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Online Giving: How, What, Where,         And What’s Next                     April 26, 2011Karsten Robbins, CEO, FirstGivi...
Today’s webinar•  Defining “online fundraising platform” vs. other   types of fundraising	•  The state of online giving	   ...
About the presenter        Karsten Robbins              CEO          FirstGiving    karsten@firstgiving.com
Who is FirstGiving
Defining Online Fundraising PlatformØ  Defining “online fundraising platform” vs. other    types of fundraising		•  The st...
Online fundraising platforms                          	“A platform is a conduit for managing people withcharitable intent ...
These are all online fundraising platforms
Fundraising platforms            Must enable donations and                process payments	                    Two models	...
Some differences                      Professional Payment Online                      fundraiser      processor	 platform...
The State of Online Giving•  Defining “online fundraising platform” vs. other    types of fundraising	Ø  The state of onli...
Online giving up across channels                                            *social giving includes p2p	   Source: Network...
Where donors donateSource: 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 Givin...
Largest percent growthSource: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
Social media fundraising is still a very small amount                            Source: 2012 Nonprofit Social Network Benc...
How funds are generally raised through Facebook   The most common fundraising tactic on Facebook is an ask for an         ...
Peer-to-peer fundraising eventsSource: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.co...
Peer-to-peer fundraising trendsSource: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.co...
Online giving after a disaster is on the rise                   Average donation                 Haiti   Japan     FirstGi...
Online giving after a disaster is on the rise         Total $ raised   #        Average            # of      #            ...
How Payment Processing Works•  Defining “online fundraising platform” vs. other    types of fundraising	•  The state of onl...
Three models of donation payment processing Third Party Payment Providers	 •  Paypal	                                     ...
Donor-centric disbursementDonation to           501(c)3              Donation Goescharity from a        Verified          ...
Types of fees nonprofits could be charged   (some combination of those listed) •     Onboarding fees	 •     Annual fees	 •...
FG fees
Fee comparisons
Today’s webinar•  Defining “online fundraising platform” vs. other    types of fundraising	•  The state of online giving	• ...
Nonprofits must satisfy these requirements for        FirstGiving to work with them  •  Viable: In good standing with the ...
Nonprofit descriptions on the websiteEither 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-...
Interfacing with Donors and Donor Privacy•  Defining “online fundraising platform” vs. other    types of fundraising	•  The...
Donor information required   •     Name (with option to be anonymous to the fundraiser)	   •     Billing address and infor...
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      ...
The Future of Online Fundraising•  Defining “online fundraising platform” vs. other    types of fundraising	•  The state of...
The Future of Online Fundraising                  http://www.flickr.com/photos/redsun81/6651955017/sizes/m/in/photostream/
The (very near) future of online giving       Accelerated growth in on-site giving     Accelerated growth in peer to peer ...
Facebook CreditsFacebook credits:	•  30% of any transaction goes to Facebook	•  Most commonly used to buy games	•  Has the...
Facebook Zynga virtual goods for charity          For more on Facebook Payments: http://venturebeat.com/2011/03/21/faceboo...
Online gaming for good                     UK only
Other virtual goods for charity          Buy virtual texting icons for             charity, coming soon
Mobile giving2011 survey on mobile giving of 2,003 teensand adults:		•  50% were aware of mobile giving	•  6% of those sur...
Mobile giving2012 Pew Internet Real Time Giving reportkey findings:	•  The ability to send small donations using mobile pho...
Adjusted for inflation, Americans are still giving       3% of their income year over year  …but the internet and real-tim...
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...
Extra Extra! How fundraisers interface with a             fundraising platform
Extra Extra! What fundraisers need to doWhat a fundraiser will typically need to do:		•  Register on the site and create a...
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How, what, where, and what's next in online giving

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  1. 1. Online Giving: How, What, Where, And What’s Next April 26, 2011Karsten Robbins, CEO, FirstGivingPresented for NASCO
  2. 2. 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
  3. 3. About the presenter Karsten Robbins CEO FirstGiving karsten@firstgiving.com
  4. 4. Who is FirstGiving
  5. 5. Defining Online Fundraising PlatformØ  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
  6. 6. Online fundraising platforms “A platform is a conduit for managing people withcharitable intent to be able to fundraise for causes/ charities they care about.”
  7. 7. These are all online fundraising platforms
  8. 8. Fundraising platforms Must enable donations and process payments Two models Internal payment Integrate 3rd party paymentprocessing capacity processing
  9. 9. Some differences Professional Payment Online fundraiser processor platform or solicitor Allow individuals to no no yes raise moneythemselves? Allow nonprofits to no yes yes raise moneythemselves? Process donations may collect, yes sometimes to nonprofits never processes Enable fundraising no no yes campaigns online
  10. 10. 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
  11. 11. Online giving up across channels *social giving includes p2p Source: Network for Good Online Giving Index 2011: http://www.onlinegivingstudy.org/quarterlyindex
  12. 12. Where donors donateSource: Network for Good Online Giving Index 2011: http://www.onlinegivingstudy.org/quarterlyindex
  13. 13. Trends in online giving by size of nonprofit and sector Source: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
  14. 14. Largest percent growthSource: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
  15. 15. 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
  16. 16. How funds are generally raised through Facebook 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 Source: 2012 Nonprofit Social Network Benchmark Report: http://nonprofitsocialnetworksurvey.com/
  17. 17. Peer-to-peer fundraising eventsSource: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.com/P2PBenchmarkReport.html
  18. 18. Peer-to-peer fundraising trendsSource: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.com/P2PBenchmarkReport.html
  19. 19. Online giving after a disaster is on the rise Average donation Haiti Japan FirstGiving $82.52 $76.62 $52.44 Haiti Japan FirstGiving Source: FirstGiving
  20. 20. Online giving after a disaster is on the rise Total $ raised # Average # of # % nonpro donation donors fundraising grassroots fits pages fundraisers Haiti $464.321.99 87 $76.62 6,060 1,044 60% Japan $973,328.16 32 $82.52 11,793 802 94% Source: FirstGiving
  21. 21. 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
  22. 22. Three models of donation payment processing Third Party Payment Providers •  Paypal NPO gets own •  Google Checkout merchant account and •  Amazon Payments Gateway Donor-centric: 501(c)3 donation provider •  Razoo •  Network for Good •  FirstGiving •  Just Give •  GlobalGiving
  23. 23. Donor-centric disbursementDonation to 501(c)3 Donation Goescharity from a Verified to Nonprofitweb app •  Guidestar via Provider•  Crowdrise •  IRS Master file •  Receipt is sent to•  Causes Donor•  Firstgiving •  Nonprofit gets•  Network for good report•  Razoo
  24. 24. 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
  25. 25. FG fees
  26. 26. Fee comparisons
  27. 27. 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
  28. 28. 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
  29. 29. Nonprofit descriptions on the websiteEither self-entered or pulled from the IRS database
  30. 30. FirstGiving nonprofit sign-up
  31. 31. 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.
  32. 32. 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
  33. 33. 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
  34. 34. How fees are presented to the donor•  At donor checkout (option to “pay the fee”) •  On website
  35. 35. 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.
  36. 36. 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
  37. 37. The Future of Online Fundraising http://www.flickr.com/photos/redsun81/6651955017/sizes/m/in/photostream/
  38. 38. The (very near) future of online giving Accelerated growth in on-site giving Accelerated growth in peer to peer giving Explosion of APIs powering other sites Growth of mobile giving options (including donation portals)Personalized, geo-local online giving experiences Project-based donations, not only to nonprofits
  39. 39. Facebook CreditsFacebook 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
  40. 40. Facebook Zynga virtual goods for charity For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-payments/?source=facebook
  41. 41. Online gaming for good UK only
  42. 42. Other virtual goods for charity Buy virtual texting icons for charity, coming soon
  43. 43. Mobile giving2011 survey on mobile giving of 2,003 teensand 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
  44. 44. Mobile giving2012 Pew Internet Real Time Giving reportkey 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
  45. 45. Adjusted for inflation, Americans are still giving 3% of their income year over year …but the internet and real-time crisis response is apparent http://www.101fundraising.org/2012/04/fundraising-into-the-future-and-beyond/
  46. 46. More fundraising on niche donation portals
  47. 47. The bleeding edge: using social media for fundraising
  48. 48. Connect with FirstGiving! Website: http://www.firstgiving.com Facebook: facebook.com/firstgiving Twitter: twitter.com/firstgiving Blog: http://blog.firstgiving.comKarsten Robbins: karsten@firstgiving.com
  49. 49. Extra Extra! How fundraisers interface with a fundraising platform
  50. 50. Extra Extra! What fundraisers need to doWhat 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
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