Nonprofit Institutions Industry Report
Industry Indicators
US corporate profits, an indicator of corporate sponsorships, memberships, and donations, fell 6.6 percent in the third quarter of 2009 compared to the same period in 2008.
US personal income, which drives consumer ability to donate to nonprofits, fell a slight 0.3 percent in November 2009 compared to the same month in 2008.
Quarterly Industry Update
Texting Emerges as Fundraising Force - Donations made via text message to the American Red Cross totaled more than $3 million in just two days after the Haiti earthquake in January 2010, surpassing previous records. Cell phone users sent text messages to relief agencies, and wireless carriers forwarded donations to the agencies and added the amounts to customers' bills. In comparison, the Red Cross raised only $190,000 via text donations in all of 2009. Industry observers expect mobile giving to increase as nonprofits look to tap the vast pool of cell phone users, including young people not in the habit of giving to charities, according to The Christian Science Monitor.
Social Media Found to Aid Financial Performance - A recent study by Wetpaint/Altimeter Group finds that consistent involvement in social media efforts can have a positive impact on financial performance. Organizations that boasted deep and broad social media engagement grew revenues by 18 percent over 12 months ended in first quarter 2009 or fourth quarter 2008, according to the Association of Fundraising Professionals. Companies with little interest in social media saw an average 6 percent decline in revenues. The findings suggest nonprofits could benefit from social media by evangelizing them across the organization and pulling in a broad range of stakeholders.
Campaign Spending Restrictions Eased - The US Supreme Court has overturned a ruling that prohibited corporations from spending money on political campaign advertisements. The decision enables unlimited spending on issue ads by corporations and unions during political elections. The ruling could reduce nonprofits’ relevance, influence, and clout in shaping solutions to national problems, according to The NonProfit Times.
Nonprofit Institutions
SIC Codes: 8641
NAICS Codes: 81321, 81331, 81341