The just-released Target Analysis Group's Quarterly Index of National Fundraising Performance delivers good news to international relief organizations — and some not-so-good-news for other sectors.

First the bad news. According to the Index donor counts show a 2.5% drop for the first two quarters of '06 compared to 2005. Retention rates fell by 3.3%. Reactivation rates by 5.0% and new donor acquisition dropped by 8.2%.

According to the Target Analysis Group the overall decline is due principally to two factors: the decline in acquisition of new donors and a decline in the retention and reactivation of multi-year donors.

Although the average amount given by individual donors increased 3% in this period the decline in numbers of donors has resulted in an essentially flat year-over-year revenue stream with only a paltry 0.4% growth over the same period a year ago.

But…there's particularly good news for international relief organizations who were dramatically and positively affected by the Asian Tsunami giving in December 2004 that led to large increases in acquisition, retention and reactivation in the first half of 2005. Although these organizations have seen their revenue decline, the Index shows that their revenue has appeared to have plateaued “at a much higher level than it would have without the disaster. “

In fact, at the end of the 2nd Quarter of 2006 the revenue for the relief sector is up a whopping 51% compared to 8% for the overall Index. Seems as though some of these groups are doing something right.

To compile the Index, the Target Analysis Group evaluates the transactions of nearly 70 leading non-profits, their 39 million donors, and more than 70 million gifts totalling more than $1.9 billion.

And here's what's happening in other sectors.

Continue reading “Good News for Relief Organizations, Bad News for Others”

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