Economy Slows Charitable Giving, Fundraising in 2007

Success Rates Still High, But Gains Much Lower Than 2006

SAN DIEGO, Calif., March 31 /PRNewswire-USNewswire/ -- While almost two-thirds
of charities raised more money in 2007 than they did in 2006, the size of
those gain dropped dramatically, according to figures released by the
Association of Fundraising Professionals (AFP).

For the seventh consecutive year, AFP's State of FundraisingSurvey asked
charities to compare their fundraising totals in one year (2007) to the
previous year (2006).

Overall, 65 percent of organizations raised more funds in 2007 compared to
2006, while 24 percent of respondents raised less funds, and 11 percent raised
about the same amount. The 65 percent figure represents a four-percent drop
from the previous year (69 percent in 2006), but is very similar to success
rates seen in 2005 and 2004.

The key difference was in the amount of money raised. In 2006, almost a
quarter of respondents (23 percent) raised saw fundraising revenue increase by
more than 50 percent. In contrast, just 9 percent of charities experienced
similar increases in 2007. Fundraising increases were more modest, with 38
percent of charities reporting increases of less than 20 percent.

"2007 seemed to a typical year for fundraising until the environment changed
dramatically at the end of the year with the mortgage crisis," said Paulette
V. Maehara, CFRE, CAE, president and CEO of AFP. "The impact was very uneven,
so the million-dollar question is, do these decreases represent a return to
normalcy from the very strong year we saw in 2006, or the beginning of a much
bigger slide in fundraising and giving?"

Larger organizations fared much better than smaller ones, with 70 percent of
charities with budgets of $5 million or greater raising more money in 2007
than in 2006. In contrast, just half of organizations with budgets of $500,000
or less raised more money in 2007 than in 2006.

When asked to rank the top four fundraising challenges they faced in 2007,
participants overwhelmingly chose the economy. Sixty-three percent of
respondents ranked the economy as one of the top four challenges in 2007, and
30 percent of respondents chose it as the most critical issue. No other issue
came close to being cited as many times by respondents.

Looking ahead to the rest of 2008, just 58 percent of fundraisers believe
their organizations will raise more money this year than in 2007. That level
of optimism is nine percentage points lower than last year's confidence level
and is the lowest since 2002.

"2008 could be one of the most challenging years charities have seen in some
time," said Timothy R. Burcham, CFRE, vice president of advancement for the
Kentucky Community and Technical College System, and chair of AFP. "However,
charities have been through this sort of environment before recently -- in
particular, after Sept. 11 -- and many have prospered. Charities don't need to
panic but need to retool their strategies and focus more than ever on donor
cultivation and stewardship. We're still early in 2008, and the fundraising
environment could still change significantly."

A fact sheet for AFP's 2007 State of Fundraising Survey is available on
request.

The Association of Fundraising Professionals (AFP) represents more than 29,000
members in 197 chapters throughout the world, working to advance philanthropy
through advocacy, research, education and certification programs. The
association promotes high ethical standards in the fundraising profession. For
more information, visit http://www.afpnet.org.

SOURCE Association of Fundraising Professionals

Michael Nilsen of Association of Fundraising Professionals, +1-425-890-6628