Show Me the Money!Online Fundraising for Nonprofits

Jocelyn Harmon Rick MoyersNPower Greater DC Region Meyer Foundation

Agenda

What is online fundraising?

Why should you care?

Who should do it?

How? The NEW Tools The Back End

Summary

Learn from the Best!

What is online fundraising?

Any digital communication designed to generate a response, such as a donation.

Why online fundraising?

1. It’s cheap.

2. It’s efficient.

3. It can be extremely effective.

4. It can help you reach new and younger donors.

5. It can enable your best supporters to fundraise for you.

6. It’s easy to measure.

Who should do it?

Who’s Online?76% of men are online74% of women are online

92% of 18 – 29 year olds are online72% of 50 – 64 year olds are online

94% with household income of $75,000+ more are online 61% of people with household income of $30,000 or less are online

Source: Pew Internet & American Life Project

170 million MySpace members66 million Facebook users

What are they doing?92% sending or reading e-mail

91% using a search engine

71% getting news

48% watching a video on a video-sharing site like YouTube or Google Video

47% looking for news or information about politics or the upcoming campaigns

39% (57 million people) reading blogs

32% rating a product, service or person using an online rating system

Source: Pew Internet & American Life Project

The Stats

Online giving has grown from $250 million in 2000 to more than $4.5 billion in 2005. This represents only 2 – 3% of the $200 billion in individual giving in the U.S. but it is growing rapidly.

Source: e-Philanthropy Foundation

Online giving is particularly cost-effective for charities. While it can $1.25 to raise a dollar from a new donor through direct mail, the costs per dollar of raising money online can be as little as $.05

Source: Fund-Raising Cost Effectiveness, James/Greenfield

The Stats

• Online givers are young (median age 38) vs. 60+ for offline donors.

• Online donors are generous. Average gift = $163.

• The #1 reason that donors give online is that it is easier

than writing a check.

Source: Network for Good

But How?

Strategy first.

Tactics second.

Strategy, Strategy, Strategy

1. Ask permission.

2. Have a conversation.

3. Think who, not how many.

4. “Flip the funnel.” Give the folks that LOVE you the tools to raise money on your behalf.

Website

E-mail

Charity Widgets

They are portable.

They enable the best kind of fundraising - person-to-person.

They can incorporate video, text and audio.

They enable impulse transactions.

Again, no HTML needed.

Social Networking Sites

Enable real and real-time conversations about charities.

Are places where people are already congregating.

Platforms for your supporters to support you.

Donation Platforms

YouTube

Helps show the emotional side of your charity.

It’s portable.

Check out our new video!

Blogs

Enable instant feedback and communication.

Put a real face on an organization.

Are easy to update and are an easy way to organize content.

Search engines love blogs!

You’ll still need a way

to track and communicate with your donors and collect the cash!

Don’t forget the back end.

Nothing is perfect. Well, almost nothing.

You WILL lose control of your message.

Some audiences may not be ripe, YET!

Online fundraising should be just one part of an integrated strategy.

Summary

Online fundraising is leveling the playing field for nonprofits. Now even the smallest groups can afford to talk and be heard.

Online fundraising can help you to expand your reach

exponentially.

Online fundraising can help you to reach younger donors.

Online fundraising makes it easier for your supporters to

support you.

The blog is not the dog.

It’s FUN!

Learn from the Best!

Beth Kanter’s Blog

Katya’s Nonprofit Marketing Blog

Seth Godin

Kiva

Case Foundation

Alison Fine

Andy Goodman