October 27, 2008
Despite Economy US Online Holiday Giving to Exceed $3 Billion
TMCnet Channel Editor

Looks like the U.S. economy cannot turn the American people into Scrooges this holiday season. Despite the exceedingly depressing fall of the stock markets, in what seems like an everyday occurrence, people are still willing to give.
 
Convio, Inc., provider of on-demand constituent relationship management (CRM) software and services for nonprofit organizations, estimates that U.S. online giving to nonprofit organization will be more than $3 billion during the holiday season of 2008.

 
In a survey conducted by JupiterResearch, a Forrester (News - Alert) Research company, revealed that in the US more than half plan to donate to charities of their choice during the upcoming holiday season via the Internet.
 
Statistically, this means nearly 7 out of 10 people surveyed plan to give the same amount or more as last year, while the current state of the economy will lead 33 percent to give less to charity this holiday season.
 
"Consumers continue to go online in growing numbers to learn about, engage and support nonprofit organizations," said Gene Austin, CEO of Convio. "With consumer dollars being tight and the competition for donations growing, the efficiency and effectiveness of the Internet as an engagement, communication and giving platform continues to grow in importance for donors and organizations alike. While still smaller in total dollars raised, it is clear that online giving has joined traditional channels as mission-critical part of the giving mix."
 
Convio analysts are able to estimate consumers will donate more than $3 billion online during the holiday season (November 1 through December 31, 2008). The prediction is based on the survey, results from the Convio client community and reported historic results from the nation's top 200 nonprofits.
 
“More than 50 percent of online consumers say that they plan to donate via the Internet during the 2008 holiday season," said Vinay Bhagat, Chief Strategy Officer and Founder of Convio. "This level of online support shows that nonprofits of all sizes need to make sure that their web sites and other electronic communications meet consumer expectations. It is also important to make sure that traditional appeals such as direct mail, television and events provide people with the option to give online. If it is difficult to give to your organization online consumers will find an alternative."
 
What charities or organizations are people planning to share their donation? Forty-one (41) percent said they were going to help other people through human and social service organizations such as food banks and homeless shelters. Thirty-four (34) percent will support faith-based organizations, followed closely by disease and health service organizations with 33 percent. Also, animal welfare organizations (24 percent) and disaster and international relief organizations (22 percent) were cited. Women plan to donate more than men 54 percent versus 48 percent.

"In this year-end giving season the Internet can serve as a cost-effective and efficient medium to reach audiences while providing nonprofits more flexibility to adjust to the changing market and to provide more timely access to news and information on their needs and how they are fulfilling their mission," added Austin. "By combining a strong online presence and integrating offline and online appeals nonprofits can still be successful in their year-end giving campaigns."
 
Additional findings from the research and a paper on "What nonprofits can do now to make the year-end/holiday giving season more successful" are immediately available to Convio clients in the Convio Client Community. Other nonprofit organizations can get a copy of the paper by registering at www.convio.com/holiday2008.

Jessica Kostek is a channel editor for TMCnet, covering VoIP, CRM, call center and wireless technologies. To read more of Jessica’s articles, please visit her columnist page.

Edited by Jessica Kostek

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