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Read a complete summary of the National Index findings. (Name and email address required to view files.)

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To learn if your organization qualifies for inclusion in the National Index of Fundraising Performance, please contact us at info@targetanalysis.com.

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If you are a National Index participant, please visit the National Index website to access the interactive National Index Explorer. And please join us for the next webcast and conference call on April 3rd. We will also be offering a National Index Tutorial on March 5th. Keep an eye on your Inbox for login information.

Index of National Fundraising Performance

Modest Revenue Growth During First Three Quarters of 2007; Donors Continue to Decline at a Steady Rate

Read a complete summary of the National Index findings.

Cambridge, MA (January 3, 2008) -- The organizations in the Target Analytics Index of National Fundraising Performance had modest median revenue growth of 1.4% in the first three quarters of 2007 compared to the same period one year before. 65% of the organizations in the index had positive revenue growth. Donor numbers, however, continue to decline. The index has not experienced a median donor increase since the third quarter of 2005, which included most of the contributions related to Hurricane Katrina relief.

Donor counts have declined for both of the past two years, dropping a median -1.8% from the first three quarters of 2005 to the first three quarters of 2006, and -1.4% from the first three quarters of 2006 to the first three quarters of 2007. The only sector in the index with positive median donor growth this quarter was the animal welfare sector, which is recovering from a relatively weak post-disaster year in 2006.

The bulk of index donor declines are due to decreases in acquisition. New donor numbers are down this year to date for almost two-thirds of the index participants, across almost all industry sectors, and have declined at a faster rate than have overall donors. New donors declined a median -6.2% from the first three quarters of 2006 to the first three quarters of 2007.

Other life cycle segments of the donor file are not compensating for new donor declines; retention rates are essentially flat for most organizations and reactivation rates are slightly lower.

In the absence of donor growth, the revenue increases that most organizations experienced this year to date have been due to increases in revenue per donor. Three-quarters of the organizations in the index experienced growth in revenue per donor through the third quarter of 2007, and most have had two consecutive years of revenue per donor gains.

In the past we have cautioned that if current trends continue, at some point increases in revenue per donor may not sustain overall net revenue growth. With the slowing of revenue growth over the past three quarters, depending on the reasons for the donor declines, this could be a cause for concern.

Additional Information

Read a complete summary of the National Index findings. (Name and email required to access files. Note: Please save the access email you receive in order to access future reports.)

If your organization is a participant, please visit the National Index website. Contact info@targetanalysis.com to see if your organization qualifies for inclusion in the Index of Fundraising Performance.

Target Analytics delivers data-driven, collaborative solutions designed to help non-profit organizations maximize their fundraising potential. To learn more, please visit our main website.