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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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Index of National Fundraising Performance

Slowing Index Revenue Growth in 2007 Parallels Slowing Economy; Donors Continue Two-Year Decline

Read a complete summary of the National Index findings.

Cambridge, MA (April 3, 2008) -- Revenue for the organizations in the Target Analytics Index of National Fundraising Performance grew a median 1.5% from calendar year 2006 to calendar year 2007, with 61% of the organizations in the index having positive revenue growth. This comes after revenue growth of 2.8% the previous year and is below historical average rates of roughly 4% annual growth. When dollar amounts are adjusted for inflation, real index revenue declined a median -2.8% from 2006 to 2007.

Median index revenue generally parallels national economic performance but tends to grow more slowly than GDP during periods of relative economic hardship. As the economy slows down, people shift their spending priorities away from charities, compounding the effects of an economic decline on fundraising. In 2007, not only was index revenue growth relatively slow, correlating to a general national economic slowdown, but it also significantly lagged growth in GDP.

Index donors declined a median -1.0% from 2006 to 2007 on top of a -1.4% decline the year before. Only 41% of the organizations in the index saw positive donor growth in 2007. Donors have been on an uninterrupted decline since the third quarter of 2005, when many organizations had a spike in donors related to hurricane Katrina relief efforts.

These overall declines in donor counts reflect continued difficulty attracting new contributors. New donor acquisition in the index was down a median -5.1% from 2006 to 2007, on top of a -10.0% decline the previous year. The animal welfare sector was the only industry sector in the index with positive new donor growth in 2007. Several sectors -- including societal benefit, international relief, and human services -- experienced particularly large declines.

As a result of recent donor declines, index donor numbers are down a median total -3.1% over the past three years from 2004 to 2007. Only 37% of the organizations in the index had positive donor growth over this three year period.

Ongoing, persistent donor declines have meant that the revenue growth that most index participants experienced in 2006 and 2007 was almost entirely due to increases in revenue per donor rather than increases in donor population. Overall index revenue per donor increased a median 4.1% from 2006 to 2007, on top of a 3.0% increase the previous year. Almost three-quarters (74%) of the organizations in the index experienced positive revenue per donor growth in 2007.

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.