The Ecology of Online Giving
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The Ecology of Online Giving

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An overview of the different online fundraising options available to nonprofit organizations, including on-site donation options, e-cards, virtual gifts, Facebook applications, peer-to-peer ...

An overview of the different online fundraising options available to nonprofit organizations, including on-site donation options, e-cards, virtual gifts, Facebook applications, peer-to-peer crowdfunding sites such as FirstGiving, social media fundraising and mobile giving. Plus a peek into the future of online giving!

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  • http://api.ning.com/files/1dSPmgxnwy-2L4ZJQWCkd55S3Tpen20ZIoIy2XyPP-sbcSk4czj-Vr1wI-W3BycVe30-QCsnbn1464qBYpjjgbFZgi6iaQtv/MillDonorFullReport.pdf&sa=U&ei=JIh6TdngAqKD0QGHkKXrAw&ved=0CA4QFjAA&usg=AFQjCNEuLM6DkB1mRV6J02LAj8EiOkbotA
  • Envelopes: http://www.flickr.com/photos/ocherdraco/6804142/sizes/m/in/photostream/ Check: http://www.flickr.com/photos/johnmcnab/3335552462/sizes/s/in/photostream/ Haiti: http://www.flickr.com/photos/78316603@N00/4315063178/
  • Home-grown systems = processed by a system they et up with merchant account, an authorized gateway, a shopping cart, OR a payment processing platform such as Google checkout, Amazon payments, or Paypal. Includes website donation form. Donation button – processed through a third party such as Paypal, NFG, FG
  • Home-grown systems = processed by a system they et up with merchant account, an authorized gateway, a shopping cart, OR a payment processing platform such as Google checkout, Amazon payments, or Paypal. Includes website donation form. Donation button – processed through a third party such as Paypal, NFG, FG
  • FB credits is a Facebook-only currency it sells to consumers to let them buy virtual goods in games like Zynga’s FarmVille and Crowdstar’s Happy Island. Facebook splits revenue from Facebook Credits with app developers, meaning it has to disburse funds as well as collecting them. FB Payments is registered in multiple states Facebook could start its own ad network in competition with Google’s AdSense,
  • Personalized, geo-local online giving experiences: the more relevant the ask, the more it matches personalized needs, the better the ask.

The Ecology of Online Giving The Ecology of Online Giving Presentation Transcript

  • The New Ecology of Online Giving and The Giving Evolution April 21, 2011 Debra Askanase, Community Engagement Manager, FirstGiving
  • How this webinar works
    • A link to the slides and a recording will be sent after the webinar
    • If you’d like to ask a question during the webinar, you can type it in the box on the right side of your screen
    • Use the hashtag #fgwebinar to tweet about this webinar
  • Upcoming webinars
    • May 19:
    • Introduction to Location-Based Marketing for Nonprofits, with Estrella Rosenberg
    • June 16:
    • Outstanding Peer-to-Peer Fundraising in Practice
    All webinars are 1pm EST/ 10am PST
  • About the presenters Debra Askanase Community Engagement Manager [email_address]
  • Who is FirstGiving
  • Fundraising solutions Personal Support for your nonprofit, donors, and fundraisers Easy, tested, and secure transaction processes for the donor Peer-to-Peer Fundraising Pages and Event Registrations Donor Analytics and Market Research Online Donations
  • Today’s agenda The giving evolution: who’s in control now? The rise of influence networks The ecology of giving: on-site donations The ecology of giving: off-site donations Donation payment processing: brief overview Social media fundraising: where it’s going The (not-so-distant) future of online giving
  • The old way = conceit of ownership nonprofit organization supporter list Yearly appeal Special appeals Fundraising events
  • 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
  • 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
  • … and they now choose how they donate to which organization and when
  • Technology has put donors in the driver’s seat Access to information The rise of influence networks Online donation solutions where donors live - online
  • The recommendation engine is driving purchasing decisions Influencing purchasing decisions
  • “ 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
  • 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
  • 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)
  • Culture and comfort of online purchasing is fueling the rise in online donations
  • The story of unique donors
  • Technology solutions have stepped in to fill the void
  • Be where the giving happens
  • On a nonprofit website Home-grown systems situated on the website Donation button Virtual gifts Gift e-cards
  • On a nonprofit website: Donation button
  • On a nonprofit website: donation forms
  • Gift e-cards on the website
  • 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
  • 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/
  • Facebook Apps: Virtual Gift example
  • Facebook Apps: Causes
  • 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
  • Donate anywhere: Widgets
  • 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
  •  
  • Niche fundraising or donation portals
  • Three models of donation payment processing
  • Donor-centric disbursement
  • “ Social media fundraising” usually means this
  • Or this…leveraging the power of social media
  • The bleeding edge: social media platforms for fundraising
    • “ 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
  • Mobile giving
  • http://www.nten.org/NTENChange
  • 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
  • Sign up for our upcoming webinars
    • May 19:
    • Introduction to Location-Based Marketing for Nonprofits, with Estrella Rosenberg
    • June 16:
    • Outstanding Peer-to-Peer Fundraising in Practice
    All webinars are 1pm EST/ 10am PST
  • Connect with us in our social spaces Facebook : facebook.com/firstgiving Twitter : twitter.com/firstgiving FirstGiving Insights blog: http://insights.firstgiving.com Online Fundraising blog: http://blog.firstgiving.com FirstGiving for Runners blog: http://runners.firstgiving.com
  • Thank you! Interested in working with FirstGiving? Lee Johnson Email: [email_address] Telephone: (415) 243-0757