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Show Me the Money!Online Fundraising for Nonprofits
Jocelyn Harmon Rick MoyersNPower Greater DC Region Meyer Foundation
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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!
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What is online fundraising?
Any digital communication designed to generate a response, such as a donation.
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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.
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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
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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
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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
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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
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But How?
Strategy first.
Tactics second.
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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.
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Website
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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.
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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.
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Donation Platforms
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YouTube
Helps show the emotional side of your charity.
It’s portable.
Check out our new video!
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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!
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You’ll still need a way
to track and communicate with your donors and collect the cash!
Don’t forget the back end.
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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.
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Summary
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Online fundraising is leveling the playing field for nonprofits. Now even the smallest groups can afford to talk and be heard.
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Online fundraising can help you to expand your reach
exponentially.
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Online fundraising can help you to reach younger donors.
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Online fundraising makes it easier for your supporters to
support you.
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The blog is not the dog.
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It’s FUN!
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Learn from the Best!
Beth Kanter’s Blog
Katya’s Nonprofit Marketing Blog
Seth Godin
Kiva
Case Foundation
Alison Fine
Andy Goodman