md nonprofits - online fundraising: its not about the money"

Online Fundraising:Its NOT About the Money!

Chris SmithCFO

About Me

2014 US charitable giving was

$358 Billion

Giving USA Foundation

$25 Billionof those donations

NOT loyal to any one organization

Money for Good Report

1/2 have annual revenue < $1 Million

National Center for Charitable Statistics

1.5 Million Nonprofits in the US

Unsustainable Donor Retention a for profit company would go out of business!

Bloomerang

Fundraising Methods =Treading Water

Bloomerang

How Donors Really Feel• 75% of Americans think they donate more than avg

• 72% actually contribute below the national avg

• 49% don’t know how nonprofits use their money

• 34% feel hassled

• 20% unsure who benefits from their funding

How Donors Really Feel• 61% prefer to give to well-known nonprofits but

not necessarily the most effective organizations

• 67% are loyal to their primary causes

• 13% intend to give to different nonprofits

• 9% compare nonprofits before giving

Why? Lack of Engagement

Transparency AccountabilityAll are critical elements of an

engaged, trusting relationship

Generational ShiftGeneration Born

Depression 1912-1921

WW II 1922-1927

Post-War 1928-1945

“Traditionalists”18% of total population

“New Philanthropists”82% and growing

Leading Boomers 1946-1954

Trailing Boomers 1955-1964

Generation X 1965-1976

Millennial / Generation Y 1977-1984

Great Recession/ Boomerang 1985-?

Fundraising methods used today were developed for the “Traditionalists” many years ago, and have not really evolved for the “New Philanthropists”

TraditionalistsDepression (1912 – 1921)

Defining Moment:

Shared Values:

• Great Depression • Practicality

• Savings

• Safety/security

• Friends/family

• Trust charities

Best Approaches:

Marketing Tips:

• Bequests • Simple & straightforward

• Unrestricted endowment

• Visuals and other cues

• Help the needy in tough times

• Printed/ face to face

• Secure our future • No reverse type

World War II (1922 – 1927)

Defining Moment:

Shared Values:

• WW II • Patriotic

• Respect for authority

• Romantic

• Self-reliant

• Trust charities

Best Approaches:

Marketing Tips:

• Save the world • Concierge-level treatment

• Delayed gratification

• Rebates/coupons/discounts

• Remembered for sacrifices

• Matching gifts/challenges

• Immortality of named bequests

• Print• Families trust them

Post War (1928 – 1945)

Defining Moments:

Shared Values:

• End of WW II • The American dream

• Strong economy • Conformity

• Move to burbs • Stability

• McCarthyism • Family

• Rock & roll• Civil rights movement

• Self-fulfillment• Trust charities

Best Approaches:

Marketing Tips:

• Current gifts • Volunteer opportunities

• Beneficiary designation

• Active images

• Gift annuities • Outcomes-based

New PhilanthropistsLead Boomers (1946 – 1954)

Defining Moments:

Shared Values:

• Assassinations of JFK, RFK, MLK

• Personalized/ social expression

• Vietnam war • Individualism

• Moon landing • Youth/ health/ wellness

• Lack of trust for charities

Best Approaches:

Marketing Tips:

• Social justice meets personal planning

• Impact, outcomes and verifiability

• Restricted gifts, complex assets, structured gifts

• Large type/ high contrast/ no glossy

• Advisor partnerships

• Fun, individualism and excitement

• Beneficiary designations

Generation X (1965 – 1976)Defining Moment:

Shared Values:

• Large national debt/ stock crash

• Free agency/ independence

• Challenger explosion

• Dependence on friends

• Fall of Berlin wall • Cynical about future

• 1st Persian Gulf War

• Street smart• Quality of life

• AIDS crisis • Lack of trust for charities

Best Approaches:

Marketing Tips:

• Custom gift solutions

• Impact, outcomes verifiability and accountability

• Beneficiary designations

• Not attractive or rich-facts

• Restricted gifts • Subtlety/ irony/ irreverence

• Advisor partnerships

Trailing Boomers (1955 – 1964)Defining Moments:

Shared Values:

• Fall of Vietnam • Lonely individualism

• Watergate • Cynicism/ distrust

• Nixon resignation • Health and wellness

• Energy crisis • Family commitments

• Lack of trust for charities

Best Approaches:

Marketing Tips:

• Gift outcomes • Impact, outcomes verifiability and accountability

• Full range of charitable tools

• Conscious of distrust

• Restricted gifts • Robust stewardship

• Advisor partnerships

New PhilanthropistsMillennials (1977 – 1984)

Defining Moments:

Shared Values:

• The internet • Hopeful about financial future

• Economic boom • Heightened fears

• Columbine • Change is good

• September 11 • Tolerance/ diversity

• Wars in Iraq and Afghanistan

• Lack of trust for charities

Best Approaches:

Marketing Tips:

• Beneficiary designations

• “Get out of the way”

• Restricted gifts exclusively

• Change it up

• Modest annual donations focused on mission

• Fresh & multi-channel

• Brand conscious loyal

Boomerang (1985 – ?)Defining

Moments:Shared Values:

• TBD • TBD

Best Approaches:

Marketing Tips:

• TBD • TBD

?

Generation X gives to3.3 Nonprofits

Baby Boomers Give to 4.5 Nonprofits

Millennials give like they buy…Sporadically & Impulsive

Your “Donate Now” button is NOT READY for this!

8.9%2014 online giving growth

Hint: that’s faster than overall growth of 2.1%!

9.5% of donations made on mobile devices

Hint: this will continue to accelerate!

What is Crowdfunding?• The practice of funding a project or venture

by raising monetary contributions from a large # of people, typically via the internet.

• Traditional fundraising is a form of offline crowdfunding, with a focus on MAJOR DONORS.

• Crowdfunding has been around a long time. But the internet, especially mobile has completely changed the game!

Crowdgiving is Different than Traditional Fundraising!

MAJOR GIVING MODEL:

• Prospect for potentials• Develop a relationship by engaging with them

before the ask• Ask, but in the right way and not too often• Engage with them after the give – thank them,

show impact, transparency and accountability• Nurture the relationship, it’s fragile!• A small “everyday” donation is a burden

Crowdgiving is Different than Traditional Fundraising!

CROWDGIVING:

• Your supporters prospect for you• Engage with them electronically, on their terms• Ask by using a campaign with visuals and

storytelling that compels the potential donor to give

• Engage with them after the give – thank them, show impact, transparency and accountability

• Make it easy for them to leverage their networks• Keep them in the loop, on their terms• A small “everyday” donation is an opportunity

View 1st time “Everyday” donor as a QUALIFIED LEAD

• There’s something about your organization they like, somehow they found out about your organization– Personal ask by a family member or friend?

• Get a 2nd transaction you will get a total of 18 on average – 1st time = I like you– 2nd time = you won me over, I’m committed

• Give them a reason to come back! – Engage, be Transparent and Accountable

73% of MAJOR DONORS

start with a donation of

$25 Hint: they test the water before writing a big

check!

Crowdgiving = Engage MAJOR

DONORSsooner and better!

Hint: they like to see others giving and volunteering!

ENGAGEMENT via Crowdgiving • Craft a beautiful branded campaign that will compel donors

to give• Share the campaign with your existing supporters, ask them

to share to their networks• Provide a great donor experience with a donation flow that’s

quick and easy and simple to share out socially• Thank your donor onscreen with a customized content

including videos and pictures• Email the thank you as well with tax information for their

records• Reach out during the campaign to let your donors know

status – they’re not checking in but they are interested. Ask to share

ENGAGEMENT via Crowdgiving • Reach out and let them know how the campaign finished

– They’re not checking in but they are interested. – Thank them again

• Reach out to them after you spend the money raised to show them the impact (pictures, videos, stories). Close the loop

• Keep them updated between asks as to what’s happening at your organization. Let them see you working and getting support. Don’t just reach out to them when you need money!

• Remind them of their donation at the end of the year to help them with their tax return prep

TRANSPARENCY via Crowdgiving • Build a campaign that is very specific• Tell the potential donor why you need the specific

thing, what impact it will have and on who• Explain what the cost of the specific thing is and

why it is important to the mission• Be clear how much the fees are and why there

need to be fees• Keep your donors updated during the campaign as

to its success OR failure

ACCOUNTABILITY via Crowdgiving

• Spend the funds raised exactly how you said you would in the campaign

• Share the impact with all of the donors that made it happen by sending them pictures, videos or even inviting them onsite to see their contribution at work

• Respectfully maintain contact with them between asks to let them know what your organization is up to

• Maintain clear and open lines of communication, especially in times of crisis or difficulty

• Treat your donors and volunteers as investors in your org

Key Crowdgiving Takeaways• Fundraising is inherently inefficient & resistant to change• Make it easy and fun! Fundraising doesn’t have to be dry! • Do more with less - spend more time fulfilling your

mission to change the world, not fundraising. • Embrace the significant generational differences

– Younger: online, quick, easy, accountability, impact, distrusting – Older: trusting, mobile is how they access the internet

Build relationships, don’t simply ask for money!

Key Crowdgiving Takeaways• If you do it right, there’s no donor fatigue in crowdfunding

- paradigm shift needed. Close the loop.• Treat donors and volunteers as investors, because that’s

what they are!• Assume every donor may be a major donor, no matter the

size of gift. Bill Gates example• Access and engage your future major donors sooner• Increase your donor database via peer-2-peer fundraising

Engagement, Transparency & Accountability

What’s wrong with Crowdfunding Platforms?

Existing platforms were not designed for nonprofits. Fundraising for nonprofits is much, much different than funding a film, project, product or personal cause. Square peg / round hole.

The Unanswered Questions:• Where to begin? Hundreds of platforms to chose from.• Now what? You get no coaching, you’re on your own. • Where’s the “magic money”? You didn’t tell me that donors

need to be driven to the button!• How do I do that? Social media? I’m already overworked!!!

Why Not Use the Well Known Crowdfunding

Platforms?Result: frustrated nonprofit folks who give up on crowdfunding. They feel its a big waste of time & resources, which they never have enough of!

Problem: the tools are not made for the job. It’s like using a tiny brush to paint an entire room. It can be done, but boy will it be hard and frustrating! Think square peg in a round hole.

Nonprofit fundraising is different than funding a project, movie, personal cause, etc – IT’S ABOUT BUILDING RELATIONSHIPS!

Think UX 1st: responsive design that is screen size agnostic, intuitive, clean, simple

Easily create a beautiful, meaningful and specific campaign Include powerful eye catching imagery with a compelling story Empower your supporters via peer-to-peer fundraising Encourage your supporters to share to their social networks Agility - determine what best strikes a chord by editing on the fly,

experiment, test, multi-channel Monitor progress and coach your fundraisers with powerful campaign

management Simple and clean donation flow that eliminates speed bumps Thank your supporters after they give Engage supporters before, during and after the campaign Repeat

Develop a meaningful, specificcampaign

The Face of a CampaignEye Catching Imagery

Is this image relevant to my campaign? Is it good quality and the proper orientation? (not blurry or pixelated)Is the image appropriately cropped? Is it visually engaging?

The Heart of a CampaignCompelling Story

3 Essential Questions

Who or what is your campaign supporting?

What is the conflict?

How will your donor’s gift help make an impact?

The Legs of a CampaignPeer-to-Peer Fundraisers

Fundraising Champions give your campaign the muscle it needs to move forward by tapping their networks with a personal connection.

Personal asks = donations Donations = expanded donor base

Make it Easy and Fun to be a Fundraiser!

The Voice of a CampaignEmail and Social Sharing

The Mastermind Campaign Manager Toolkit

Engage year round!

What is a Nonprofit Giving Platform?

Maintain Your Brand and Identity

Complement Your Web Site

CrowdGivingBeautiful, simple, and effective

Optimized Donation FlowMinimal data = painless, fast and fun

Optimized Donation FlowDonors can chose to cover the fees, maximizing what you receive

Transparency 70% of donors check this box!

Personalized Thank You ReceiptsImmediately on screen & by email

Peer-to-Peer FundraisingEASY and FUN to set up. Piece of cake.

Peer-to-Peer FundraisingCoach them to success!

Peer-to-Peer FundraisingYou can easily monitor everyone’s progress!

Event-Based FundraisingTickets, registration, teams, analytics, swag

Complete Volunteer IntegrationBuild lifelong relationships

Complete Volunteer IntegrationHigher Ed Service Learning

Volunteer & Donor Management

Real Time AnalyticsKnow the best time to ask for $$$!

Beautiful, Compelling CampaignsQUICK and FUN to create, edit on the fly

Easily edit your campaigns on the fly – figure out what works best with your audience!

Dashboard to Manage Your Campaign

Engagement: Social ContentLet your supporters tell their story

Mobile Friendly, Responsive Design

Size doesn’t matter!

Monitor, tablet, phone

Complete Volunteer & Donor ProfileTrack donations, hours & virtual trophies

• A powerful 24-hour online fundraising event that unites a community around local causes. A great way to build community, expose nonprofits to donors, teach organizations to use digital tools and generate excitement for all involved. Leverage the marketing power of the whole and the platform being used.

• Think Jerry Lewis Telethon, but online

Day of Giving

The DoG PotentialNorth Texas is the Gold Star!

– Year 1 = $1.2 million, ~350 nonprofits– Year 7 = $33.1 million, ~2,000+

nonprofits

https://www.givegab.com/about/case_studies

“Change is hard. GiveGab was not. The FAQ’s and Toolkit helped me and I was able to help my constituents. It was GiveGabTastic!”

“Working with GiveGab has been a wonderful experience for ProLiteracy. Givegab.com is a great platform to begin with but it’s the staff support that really sets it apart. This being our first Day of Giving, we were very grateful to have a Give Gab team help us walk through the setup, getting our members involved and excited, teaching people how to use the site, marketing ideas and a bunch of other behind-the-scenes help. We couldn’t have been as successful without their help. I’d recommend Give Gab to anyone trying to crowdfund or find volunteers, and I already have!”

Many Case Studies!

Risk-Free, Simple and Transparent Pricing

We are completely aligned with our nonprofit partners - we only succeed if they succeed. It makes absolutely no sense to us to charge ANY fees to a nonprofit before they raise $ one. Why would we start them in the hole when they are trying to raise money? Subscriptions, contracts, commitments, etc are for cowards – we are so confident that you’ll love our platform and use it over and over that we take all the risk!

• Platform Fee 5% + Credit Card. No other fees, period!

• 70% of donors elect to cover, result is avg cost of 2.4%• Net funds are direct deposited by Stripe daily, we

don’t have access to credit card info or the funds, only our small fee

5.0% GiveGab Platform Fee+2.7% Credit Card Fee (Stripe) 7.7% Maximum Fee -5.3% Donors Elect to Cover 70%* 2.4% All in Fee!!!(That’s less than a standard credit card or PayPal fee!)

The Simple Math Behind Low Fees

*Over 100’s of campaigns. Our platform fee is completely paid for by the donors at 65%!

Chris Smith Chief Financial Officer

chris.smith@givegab.com 914-443-2850

@smithGiveGabinkedin.com/in/kcichris