Overall and online charitable giving in the U.S. nonprofit sector in 2018 continued year-over-year growth, with online giving setting another record, according to a report this week by Blackbaud, a cloud software company that serves the general philanthropic community.
The report by the Blackbaud Institute for Philanthropic Impact showed that overall charitable giving in the U.S. in 2018 increased by 1.5% year over year, with large nonprofits, whose annual fundraising revenue exceeds $10 million, growing by 2.3%, medium-sized ones growing by 2% and small charities shrinking by 2.3%. Since 2016, overall giving has increased by 9%.
Online giving grew by 1.2% last year, and since 2016 has grown by 17%. Large nonprofits experienced a decrease in online giving of 0.5%, while it increased by 3.7% for medium-size organizations and by 0.7% for small nonprofits.
Average online gift amounts continued to increase; the average donation in 2018 was $147.
“The 2018 Charitable Giving Report shows the continuation of the longest sustained period of charitable giving growth since the last recession,” Steve MacLaughlin, Blackbaud’s vice president of data and analytics, said in a statement.
“Online giving is entering a new phase in which mobile and other digital channels continue to change how donors engage with nonprofit organizations, while donor-advised funds continue to grow in response to supporter preferences and changes in incentives.”
As growth in overall giving continues, several key trends are shaping giving, according to the report.
For one, giving in the U.S. is returning to normal levels after two years of fast growth. For another, online giving is moving into a new phase in which mobile and other digital channels continue to influence how donors engage with charities.
Finally, giving to DAFs and foundations continues to grow in response to supporter preferences and changes in incentives.
The Blackbaud report includes overall giving data from 9,029 nonprofit organizations representing $31.9 billion in total fundraising from 2018, and online giving data from 5,537 nonprofits representing more than $2.7 billion in online fundraising from 2018.
Some 8.5% of overall fundraising revenue, excluding grants, was raised online in 2018, another record high, according to the report. Twenty-four percent of online transactions were made using a mobile device.
The report noted that December remained the biggest giving month of the year, accounting for 17% of overall giving and 17.3% of online giving for the year. June followed, recording 9.7% of overall giving and a 7% of online giving.
Blackbaud’s analysis showed that arts and culture nonprofits enjoyed the largest year-over-growth in both overall giving and online giving in 2018, up 5.5% and 5.8%.
Animal welfare, international affairs, higher education, and public and society benefit organizations experienced substantial growth in overall giving compared with 2017, while public and society benefit, health care and faith-based nonprofits had positive growth rates in online giving in 2018.
— Check out Who the Wealthiest Charity Donors Supported in 2018 on ThinkAdvisor.