Nonprofits Increase Direct Sales

Share this content:
The nonprofit sector raised a total of $91.5 billion through direct and interactive sales last year, concluded a study done by economic consulting company the WEFA Group, Burlington, MA, for the Direct Marketing Association. According to the DMA, that number represents 7 percent of the total U.S. direct/interactive sales.


The total was broken down into three categories: donations-$72 billion; mail order sales-$15.7 billion; and store traffic-$3.57 billion. Scott Hazelton, senior project consultant at the WEFA Group, said the increase in donations represented an 8.8 percent increase from 1997 when the total was $66.6 billion.


"I would attribute the increase in donations to the nonprofit community finally catching up on the curve in the direct marketing field," he said. "It has taken them a while to catch up on the technology aspect of things as well and they are now really starting to realize the importance of direct mail and personalized marketing."


Other findings in the study show that membership organizations raised the highest amount of revenue with direct/interactive donations and sales totaling $46 billion, while Social Services generated the second highest amount with $24 billion. Membership organizations also ranked eighth in the top 25 industries of direct/interactive sales volume from all markets conducting consumer- and business-to-business marketing. Miscellaneous retail, business services and real estate ranked as the top three.


With regards to compound annual growth rate revenue Social Services was first in the nonprofit sector with a rate of 10.5 percent, 1.8 percent more than the average of the 51 other industries using direct/interactive marketing. WEFA also found the nonprofit segment spending the most on advertising to be the field of education, with $3.2 billion.


According to the report, the area where nonprofit organizations showed the most leadership was growth rates of direct/interactive expenditures. Social Services ranked second amongst the 51 other industries and leads the nonprofit sector with a growth rate of 11.22 percent, nearly twice the national average. Museums and galleries ranked fourth out of the 51 other industries with a growth rate of 10.66 percent, while membership organizations and education both showed rates of 9.17 percent and 7.16 percent, both above the national average.


The report also showed that there are 1.9 million direct/interactive jobs in the nonprofit sector, with that number expected to grow to 2.4 million by 2003.


WEFA performs studies for the DMA every year focusing on different markets. The study contained samples from nonprofit groups that were both members and non-members of the DMA. Currently the DMA has 160 member nonprofit organizations.
Loading links....
close

Next Article in Marketing Strategy

Sign up to our newsletters

Company of the Week

Since 1985, Melissa Data has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa Data offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

DMN's Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here