how, what, where, and what's next in online giving
TRANSCRIPT
Online Giving: How, What, Where, And What’s Next
April 26, 2011
Karsten Robbins, CEO, FirstGiving Presented for NASCO
Today’s webinar
• Defining “online fundraising platform” vs. other types of fundraising
• The state of online giving • Overall trends • Peer to peer fundraising • Social media fundraising • Disaster relief fundraising
• How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
Who is FirstGiving
Defining Online Fundraising Platform
Ø Defining “online fundraising platform” vs. other types of fundraising
• The state of online giving • How payment processing works • Interfacing with nonprofits • Interfacing with donors • Donor privacy • The future of online fundraising: some thoughts
Online fundraising platforms
“A platform is a conduit for managing people with charitable intent to be able to fundraise for causes/
charities they care about.”
These are all online fundraising platforms
Fundraising platforms
Two models
Must enable donations and process payments
Integrate 3rd party payment processing
Internal payment processing capacity
Some differences Professional fundraiser or solicitor
Payment processor
Online platform
Allow individuals to raise money themselves?
no no yes
Allow nonprofits to raise money themselves?
no yes yes
Process donations to nonprofits
may collect, never processes
yes sometimes
Enable fundraising campaigns online
no no yes
The State of Online Giving
• Defining “online fundraising platform” vs. other types of fundraising
Ø The state of online giving • Overall trends • Peer to peer events • Social media fundraising • Disaster relief fundraising
• How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
Online giving up across channels
Source: Network for Good Online Giving Index 2011: http://www.onlinegivingstudy.org/quarterlyindex
*social giving includes p2p
Where donors donate
Source: Network for Good Online Giving Index 2011: http://www.onlinegivingstudy.org/quarterlyindex
Trends in online giving by size of nonprofit and sector
Source: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
Largest percent growth
Source: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
Social media fundraising is still a very small amount
Source: 2012 Nonprofit Social Network Benchmark Report: www.netwitsthinktank.com/blackbaud/2012-nonprofit-social-networking-benchmark-report-infographic
How funds are generally raised through Facebook
Source: 2012 Nonprofit Social Network Benchmark Report: http://nonprofitsocialnetworksurvey.com/
The most common fundraising tactic on Facebook is an ask for an individual gift.
Note: 54% of respondents said they were not fundraising on Facebook
Peer-to-peer fundraising events
Source: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.com/P2PBenchmarkReport.html
Peer-to-peer fundraising trends
Source: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.com/P2PBenchmarkReport.html
Online giving after a disaster is on the rise
Source: FirstGiving
$76.62 $82.52
$52.44
Haiti Japan FirstGiving
Average donation Haiti Japan FirstGiving
Online giving after a disaster is on the rise
Source: FirstGiving
Total $ raised # nonprofits
Average donation
# of donors
# fundraising pages
% grassroots fundraisers
Haiti $464.321.99 87 $76.62
6,060 1,044 60%
Japan $973,328.16 32 $82.52 11,793 802 94%
How Payment Processing Works
• Defining “online fundraising platform” vs. other types of fundraising
• The state of online giving Ø How payment processing works
• Interfacing with nonprofits • Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
Three models of donation payment processing
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
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
Types of fees nonprofits could be charged (some combination of those listed)
• Onboarding fees • Annual fees • Fixed % transaction processing • Variable % transaction processing • Flat amount per donation • Payment for additional management services • Hourly customer service fees
FG fees
Fee comparisons
Today’s webinar
• Defining “online fundraising platform” vs. other types of fundraising
• The state of online giving • How payment processing works Ø Interfacing with nonprofits • Interfacing with donors • Donor privacy • The future of online fundraising: some thoughts
Nonprofits must satisfy these requirements for FirstGiving to work with them
• Viable: In good standing with the IRS database • FG runs the revocation list quarterly against the IRS database • FG checks if they’re on GuideStar
• Contact information from the IRS: • EIN number • Registered address • DBA • Contact info
Nonprofit descriptions on the website
Either self-entered or pulled from the IRS database
FirstGiving nonprofit sign-up
How fundraising dollars are dispensed to nonprofits
• First payment is via a check to their IRS-registered address. • No one can sign up and input a bogus address. • NPO may choose to receive checks via electronic funds
transfer to bank of record after the first payment has been received (procedural process as a check on this).
• Can choose to receive checks by mail.
Interfacing with Donors and Donor Privacy
• Defining “online fundraising platform” vs. other types of fundraising
• The state of online giving • How payment processing works • Interfacing with nonprofits Ø Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
Donor information required
• Name (with option to be anonymous to the fundraiser) • Billing address and information • E-commerce information required to process a payment • Spelled out in Terms and Conditions
Donor information often requested by the nonprofit • Allows additional nonprofit-related questions • T-shirt size • Name “in memory of” if relevant • Address • Telephone
How fees are presented to the donor
• At donor checkout (option to “pay the fee”) • On website
What we share about donors
• The information required by law to identify the donor is given to the bank (since FG processes donations)
• Donors can make anonymous donations, too.
• If not an anonymous donation, we provide information to the NPO about who made the purchase: name, address, billing address, gender
• We do not share the donor list with anyone, ever. Explicit in Terms & Conditions.
• Other platforms may do things differently.
The Future of Online Fundraising
• Defining “online fundraising platform” vs. other types of fundraising
• The state of online giving • How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy Ø The future of online fundraising: some thoughts
The Future of Online Fundraising
http://www.flickr.com/photos/redsun81/6651955017/sizes/m/in/photostream/
Accelerated growth in on-site giving
The (very 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
Facebook Credits
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 • Potential for online giving (not used much) • Partnered with Stand Up for Cancer in 2010
For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-payments/?source=facebook
Facebook Zynga virtual goods for charity
For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-payments/?source=facebook
Online gaming for good
UK only
Other virtual goods for charity
Buy virtual texting icons for charity, coming soon
Mobile giving
2011 survey on mobile giving of 2,003 teens and adults: • 50% were aware of mobile giving • 6% of those surveyed had performed a donation via their
mobile phone at some point. • 60% of respondents aged 18-34 were aware of mobile
giving • 12 %had made a text-to-give donation
Mobile giving
2012 Pew Internet Real Time Giving report key findings: • The ability to send small donations using mobile phones
facilitates “impulse giving” in response to moving images or events.
• A majority of the Haiti text donors in our sample have contributed to more recent disaster recovery efforts using their phones
• Different ways they are willing to donate include: text messaging (favored by 25% of these Haiti text donors) and online web forms (favored by 24%) are most preferred, followed closely by mail (favored by 22%) and in-person donations (favored by 19%)
http://pewinternet.org/Reports/2012/MobileGiving/Key-Findings.aspx
Adjusted for inflation, Americans are still giving 3% of their income year over year
http://www.101fundraising.org/2012/04/fundraising-into-the-future-and-beyond/
…but the internet and real-time crisis response is apparent
More fundraising on niche donation portals
The bleeding edge: using social media for fundraising
Connect with FirstGiving!
Website: http://www.firstgiving.com
Facebook: facebook.com/firstgiving Twitter: twitter.com/firstgiving
Blog: http://blog.firstgiving.com
Karsten Robbins: [email protected]
Extra Extra! How fundraisers interface with a fundraising platform
Extra Extra! What fundraisers need to do
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 the 501(c)3 beneficiary • Create a fundraising page on the site • Ask for donations from friends and family (and
even strangers) online • View donations through the back-end account
management tool