AMERICAN EXPRESS CHARITABLE GIFT SURVEY REVEALS OPPORTUNITY FOR CHARITIES TO OPTIMIZE GIFTS THROUGH INCREASED ONLINE INITIATIVES
Study answers questions regarding individual gift size and online giving habits
NEW YORK, November 12, 2007 -- Today American Express, in partnership with the Center on Philanthropy at Indiana University, announced the release of the American Express Charitable Gift Survey, the first nationally representative study to address two frequently-asked questions in the charity world: "How do people give online?" and "How much do they give per donation?" In an increasingly online world, the survey took a close look at how people give online versus offline and the motivations behind each. The survey reveals groundbreaking analysis of individual gifts, which differs from the traditional look at annualized giving.
Charities can Optimize Online Giving
The study uncovered a surprising finding regarding online donations -- although nearly two-thirds (65 percent) of Americans in this study gave to a charity in the past year, only one in every ten donors takes advantage of the convenience of giving online. This research examined the motivations and impediments to giving online and found that a charity's online presence (or lack there-of) influenced whether donors give online.
When asked why they did not give online, the single largest reason -- after not having a computer -- that people offered is that they were unaware of online contribution options. More than one quarter (28 percent) of offline-only donors said that they did not give online because they could not find an online giving site, they did not know they could make a gift online, or they did not think of giving online.
Among those who contributed online, one in five (20 percent) said the primary motivation for giving online related to whether the charity actively promoted online giving choices -- either they received an appeal from the charity with a link or easily found an online giving option.
"The American Express Charitable Gift Survey serves as a call-to-action for charities to boost their online initiatives," said Bradlee Benn, Vice President, Business Development, American Express Merchant Services. "This survey indicates there is an untapped pool of donors who are influenced by a charity's online presence and charities could benefit by proactively reaching out to them."
Gift Size: Small Donations Make a Big Difference
The American Express Charitable Gift Survey reveals for the first time how much Americans contribute at any one time in a single gift transaction, whether the transaction is online or offline. Although individual nonprofit organizations track the average size of gifts they receive as one measure of fundraising effectiveness, typically, the only available benchmark is their own organization's historical performance. The American Express Charitable Gift Survey seeks to provide, by looking at the other side of fundraising experience, information about: how much the donors contributed in their most recent gift; the size of a "typical gift"; and a snapshot of average gift sizes for various types of charities. The survey found that the vast majority of donations come in small dollar amounts. Two-thirds of donations were $100 or less. In fact, the study found that the median charitable donation is $50.
"Nonprofit organizations rely on many low dollar donations to fund their vital work," said Dr. Patrick Rooney, director of research for the Center on Philanthropy. "Even though high-profile, multi-million dollar donations receive the most recognition, The American Express Charitable Gift Survey demonstrates that most Americans are giving small donations -- and that they can add up for charities."
About the Study
American Express sponsored the research for the American Express Charitable Gift Survey, while the Center on Philanthropy at Indiana University completed the analysis and the report. This project was managed by the Hart Philanthropic Services Group/tedhart.com. The Innovative Research Group fielded the telephone survey which resulted in a total sample (including oversample) of 1,428 useable responses, and there are 996 donor households. The survey asked a random sample of Americans in the last two weeks of September 2007 about their most recent charitable gift.
To download the American Express Charitable Gift Survey, please go to http://www.americanexpress.com/corp/pc/2007/aecgs.asp.
About American Express
Merchant Services is the merchant network of American Express, which acquires and maintains relationships with millions of merchants around the globe, which welcome American Express-branded Cards. American Express Company is a leading global payments, network, travel and banking company founded in 1850.
By partnering with programs like American Express' GivingExpress® progam, charities can increase their online presence and benefit from the giving power of American Express Cardmembers. American Express' GivingExpress program connects Cardmembers to more than one million charitable organizations -- large and small. It makes online giving easy and rewarding by streamlining tax records, providing Membership Rewards® points and allowing Membership Rewards point redemption, enabling quick and easy gifts, and allowing recurring donations. GivingExpress program is available on the Web at americanexpress.com/give.
About The Center on Philanthropy at Indiana University
The Center on Philanthropy at Indiana University is a leading academic center dedicated to increasing the understanding of philanthropy, improving its practice, and enhancing participation in philanthropy through research, teaching, public service and public affairs.
About Innovative Research Group, Inc.
Innovative Research Group Inc. is a public opinion research and strategy firm with offices in Toronto and Vancouver.
About Hart Philanthropic Services Group/tedhart.com
Tedhart.com is a unique global consultancy that works with organizations to create and implement online and offline approaches for fundraising and branding, among other services.
