Online Fundraising TAM

Delivered March 12th, 2021. Contributors: Chloe T.

Part

01

of one

Part

01

Online Fundraising TAM

Online giving/donation is a crucial component of nonprofit organizations' fundraising. Different-sized nonprofit organizations have had positive online giving growth over the years.
Key TakeawaysIn 2020, 12.9% of nonprofits' total fundraising came from online giving. 
The average online donation amount is $126, while the average annual donation total for recurring donors is $326. The average monthly online donation is $52.
Globally, 54% of donors prefer giving online through credit or debit cards, 11% prefer direct email, 9% prefer PayPal, 4% prefer the mobile app, and 10% prefer wire transfer.
 Source 
 
Market Size of the Online Fundraising for NonprofitsIn 2017, the total amount donated online in the United States was approximately $31 billion.
The total online giving in the U.S. was $27.8 billion in 2016, $25.8 billion in 2015, $24.1 billion in 2014, and $21.2 billion in 2013.
According to the 2020 Charitable Giving Report, the total online fundraising revenue for 4,964 nonprofit organizations in 2020 was $3.2 billion out of the $40.7 billion total fundraising revenue. 
Market Growth StatisticsAccording to the Double the Donation website, online giving in the United States grew by 12.1% over 2017.
The 2017 charitable giving report by Blackbaud Institute shows that a year-over-year increase in online giving was 11.0% for large organizations, 14.9% for medium-sized organizations, and 10.7% for small nonprofits. The report indicates that the average growth in online fundraising for nonprofits in 2017 was 12.1%. 
Online fundraising statistics by doubledonation.com show that overall online revenue rose from 15% to 23% between 2016 and 2017. Online donations focused on missions related to the environment and human rights grew the most, 34% and 37%, respectively.
 Online monthly giving revenue increased by 40% with the increased popularity of recurring donation options among online donors.
The M+R Benchmark Study shows that monthly online fundraising increased by 40%, while one-time online giving increased by 19% from 2016 through 2017.
According to nonprofitssource.com, online giving has experienced consistent year-over-year growth for six years (2012-2017). Online giving grew by 10.6% through April 2018.
In 2019, online donations accounted for 14.1% of all donations received by nonprofits. Online gifts accounted for 8.7% of the year's total giving. 
Research StrategyWe consulted credible websites, surveys, and industry-related reports in the search for information about the market size and the projected market growth for online fundraising/giving/donations in the U.S. The "market size" was defined as the total amount donated online or the number of donors who gave online. The most recent data available regarding the total amount donated online was for 2017. The total amount presented regarding 2020 involved a specific number of nonprofit organizations and not all nonprofits in the U.S. or globally. The amount donated online in 2019 and 2020 was presented as a percentage of nonprofits' total fundraising in those respective years.  Information about the projected growth of the market was not publicly available. Existing statistical data present the growth in online donations over the years since 2012. Publicly available information about projected market growth touches on the entire spectrum of donations for nonprofits and not specifically online donations. 