The Blackbaud Index recently released an Index for Higher Education that tracks fundraising revenue for colleges and universities throughout the U.S. and analyzes giving trends in the higher education sector.

Overall fundraising revenue for 558 colleges and universities in the U.S., representing $1.5 billion in annual fundraising, grew 8.9 per cent in 2013 as compared to 2012, while online fundraising revenue for 436 colleges and universities, representing $132 million in annual fundraising, grew 15.1 per cent in 2013 as compared to 2012. Among other things, a healthy stock market helped drive that growth, particularly for schools with capital campaigns.

The index identifies several key sector trends.

Major gifts

Due to a recovering economy, the cultivation of major gift donors (those making gifts of seven figures or more) has increased. In a fundraising campaign with a goal of raising $1 billion or more, 87 per cent of funds are typically given by 1 per cent of donors.

Stewardship

Scholarships represent a good opportunity to develop and maintain relationships by providing major donors with a level of engagement that goes beyond a simple, one-time transaction. An ongoing interaction with scholarship recipients often allows donors to serve as mentors.

Younger donors

Research shows millennial donors, those born between the early 1980s and the early 2000s, are as generous as other generations were at the same age, but are focused on supporting causes at institutions that are important to them.

Digital media

Colleges and universities are also increasing their use of digital media to reach donors more effectively. For younger donors, who handle many if not all their transactions online, digital media represents a natural platform for giving. In turn, social media is more important for donor acquisition than it is for dollar acquisition.

Planned giving

Planned giving continues to be a key fundraising program at many colleges and universities, and provides the bridge from annual to major donor for those unwilling or unable to provide large outright gifts during their lifetime. It’s often been said that many donors—in particular, fiscally conservative donors—make their largest gift later in life and it is widely believed by nonprofit experts that this will be true in the long term.

Michelle Jondreau is a communications professional with an avid interest in all things HR. On top of that, she hails from the nonprofit world and as such has a keen understanding of sector trends and issues. Follow her @majondreau.