Blackbaud: Online Giving to Nonprofit Organizations Reaches a Record High in 2016

Thursday, February 23rd, 2017

Based on the largest analysis of charitable giving data, Blackbaud, Inc., the world's leading cloud software company powering social good, announced the availability of its annual Charitable Giving Report, featuring the most comprehensive look at how nonprofit fundraising performed in 2016. Released under the Blackbaud Institute for Philanthropic Impact, the report analyzes trends from more than $23 billion in fundraising revenue from 2016 and provides the latest insights from leading industry experts to help inform fundraising strategies.

"This fifth annual edition of the Charitable Giving Report includes expanded insights from the Blackbaud Institute," said Steve MacLaughlin, Blackbaud's vice president of Data and Analytics. "For the first time, we're including key insights into donor demographics, retention trends, generational giving, and significant online donations in addition to our charitable giving research."

Key findings from Blackbaud's Charitable Giving Report:

- Overall giving grew approximately 1.0% in 2016

- Online giving grew 7.9% in 2016 compared to 2015

- Online donations were 7.2% of all fundraising in 2016

#GivingTuesday online donations were up 20% in 2016

- Nearly 17% of online donations were made on a mobile device in 2016

According to the report, overall giving to K-12 education and arts & culture sectors grew the most in 2016, and the healthcare sector experienced the largest decrease in year-over-year fundraising with a 4.5% drop. In 2016, overall giving to large organizations grew by 1.0%, medium organizations increased 1.7% and small nonprofits experienced flat growth while online giving to large organizations grew by 6.3%, medium organizations grew 11.4% and small nonprofits grew 8.1%, on a year-over-year basis.

To commemorate its fifth consecutive year, leading social good experts from across the sector also share their thoughts throughout the report on how these fundraising trends have shaped the industry and where it is headed in the future.

"I'm pleased to see that giving grew in 2016 and appreciate Blackbaud's great analysis of the year. That said, over the course of the past five years, we are seeing more giving, but fewer donors. That speaks to the work that charities must do to improve their retention and cultivation of donors by creating a culture of philanthropy and telling their stories of impact and change. It also requires an understanding that the newer generations of donors view themselves as change agents who do not simply want to passively give charitable contributions; it requires building new types of relationships with donors to help them enact change in the context of charitable mission."

—Jason Lee, Interim President & CEO, Association of Fundraising Professionals

"It is more important than ever for individuals and charitable organizations, grounded in their commitment to rigorous continual learning, to translate that learning into effective advocacy with and on behalf of the communities in which we live and serve. Ultimately, we need to be fierce advocates for the issues and causes that best serve the community and nation. It's only when we give voice to these issues that that government, business, and the charitable sectors can work together to solve problems, encourage giving, and build a better future for us all."

—Daniel Cardinali, President and CEO, Independent Sector

To view more charitable giving trends, download the report at Updated on the first of each month and based on year-over-year percent changes, visit The Blackbaud Index to stay up-to-date on the latest fundraising trends and experience the recently enhanced interactive Index charts.