Myths About Who Donates to NonprofitsBy Eric Bryant,
The Myth of Corporate Sponsorship
You might think that corporations and large companies donate the most money to nonprofits. But that isn't true. Individuals actually give the most to charity, which is one reason that text to donate technology is so effective for nonprofits. The National Center for Charitable Statistics (NCCS) reported that the average household donated $2,520 to charity in 2015.
The Myth of The Wealthy Donor
You might also think that the well-to-do donate the most to charity. But this is also not totally true. People with incomes below $100,000 actually donate a greater percentage of their gross income to charity than do those with incomes between $100-$200K (the percentage jumps up again when income exceeds $200K). So, if you're thinking against a text to donate because you feel you're in a region of lower income people, don't let that discourage you, as household income is not necessarily a gauge of donation willingness.
Don't Religious Institutions Receive the Lion Share of Donations?
Another common donor myth is that religious organizations always receive the most donations. This has been true in some years but not in other years. For example, NCCS data indicated that in 2011, most donations of $25 or more went to non-religious organizations.
Do Recessions Negatively Impact Charitable Giving?
One would think that recessions make people more tight-fisted. But IRS data shows the opposite. For example, during the Great Recession, individuals and households dug down deeper and contributed more to charity. Even though there was a sharp decline in both household income and household wealth from 2006-2012, there was an uptick in charitable donations of 2.7% during this period.
Moreover, of the top 10 states that increased their charitable giving between 2006 and 2012, all but one (Alabama) experienced drops in median household income. The data indicates that, even during rough times, people still donate to nonprofits.
The "Convenience" Donor
There is a type of donor who wants to give regularly to charity but will only do so if you make it super-convenient for her. We call this the "convenience donor." This type of donor will give a one-time gift but simply will not return to give again. However, the convenience donor will give more if you offer a recurring donation payment.
Most People Prefer One-Time Donations, Right?
According to a recent Blackbaud study, in 2015 recurring gifts grew by 24% across all nonprofit sectors, compared to only 18% growth for one-time gifts. Studies also show that recurring donors tend to keep giving, over multiple months and even years.
Only Those With High Incomes Give Recurring Donations, Right?
And if you think that only people with higher incomes give recurring gifts, think again. Surprisingly, the income profile of recurring donors is similar to that of one-time donors. In other words, recurring giving programs generate more funds, even from donors who have similar capacities to give.
All this points to the fact that your organization will benefit from a text donations service.