Create New Revenue Streams with a Little Help from Your Friends

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Peer-to-peer fundraising events have long been associated with physical events like runs, walks, and rides. This presentation explores virtual fundraising programs that also rely on peer-to-peer …

Peer-to-peer fundraising events have long been associated with physical events like runs, walks, and rides. This presentation explores virtual fundraising programs that also rely on peer-to-peer networks. We'll look at some examples, discuss the economics of virtual fundraising, and review what you need to do to implement a virtual fundraising program at your nonprofit.

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  • TITLE SLIDE.
  • Martha volunteers for Share Our Strength.   She learned about SOS from an ad for Great American Bake Sale.  She raised a couple hundred dollars w/ her 1st bake sale.  Five years later, she’s raising more than $5,000 with her bake sale and now serves on the Taste of the Nation committee – Taste is another SOS fundraising event. Martha is a great example of how you can bring new people into your organization with P2P fundraising.  While, Martha serves on the Taste committee, she still holds her annual bake sale.  Her bake sale has become an event everyone in her town looks forward to.
  • Participant survey: 56% of participants were connected to the cause through a family member/close friend while 16% were directly affected
  • Kathryn – question 2 should be framed like this “Amy – I’m newbee to P2P fundraising what should I be aware of, are there challenges might I encounter – if any?”
  • Fundraising was found to be >50% online for all participating organizations…. In fact data for 2009 showed over 70% of the funds were collected online.
  • Amy things to consider -Budgeting revenue issues – tied to lack of reporting to help forecast revenue. Need budgets to help justify costs association with these programs.Put materials on-line so IFE’s can print on own. Offer but don’t automatically send, only upon request
  • Kathryn – “Amy, are they any P2P best practices you can share with us?”
  • Kathryn – “Let’s take each of these best practices one by one, maybe you share details about each of these points.” - “first up, tell us more about organization wide support – why is this important?”
  • Organizations with strong executive support for the IFE program have more success. These organizations see the value in investing in these types of programs and building partnerships with their ‘super volunteers’. They recognize that once engaged, IFE fundraisers can become avid champions and long term supporters of the organization.Learn who these fundraisers are, remembering that most of them are directly affected by the cause you represent and likely represent the very audience your mission serves.Treat IFE fundraisers like major gift donors and honor the time, talent, and treasure they give so freely and passionately to your organization.Involve local affiliates if applicable. Your IFE supporters will prefer to know that funds are staying local when possible.Understand that your IFE participants may not want the organization to solicit their donor base. If this is requested, respect their wishes. They are bringing these donors to your organization that you would otherwise not likely have reached.Communicate the performance and benefits of this program throughout your organization.
  • Kathryn – “tell us more about creating a positive online experience, share how blackbaud can help, maybe show some examples.” Kathryn – tee this up adding more about an NPO has people who want to do fundraisers and want a way to collect online donations – what can NPOs do to facilitate this.
  • Consistent data collection is imperative to having valid information from which to make important business decisions on the management of the IFE program. Encouraging participants to register, communicate, and fundraise online through the online tools, allows your program to operate more efficiently. Participants can avoid writing receipts and tax exemption letters, your staff can spend less time processing manual offline donations, and the chances of human error can be significantly reduced.  Set the expectation by requiring all participants to register online.As part of the registration process require the user to read and e-sign your end user guidelines.Communicate the benefits of using the online tools to the participants and ask them to strongly encourage their supporters to donate online. Benefits include fewer costs to the organization and more time for the participant to fundraise.80% of participants surveyed said they used the online tools. An estimated 72% recalled receiving online donations.Inform participants that the organization will ask their donors for information only and will not further solicit them unless agreed to by the donor.Remind them that all further communications with donors will be offered with opt-on/-out options.
  • From this slide we’ll show 4 FAF examples of three different types of P2P programHigher ed – goal: get students used to giving and to think about giving – help build alumni program - could support existing alumni givingIFE program – Canadian Cancer Society – Supporting an existing program – adding P2P fundraising to complement an activity – skip lunch & serve a thon
  • The top three biggest challenges respondents said they have with their IFE participation are “Getting the Word Out”, “Fundraising”, and “Recruiting”. Sound familiar??Your audience is caring, motivated, volunteering, and asking for guidance. Respond with a program that educates, empowers, and encourages them. They are not looking for the hand out, i.e., for you to run their event for them. They are looking for a ‘hand up’, i.e., assistance and guidance on how to make an impact by marrying their passion with your mission. Staff a half to a full time employee who will provide personal Customer Service offering their name, number, and email. Customer support is very critical in providing timely assistance to these fundraisers. Support is particularly important for event organizers who may benefit from some guidance in marketing and managing their event.Provide the following on the website for downloading by the registered participant:Fact SheetBasics of FundraisingBasics of Hosting an eventInstructions on How to Use the Online ToolsApproved Logos (“Proud Supporter Of”) and Letters of Support“Ask” and Press Release TemplatesUnderstand that an IFE may experience fundraising fatigue. Stay in touch with them to recognize this and suggest other ways they can have an impact, perhaps through other volunteer or advocacy work that does not require asking for funds until they are motivated again to do so.
  • One key observation from the study showed that organizations need to provide for standardized reporting to help monitor the success of these campaigns. Due to the nature of these types of programs, many organizations do not follow through on these key aspects well enough. Make a list of the minimum standard metrics your organization intends on regularly monitoring to measure the program’s progress and performance. A few to consider include:Number and date of registered eventsLocation of events, organizers, participants, donorsNumber of participantsNumber of repeat vs. new (events and participants)Designation for event organizers versus individual fundraisersOverall fundraising by event and fiscal yearFundraising per participantNumber of gifts per participantPlan on reviewing these reports at least monthly to monitor data integrity and to be able to respond to the needs of your participants. Such analysis will aid in future forecasting as well.Track the engagement level of the participants, i.e., donations received, goal achievement, and number of emails sent. With this information proactively communicate with them regarding their performance levels to encourage when and where needed.
  • Finally, there are three primary reasons that a volunteer, participant, or donor gives their time, talent, and/or treasure – to belong, to feel good, and to be acknowledged. A comprehensive recognition program is critical to help motivate supporters.  Design a recognition program designed around the objectives of your IFE program.Share the successes of top fundraisers and top teams with stories in e-newsletters and on the home page of the micro-site and main website of your organization.Consider offering a “Legacy” and/or “Super Star” program for long-term and high-achieving IFE participants with experiential rewards such as a recognition lunch at the local affiliate in their area.Include an honor roll on the website main page and on participant pages.Use social media to celebrate their efforts including blogging, YouTube, Facebook, and Twitter.Include a message board on your website for others to comment and support their favorite IFE participant.Offer the ability to post tributes allowing IFE participants to share who they are acting in memory of.
  • These programs are supplementary, not competitive, to the organizations development portfolio. Independent fundraisers are able to reach donors otherwise unattainable by the organization through their personal social networks. These “super volunteer” also spread awareness beyond the reach of the organization through these activities. 63% said their donors are “Somewhat Familiar” while 14% are “Very Familiar” with the organization they support.An IFE program also offers an organization the opportunity to raise money at relatively low cost of fundraising. With online activity of people increasing as a whole, managing an IFE program primarily via a website with online tools is absolutely feasible, effective, and significantly reduces the cost of operation. Again, because “the ask” is very personal from this type of supporter, it is also a more dependable source of income in tough economic times. Average gift size, # of gifts per participant, and total raised per participant values were found to be higher when compared to those values for traditional fundraising event. For instance, average gift size was found to be $92.Lastly, an IFE program offers your target audience a very personal form of involvement at an emotional level where the passion of their fundraising typically raises more than the traditional fundraising event participant. Should your organization lack the resources or confidence to put any or all of these best practices into effect, there are outside agencies available to help.

Transcript

  • 1. D I V E R S I F Y A N D C R E AT E N E W R E V E N U E STREAMS WITH A LITTLE HELP FROM YOUR FRIENDS April 21, 20113/2/2012 1
  • 2. LET’S TALK FUNDRAISING Host: Guest: Kathryn Hall Amy Braiterman Internet Solutions Consultant Principal Strategy Consultant Blackbaud Blackbaud3/2/2012 2
  • 3. WHY SHOULD I BE INTERESTED IN PEER- TO-PEER FUNDRAISING?3/2/2012 3
  • 4. HOW DOESN’T LOVE A BAKE SALE?3/2/2012 4
  • 5. IS PEER TO PEER FUNDRAISING JUST FOR R U N WA L K R I D E E V E N T ? I S I T O N LY F O R H E A LT H C A R E – O R G A N I Z AT I O N S S E E K I N G A C U R E ?3/2/2012 5
  • 6. WALK RUN RIDE3/2/2012 6
  • 7. ORGANIZATIONS UTILIZING P2P FUNDRAISING3/2/2012 7
  • 8. YOUR DONORS, YOUR VOLUNTEERS, YOUR ALUMNI, YOUR STUDENTS, YOUR GRATEFUL PATIENTS Linkage Interest Ability • There is a • Will give what • Direct, demand they can in emotional connection • Want to time, match treasure, or • Your mission talent passion with serves them mission3/2/2012 8
  • 9. W H AT A R E T H E C O S T A S S O C I AT E D P 2 P FUNDRAISING? ARE THEY ANY CHALLENGES WITH P2P FUNDRAISING?3/2/2012 9
  • 10. REVENUE AT LOW COST Resource Requirements • Staff ½ to 1 Full-time Employee • Online Fundraising Solution & Tools • Online transaction fees • Branded supplies (optional) Comparing Costs to Other Fundraising Activities Average Costs Per Dollar Raised $1.60 $1.50 $1.40 $1.20 $1.00 $0.80 $0.50 $0.60 $0.30 $0.25 $0.25 $0.40 $0.20 $0.15 $0.15 $0.20 $0.003/2/2012 10
  • 11. CHALLENGES OF PEER-TO-PEER FUNDRAISING PROGRAMS • Budgeting Revenue • Justification of Costs • Supplies and Giveaways • Positive Online User Experience • Reputation/Brand Risk3/2/2012 11
  • 12. W H AT A R E P E E R - T O - P E E R F U N D R A I S I N G BEST PRACTICES?3/2/2012 12
  • 13. PEER-TO-PEER BEST PRACTICES 1. Ensure Organizational-wide Support 2. Encourage Online Use 3. Provide a „Hand Up‟ 4. Standardize Tracking and Reporting 5. Create a Recognition Program3/2/2012 13
  • 14. W H AT D O M E A N B Y E N S U R I N G O R G A N I Z AT I O N W I D E S U P P O R T ?3/2/2012 14
  • 15. ENSURE ORGANIZATIONAL-WIDE SUPPORT Top-down and Part of the Culture • Executive buy-in • Treat like major gift donors Communicate the Performance and Benefits • Less affected by economic state • Low cost of fundraising • Expanded reach for the organization • Building stronger, more loyal supporters3/2/2012 15
  • 16. H O W D O I C R E AT E A P O S I T I V E O N L I N E EXPERIENCE?3/2/2012 16
  • 17. ENCOURAGE ONLINE USE Require Online Registration • Offer a positive online user experience • Include reading/e-signing an agreement of guidelines Consistent Data Collection is Important • Efficient and reduces human error • Minimizes workload of IFE and organization Ask Participants to Encourage Online Donations • Ask for information, not money • Understand who and why • Offer opt-in/out option for further communication3/2/2012 17
  • 18. BLACKBAUD FRIENDS ASKING FRIENDS More than $1.3 billion Average participant raised Easy to use tools to sends: 27 emails make the fundraising 37,000 events and experience fun! 1 in 4 FAF emails counting convert Email 17M participants FAF emails: 90 Social Media percent greater open 31M donors Mobile rate Average online gift size: $603/2/2012 18
  • 19. The main reason we turned to peer-to-peer is that we hope it will help us “reach” our acquisition donors. By this, I mean making sure that theseprospects physically get the message and second that the message is receivedfrom a familiar source. Ideally, this will improve our conversion rate, improve our online giving and ultimately increase our alumni participation. 3/2/2012 19
  • 20. 3/2/2012 20
  • 21. 3/2/2012 21
  • 22. 3/2/2012 22
  • 23. W H AT S U P P O R T S H O U L D W E P R O V I D E ?3/2/2012 23
  • 24. PROVIDE A ‘HAND UP’ Your audience…cares…is motivated…is volunteering… • …and is asking for guidance. Educate, Empower, Encourage • Personal Customer Service (name, number, and email) • Fact Sheet • Basics of Fundraising • Basics of Hosting an Event • Online Tools for invitations, communication, and money collection • Instructions for Online Tools • Approved Logos and Letters of Support • “Ask” and Press Release Templates • Online recognition3/2/2012 24
  • 25. W H AT S H O U L D W E T R A C K ?3/2/2012 25
  • 26. STANDARDIZE TRACKING & REPORTING Minimum Standard Metrics • Number and Date of registered events • Location of events, organizers, participants, donors • Number of participants • Number of repeat vs. new (events and participants) • Designation for event organizers and individual fundraisers • Overall fundraising by event and fiscal year • Fundraising per participant • Number of gifts per participant Scheduled reporting • Data integrity • Analysis will aid forecasting • Follow progress of events Track engagement • How else are participants and donors involved in the organization?3/2/2012 26
  • 27. DO WE NEED INCENTIVES? HOW SHOULD WE RECOGNIZE FUNDRAISERS?3/2/2012 27
  • 28. CREATE A RECOGNITION PROGRAM Reasons for giving of time, talent, or treasure • Want to belong • Want to feel good • Want to be acknowledged Website Recognition • Honor Roll – home page and participant pages • “Legacy” or “Super Star” program • Experiential reward • Tribute postings Success stories • E-Communications, at least regionally if not nationally • Social Networking (FB, Twitter, Blogspot, MySpace) • Message Board or Blog Don‟t Forget to Send Thank You‟s!3/2/2012 28
  • 29. BENEFITS OF PEER-TO-PEER FUNDRAISING Supplementary, not • Reach donors otherwise unattainable • Provides awareness beyond the reach of the organization Competitive, to the • Allows someone who perhaps is unable to give to be Development Portfolio involved • On-line giving as a percentage of the whole is growing Low Cost of Fundraising • Generates interest in the organization at little to no cost • More tolerant of economy because the give is very personal Provides Community • Students become connected and begin a tradition of giving and Engagement • Alumni an opportunity to stay connected and give back Opportunities3/2/2012 29
  • 30. WANT TO LEARN MORE? BE SURE TO CHECK OUT…Blackbaud Blogshttp://www.FriendsAskingAmy.comhttp://www.NPTrends.comhttp://www.ProspectResearch.comhttp://www.NetwitsThinkTank.com3/2/2012 30