To summarize, as Target Analytics says in its headline, “Continuing Increases in Revenue Per Donor Do Not Compensate for Donor Declines.” Even though the amounts donors are giving are slightly up, the past five years’ decrease in donor acquisition investment means the chickens are now coming home to roost.  Without a steady influx of new and energized donors, nonprofit fundraising revenue is down.

The report goes on to say: “Only 31% of the organizations in the index had year-over-year donor increases in the first half of 2011. This continues a trend that predates the recession. Donor populations have been shrinking for the past five years, primarily because of declines in new donor acquisition. The index has not experienced positive year-to-year overall donor growth or new donor growth since the U.S. Gulf Coast hurricanes in the third quarter of 2005.”

Some good news, as Target Analytics put it: “Two sectors in the index currently appear to be actively recovering from the recent recession:

• Arts and culture and religious organizations are experiencing strong performances in most key areas this year to date, as they return to more normal levels of giving from previous years of decline.


• The Human services and societal benefit sectors continued to be the brightest spots in the index this period. Human services organizations had some of the greatest increases in revenue, donor, and new donor acquisition while also managing to increase revenue per donor. Societal benefit organizations had strong growth in many areas—in particular, new donor acquisition—for the second year in a row.”