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The Giving Evolution and the
Ecology of Online Giving
Columbia Law School Charities Technology
Conference
March 24, 2011
Debra Askanase, Community Engagement Manager,
FirstGiving
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The old way = conceit of ownership
nonprofit
organization
supporter
list
Yearly
appeal
Special
appeals
Fundraisin
g events
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The donor revolution is not on its way.
It has arrived.
“Donor legacy mindset”
= a thing of the past It’s about causes, not
the organization
Every. Single. Day.
Nonprofits must earn donor loyalty
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Donors are in control seeking out a cause and
a nonprofit to match their passion
Non-
profit
Non-
profit
Donor Donor
Donor
Donor
Donor
Donor
Donor
Donor
To young donors,
nonprofits themselves
are fungible
Non-
profit
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…and they now choose
how they donate
to which organization
and when
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Technology has put donors in the driver’s seat
Access to information
The rise of influence networks
Online donation solutions where donors
live - online
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The recommendation engine is driving
purchasing decisions
Influencing
purchasing
decisions
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“Millennial donors say
they would be likely or
highly likely to give if
asked by:
a family member (74.6%)
or a friend (62.8 %)”
- Millenial Donor Report, 2010
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Donate Button for websites
Pre-
2000
Donate using mobile
phone/SMS
2005 2009 2011
Donate via social networks
Project-based
website donations
Personal Fundraising through donation portals
Generalized online donation portals
Cross-platform
donation portability
Abbreviated
History of Online
Donations
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Annual US giving: $300 billion
http://www.blackbaud.com/bb/online/fundraising.aspx
http://philanthropyblog.bwf.com/2011/03/convio-reports-on-growth-of-
online.htmlt
http://www.onlinegivingstudy.org/quarterlyindex
The rise in online giving
Online US giving: 5% to 7% of $300b
Online giving growth:
- 35% in 2010 (Blackbaud)
- 40% in 2010 (Convio)
- 24% in 2010 (Network for Good)
- - 27% in 2010 (FirstGiving peer to peer)
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Culture and comfort of online purchasing is
fueling the rise in online donations
386,266
552,587
744,148
920,505
-
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2007 2008 2009 2010
Number of Peer to Peer Online Donations 2007 - 2010
Number of Donations 2007 - 2010
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The story of unique donors
0
100000
200000
300000
400000
500000
600000
700000
800000
900000
1000000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37 39 41 43 48 52 57 65 68 125
Number of times an event donor has donated
2007
2008
2009
2010
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Technology solutions have stepped in to fill the void
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Be where the giving happens
External to the
website
On the website
Offline
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On a nonprofit website
Home-grown systems
situated on the website
Donation button
Virtual gifts
Gift e-cards
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On a nonprofit website: Donation button
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On a nonprofit website: donation forms
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Gift e-cards on the website
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External to the nonprofit website
Peer to peer crowdfunding
platforms
Widgets of all types
(located on other sites)
Facebook applications
Niche fundraising and
donation portals
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Using a Facebook Application
Features:
- The application does not necessarily live on
FB
- Must log into Facebook to use the app
- Donate through third party processor
- Can easily share the donation through
Facebook. The API is dependent on FB.
- Facebook is moving into the payment
space
http://venturebeat.com/2011/03/21/facebook-payments/
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Facebook Apps: Virtual Gift example
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Facebook Apps: Causes
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Facebook Credits
- 30% of any transaction goes to Facebook
- Most commonly used to buy games
- Has the potential to be used for donations
- Now a subsidiary of Facebook payments
subsidiary (as of March 21, 2011)
For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-
payments/?source=facebook
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Donate anywhere: Widgets
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Peer to peer crowdfunding platforms
What a fundraiser will typically need to
do:
- Register on the site and create a log-
in
- Search for a 501(c)3 beneficiary on
the site (pre-vetted by either the IRS
master file and/or GuideStar)
- Select your 501(c)3 beneficiary
- Create a fundraising page
- Ask for donations from friends and
family (and even strangers) online
- View donations back-end account
management
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Peer to peer crowdfunding platforms
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Peer to peer crowdfunding platform: Crowdrise
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Niche fundraising or donation portals
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Nonprofit payment processing explained…
http://idealware.org/articles/payment_processing_pictures.php
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Third Party Payment Providers
• Paypal
• Google Checkout
• Amazon Payments
NPO gets own merchant account and Gateway
Donor-centric: 501(c)3 donation provider
• Razoo
• Network for Good
• FirstGiving
• Just Give
• GlobalGiving
Three models of donation payment processing
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Third Party Providers
• Pros
• Easy to setup
• No monthly fee
• Cons
• Needs an account on system
• No 501(c)3 Verification -
• Not ideal user experience
Own Merchant Account
• Pros
• Greater Control
• Cons
• $ for setup and monthly fees
501(c)3 Donation Providers
• Process $ for 50(c)3 only
• Fee structure varies between providers
• Pros
• Easy
• Verification takes place of 501(c)3
• $ to NPO quickly
• Cons
• Less flexible for the NPO
How donations get to the nonprofit
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Donor-centric disbursement
Donation to charity from a web app
• Crowdrise
• Causes
• Firstgiving
• Network for good
• Razoo
501(c)3 Verified
• Guidestar
• IRS Master file
Donation Goes to Nonprofit via Provider
• Receipt is sent to Donor
• Nonprofit gets report
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“Social media fundraising” usually means this
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Or this…leveraging the power of social media
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The bleeding edge: social media platforms for
fundraising
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“Social media does
not raise money,
people raise money”
-Holly Ross,
NTEN Executive Director
http://www.nten.org/blog/2009/07/06/three-lessons-social-media-
fundraising
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Mobile giving
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http://www.nten.org/NTENChange
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Accelerated growth in on-site giving
The (near) future of online giving
Accelerated growth in peer to peer giving
Explosion of APIs powering other sites
Growth of mobile giving options
(including donation portals)
Project-based donations, not only to nonprofits
Personalized, geo-local online giving experiences
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Thank you!
Debra Askanase
Community Engagement Manager
FirstGiving
Email: [email protected]
Twitter: @askdebra, @firstgiving
Telephone: (617) 963-5120
http://www.firstgiving.com