In 2013, U.S. consumers gave $240.6 billion in charitable donations. A report from Giving USA notes that, across the U.S., charitable giving rose in the past year and is nearly equivalent to the amount that was donated before the recession started. This generosity suggests that consumers, foundations and other giving organizations are feeling more comfortable about the economy in general and will continue to increase their contributions.
U.S. adults enjoy donating to their favorite charities but they don’t intend to increase what they are giving in the near future. Charities will have to compete hard to improve their bottom line and one way to accomplish this goal is to target specific age groups with certain marketing strategies. A new report from Blackbaud can help charities determine how to proceed.
Nonprofit organizations are reporting gradual increases in donations as consumers feel better about their personal economic situation. However, most charities are still falling short of the level of funds they were bringing in before the recession started. Analysts are advising nonprofits to change their strategy and marketing message in order to prod more consumers to give generously.
Consumers are expected to give up to $48 billion to nonprofit organizations during the current holiday season. The goodwill comes at a time when people are still closing monitoring household budgets. But consumers understand the importance of sharing their wealth and this year they appear to be using more channels, a process that makes giving convenient and requires less time. As a result, charitable organizations need to make sure they maintain a consistent but visible presence across all channels.
As we approach what is traditionally known as the Giving Season, charitable organizations are concerned about the continued economic stress on families who give. Charities have reported varying rates of declines in giving. The top 400 charities said that donations dropped by 11% in 2009. But smaller charities indicated that they experienced only a 3.6% drop in donations last year.
A new Barkley Cause survey finds that while consumers have decreased spending on charitable giving, 91% expect companies to fill that gap and showcase their commitment to the greater good (up from 86% in 2008). The study also reveals that cause can make strong business sense for brands by increasing trial, loyalty, sales, and even higher prices at the cash register. Of those consumers surveyed, 74% say they purchased a brand because it supported a cause, 75% would try a brand they normally wouldn’t because it supported a cause, and 64% would pay more for a brand because it supports a cause that is important to them (up from 61%, 64% and 52%, respectively, in 2008).