Major Giving soars by 300% over three years

Howard Lake | 21 June 2006 | Newswire

Income from major donor fundraising has soared by as much as 185.7% over the past year and 300% over 3 years, according to new Fundratios research released by the Institute of Fundraising (‘Institute’).
Co-ordinated by the Centre for InterFirm Comparison (CIFC) on behalf of the Institute, Fundratios – the annual charity fundraising benchmarking project – analyses the fundraising income and expenditure of 37 charities with a combined voluntary income of £1.27 billion. Headline results show that voluntary income has risen by 15.5% over the past year and 45% over the past 3 years, with income from major donor fundraising up by 185.7% and 300% over the same respective time periods. For every £1 invested in fundraising, charities make an average of £4.86 in voluntary income.
Legacies remain the largest single source of voluntary income at 40%, followed by committed giving at 17.4%. Annual data demonstrates the continued rise of committed giving (an increase in the use of methods such as Direct Debit), having grown 93% over three years and now yielding 29% of non-legacy income. Charities are investing heavily in committed giving and competitions, a shift away from fundraising expenditure on direct marketing, major donor and local fundraising.
Fundraising costs amongst smaller charities have grown between 2004 and 2005 by as much as 16.3% (compared to just 1.7% at larger charities), but fundraising costs still constitute a smaller percentage (8.2%) of the charity’s total income (compared to 9.9% of larger charities’ income).
Larger charities have shown significant income growth in major donor, competition and event fundraising, as well as committed giving. Smaller charities have also increased income from major donor fundraising substantially, but at a slower rate. Conversely, smaller charities have seen a higher growth rate in committed and corporate giving than larger charities.
Commenting on the research, Lindsay Boswell, Chief Executive of the Institute of Fundraising, says:
Charities, particularly smaller organisations, are having to work harder than ever to raise funds. It is not an easy environment – it is a competitive consumer-driven age where margins are narrower than in former years. That said, charities have recognised and responded to the need to invest in fundraising and have succeeded in continuing to grow income by almost 50% over the past 3 years. Income growth has outweighed expenditure and fundraisers are raising record income through committed giving and major donor fundraising.”
Fundratios is an annual management tool for fundraising professionals, enabling charities to benchmark their fundraising activities against those of other leading organisations. It is a unique source of in-depth information on the growth, costs and returns of every fundraising activity, from committed giving to corporate fundraising. Charities that take part in Fundratios are presented with a full data analysis of the results. To enquire about taking part in Fundratios, contact Carol Good at the Centre for InterFirm Comparison, (Tel. 01962 844144 / Email ca*******@ci**.uk).
-ENDS-
For the full story, access the press release on the Institute of Fundraising’s website www.institute-of-fundraising.org.uk. For further information please contact:
Lucinda Frostick Tel. 020 7840 1015 / 07712 045 308
Institute of Fundraising email: lu******@in**********************.uk
NOTES TO EDITORS
1. Institute of Fundraising
The Institute of Fundraising (www.institute-of-fundraising.org.uk) represents fundraisers and fundraising throughout the UK and is committed to the highest standards in fundraising management and practice. The Institute of Fundraising is the largest individual representative body in the voluntary sector with 4000 Individual members and 200 Organisational members.
2. Fundratios
Operated by the Centre for InterFirm Comparison in co-operation with the Institute of Fundraising, Fundratios is an annual management tool for fundraising professionals, enabling fundraisers to benchmark their fundraising activities against those of other leading charities. It is a unique source of in-depth information on the growth, costs and returns of every fundraising activity, from shops to special events, committed giving to corporate ventures. Sample Population – 37 charities took part in this year’s Fundratios research programme. The data relates to charities’ financial years ending between March and June 2005.
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[i] Committed giving relates to targeted campaigns to engage supporters in providing ongoing donations (eg Direct Debit)
[ii] Competitions includes gaming, lotteries & competitions

About Howard Lake
Howard Lake is consultant editor of UK Fundraising. He founded the site in 1994 and successfully sold it in 2022. As director of Giving X Ltd he is exploring growing giving on a massive scale. He is the founder of Fundraising Camp and co-founder of GoodJobs.