Understand Year-End Giving In A New Light
In December, we like to think of it being the holiday season, full of twinkling lights and jolly songs all around. However, if you live in the nonprofit space, you know that December is really “end of year giving” season and it’s an important — even critical — time. Did you know that nearly 1/3 of funding comes in during just this time of year? End of year giving is important, but let’s take a look at why.
Ride the Generosity Wave
In the holiday season, we see people giving to others in many ways. Volunteering is always up during this season and it’s a common practice to do service work together as a team or family. Giving toys household goods, and monetary gifts to those less fortunate is also common this time of year. For many, year-end is a time to reflect on year and give back, as part of the spirit of the holiday season.
Even with recent changes to the tax law, end of year giving remains popular as individuals (and businesses) assess how much they’re able to donate (and whether they’ll benefit from a tax deduction as a result), as their finances for the closing year become clearer. Others have simply procrastinated on donations they planned to make all year long, and now it is crunch time. Donations have to get in during the current year, and so it’s vital to give in December. Regardless of the reason, many people donate during the month of December and it often tends to be a larger lump sum.
Thanks to #GivingTuesday and local things like Colorado Gives Day near our headquarters in Denver, it’s becoming more and more trendy to support nonprofits. Not to mention, platforms like Facebook make it really easy to set up fundraisers for your charity of choice for your birthday or just for fun. More and more, we are seeing people spread the word through grassroots strategies about the causes they believe in.
Nonprofits Rely On Them
Since this pattern of giving in December is established practice, many nonprofits have come to expect to receive a certain range ballpark number of funding at the end of the year. As we mentioned at the beginning, nonprofits raise around a third of their total funding in December alone! If it’s a bad December for whatever reason, it can severely impact a nonprofit for the upcoming year. many nonprofits are struggling or sunk. They rely heavily on this month to help carry them through the upcoming year.
Here are just a few other stats on year end giving and nonprofits. It’s pretty clear that end of year giving is an important facet of nonprofit health!
12% of all giving happens in the last three days of the year.
2/3 of people who make donations do NO RESEARCH before giving.
59.9% of nonprofits make between 1-3 donor “touches” for their year-end campaign.
For these reasons, December is a hectic and stressful time for many nonprofits, full of many questions: How much will you receive this year? Will it be enough? Will previous donors give again? Will there be new donors?
The anxiety of these questions is why so many organizations look to monthly donors for stability in their funding model. Monthly giving can aid an organization’s budgeting and forecasting, supporting decisions affecting hiring, operations, R&D, and more.
At G1VE, we believe in the charitable magic that happens during the holiday season, as it helps nonprofits pursue great causes. But we believe in the power of consistent, monthly giving to nonprofits even more. Businesses who use G1VE benefit from automatically giving a cash-flow friendly percentage of their revenue to their favorite nonprofits, and nonprofits benefit from a regular donation stream that’s budget and forecast friendly. It’s a win-win, that spreads the charitable magic of the holiday season throughout the entire year.