Donor Perspectives:

AN INVESTIGATION INTO WHAT DRIVES YOUR DONORS TO GIVE

Donor Perspectives:

Blackbaud launched the Donor Perspectives survey in order to get a view of the nonprofit

sector from the donor perspective and, when relevant, compare findings to the results from

Blackbaud’s recently-released 2012 State of the Nonprofit Industry survey, which gauged

levels of nonprofit optimism and explored successful management strategies.

This report provides a snapshot of donor decision-making by looking at how much donors

gave in the past year and how that changed from the previous year, as well as donor

motivations, preferences, and behaviors.

SURVEY METHODOLOGY

Blackbaud engaged an international market research panel to reach charitable donors in the United States, United Kingdom and Australia.

The survey was open for a two week period in July and August 2012. More than 4,000 donors responded to the survey – 1,321 donors from

the US, 1,436 donors from the UK, and 1,576 donors from Australia – representing a wide range of ages, income levels, and education levels.

The results of this study have a +/-3 margin of error at a 95% confidence level.

OVERVIEW

THE DONOR LANDSCAPE: Giving and How It’s

Changed

• Donors reported moderate increases in their individual

donations to charity in the past year.

- The net percentage of donors increasing contributions was

highest in Australia at 11.5%, followed by the US at 7.8% and

the UK at 5.2%.

• There were some differences by country in drivers for

increased charitable contributions.

- US respondents tended to be more directly motivated by a

change in their financial situation.

- UK and Australian respondents were more likely to be driven by

an innate desire to help.

• In all three countries, the respondent’s current fiscal

situation was the main reason reported for decreased

contributions.

DONOR BEHAVIOR: Motivations, Preferences, and

Use of Mobile Technology

• Over 80% of respondents from each country reported

making one-off donations to at least one charity in the

past year.

- US respondents were most likely to make their last one-

off donation because of a personal circumstance, while

UK respondents were most likely to make their last one-off

donation through sponsoring a friend or colleague in an event.

• About two-thirds of respondents from each country reported

making regular donations to charity in the past year.

- Australian and US respondents were most likely to become

regular donors to organizations to which they currently

make one-off donations if their personal financial situation

improved, while UK respondents were most likely to report

that nothing would compel them to become a regular donor to

organizations to which they currently make one-off donations.

• Onaverage,asthenumberofcharitiestowhichdonors

made regular donations increased, so did the total amount

of financial contributions in all three countries.

• There were several significant differences between

countries and age groups with regard to the methods

donors preferred to use making donations.

- US donors were most likely to prefer to donate via check and

preferred donating by check significantly more than either UK

or Australian respondents.

- UK and Australian respondents were most likely to prefer to

donate via cash.

- UK respondents were more than twice as likely as Australian

respondents and more than four times as likely as US

respondents to prefer to donate via direct debit from a bank

checking account.

- Australian respondents were twice as likely as UK

respondents to prefer to donate via credit/debit card.

• On average, respondents from the US and UK who prefer

to donate via check reported donating more in the last 12

months than those who prefer other methods of donations,

while respondents from Australia who preferred to donate

via credit/debit card or direct debit reported giving more

than those who prefer other methods.

• US respondents were more likely to report using their

mobile phone to read emails, view websites, and make

charitable donations through an organization's website than

either UK or Australian respondents.

• Thelikelihoodofusingamobiledevicetoviewwebsites,

read emails, send SMS/text donations, or make charitable

contributions through an organization’s website

significantly decreased with age in all three countries.

How Individual Donations to Charity

Changed from the Previous Year

10%

20%

35%

40%

50%

60%

70%

80%

90%

100%

15.9%

56.7%

27.4%

17.2%

60.4%

22.4%

19.8%

52.5%

27.6%

INCREASED

NO CHANGE

DECREASED

RESULTS

THE DONOR LANDSCAPE

Charitable Donations over the Past Year

The study results indicate that individual donations to charity

slightly increased in the US, UK, and Australia in the past year.

Approximately a one-quarter of donors from each country reported

that the amount they donated to charity increased from the previous

year, while less than 20% reported the amount they donated

decreased.

On average, US respondents reported donating nearly three times

as much to charity as UK or Australian donors.

Drivers for Change in Individual Giving

Many donors who decreased their individual contributions from the

previous year reported that the decrease was due to their current

financial situation or the state of the economy.

The top reasons reported for increases in financial contributions

from the previous year differed by country.

• USrespondents’decisionstoincreasecharitablecontributions

were most often impacted by a change in their personal

financial situation.

• UKandAustraliandonorscitedaninnatedesiretohelpasthe

driving factor behind the increased donations.

The average gross annual financial contribution increased as income

level increased for donors in all three countries; however, this

relationship was stronger for US donors than for UK or Australian

donors,reinforcingthatUSdonors’decisionsregardinghowmuch

to donate to charity are more directly impacted by their financial

situation than in the other two countries.

I recently became more involved in

volunteer and charity work and thus

became more aware of the costs involved

in their work. I wanted to help out more.

— Australian donor, 26, female

I just thought I should start giving

something back to those who need it

and I realised a bit of small change

can make a difference.

— UK donor, 18, male

I try to give according to percentage of

income and my income increased.

— US donor, 32, female

Donations by Age

Average total donations not only varied by country, they also varied

with age. In all three countries, the average amount donated to

charity annually increased with age.

• Onaverage,USdonorsovertheageof65gavemorethanthree

times the amount donated by those ages 18-24 and nearly twice

as much as donors ages 25-34.

• Onaverage,UKdonorsages55-64donatedtwiceasmuch

to charity than those ages 35-44 and four times as much as

those ages 18-24.

• Onaverage,Australiandonorsovertheageof65gavemore

than twice as much as donors ages 35-44 and more than three

times as much as those ages 18-24.

DONOR BEHAVIOR

To better understand donors, we asked them how frequently and why

they make one-time or regular donations, what factors compel them

to become regular donors, and how they use mobile technology.

The study asked about two styles of giving:

1. One-off donations, which are not scheduled to repeat

2. Regular donations, which are typically scheduled as direct

debit, recurring gifts

One-off gifts

One-off gifts, or single, non-repeating donations, are very prevalent

in all countries; approximately 85% of respondents from each country

Average Total Donations by Age Group

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

18-24 25-34 35-44 45-54 55-64 65+

$463

$154

$150

$800

$333

$470

$1,390

$245

$297

$1,396

$388

$367

$1,288

$511

$671

$1,403

$566

$373

Average Total Donations Made in Last 12 Months in US $

reportedly made one-off donations to at least one organization the

past year. In addition, more than half of donors from each country

reported making one-off donations to more than one charity in the

past year.

For US respondents, as the number of charities to which respondents

made one-time donations increased, the average amount of financial

contributions made in the last year also increased. This trend was

not present for UK and Australian respondents, however; in those

countries, the average total donations over the past 12 months

were static as the number of charities donors made one-off donations

to increased. The exception was respondents who made one-off

donations to five or more charities, as demonstrated in the chart

below.

Motivations for One-off Gifts

When asked what drove them to make their most recent one-off

donation, US respondents were most likely to report that they were

motivated by a personal circumstance with either themselves or

a loved one having been affected by the cause the organization

supported (21%), followed by sponsoring a friend or colleague

participating in an event (16%).

UK donors were most likely to have made their last one-off donation

by sponsoring a friend or colleague participating in an event (34%)

and were significantly more likely than US or Australian donors to

report making their last one-off donation for this reason.

Average Total Donations by Number of Charities to Which

One-off Donations Were Made

Average Total Donations Made in Last 12 Months in US $

Number of Charities to Which One-off Donations Were Made

$500

$1,000

$1,500

$2,000

$2,500

0 1 2 3 4 5 +

$1,029

$283

$295

$684

$226

$333

$963

$365

$451

$1,463

$501

$366

$1,570

$312

$237

$2,207

$792

$583

Many Australian donors also reported being motivated by a personal

circumstance (22%) or made their last one-off donation by sponsoring

a friend or colleague participating in an event (19%). An additional 8%

said they gave their last one-off donation in response to a street or

door-to-door solicitation, which was not mentioned as frequently in

the US or UK.

Regular Gifts

Nearly two-thirds of respondents in each country reported making

regular donations, which are typically scheduled as recurring direct

debit gifts, to charity in the past year. Of those, approximately 40%

made regular donations to just one organization and another 30%

regularly contributed to two organizations.

In all three countries, as the number of charities to which donors

made regular donations increased, so did the average total donations

made to charity over the past year. In addition, UK and Australian

respondents reported donating more in the past 12 months when

they made regular donations to one or more organizations than those

who made one-off donations. In all three countries, the average total

donations drastically increased once a donor reported giving regularly

to five or more organizations.

Motivations for Regular Gifts

When asked what would motivate them to become regular donors to

organizations to which they currently made one-off donations, donors

from all three countries reported the top three factors that would

Average Total Donations by Number of Charities to Which

Regular Donations Were Made

$500

$1,000

$1,500

$2,000

$2,500

$3,000

0 1 2 3 4 5 +

$573

$153

$131

$1,091

$391

$278

$1,343

$377

$487

$1,797

$851

$707

$1,481

$632

$713

$2,716

$1,368

$1,953

Average Total Donations Made in Last 12 Months in US $

Number of Charities to Which Regular Donations Were Made

impact their decision were:

1. An improvement in their personal financial situation

2.Havingpassionaboutanorganization’smission

3. Access to information that proved the impact of their

contributions

32% of UK donors, 28% of Australian donors, and 19% of US donors

reported that nothing would compel them to become a regular donor

to charities to which they currently make one-off donations, however,

showing that a portion of each population may be reluctant to give in

this way.

On the flip side, of those that did make recurring donations, between

20% and 30% from each country reported they had stopped making

regular donations to an organization in the past three years. More

than 40% of donors from all three countries said the main reason was

that their personal financial situation required a reduction in charitable

giving. The second most

reported reason for stopping

regular donations was a feeling

that the charity was not making

the best use of its financial

resources.

When taken together, the results

indicate that while personal

finances greatly contribute to

donor decisions about regular

donations, charities can do

more to keep these important

donations. By tracking the

impact of contributions and

communicating that impact back to donors, nonprofits can increase

the number of regular donors and ensure they are not losing the

regular donors they have.

By tracking the impact

of contributions and

communicating that

impact back to donors,

nonprofits can increase

the number of regular

donors and ensure they

are not losing the regular

donors they have.

28.9%

20.1%

27.9%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40.49%

34.02%

12.64%

5.24%

7.61%

28.9%

20.1%

27.9%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40.49%

34.02%

12.64%

5.24%

7.61%

28.9%

20.1%

27.9%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

40.49%

34.02%

12.64%

5.24%

7.61%

Donors Who Stopped Regular Donations to a Charity, by Country

What would compel you to become a regular donor to an

organization to which you currently make one-off donations?

...Education concerning the

company's goals, effectiveness,

and financial integrity.

— US donor, 18, male

...If I could see that my money

is making a real difference.

— UK donor, 19, male

...More information on what

the donation is actually

achieving or contributing to.

— Australian donor, 46, female

Donation Preferences for Method of Payment

The preferred method of payment also varied country to country and

with age.

• USdonorsweremostlikelytoprefertodonateviacheck,

preferring this method significantly more than either UK or

Australian donors.

• UKandAustralianrespondentsweremostlikelytopreferto

donate via cash.

• UKrespondentsweremorethantwiceaslikelyasAustralian

respondents and more than four times as likely as US

respondents to prefer to donate via direct debit from checking.

• AustraliandonorsweretwiceaslikelyasUKdonorstopreferto

donate via credit/debit card.

The findings about donor preferences are especially interesting

when compared to how nonprofits prefer to receive donations.

Blackbaud’s2012StateoftheNonprofitIndustryreportshowedthat

only 1% of Australian and 7% of UK nonprofits preferred to receive

cash donations despite this being the most preferred method of

donation for donors. Organizations in the UK reported they prefer to

receive donations via direct debit (47%) followed by check (27%). In

Australia, nonprofits reported they prefer credit/debit card donations

(44%) followed closely by direct debit (42%). The vast majority of US

nonprofits reportedly preferred check donations (70%) which is more

in sync with donor preferences in that country.

Donation Preferences by Age

Donation preferences become more nuanced when we look at the

role age plays. Specifically:

• Thepreferencetodonateviacashsignificantlydecreasedwith

age for donors from all countries.

• ForUSandAustraliandonors,thepreferencetodonatevia

direct debit slightly decreased with age while for UK donors it

10%

15%

20%

25%

30%

35%

40%

45%

50%

Cash Credit/Debit Direct Debit Check In-kind Other Text

4.3%

4.8%

7.6%

42.1%

40.0%

18.4%

33.2%

16.8%

23.0%

10.2%

25.8%

5.9%

6.9%

8.1%

43.1%

3.1%

3.0%

2.0%

0.2%

1.5%

Preferred Method of Donation by Country

% of Respondents who Prefer Method

significantly increased with age.

• ForUSandUKdonors,thepreferencetodonateviacredit/

debit card increased with age, but for Australian donors this

preference decreased with age.

• Thepreferencetodonateviacheckslightlyincreasedwithage

for Australian and UK donors, but dramatically increased with

age for US donors.

In all three countries, there was a relationship between donation

preferences and the average annual contributions donors made to

charities over the past year.

• Onaverage,respondentsfromtheUSandUKwhopreferred

to donate via check reported donating more than those who

preferred other donation methods.

• Onaverage,Australianrespondentswhopreferredcredit/debit

card or direct debit reported donating more than those who

preferred other methods.

Again, looking at these results

through the lens of the 2012 State

of the Nonprofit Industry report

brings to light some interesting

conclusions. While most UK

charities (47%) preferred to receive

donations via direct debit, UK

donors who preferred to give via

check donated, on average, more

than twice as much as those who

preferred to donate via direct

debit. This trend is likely influenced

by the finding that older donors

tend to donate more and are more

likely to prefer to donate via check. This gap between donors and

nonprofits however, leads one to conclude that nonprofits should

keep donor preferences in mind and ensure donors are able to

contribute in various ways, or they may miss out on significant

contributions.

Average Total Annual Donations Segmented

by Preferred Donation Method

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Text/SMS

In-kind

Cash

Credit/Debit Card

Direct Debit

Check

Average Total Donations In Last 12 Months in US $

Nonprofits should

keep donor preferences

in mind and ensure

donors are able to

contribute in various

ways or they may miss

out on significant

contributions

*Please note, these

amounts do not reflect the

total amount donated via

each method, but rather

the average amount donors

who preferred to donate via

each method gave in the

last 12 months.

Donor Use of Mobile Technologies

The study also explored how mobile technology is changing the

way donors interact with nonprofit organizations. In each country,

approximately half of donors reported they use their mobile phone to

read emails and view websites– yet less than one-quarter of donors

in each country reported using their mobile device to send SMS/text

donations and even fewer reported making charitable contributions

throughanorganization’swebsiteviatheirmobile.

There were slight cultural differences in the proportions of donors

using mobile technology to interact with charities. A slightly higher

proportion of US donors reported using their mobile phone to read

emails, view websites and make charitable donations than UK or

Australian donors. Interestingly, according to research recently

released by Google

™

, smart phone penetration is actually higher in

Australia (52%) and the UK (50%) than in the US (44%).

Comparing the results of the 2012 State of the Nonprofit

Industry study and Donor Perspectives survey also suggests

that donors have embraced mobile technologies faster than

nonprofits. According to the State of the Nonprofit Industry results,

approximately 30% of nonprofits in the US, UK, and Australia have

already enabled their website for mobile browsing while around

50% of donors in each country reported using their mobile phones

to view websites. Similarly, only 20% of UK nonprofits, 26% of

Australian nonprofits, and 29% of US nonprofits have already

optimized emails for mobile viewing while around half of donors in

each country reported viewing emails on their mobile device. The

projected growth of the use of mobile technologies in marketing

efforts, however, indicates that nonprofits have recognized the need

to embrace mobile strategies and have planned to do so in the next

year.

Finally, mobile behaviors are significantly influenced by the age

of the donor. In all three countries, the younger the respondent,

the more likely they were to use mobile devices to read emails,

view websites, make SMS/text donations, and make charitable

contributions.

OVER 70% of donors ages 18-24 reported using their mobile device to read emails and view

websites, while LESS THAN 40% of those over the age of 55 reported doing so.

In the US, the proportion

of donors who reported

using their mobile device to

make a SMS/text donation

DECREASED FROM

40%

for those under the age of 35

to 14%

for those 35 and older.

In the UK, the proportion of

donors who reported using

mobile devices to view websites

DECREASED FROM

75%

for those under the age of 35

to 57%

for those age 35-44

to 40%

for those age 45-54

In Australia, the proportion

of donors who reported

making a donation through

an organization’s website

on their mobile device

DECREASED FROM

18%

for donors under the age of 35

to 4%

for donors 55 and older.

This white paper is for informational purposes only.

Blackbaud makes no warranties, expressed or

implied, in this summary. The information contained

in this document represents the current view of

Blackbaud, Inc., on the items discussed as of the

date of this publication.

All Blackbaud product names appearing herein are

trademarks or registered trademarks of Blackbaud,

Inc. The names of actual companies and products

mentioned herein may be the trademarks of their

respective owners.

About Blackbaud

Serving the nonprot and education sectors for 30 years, Blackbaud (NASDAQ: BLKB) combines technology and expertise to help

organizations achieve their missions. Blackbaud works with more than 27,000 customers in more than 60 countries that support higher

education, healthcare, human services, arts and culture, faith, the environment, independent education, animal welfare, and other charitable

causes. The company offers a full spectrum of cloud-based and on-premise software solutions, and related services for organizations

of all sizes including: fundraising, eMarketing, social media, advocacy, constituent relationship management (CRM), analytics, nancial

management, and vertical-specic solutions. Using Blackbaud technology, these organizations raise more than $100 billion each year.

Recognized as a top company by Forbes, InformationWeek, and Software Magazine and honored by Best Places to Work, Blackbaud is

headquartered in Charleston, South Carolina and has employees throughout the US, and in Australia, Canada, Mexico, the Netherlands, and

the United Kingdom.

CONCLUSION

Making it easier for donors to learn about your organization, answering their questions, and

providing clear vehicles for contributions is essential to successful fundraising. In this report,

Donor Perspectives attempts to make connections between how nonprofits conduct outreach

against donor motivations. Interestingly, the report found that nonprofits were not always

meeting constituents' needs through optimized communication or giving channels.

Overall, the respondents reported giving more to charities in the past year than in the

previous year. US contributors gave the most overall while older donors gave the greatest

amount across all countries. Motivations to give were similar for UK and Australian donors,

who expressed their innate desire to help, but US donors were primarily influenced by their

financial situation. The results of this study clearly indicate that age and culture play a major

role in how donors interact with nonprofits. As such, mobile technologies have become

increasingly important for younger donors.

By facilitating this project, Blackbaud seeks to shed light on what drives donor behavior. In

assisting nonprofits to maximize their strategies, nonprofits can increase gifts, reach new

audiences and retain current donors.