Social
networking networking

37
Accountability and Stewardship
This section of the survey focused on questions about whether donors expect to be updated on how their contributions are spent,
whether donors are asking that their contributions be restricted for a particular purpose, and how increases in gift restrictions are
affecting the organization. There is also a question on steps that the organization has taken or plans to take to ensure accountability
and good stewardship.

Use of Contributions: Fewer than half of respondents say their donors ask to be updated.
As the following chart illustrates, 42 percent of respondents report that donors ask to be updated on how their contributions are
spent. This is a significant increase. In previous years of the study (2006-2008), the percentage was only 30-33 percent.

Percentage of Organizations Whose Donors Asked to Be Updated on How Their Contributions Were Spent
N=897

Donors ask to
be updated
42%
Donors do not
ask to be
updated
58%

38
Use of Contributions: More than half of respondents indicate their donors ask to restrict their contributions
for a certain purpose.
Sixty percent of respondents indicate that donors ask that their contribution be restricted for a certain purpose. This is a significant
increase. In previous years of the study (2006-2008), the percentage of was only 36-42 percent.

Percentage of Organizations Whose Donors Asked that Their Contributions Be Restricted

N=927

Donors do not
restrict
contributions
40% Donors
restrict
contributions
60%

39
Effects of Restricted Gift Growth: Nearly half of those who have been affected by requests for restricted gifts
are specifically soliciting unrestricted gifts.
For the organizations that reported an increasing number of restricted gifts, 35 percent said the increased restricted gifts have had
no effect on the organization. However, 34 percent reported their organizations are having trouble getting funds for general
operating support. These results are similar to those reported in 2006-2008.

Strategies being employed to counteract negative effects of increasing numbers of restricted gifts include specifically seeking
unrestricted gifts (48 percent), seeking additional foundation grants for operating expenses (29 percent), seeking other non-grant
revenue sources for operating expenses (28 percent), seeking additional government grants (14 percent), and limiting the number of
initiatives for which restricted grants are accepted (9 percent).

Effects of Increased Restricted Gifts on Respondent Organizations

N=542

Specifically soliciting unrestricted gifts 48%

No effect on our organization 35%

Trouble getting funds for general operating

34%
purposes

Seeking foundation grants for operating

29%
expenditures

Seeking non-grant revenue sources to fund

28%
operating expenditures

Seeking government grants for general

14%
operating expenditures

Limit initiatives for which we accept

9%
restricted gifts

Other 3%

Percentage of Respondents

40
Accountability and Stewardship Practices: Most organizations have many (but not all) recommended practices
already in place.
As the following chart illustrates, respondent organizations have a good track record on practices to ensure accountability and good
stewardship. Ninety-five percent of respondents report their organizations have audited financial statements. Other practices in
place include communicating proactively on the impact of programs (83 percent), communicating proactively to donors on how
donations were spent (78 percent), having an audit committee (75 percent), instituting or updating formal privacy policies for donor
information (71 percent), instituting or updating staff confidentiality agreements to ensure secure donor data (68 percent), and
instituting or updating formal privacy policies for website and online data capture (62 percent). There has been a steady increase in
the percentage who report having implemented all of these accountability and stewardship practices from 2007-2010.

Practices organizations have plans to implement are instituting or updating formal privacy policies for website and online data
capture (28 percent), instituting a formal policy and plan to meet PCI (23 percent), instituting or updating formal privacy policies
for donor information (19 percent), instituting or updating staff confidentiality agreements to secure donor data (17 percent), and
communicating proactively to donors on how donations were spent (17 percent).

Some organizations have no plans to implement certain practices, including forming an audit committee (19 percent), instituting or
updating staff confidentiality agreements to secure donor data (15 percent), and instituting a formal policy and plan to meet PCI (14
percent).

41
 Accountability and Stewardship Practices of Respondent Organizations
N=914

Implemented more than 1 year ago Implemented within the past year Plan to implement

Instituted formal policy and plan to meet PCI 40% 24% 23%

Instituted/updated formal privacy policies for

46% 16% 28%
website and online data capture

Instituted/updated staff confidentiality agreements

57% 11% 17%
to ensure secure donor data

Instituted/updated formal privacy policies for donor

58% 13% 19%
information

Communicated proactively to donors on how

63% 15% 17%
donations were spent

Communicated proactively on the impact of

66% 17% 14%
programs

Formed audit committee 67% 8% 7%

Audited financial statements 87% 8%3%

0% 20% 40% 60% 80% 100%

Percentage of Respondents

42
demographics of respondents
Nationality: Most respondents are from the U.S.
Eighty-four percent of respondent organizations are from the United States and 16 percent are from Canada.

Respondent Organizations by Country

N=1245

Canada
16%

United
States
84%

43
Industries: Healthcare and social services have the most respondents.
Twenty percent of respondents are in the healthcare industry (hospital, hospice, research, healthcare foundations). Sixteen percent
are from social service organizations, 9 percent from arts and cultural organizations (museums, ballet, symphony), 8 percent from
higher education institutions, and 8 percent from schools (primary, secondary, school foundations). Six percent are from
community and youth organizations (YMCA, sport clubs), 6 percent are from religious organizations (churches, mission groups,
religious centers), 5 percent are from public foundations, 4 percent are from environmental organizations, and 3 percent are from
international organizations. Less than 2 percent are from private foundations, animal-related organizations (other than aquariums
and zoos), and aquariums and zoos.

Respondent Organizations by Industry

N=935

Animal-related, 2% Aquarium
or zoo, 0% Arts and
cultural, 9%
Other, 12%
Community and
youth, 6%

Social service, 16% Environmental, 4%

Foundation
(private), 1%

Foundation
(public), 5%

School, 8%

Healthcare, 20%
Religious, 6%

International, 3% Higher
education, 8%

44
Organization Revenues: Most were between $1 and $25 million in the last fiscal year.
The largest percentage of respondents were from organizations with revenues from $1 million to $24.9 million in the last fiscal year.
Fifteen percent have budgets of $25 million or more, and 22 percent have budgets of less than $1 million. Revenues are reported in
local currency (US$ for US organizations and CN$ for Canadian organizations).

Respondents by Revenue Size in Last Fiscal Year

N=907

$100M+ 5%

$50M-$99.9M 3%

$25M-$49.9M 7%
Revenue in Last Fiscal Year

$10M-$24.9M 13%

$5M-$9.9M 16%

$2.5M-$4.9M 16%

$1M-$2.4M 17%

$500K-$999K 8%

$250K-$499K 6%

Less than $250K 8%

0% 2% 4% 6% 8% 10% 12% 14% 16% 18%

Percentage of Respondents

45
Charitable Contributions of Organizations: One-quarter were in the $1 to $2.9 million range; a third were
between $100,000 and $1 million in the last fiscal year.
The largest percentage of respondents (24 percent) received from $1 million to $2.9 million in charitable contributions in the last
fiscal year. Another 34 percent are in the $100,000-$999,000 range and 13 percent received less than $100,000. Twenty-six percent
received $3 million and up.

Respondents by Charitable Contributions in Last Fiscal Year

N=913

$50M+ 2%

$25M-$49.9M 2%
Charitable Contributions Last Fiscal Year

$10M-$24.9M 5%

$5M-$9.9M 9%

$3M-$4.9M 8%

$1M-$2.9M 24%

$400K-$999K 17%

$100K-$399K 17%

$50K-$99K 5%

Less than $50K 8%

0% 5% 10% 15% 20% 25% 30%

Percentage of Respondents

46
Functions of Respondents: Fundraising and development were the largest group; executive/management staff
were next.
The largest percentage of survey respondents are fundraising and development staff members. Members of the organization’s
executive or management staff are the second largest group (31 percent). Other functional areas represented by respondents
include accounting/finance (9 percent), administrative staff (3 percent), technology staff (3 percent),
marketing/communication/public relations (3 percent), and membership (1 percent).

Functional Area of Survey Respondent

N=937

Administrative staff Membership Other

4% 1% 4%

Human resources
0%
Technology
3%

Marketing/ Executive/
Communications/Pu Management staff
blic relations 31%
3%

Program staff
Fundraising/ 1%
Development
44%
Accounting/Finance
9%

47
800.443.9441
solutions@blackbaud.com
www.blackbaud.com

Blackbaud, Inc.
2000 Daniel Island Drive | Charleston, SC 29492

About Blackbaud
Blackbaud is the leading global provider of software and services
designed specifically for nonprofit organizations, enabling them
to improve operational efficiency, build strong relationships,
and raise more money to support their missions. Approximately
24,000 organizations — including University of Arizona
Foundation, American Red Cross, Cancer Research UK, The Taft
School, Lincoln Center, Tulsa Community Foundation, Ursinus
College, Earthjustice, International Fund for Animal Welfare, and
the WGBH Educational Foundation — use one or more Blackbaud
products and services for fundraising, constituent relationship
management, financial management, website management,
direct marketing, education administration, ticketing, business
intelligence, prospect research, consulting, and analytics. Since
1981, Blackbaud’s sole focus and expertise has been partnering
with nonprofits and providing them the solutions they need to
make a difference in their local communities and worldwide.
Headquartered in the United States, Blackbaud also has operations
in Australia, Canada, Hong Kong, the Netherlands, and the United
Kingdom. For more information, visit www.blackbaud.com.

© October 2010, Blackbaud Inc.

This material is for informational purposes only. The information contained
in this document represents the current view of Blackbaud, Inc., on the items
discussed as of the date of this publication, and could be subject to change.