Charitable Fundraising Hit New Low in 2008

Success Rates, Gains Drop Significantly; Economy Cited by Most

SAN DIEGO, March 30 /PRNewswire-USNewswire/ -- Less than half of charities
raised more money in 2008 than in 2007 and fundraising gains dropped
significantly across the board, according to figures released by the
Association of Fundraising Professionals (AFP) at its 46th International
Conference on Fundraising in New Orleans, La.

AFP's eighth annual State of Fundraising Survey asked charities to compare
their fundraising totals in 2008 to their figures in 2007. Overall, just 46
percent of organizations raised more funds in 2008, a new low in the
eight-year history of the survey. In a typical year, about 60 percent of
respondents raise more money than compared to the previous year. The previous
low was reported in 2002 when just 49 percent of organizations raised more
money that year than compared to 2001.

In addition, the percentage of organizations (40 percent) raising less money
in 2008 compared to 2007 was an all-time high. Another 14 percent raised about
the same amount of money in both years.

The actual amount of money raised also dropped substantially. Of the
organizations that did raise more money, nearly two-thirds saw increases of 20
percent or less. In addition, just five percent of respondents reported
fundraising increases of 50 percent or more. In comparison, just two years
ago, almost one quarter (23 percent) indicated increases of 50 percent or
more.

"This is probably the most challenging environment that most fundraisers have
seen in their lifetimes," said Paulette V. Maehara, CFRE, CAE, president and
CEO of AFP. "The dip in fundraising is particularly discouraging given the
increased demand for services in these very difficult economic times."

Fundraising decreases were seen across the board, regardless of issue, size or
geography. In addition, every different fundraising technique measured (direct
mail, telemarketing, major gifts, planned giving, online fundraising, special
events and corporate/foundation grants) in the survey saw significant
decreases compared to 2007. The percentage of organizations raising more money
using major gifts, traditionally one of the strongest and most resilient forms
of fundraising, fell from 63 percent in 2007 to 43 percent in 2008. Similarly,
direct mail success (another popular and typically successful technique) fell
from 51 percent in 2007 to just 38 percent in 2008.

The only type of fundraising where a majority of respondents reported raising
more funds in 2008 compared to 2007 was online solicitations. However,
fundraising online typically accounts for a very small percentage of overall
charitable revenue, so even this result had a very minor impact on total
fundraising.

When asked to identify the top four fundraising challenges in 2008,
participants overwhelmingly chose the economy. Almost eighty percent rated
the economy as one of the top four challenges they faced in 2008, and 57
percent rated it as the top challenge. The second most challenging issue
overall was attracting new donors, selected by 48 percent of respondents as
one of the top four issues, and was selected by five percent as the top
challenge.

Looking ahead to the rest of 2009, just 28 percent of fundraisers believe
their organizations will raise more money this year than in 2008. That level
of optimism is the lowest by far in the history of the survey. About one-third
estimate they will raise less in 2009.

In terms of strategy for 2009, a large percentage of organizations will
increase their activities in major gifts, planned gifts, online solicitations
and corporate and foundation grants. These activities are typically less
expensive and/or focus on existing donors who already have strong connections
to a charity. In contrast, very few organizations said they will increase
their direct mail, telefundraising and special event efforts, which tend to be
more expensive and typically are used to attract new donors.

"I want to be clear that fundraising success is still quite possible for
nonprofits," said Maehara. "Charities have been through difficult times
before, mostly recently after the events of Sept. 11, 2001. It's critical that
charities and fundraisers focus on the long-term and emphasize donor
cultivation and stewardship. Even with the economy, charities must remember
that they still retain control over their circumstances. With the right
planning, development and implementation, charities can still reach their
fundraising goals, and AFP is providing a number of resources to the sector to
help organizations find success."

A fact sheet for AFP's 2008 State of Fundraising Survey is available on
request. A full report about the results will be available later this year.

The Association of Fundraising Professionals (AFP) represents more than 30,000
members in 205 chapters throughout the world, working to advance philanthropy
through advocacy, research, education and certification programs. The
Association fosters development and growth of fundraising professionals and
promotes high ethical standards in the fundraising profession. For more
information, visit www.afpnet.org.

SOURCE Association of Fundraising Professionals

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