social network fundraising: facts, myths, and strategies that work

Social Network Fundraising: Facts, Myths, and Strategies that Work #12NTCSocialNet

Jon Biedermann

Social Network Fundraising:

Facts & Myths

The 8,000 lb. fundraising gorilla?

Slide 2 Social Network Fundraising: Facts & Myths


Facts & Myths

5% • .003% • 6%*

*July 2011 NCDC Dimensions Article by Jon Biedermann, VP Fundraising Solutions, SofterWare, Inc.



Facts & Myths

5%-7%* of total USA giving

in 2010 was online

*Various Sources

Other Sources

Online Giving



Facts & Myths

Online giving growing

30% per year. Could reach

33% in 7 years Other Sources

Online Giving



Facts & Myths

From 2007- June 2011,

over $35m* raised through

FaceBook Causes ($7.7m per yr. average)

*Causes Advertising



Facts & Myths

From 2007- June 2011,

$1.2 trillion* total raised.

For every dollar raised on

FaceBook, $33,000 raised via

other means.

*2011 Giving USA Foundation Report

.003%



Facts & Myths

2010: 35% raised less than

$1,000 on Facebook. Only

0.4% raised more than

$100,000.*

*2011 NTEN Nonprofit Social Network Benchmark Report

.003%



Facts & Myths

Average size of FaceBook following of

0.4% raising more than $100,000: 99,911

30% of above dedicate 2 + staff to

managing their social networks




Facts & Myths

Average age of typical donor around 60.

Direct mail - 68.*

*Chronicle of Philanthropy: philanthropy.com/article/Direct-Mail-Beats-Predictions/62859

Only 6%** of Americans 65 or older

use FaceBook or other social

network sites

**Pew Research, June 2011: http://bit.ly/maossa



Facts & Myths


Nonprofit Goals for Social Networks: • 75% report goal is to “engage supporters”

• 73% report goal is to “grow membership”.

Fundraising is at 65%. Even fewer (56%) state

fundraising as a goal for the next year.



Facts & Myths


Budget, Staffing and Resources 52% of nonprofits have no formal budget for social

networks; just 4% allocate more than $50,000 annually.

86% commit some staff time to social networks, with

the majority (61%) allocating a quarter of a full-time

employee equivalent (FTE).



Facts & Myths

Why so little raised on FB?

1.Majority of donors not on FB*. For every 110

FaceBook “likes”, a nonprofit has 1,000 email

subscribers**

2.Donors don’t equate FB with fundraising*

3.Use FB to interact with younger folk (son,

grandkids, etc.)*

*2011 Giving USA Foundation Report

**2011 M+R and NTEN eNonprofit Benchmarks Study



Facts & Myths

The 8 lb. fundraising monkey.



Facts & Myths

While fundraising via online social networks is slowly growing,

not enough donors currently visit these sites.

Should nonprofits abandon these tools?

NO!



Strategies That Work

They are great tools to combine with website, email, direct mail, etc..

Today is Environmental

Awareness Day!




Staff resources may dictate a more focused strategy.

Today is Environmental

Awareness Day!




• Build close relationships with closed groups

• Great advocacy/awareness tools

• Low cost if focused on one or two outlets

Percent of Nonprofit with presence on:

89%* 57%* 30%*


47%*




Social Network member community growth – 2010-2011:

161%* 2%*

265%*


504%*




If the goal is to

increase fundraising results

and expand client reach and base,

tap into other people’s social networks!

Why people give: 50% say “A friend asked me.”




Peer-to-peer online fundraising, combined with

online social networks, is a potent fundraising combination.

(formerly Kintera)


“Our Walk-a-thon is coming up. Help us reach our goal?”

is the Message

The Mission

“Important legislation

Is being voted on.

Please contact your

representative.”

“Thank you for

your donation!”

“Meet our

Executive Director!”

“Did you know

driving a hybrid reduces

your carbon footprint

by 45%?” “Show the world you care

with our t-shirt!”

“Join us at the

Land Conservation Rally!”




“Our Walk-a-thon is coming up. Help us reach our goal?”

is the Message

The Mission




“I’m walking to protect the environment. Help me reach my goal!”

Your supporter




Family, friends, colleagues respond due to

personal affinity for supporter.

Friend, Family,

Colleague

Your supporter

Your Nonprofit

“I care about this

important cause!” “I care about you

so I’ll help!”




Without your supporter, donors don’t know you.

Friend, Family,

Colleague

Your Nonprofit ?

“Who are you?” “This is a very

important cause!”




Supporter lends his/her “brand”.

Friend, Family,

Colleague

“You’re so great!

Here’s $100!” “I endorse this

important cause!”

Your supporter




Supporter becomes the message. The “hero” of the landing page.




They like and trust your supporter, which leads to donation.

Friend, Family,

Colleague




bafound.donorpages.com/2011ARTERIALCHALLENGE

bafound.donorpages.com/TAYLORWALK




bafound.donorpages.com/BRAINPOWER




bafound.donorpages.com/teamcindy2011




4 donors to 1 fundraiser ratio is considered OK. 7 to is considered good.

Ratios for DonorPages client events sites reach 12 or 14 to 1.

In Team Cindy’s case, 536 donors helping 18 fundraisers – thats nearly a 30 to 1 ratio!

That averages out to $88.00 per donation.




This fundraiser’s page had a 53 to 1 donor/fundraiser ratio. Her page averaged $110 per donation.






People using online tools raise 6x more then those who don’t. Twitter users raise 10x more then those not using Twitter.

But fewer then half of constituent fundraisers ask

their online social network when fundraising.

They use email or other means.


• Too busy – no time

• Anxiety about asking for money

• Too shy – not good with words

• Have to handle cash or checks

• Don’t have tools or know-how

• Many leisure distractions

• Other reasons?




• Much less time

• No “face to face” ask

• Provide a message they

can personalize

• Easy posting to FaceBook

& Twitter

• Online Donations – no checks!

• Friendly Competition

& Recognition




Reports on site usage and donations.






By type of Organization*

*2010 DonorPages Reporting




Types of Peer-to-Peer Online Fundraising Sites

Nonprofit Managed NP purchases upfront • DonorPages • BlackBaud Sphere

(formally Kintera) • Convio

Primarily Supporter Chosen Supporters choose NP*

• FirstGiving

• Fundly

• CrowdRise

* Pay-as-you-fundraise. Can pay more to upgrade




Costs

• Convio $$$$$

• BlackBaud Sphere $$$$

• DonorDrive $$$

• Givezooks $$$

• Fundly $$$

• DonorPages (standard) $$$ • CrowdRise $$$

• BlackBaud ETapestry $$

• DonorPages (low upfront) $$ • DoJiggy $$

• FirstGiving $$

• Razoo $$

• Eventbrite $

Variable Factors: 1. Upfront costs (set-up) 2. Annual Fees 3. Merchant rates (CC/ACH) 4. Fixed per transaction costs

5. Additional surcharge rates

6. Level of fundraising/Number of Pages (fees may go up)



Strategies That Work Costs – Weigh all Factors




Ease of Use/Feature Set

Feature Set • Convio

• BlackBaud Sphere

• Fundly

• DonorPages

• DonorDrive

• Givezooks

• CrowdRise

• BlackBaud ETapestry • FirstGiving

• Razoo

• DoJiggy

• Eventbrite • Active.com (Activegiving)

Ease-Of-Use • FirstGiving • Razoo

• Eventbrite

• Active.com (activegiving) • CrowdRise

• DonorPages • DonorDrive • BlackBaud ETapestry • Givezooks • Fundly

• BlackBaud Sphere • Convio

• DoJiggy


Integrated: DonorPages to DonorPerfect



Ease of Use Key Item: Integrate with Database


Fundraisers

Donors




Fundraisers

Donors

Your supporter



Friend, Family,

Colleague


Treat them differently than someone who sought you out.

Friend, Family,

Colleague

Your supporter

Your Nonprofit




Tap into constituent social networks to fundraise

Empower constituents to be your fundraising army

Make it easier for constituents to promote your

message on popular social networks

Reduce new donor acquisition expenses

Save time by integrating with your database

Encourage exponential, viral growth of your

mission message & constituent community

Allows you to focus on donor stewardship while

supporters help grow your donor base




Questions? About DonorPages:

www.donorperfect.com/donorpages

About DonorPerfect’s Consultant Program:

www.donorperfect.com/partners

[email protected]


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Social Network Fundraising: Facts & Myths

social network fundraising: facts, myths, and strategies that work

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