Charitable Fundraising Strong in 2001 Despite Economy, Sept. 11

4/15/2002

From: Walter Sczudlo, 800-666-3863, ext. 455 or Michael Nilsen, 800-666-3863, ext. 481, both of AFP

ALEXANDRIA, Va., April 15 -- Charitable fundraising across North America remained quite strong in 2001 despite the challenges of Sept. 11 and a slowing economy, according to a survey released today by the Association of Fundraising Professionals (AFP).

The survey, entitled "The State of Fundraising 2001" asked charities to compare their fundraising totals at the end of December 2001 to the amount raised at the end of 2000. Nearly 60 percent of respondents indicated they raised more money in 2001 than in 2000, with an additional 10 percent raising the same amount. Slightly more than 15 percent of respondents stated that they raised at least 30 percent more funds in 2001 than in 2000.

Increases in fundraising were seen in nearly all subsectors of the charitable sector, especially among social service and religious organizations, and in all organizations regardless of size or budget. Increases were also seen across the board in various fundraising techniques, with major gifts and Internet/online contribution experiencing significant percentage increases. The only exception to the increases was fundraising for environmental organizations, although AFP did not receive enough responses from these groups to have a statistically valid sample.

The results of the survey correspond to statistics from an earlier Sept. 11 survey AFP conducted in October of 2001. At that time, 56 percent of respondents indicated that they were raising the same or more money than in October 2000.

"The findings confirm what we've been hearing from the field and our members," said AFP President & CEO Paulette V. Maehara, CFRE, CAE. "2001 was a very challenging year, but many organizations rose to the occasion and were able to get their message out. That so many charities were able to increase giving to their causes speaks to the professionalism of their development departments and their ability to communicate honestly and convincingly to the public."

Despite the myriad issues affecting the public in 2001, many charities were able to find new donors. More than 20 percent of respondents indicated that 16 percent or more of donors gave to their organization for the first time in 2001. Of previous donors, more than a third of respondents indicated that 10 percent or more of their donors increased their giving.

The economy was cited as the single biggest challenge in 2001 to raising funds, followed by the impact of the Sept. 11 tragedies. Other frequently mentioned challenges included raising major gifts and increasing an organization's donor base. However, many respondents noted that Sept. 11 did not impact their organization much at all and that perhaps its impact on charities had been overstated.

When asked how their fundraising would fare in 2002, 58 percent of respondents said that giving to their organization would increase, and 28 percent said it would remain about the same. Respondents in healthcare were the most optimistic (65 percent said that giving would increase), while those individuals working for arts/cultural organizations were most reserved (49 percent).

Despite the positive results, Maehara pointed out that some charities have suffered in their fundraising. "We're pleased that so many organizations did so well in their 2001 fundraising, but nearly 30 percent of charities didn't raise as much as they did in 2000. The events of Sept. 11 clearly seemed to slow giving to certain organizations, and it will be difficult to tell how the economy will affect giving in 2002. Plus, in slow economic times, more demands are placed on charities to meet growing needs. Suffice to say, challenges still remain for charities and the fundraising profession. The overall news is good, but there are some caveats."

The AFP State of Fundraising 2001 Survey is the first of what will be an annual study by the Association. For a complete copy of the survey report and analysis, contact the AFP Public Affairs Department at 800-666-3863.

The Association of Fundraising Professionals (AFP) represents 25,000 members in 165 chapters throughout the United States, Canada, and Mexico, working to advance philanthropy through advocacy, research, education, and certification programs. The Association fosters development and growth of fundraising professionals and promotes high ethical standards in the fundraising profession. AFP was formerly the National Society of Fund Raising Executives (NSFRE). For more information, visit the AFP website at http://www.afpnet.org.