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Slides from my NTEN webinar on October 11, 2007: In this repeat webinar, non-profit consultant Peter Deitz will present his original benchmark figures for group fundraising as well as new research on the effective use of Facebook applications for distributed fundraising campaigns. Published in June on TechSoup, the benchmark figures were derived from the internal statistics of five leading services (ChipIn, Firstgiving, GiveMeaning, SixDegrees, and JustGive.org).This webinar explains how nonprofits can use the benchmark figures to integrate group fundraising into larger annual or capital campaigns. The webinar will also feature current success stories of non-profits using group fundraising and Facebook to reach new donors while deepening their relationships with existing supporters. The Facebook applications discussed in this webinar include: Causes, ChipIn, Fundraising, and Change.org.
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Group Fundraising 101From Benchmarks to Success Stories
Presented by Peter Deitzmicro-philanthropy consultant
http://www.socialactions.com/peter
webinar hosted by:
Revised with advice on using Facebook
in yourgroup fundraising
strategy
Introduction
• Definition
• Benchmark Figures
• Facebook and Group Fundraising
• Overview of Services
• Tips for Success
Consultant to non-profits and philanthropists
About Micro-Philanthropy blogger
Author of several articles on distributed fundraising
Founder of Social ActionsU.S. citizen living in
Montreal
Group fundraising is…
• The process of gathering money and other
gifts in kind, by empowering individuals to
solicit money from and communicate with
perspective donors of their own choosing
through the use of blogs, widgets, images,
video, offline events, and social networks.
By contrast, traditional fundraising is the process of soliciting and
money or other gifts in-kind, by requesting donations from
individuals, businesses, charitable foundations, or governmental
agencies.
You know it’s group fundraising when…
• Your supporters are using blogs and other social media to communicate your organization’s mission and solicit money from people you don’t know;
• You are showing people how they can create fundraising pages or widgets in support of a program or project.
From Flipping the Funnel: Give Your Fans the Power to Speak Up
Turn strangers into friends Turn friends into donors
And then... do the most important job:
Turn your donors into fundraisers.
A few notes about group fundraising
• The messaging of a group fundraising campaign and the list of perspective donors are ‘user generated’
• Offline equivalent: A combination of child sponsorship drives and UNICEF Halloween boxes
• Group fundraising goes by several names▫ Person-to-person▫ Network centric▫ Collaborative▫ Peer-to-peer ▫ Distributive▫ Grassroots▫ Viral
• In April 2007, group fundraising web sites generated $3 million in donations through 8,602 campaigns.
• To date, group fundraising is responsible for at least $44 million dollars in charitable giving.
• At last count, there were at least 19 services for implementing a group fundraising event or strategy.
How much can you raise using a group fundraising service?
Benchmark Figures for Group Fundraising Platforms
High Low Benchmark
Average donation amount $55 $30 $43
Average amount raised per campaign
$3,230 $119 $692
Average number of contributors 40 4 16
Benchmark figures for group fundraising campaigns
Benchmark figures for “successful” group fundraising campaigns
High Low Benchmark
Average donation amount $149 $36 $57
Average amount raised per campaign $11,393 $5,158 $9,018
Average number of contributors 269 48 157
Compared to Other Online Fundraising Benchmarks
Group Fundraising
Convio E-Benchmarking
eNonprofitBenchmark Study
Open rate --- 22% 25%
Click-through rate
--- 3% 1.5%
Response rate Possibly 35% 0.28% 0.3%
Average Amount
$43 $56 $70Getting people to start campaigns is the hard part. Once they’re started, the results will exceed what you could have accomplished on your own.NetworkforGood reports that 76% of donors say they are influenced by friends and family when choosing an organization to donate to.
High Low Benchmark
Commission 15% 0% 4.4%
Processing Fees for Group Fundraising Platforms
Platform Commission
GiveMeaning 0%
ModestNeeds 0%
DonorsChoose 2.5% + optional
15%
ChipIn 2.9% + $0.30
DropCash 2.9% + $0.30
JustGive.org 3%
CanadaHelps 3%
ChangingthePresent 3% + $0.30
SixDegrees 4.35%
Platform Commission
Project Agape 4.50%
Change.org 4.50%
MyCause 5% plus bank fees
JustGiving 6.40%
FirstGiving 7.35%
Fundable 9.9% + $0.30
BringLight < 10%
Kiva.org 10% (optional)
GlobalGiving 10%-15%
LinkedIn NA
How significant are the Facebook fundraising applications?
Observation 1 of 3
Facebook is very crowded.
Observation 2 of 3
You can use all five applications.
Observation 3 of 3
Nothing beats “post an item.”
20 group fundraising platforms you need to know about
Raise Money for… (part 1)
501c3 Organizations Only Anyone with a Paypal account
Teachers in the U.S.
Individuals in Need
Australian OrganizationsInternational Development
U.K. Organizations
Raise Money for… (part 2)
Canadian Organizations
Politicians in the U.S.
Group fundraising services share donor data with…
The recipient organization* Only the campaign organizer
No one
* Most of these services provide individuals with the option to disclose donor data to the recipient organization
Group fundraising platforms are..
Commercial Nonprofit
Campaign organizers can produce fundraising widgets
Yes No
Campaign organizers can set a fundraising goal
Yes No
Four paths to group fundraising success
Path 1 of 4
Sympathy for the campaign organizer
Path 2 of 4
A clear picture ofwhere the money is going
Path 3 of 4
Matching funds combined with a deadline
Path 4 of 4
Creativity & humor work in group fundraising
Fund-a-stache participant for 2007
Mira Seeing Eye Dog Fundraiser
Comparing Tips for Success
Group Fundraising Conventional eFundraising
• Design a connectivity strategy (not technology)
• Be nible, be quick• Push power to the edges• Meet them when and
where they are• Give them what they need• Get out of the way• Develop new evaluation &
feedback mechanisms
Souce: Power to the Edges: Trends and
Opportunities in Online CivicmEngagement
• Budget for success• Grow your email list• Increase retention of list
subscribers• Carefully track marketing
and recruitment efforts• Carefully target and
segment e-mail messages• Act quickly to respond to
timely events
Source: eNonprofit Benchmarks Study
Tips for Campaign Organizers
• Adopted from What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising
1. Build a great campaign2. Donate to your own campaign3. Post your campaign on your web site and / or blog4. Add the campaign to your email signature5. Send the link to people in your email address book6. Ask bloggers to join your cause7. Bookmark your campaign on aggregation web sites8. Take your cause (and laptop) everywhere9. Thank people and report back on progress made
Sources
Show Me the Numbers: Can Group Fundraising Help You, Peter Deitz, June 2007
How to Use the Internet for Group Fundraising, Peter Deitz, October 2006
Raise Money on Facebook: Four Fundraising Applications You Need to Know About, Peter Deitz, September 2007
Flipping the Funnel: Give Your Fans the Power to Speak Up, Seth Godin, January 2006
The Online Marketing (eCRM): Nonprofit Benchmark Index™ Study, Convio, January 2007
eNonprofit Benchmarks Study: Measuring Email Messaging, Online Fundraising, and Internet Advocacy Metrics, M+R Strategic Services and Advocacy Institute, February 2006
Power to the Edges: Trends and Opportunities in Online Civic Engagement, The e-Volve Foundation and Philanthropy for Active Civic Engagement (PACE), May 2005
What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising, NetworkforGood, May 2007
Contact Information
Peter DeitzMicro-Philanthropy Consultant
http://www.socialactions.com/[email protected]
514-907-8725 – Montreal718-766-5367 – New York City215-825-7445 – Philadelphia