Wondering how your online response rates compare? If so, I think you'll be interested in the new “eNonprofit Benchmarks Study,” the first detailed look at the hard numbers for nonprofits using the Web for fundraising and advocacy.

The good news: it’s free! Download the report at:
http://www.e-benchmarksstudy.com

The report studied 15 national nonprofits in the environmental, civil/legal rights-based and international aid sectors in depth, and surveyed another 85 organizations. Many of the results aren’t surprising. For example, did you know that organizations with big e-mail lists raise more money online? Well, yes, of course. But the report also demonstrates that smaller organizations are meeting success through innovation and aggressive efforts.

However, more than anything else, the report shows how young online fundraising is: we still have a lot to learn! This report is just the beginning. I do encourage you to read it for yourself, but in the meantime, here are some of the key findings (they are taken directly from the report):

• Investment Pays Off: Not surprisingly, organizations with larger online communications budgets built larger e-mail lists, generated more advocacy activity, and raised more funds online.
• E-Mail Open Rates in Decline: E-Mail message open rates averaged 26% between September 2004 and September 2005, a decline from the previous 12-month average of 30%. Average response rates to e-mail advocacy appeals were 10%, while average response rates to e-mail fundraising appeals were just 0.3%.
• E-Mail Lists Continue to Grow — and Shrink: List churn (where e-mail addresses becoming undeliverable or unsubscribed) is a considerable problem for organizations. Nonprofits studied recruited on average more than twice the size of their existing e-mail lists over a 12-month period, yet their overall list growth was only about 73% as some new recruits are offset by heavy email list loss.
• Online Actions Speak Louder Than Dollars: Not surprisingly, more e-mail subscribers took online action than made an online donation. Between September 2004 and September 2005, an average of 47% of all e-mail subscribers took at least one online action, while just 6% of subscribers made an online donation. There were significant discrepancies among issue areas; international aid e-mail lists are made up of just 37 percent activists, but 17 percent of their subscribers made an online donation. On the other hand, environmental organizations have lists made up of 61 percent activists, while just 4 percent of their subscribers made an online donation.
• A Rise in Online Fundraising: Despite modest online donation rates, by September 2005, online annual fundraising totals increased by 40% on average from the year before, likely driven (in part) by the public's overwhelming response to the Asian tsunami disaster. Participating organizations averaged $2.5 million in online donations last year, with a $97 average gift. International aid organizations led the way, with an average of $9.6 million raised last year and an average gift of $121.

Does size matter?
It might appear from these findings that size does indeed matter – two-thirds of organizations studied in-depth have online communications budgets over $300k per year. However, the study also found that organizations of any size could achieve meaningful results through innovation and aggressive efforts. The key? Taking the time and effort to track results closely, learn from successes and failures, and put those learnings to use. Even YOU can do that, right?

By the way, the study was produced by M+R Strategic Services and the Advocacy Institute, and co-sponsored by Donordigital and a number of other companies. Additional funding was provided by the Beldon Fund and the Surdna Foundation.

This article appeared in print in Mal Warwick's newsletter. To learn more about Mal Warwick and Associates, click here.

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