Constant Contact Nonprofit Pulse The Health and Wellness of Small Nonprofits Based on Research Conducted in Spring 2012 Copyright © 2012 Constant Contact Inc. 1 In This Report What’s Keeping Small Nonprofits Up at Night? Nonprofit p Marketing g Activities The Health of Nonprofits About This Report Copyright © 2012 Constant Contact Inc. 2 1. What’s Keeping Nonprofits Up At Night? Copyright © 2012 Constant Contact Inc. 3 Attracting new supporters, engaging existing supporters and getting funding are the top marketing concerns for nonprofits surveyed When you think about how to run your organization most effectively, which of the following “keeps you up at night”? 57% 59% 64% 34% How to identify and a select the best marketting tools How to get referrrals from current suppo orters How to stay on top t of the latest in online marketing m trends How to measure the arketing impact of my ma campaigns How to attract ne ew supporters How to connect and better engage with existing e supporte ers Getting funding Having a more in ntegrated communication strategy How to make my m marketing dollarrs go further 18% 4 Copyright © 2012 Constant Contact Inc. 20% 15% 20% 22% Getting funding is the #1 concern for nonprofits Of the items that keep you up at night, which do you rank #1? 57% 41% 37% 22% 15% 5% 7% How to measu ure the impact of my m marketing cam mpaigns How to get refe errals from curren nt supporterss n top of How to stay on the latest in online o marketing tre ends e my How to make marketing dolla ars go further How to identifyy and select the be est marketing tools Having a more e integrated communication n strategy How to connecct and better engage e with existing suppo orters How to attract new supporterss Getting funding g 5 Copyright © 2012 Constant Contact Inc. 11% 12% 2. Nonprofit Marketing Activities Copyright © 2012 Constant Contact Inc. 6 Email marketing, websites, in-person interactions, events and social media are effective for the majority of nonprofits Which marketing activities do you find to be effective for your organization today? 86% 80% 73% 70% 58% 30% 23% Copyright © 2012 Constant Contact Inc. Online ssurveys and polls advertising (print, Traditional a radio o, TV, etc.) Public relations Direct mail Phone calls Social media marketing Events In-pe erson interactions Website Email marketing 12% 5% 3% Othe er, please specify 32% Online advertising (paid se earch, etc.) 36% 7 Of those finding social media effective, Facebook is far and away the most effective network If social media is effective for your organization, which network do you find the most effective? 88% Facebook Copyright © 2012 Constant Contact Inc. 5% 3% 1% 1% Twitter LinkedIn Google+ YouTube 8 In-person interactions are the most effective marketing activity Of the items you find to be effective, which do you rank as the #1 most effective? 60% 50% 50% 40% 27% 30% 20% 20% 18% 13% 12% 10% 10% 7% 7% 3% 0% 0% Online adverrtising (paid search h, etc.) Online surveyys and polls Social media a marketing Phone calls Public relatio ons Events Website Direct mail Traditional ad dvertising (print, radio, TV, etc.) Email marketting In-person inte eractions Copyright © 2012 Constant Contact Inc. 9 Social media marketing is the topic nonprofits want help with most Marketing activities do you need help with? ith? 70% 57% 60% 50% 35% 36% 40% In-person intera actions Traditional adve ertising (print, radio, tv) Social media marketing Email marketing g Website Public relations Online surveys and polls Online advertising (paid search, ettc.) Events Phone calls 9% 10% 10 Copyright © 2012 Constant Contact Inc. 11% Direct mail 0% 11% 14% 19% 19% 20% 19% 21% 30% Nonprofits believe nearly three quarters of their supporters are likely y to recommend their organization g to a friend or colleague g What percentage of your supporters are likely to recommend your organization to a friend or a colleague? 73% The likelihood of supporter referrals could be greatly amplified with the use of social media marketing Copyright © 2012 Constant Contact Inc. 11 Nonprofits spend 36% of their time and 18% of their budget on marketing Hours nonprofits work per week Budget spent on marketing activities 43.5 18% 15.8 Total hours Copyright © 2012 Constant Contact Inc. Marketing hours 12 3. The Health of Nonprofits Copyright © 2012 Constant Contact Inc. 13 The majority of nonprofits surveyed are stable or growing compared to 2011 How has your organization done so far this year? 49% 39% 12% p g Membership/funding increased Copyright © 2012 Constant Contact Inc. Membership/funding p g remained flat Membership/funding p g decreased 14 Many nonprofits are expecting significant growth this year, few are expecting a major decrease 67% of nonprofits expect 2012 membership/funding to increase over their 2011 revenues with 31% expecting an increase of more than 10%. Membership/Funding expectations this year compared p to last 40% 35% 36% 31% 30% 24% 25% 20% 15% 10% 4% 5% 3% 0% Increase more Increase less than 10% than 10% Copyright © 2012 Constant Contact Inc. Remain flat Decrease less Decrease more than 10% than 10% 15 While funding is rising, cash flow is affecting growth for over 40% of nonprofits Struggle with cash flow is evident with both rising costs and service offerings 46% of nonprofits are experiencing increased operating costs 51% have increased the number of services they offer Is your cash flow sufficient to run your organization effectively? 60% 55% 50% 40% 29% 30% 14% 20% 10% 0% Yes, I have adequate cash No, my cash flow is No, my cash flow is flow inadequate and is preventing inadequate and is barely me from growing enough to maintain current operations Copyright © 2012 Constant Contact Inc. 16 Over one third of nonprofits need to hire additional staff but can’t So far this year 67% of nonprofits have kept their number of employees the same, 14% have decreased their number of employees. p y Will y you be hiring g additional full-time equivalent (FTE) employees in the next 6 months? 39% 35% 16% 10% Yes No, I’m doing fine as is Copyright © 2012 Constant Contact Inc. No, I need to but can’t Unsure 17 About this study This is the first wave of an ongoing study about the state of nonprofits and the ways they connect with and grow their audience. We surveyed over 1000 participants in the Constant Contact Small Biz Council – a research panel of US small businesses and nonprofits recruited from the Constant Contact customer base – between April 24 and May 8, 2012. This report includes responses from 307 nonprofit participants. Media Contact Erika Dornaus Constant Contact (781) 482-7039 pr@constantcontact.com Annual budget size for nonprofits included in this study Under $100,000 3% 18% 25% $100,000 – $250,000 13% 20% 20% Copyright © 2012 Constant Contact Inc. $250,001 – $500,000 $ , $500,001 – $1 million 18