# Major Giving soars by 300% over three years

- Link: https://fundraising.co.uk/2006/06/21/major-giving-soars-300-over-three-years/
- Published: 2006-06-21T09:53:44+01:00
- Author: Howard Lake

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.

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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.â€

 

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*******@*****co.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******@**************************rg.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.

 

—————————————————————–

 

 [i] Committed giving relates to targeted campaigns to engage supporters in providing
ongoing donations (eg Direct Debit)

 

 [ii] Competitions includes gaming, lotteries & competitions

 

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