Study: Online giving rising but hard to retain

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Online giving has become an increasingly significant source of new donor acquisition, and integrating online and offline fundraising channels is key to long-term success, according to a report issued today by Target Analytics.

Online giving still represents a relatively small portion of donors and revenue at most organizations, but is growing rapidly and is becoming an important source for new donor acquisition, the report said.

Further, the study notes online donors are younger and have higher incomes than traditional direct mail donors.

Online donors give larger gifts and, as a result, have a higher overall long-term value than donors to more traditional giving channels like direct mail, but they are less loyal in terms of repeat giving, the report found.

“Higher average gifts mask the lower retention rates of online donors, which may present an opportunity for improvement at many organizations,” reads a portion of the report.

In addition, online donors tend to downgrade when they move offline, further evidence that online donors are not cultivated to their full potential, states the report.

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