Online vs. Offline Fundraising

How Internet Fundraising Differs from Traditional Fundraising Justin Hart, Vice President Communications, Lighted Candle Society founder, MyManMitt.com

About Justin

Background as Internet Strategist for Fortune 500 companies

Currently, Vice President, Communications, Lighted Candle Society

Founder MyManMitt.com

Fundraiser

About The Lighted Candle Society

Founded by Ed Meese and John Harmer in 1999

Non-profit 501c(3)

Published monographs and newsletters

Numerous books

Annual dinners (honorees include: Jim Clancy, Michael Reagan)

Fighting Pornography

LightedCandle.org

Ed Meese John Harmer

About MyManMitt.com

" Perhaps the best executed unofficial WH '08 candidate site.” National Journal Blogometer

"A proactive voice in the wilderness, always on-message and fighting the fight, for Mitt.” David All

Over 10,000 visits / week

Raised over $80,000 for Mitt Romney

Understanding the principles of fundraising

Key Principles

“ People give to help other people”

“ People give relative to their means”

“ Those closest must set the pace”

Understanding trends in fundraising

Key Trends

“ Growing” use of the Internet

Innovation

Involving everyone

Contemporary marketing practices

Most Important Trend

Increased Focus on Donors!

Personal relationships

They deserve attention

You deserve details

Data, data, data

Think customer service

Multiple but consistent “touches”

Move them up the pyramid

The Key Factor for Success

Improving Trust is #1

Trust is relative to the channel

Process transparency, transaction security

Strong relationships develop over time

Offline and online trust

Understand Why People Give

About You

Believe you are making a difference

They value your work

Return a favor

Solve a problem

Send a message

Quality information

Bring justice

About Them

Investment

Get something in return

Feel good about themselves

Tax deduction

Align with peers

Trends in ePhilanthropy

Opportunity for activism

Avenue for advertising

Space for marginalized voices

Interconnected portal of information

Bolster organization

Fundraising!

Understand what the Internet does well Accelerates Information Enhances Communication Fosters Collaboration Instant Notification Streamlines Transactions Drives Automation Improves Presentation Enhances Efficiency “ Always On” Personalization Anonymity Localization

Accelerate Information Accelerates Information disinformation

React in real time

Push and Pull

Content rich

Even playing field

Messaging

Fundraising : immediacy, alerts

Trigger Happy Viral Potential Degrades trust Low cost/high risk

Enhances Communication Enhances Communication Information overload

Multi-channel: email, Internet…

Conversations

Track donors

Fundraising : customized campaigns, the activist itch

White noise Spammer No second chances The medium rules

Fosters Collaboration Fosters Collaboration Cheapens collaboration

Move them up the pyramid

Empowers donors

Fundraising: “get sticky”: discussion boards, testimonials, blogs, new media, local chapters

Its basically free. Can spiral downward If you build it… Precedent setting

Instant Notification Instant Notification Accelerates expectations

Ride the wave of current news

Harden electronic “synapses”

Fundraising: time-driven, goal-driven campaigns, donors part of the news cycle

“ did you miss this?” “ can’t you help me? Don’t fail Quality vs. quantify

Streamlines Transaction Streamline Transactions Liability/Failure Risks

Handle large volume donations

Reduce overhead

Fundraising: merchant accounts, data, data, data

Are you secure? Offline backup? Easy in, easy out Expectations

Drives Automation Drives Automation No Human Touch

Reduce overhead

Everything is measurable

Fundraising: find what works, reproduce it

Donors are smart Donors want attention Ear to the ground gone Generation factor

Improves Presentation Improves Presentation New skillsets

Tell the story

Get the reaction you want

Get sticky

Fundraising: the perfect way to show there are people at the end

Shed old formats Doing right: $$$ Not easy, regardless Fail quickly, learn

Increase Efficiency Increase Efficiency Overconfidence

Adapt to change

Overcome time crunch

Get organized!

Fundraising: prove model, rinse, repeat

Entropy is natural Robot perception Patience is critical Need to waste time

“ Always On” “ Always On” “ Always On”

Midnight guilt

Create your own cycles

Fundraising: Google ads, give users something to do, quick and easy.

Support for issues Expectations Consistency 24/7 eyeballs

Personalization Personalization Intrusion

Track, capture info

Customize the experience

Fundraising: Get to know your donors, piece by piece

It’s Fake Security Too much data? Lose trust

Anonymity Anonymity Degraded Responsibility

Lessen spam fears

Play on the internal polls

Fundraising: Promise anonymity in exchange for a donation. The unjust judge parable.

When no one is around Risk Lose the chance for trust Lose the peer plug

Localization Localization Degraded Local Prowess

All politics is local

Automate the easy stuff

Fundraising: Cater to local people, events, challenges using data

The HQ campaign fails Contrived, artificial Don’t get it wrong! Can’t build rapport

Offline / Online Fundraising - The Upside

Offline

Natural trust building the old fashioned way

People with money are offline people (this is changing)

Proven, predictable

You can never ignore this

People giving to people

Online

Reduce overhead exponentially

Can’t ignore, everyone must do this

Trending online

Data rich!

Targets are limitless

Meets the speed factor

Offline / Online Fundraising - The Downside

Offline

Costly

Less and less effective

Reach is limited

Hard, hard work!

Must innovate

Time commitment

Online

Terrible at building trust

White noise

Risks everywhere!

New, unproven

Innovation a must

Case Study: Mitt Romney Campaign

Four Boxes Approach

Group Box

Goal Box

Time Box

Press Box

January 8th Kickoff

June Sign-up America

October Q3 Push

Case Study: Mitt Romney Campaign part II

Technologies

Website

YouTube

Empowering Tools

Models

Students for Mitt

Moms for Mitt

Young Professionals

Serious Fundraisers

Case Study: Legacy Law Foundation

Technologies

Group Box

Goal Box

Time Box

Press Box

Incentives

January 8th Kickoff

June Sign-up America

October Q3 Push

Case Study: 1600 Penn Ave. Email (DEMS)

Key Campaign

Get 1600 donations during the State of the Union address

Dynamically refreshing email

INTERNET FUNDRAISING TOOLS AND DEMOS

Elements of Fundraising Tools

Backend – Accounting/Strategy

Frontend – Webpage/Marketing

Processing – Merchant/Gateway/Security

Donor Management – Database

Reporting – Google/Crystal/Custom

Communication – Mail/Email/Other

Campaigns – Goals/Measuring

Targeting – User Pyramid

The Internet Genration Source: Peter Dietz

The Funnel Source: Landing Page Optimization – Tim Ash

The User Pyramid “ The Base” – This group demands the most attention and respect. “ Ground Troops” – the people we call on to sacrifice and work. “ The Field” – focus here on conversion to higher levels. “ Virtual Targets” – Mass audience. Focus: conversation rate. “ The Numbers Game” – Get them from wherever we can.

Some new approaches