Economy is Down, But Online Giving Is Up: Network for Good Reaches $300 Million in Donations Processed

BETHESDA, Md., Nov. 5 /PRNewswire-USNewswire/ -- In a sign of the steady growth in online giving, even amid the recent recession, Network for Good, the Internet's leading nonprofit giving platform, has now processed over $300 million in online donations to more than 50,000 charities since its inception in November 2001.

"This accomplishment is especially meaningful given the economic downturn. During a recession, the challenges facing nonprofits are two-fold: People are giving less and need is rising. It's encouraging to see more of the smaller charities succeeding in using the Internet as a cost-effective way to raise money in these difficult times," said Bill Strathmann, Chief Executive Officer of Network for Good.

In 2009, Network for Good has distributed money to 60% more charities than last year. The average Network for Good nonprofit is raising the same dollar amounts as in 2008, through more, smaller gifts. To illustrate, the total number of donations through Network for Good is up 92% year to date, but the dollar value of those donations is up 43% compared to last year.

Cara Leidy, Manager of Donor Relations for Higher Achievement DC Metro - which uses Network for Good tools to raise money online - said, "Network for Good allowed us to launch an online giving program that our own website was unable to support. Without these tools, we would be bound to print communications and processing of funds, thus limiting our reach to our donor base. Without a doubt, Network for Good is the easiest, most cost-effective way to set up an online campaign."

Network for Good traces online giving's progress to several key trends:

-- The economy is fragile, but giving online is going strong. Network for Good is seeing double the number of donations this year, just at lower dollar amounts than in years past. The growth in online giving is particularly encouraging in comparison to offline giving trends: The Chronicle of Philanthropy reports that the nation's biggest charities are forecasting a 9% decline in total donations given this year - the biggest drop since the publication started tracking private donations in the early 1990s. -- Recurring gifts are a lifeline to nonprofits during a recession. A steady number of donors are setting up automatic monthly, quarterly or annual gifts that provide dependable and compounding cash flow for recipient organizations. At Network for Good, 1 in 5 gifts is a recurring donation this year, which is comparable to last year. -- More people are giving the gift of charity to others. Year-to-date sales of Network for Good's charity gift card - The Good Card(R) - are up 60%, as more individuals and companies choose to say Thank You, Congratulations, and Happy Holidays with the gift of charity. -- A rise in grassroots and peer-to-peer fundraising is driving more donation activity online. For any given charity, the most significant source of donations is its own website, but Network for Good is seeing ten-fold growth this year to date in donations made through social networking sites like Causes on Facebook, Change.org and others.

-- Corporations increasingly insert philanthropy into their marketing and rewards programs. Corporate giving programs like the Capital One No Hassle Giving Site make it easy for card members to give to charity or cash in reward points as a donation. Other companies allow consumers to add charitable contributions to routine consumer activities, capturing donations in new online venues. Network for Good is committed to investments in technology that make innovative forms of giving possible and provide scalable, trusted and efficient solutions for corporate partners.

As the holiday season approaches - the busiest charity time of year - Network for Good is confident that the trend of online giving growth will continue. Annually, about 40% of giving occurs in December alone and Network for Good forecasts $32.5 million in donations processed this December, which is 30% growth from last year. Beyond 2009 looks even more promising for charities as more donors migrate online.

About Network for Good

Network for Good, an independent nonprofit organization, makes it easy to support any charity, anywhere online by offering simple, affordable and effective online fundraising services, including donation processing, email outreach and online surveys. To foster continued growth in online fundraising, Network for Good provides free tools and expertise in online giving through the site Fundraising123.org so that small and medium sized charities can see bigger returns on their online marketing efforts. Network for Good has processed over $300 million in donations for more than 50,000 nonprofits since its 2001 founding by AOL, Cisco and Yahoo!. www.networkforgood.org

SOURCE Network for Good