Fundraising levels in the first half of 2021 maintained the increased levels of giving and number of donors seen in 2020, a report from the Fundraising Effectiveness Project of the Association of Fundraising Professionals finds.

Based on an analysis of data from 9,618 U.S.-based nonprofits that raise between $5,000 and $25 million annually, the 2021 Second Quarter Fundraising Report estimates that total fundraising in the first half of 2021 grew 1.7 percent over the amount raised during the same period last year, while the estimated number of donors ticked up 0.7 percent. Totals for the first six months of the year were buoyed by record increases in the first quarter, when giving and the number of donors were up 10 percent and 6 percent year-over-year, respectively; both figures declined in the second quarter. Administered by the AFP Foundation for Philanthropy in collaboration with GivingTuesday, FEP notes that, while year-to-date figures show declines in dollars raised across donations of all sizes due to data reporting delays, they are expected to show positive growth for the first half of the year once complete second-quarter data are incorporated.

According to the report, one factor behind the projected growth is the number of newly retained donors — new donors in 2020 who have continued to give in 2021 — which increased 22.9 percent on a year-over-year basis during the first half of 2021, even as the numbers of new donors, repeat retained donors, and recaptured donors declined. The retention rate among new donors in the first half of 2021 was up 3.5 percent, while the rate among repeat donors was down 7.2 percent. Giving by new retained donors also increased in the second quarter and was the only category to show growth in the first half of the year, up 18.4 percent.

The report also found that smaller organizations raised more funds in the first half of 2021 than they did in the first half of 2020, while larger organizations raised less than they did during the same period last year. Organizations with annual budgets of less than $100,000 and those with budgets of between $100,000 and $250,000 saw mean average revenue growth of 7.3 percent and 4 percent, respectively, while those in larger budget categories saw declines on average. In terms of issue area, health, human services, religious, and public and societal benefit organizations saw declines in giving in the first half of 2021 compared with the same period in 2020.

“We saw a tremendous level of giving in 2020 because of the pandemic, people giving to social issues, and other factors,” said AFP president Mike Geiger. “That strong level of giving continued into the first quarter of 2021, and then started to level off. The question is, are we seeing the beginning of the return to normal — that is, pre-pandemic levels and flows of giving, or will the growth in giving continue in the third quarter of 2021 and beyond? That’s what the FEP will be watching with great interest.”

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