The Ecology of Online Giving

The New Ecology of Online Giving and The Giving Evolution April 21, 2011 Debra Askanase, Community Engagement Manager, FirstGiving

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May 19:
Introduction to Location-Based Marketing for Nonprofits, with Estrella Rosenberg
June 16:
Outstanding Peer-to-Peer Fundraising in Practice
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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

The Ecology of Online Giving

by FirstGiving .com on Apr 21, 2011

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The Ecology of Online Giving — Presentation Transcript