Food banks saw annual gift revenue dip for the second consecutive year during 2022 but still took in nearly double the amount given in 2019, leaving most in a healthier position than before the pandemic despite inflation, rising demand for services, and the sunsetting of COVID-era government programs.

A government shutdown (2019), a global pandemic (2020-21) and the rapid rise of inflation (2022) have all combined to raise the profile of food banks in meeting the needs of vulnerable populations, which in turn has increased the generosity of donors and upended the notion of what constitutes a “normal” year of food bank fundraising.

“We are witnessing the formation of new performance baselines for food banks post-COVID – a ‘new normal.’ We cannot expect pandemic-level performance to be sustained, but that doesn’t mean giving should return to pre-pandemic levels either,” wrote the authors of RKD Group’s 2023 Food Bank Benchmark Report.

Researchers for RKD Group compiled the report and conclusions from program metrics for 77 food bank clients of varying sizes across the United States. Researchers looked strictly at individual giving for this study, which omitted the impact of federal funding and grants.

Gift trends were similar across regions and size, with organizations that invested most heavily in fundraising and brand awareness campaigns during the pandemic reaping the greatest returns. Food bank gift revenue nearly tripled from 2019 to 2020 before plateauing and settling in late 2021 into 2022 to a level that was still twice what it was before the pandemic. Food banks remained relevant even as the public health emergency receded by stressing the increased demand for services resulting from inflation and the rising cost of food, which spurred existing donors to give more dollars more often while also spawning new donors.

The introduction of this new wave of donors has swelled food banks’ donor files by 44% compared to four years ago. Fundraisers at the many of the formerly cash-strapped organizations now face the challenge of retaining these new donors. Small community-based food banks have fared the best at retention, giving them a lift at a time when large and mid-sized food banks have seen the most overall growth in dollars given.

Reactivating lapsed donors, however, will likely prove more difficult and will compound the challenge of retention. “To put it another way, if the pandemic didn’t spark them to give again, they’re not coming back,” the authors wrote. Other takeaways from the report include:

• – The average gift size across all active donors to food banks last year was 22% more than it was pre-COVID.
• – Donors gave 19% more frequently to food banks last year than they did pre-COVID.
• – Food banks last year saw 46% more new donors than they did pre-COVID.
• – Average gift sizes to most organizations are now $100 and higher as food banks continue to fuel new donor pipelines with a better mix of donor quality and value.

“The ‘new normal’ for acquisition post-COVID looks strong,” write the authors. “The expansion of new donor volumes is settling in at quantities that exceed historical pre-COVID benchmarks, especially among the highest value donors. Acquisition at every gift level was up in 2022 vs. 2018.”

RKD Group commissioned this study as part of its initiative to strengthen the bond between food banks and their donors. “We’re focusing on more inclusive and diverse language and representation in their marketing and helping transform how they connect with donors online to meet the shift in digital behaviors that occurred during COVID,” Tonie Howard, senior vice president of client success at RKD Group, told The NonProfit Times. 

The full report can be found at https://info.rkdgroup.com/fbbenchmark