How Internet Fundraising Differs from Traditional Fundraising  Justin Hart, Vice President Communications, Lighted Candle ...
About Justin <ul><li>Background as Internet Strategist for Fortune 500 companies </li></ul><ul><li>Currently, Vice Preside...
About The Lighted Candle Society <ul><ul><li>Founded by Ed Meese and John Harmer in 1999 </li></ul></ul><ul><ul><li>Non-pr...
About MyManMitt.com <ul><li>&quot; Perhaps the best executed unofficial WH '08 candidate site.” National Journal Blogomete...
Understanding the principles of fundraising <ul><li>Key Principles </li></ul><ul><ul><li>“ People give to help other peopl...
Understanding trends in fundraising <ul><li>Key Trends </li></ul><ul><ul><li>“ Growing” use of the Internet </li></ul></ul...
Most Important Trend <ul><li>Increased Focus on Donors! </li></ul><ul><ul><li>Personal relationships </li></ul></ul><ul><u...
The Key Factor for Success <ul><li>Improving Trust is #1 </li></ul><ul><ul><li>Trust is relative to the channel </li></ul>...
Understand Why People Give <ul><li>About You </li></ul><ul><ul><li>Believe you are making a difference </li></ul></ul><ul>...
Trends in ePhilanthropy <ul><li>Opportunity for activism </li></ul><ul><li>Avenue for advertising </li></ul><ul><li>Space ...
Understand what the Internet does well Accelerates Information Enhances Communication Fosters Collaboration Instant Notifi...
Accelerate Information Accelerates Information disinformation <ul><li>React in real time </li></ul><ul><li>Push and Pull <...
Enhances Communication Enhances Communication Information overload <ul><li>Multi-channel: email, Internet… </li></ul><ul><...
Fosters Collaboration Fosters Collaboration Cheapens collaboration <ul><li>Move them up the pyramid </li></ul><ul><li>Empo...
Instant Notification Instant Notification Accelerates expectations <ul><li>Ride the wave of current news </li></ul><ul><li...
Streamlines Transaction Streamline Transactions Liability/Failure Risks <ul><li>Handle large volume donations </li></ul><u...
Drives Automation Drives Automation No Human Touch <ul><li>Reduce overhead </li></ul><ul><li>Everything is measurable </li...
Improves Presentation Improves Presentation New skillsets <ul><li>Tell the story </li></ul><ul><li>Get the reaction you wa...
Increase Efficiency Increase Efficiency Overconfidence <ul><li>Adapt to change </li></ul><ul><li>Overcome time crunch </li...
“ Always On” “ Always On” “ Always On” <ul><li>Midnight guilt </li></ul><ul><li>Create your own cycles </li></ul><ul><li>F...
Personalization Personalization Intrusion <ul><li>Track, capture info </li></ul><ul><li>Customize the experience </li></ul...
Anonymity Anonymity Degraded Responsibility <ul><li>Lessen spam fears </li></ul><ul><li>Play on the internal polls </li></...
Localization Localization Degraded Local Prowess <ul><li>All politics is local </li></ul><ul><li>Automate the easy stuff <...
Offline / Online Fundraising - The Upside <ul><li>Offline </li></ul><ul><ul><li>Natural trust building the old fashioned w...
Offline / Online Fundraising - The Downside <ul><li>Offline </li></ul><ul><ul><li>Costly </li></ul></ul><ul><ul><li>Less a...
Case Study: Mitt Romney Campaign <ul><li>Four Boxes Approach </li></ul><ul><li>Group Box </li></ul><ul><li>Goal Box </li><...
Case Study: Mitt Romney Campaign part II <ul><li>Technologies </li></ul><ul><li>Website </li></ul><ul><li>YouTube </li></u...
Case Study: Legacy Law Foundation  <ul><li>Technologies </li></ul><ul><li>Group Box </li></ul><ul><li>Goal Box </li></ul><...
Case Study: 1600 Penn Ave. Email (DEMS) <ul><li>Key Campaign </li></ul><ul><li>Get 1600 donations during the State of the ...
INTERNET FUNDRAISING TOOLS AND DEMOS
Elements of Fundraising Tools <ul><li>Backend – Accounting/Strategy </li></ul><ul><li>Frontend – Webpage/Marketing </li></...
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 ...
Some new approaches <ul><li>Auctions - eBay </li></ul><ul><li>Online Books – Amazon Affiliates </li></ul><ul><li>Products ...
Software/ ASP <ul><li>Big Boys </li></ul><ul><li>Capwiz </li></ul><ul><li>Convio </li></ul><ul><li>Razors Edge </li></ul><...
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Online vs. Offline Fundraising

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Details the differences between offline and online fundraising

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Online vs. Offline Fundraising

  1. 1. How Internet Fundraising Differs from Traditional Fundraising Justin Hart, Vice President Communications, Lighted Candle Society founder, MyManMitt.com
  2. 2. About Justin <ul><li>Background as Internet Strategist for Fortune 500 companies </li></ul><ul><li>Currently, Vice President, Communications, Lighted Candle Society </li></ul><ul><li>Founder MyManMitt.com </li></ul><ul><li>Fundraiser </li></ul>
  3. 3. About The Lighted Candle Society <ul><ul><li>Founded by Ed Meese and John Harmer in 1999 </li></ul></ul><ul><ul><li>Non-profit 501c(3) </li></ul></ul><ul><ul><li>Published monographs and newsletters </li></ul></ul><ul><ul><li>Numerous books </li></ul></ul><ul><ul><li>Annual dinners (honorees include: Jim Clancy, Michael Reagan) </li></ul></ul><ul><ul><li>Fighting Pornography </li></ul></ul><ul><ul><li>LightedCandle.org </li></ul></ul>Ed Meese John Harmer
  4. 4. About MyManMitt.com <ul><li>&quot; Perhaps the best executed unofficial WH '08 candidate site.” National Journal Blogometer </li></ul><ul><li>&quot;A proactive voice in the wilderness, always on-message and fighting the fight, for Mitt.” David All </li></ul><ul><li>Over 10,000 visits / week </li></ul><ul><li>Raised over $80,000 for Mitt Romney </li></ul>
  5. 5. Understanding the principles of fundraising <ul><li>Key Principles </li></ul><ul><ul><li>“ People give to help other people” </li></ul></ul><ul><ul><li>“ People give relative to their means” </li></ul></ul><ul><ul><li>“ Those closest must set the pace” </li></ul></ul>
  6. 6. Understanding trends in fundraising <ul><li>Key Trends </li></ul><ul><ul><li>“ Growing” use of the Internet </li></ul></ul><ul><ul><li>Innovation </li></ul></ul><ul><ul><li>Involving everyone </li></ul></ul><ul><ul><li>Contemporary marketing practices </li></ul></ul>
  7. 7. Most Important Trend <ul><li>Increased Focus on Donors! </li></ul><ul><ul><li>Personal relationships </li></ul></ul><ul><ul><li>They deserve attention </li></ul></ul><ul><ul><li>You deserve details </li></ul></ul><ul><ul><li>Data, data, data </li></ul></ul><ul><ul><li>Think customer service </li></ul></ul><ul><ul><li>Multiple but consistent “touches” </li></ul></ul><ul><ul><li>Move them up the pyramid </li></ul></ul>
  8. 8. The Key Factor for Success <ul><li>Improving Trust is #1 </li></ul><ul><ul><li>Trust is relative to the channel </li></ul></ul><ul><ul><li>Process transparency, transaction security </li></ul></ul><ul><ul><li>Strong relationships develop over time </li></ul></ul><ul><ul><li>Offline and online trust </li></ul></ul>
  9. 9. Understand Why People Give <ul><li>About You </li></ul><ul><ul><li>Believe you are making a difference </li></ul></ul><ul><ul><li>They value your work </li></ul></ul><ul><ul><li>Return a favor </li></ul></ul><ul><ul><li>Solve a problem </li></ul></ul><ul><ul><li>Send a message </li></ul></ul><ul><ul><li>Quality information </li></ul></ul><ul><ul><li>Bring justice </li></ul></ul><ul><li>About Them </li></ul><ul><ul><li>Investment </li></ul></ul><ul><ul><li>Get something in return </li></ul></ul><ul><ul><li>Feel good about themselves </li></ul></ul><ul><ul><li>Tax deduction </li></ul></ul><ul><ul><li>Align with peers </li></ul></ul>
  10. 10. Trends in ePhilanthropy <ul><li>Opportunity for activism </li></ul><ul><li>Avenue for advertising </li></ul><ul><li>Space for marginalized voices </li></ul><ul><li>Interconnected portal of information </li></ul><ul><li>Bolster organization </li></ul><ul><li>Fundraising! </li></ul>
  11. 11. 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
  12. 12. Accelerate Information Accelerates Information disinformation <ul><li>React in real time </li></ul><ul><li>Push and Pull </li></ul><ul><li>Content rich </li></ul><ul><li>Even playing field </li></ul><ul><li>Messaging </li></ul><ul><li>Fundraising : immediacy, alerts </li></ul>Trigger Happy Viral Potential Degrades trust Low cost/high risk
  13. 13. Enhances Communication Enhances Communication Information overload <ul><li>Multi-channel: email, Internet… </li></ul><ul><li>Conversations </li></ul><ul><li>Track donors </li></ul><ul><li>Fundraising : customized campaigns, the activist itch </li></ul>White noise Spammer No second chances The medium rules
  14. 14. Fosters Collaboration Fosters Collaboration Cheapens collaboration <ul><li>Move them up the pyramid </li></ul><ul><li>Empowers donors </li></ul><ul><li>Fundraising: “get sticky”: discussion boards, testimonials, blogs, new media, local chapters </li></ul>Its basically free. Can spiral downward If you build it… Precedent setting
  15. 15. Instant Notification Instant Notification Accelerates expectations <ul><li>Ride the wave of current news </li></ul><ul><li>Harden electronic “synapses” </li></ul><ul><li>Fundraising: time-driven, goal-driven campaigns, donors part of the news cycle </li></ul>“ did you miss this?” “ can’t you help me? Don’t fail Quality vs. quantify
  16. 16. Streamlines Transaction Streamline Transactions Liability/Failure Risks <ul><li>Handle large volume donations </li></ul><ul><li>Reduce overhead </li></ul><ul><li>Fundraising: merchant accounts, data, data, data </li></ul>Are you secure? Offline backup? Easy in, easy out Expectations
  17. 17. Drives Automation Drives Automation No Human Touch <ul><li>Reduce overhead </li></ul><ul><li>Everything is measurable </li></ul><ul><li>Fundraising: find what works, reproduce it </li></ul>Donors are smart Donors want attention Ear to the ground gone Generation factor
  18. 18. Improves Presentation Improves Presentation New skillsets <ul><li>Tell the story </li></ul><ul><li>Get the reaction you want </li></ul><ul><li>Get sticky </li></ul><ul><li>Fundraising: the perfect way to show there are people at the end </li></ul>Shed old formats Doing right: $$$ Not easy, regardless Fail quickly, learn
  19. 19. Increase Efficiency Increase Efficiency Overconfidence <ul><li>Adapt to change </li></ul><ul><li>Overcome time crunch </li></ul><ul><li>Get organized! </li></ul><ul><li>Fundraising: prove model, rinse, repeat </li></ul>Entropy is natural Robot perception Patience is critical Need to waste time
  20. 20. “ Always On” “ Always On” “ Always On” <ul><li>Midnight guilt </li></ul><ul><li>Create your own cycles </li></ul><ul><li>Fundraising: Google ads, give users something to do, quick and easy. </li></ul>Support for issues Expectations Consistency 24/7 eyeballs
  21. 21. Personalization Personalization Intrusion <ul><li>Track, capture info </li></ul><ul><li>Customize the experience </li></ul><ul><li>Fundraising: Get to know your donors, piece by piece </li></ul>It’s Fake Security Too much data? Lose trust
  22. 22. Anonymity Anonymity Degraded Responsibility <ul><li>Lessen spam fears </li></ul><ul><li>Play on the internal polls </li></ul><ul><li>Fundraising: Promise anonymity in exchange for a donation. The unjust judge parable. </li></ul>When no one is around Risk Lose the chance for trust Lose the peer plug
  23. 23. Localization Localization Degraded Local Prowess <ul><li>All politics is local </li></ul><ul><li>Automate the easy stuff </li></ul><ul><li>Fundraising: Cater to local people, events, challenges using data </li></ul>The HQ campaign fails Contrived, artificial Don’t get it wrong! Can’t build rapport
  24. 24. Offline / Online Fundraising - The Upside <ul><li>Offline </li></ul><ul><ul><li>Natural trust building the old fashioned way </li></ul></ul><ul><ul><li>People with money are offline people (this is changing) </li></ul></ul><ul><ul><li>Proven, predictable </li></ul></ul><ul><ul><li>You can never ignore this </li></ul></ul><ul><ul><li>People giving to people </li></ul></ul><ul><li>Online </li></ul><ul><ul><li>Reduce overhead exponentially </li></ul></ul><ul><ul><li>Can’t ignore, everyone must do this </li></ul></ul><ul><ul><li>Trending online </li></ul></ul><ul><ul><li>Data rich! </li></ul></ul><ul><ul><li>Targets are limitless </li></ul></ul><ul><ul><li>Meets the speed factor </li></ul></ul>
  25. 25. Offline / Online Fundraising - The Downside <ul><li>Offline </li></ul><ul><ul><li>Costly </li></ul></ul><ul><ul><li>Less and less effective </li></ul></ul><ul><ul><li>Reach is limited </li></ul></ul><ul><ul><li>Hard, hard work! </li></ul></ul><ul><ul><li>Must innovate </li></ul></ul><ul><ul><li>Time commitment </li></ul></ul><ul><li>Online </li></ul><ul><ul><li>Terrible at building trust </li></ul></ul><ul><ul><li>White noise </li></ul></ul><ul><ul><li>Risks everywhere! </li></ul></ul><ul><ul><li>New, unproven </li></ul></ul><ul><ul><li>Innovation a must </li></ul></ul>
  26. 26. Case Study: Mitt Romney Campaign <ul><li>Four Boxes Approach </li></ul><ul><li>Group Box </li></ul><ul><li>Goal Box </li></ul><ul><li>Time Box </li></ul><ul><li>Press Box </li></ul><ul><li>January 8th Kickoff </li></ul><ul><li>June Sign-up America </li></ul><ul><li>October Q3 Push </li></ul>
  27. 27. Case Study: Mitt Romney Campaign part II <ul><li>Technologies </li></ul><ul><li>Website </li></ul><ul><li>YouTube </li></ul><ul><li>Empowering Tools </li></ul><ul><li>Models </li></ul><ul><li>Students for Mitt </li></ul><ul><li>Moms for Mitt </li></ul><ul><li>Young Professionals </li></ul><ul><li>Serious Fundraisers </li></ul>
  28. 28. Case Study: Legacy Law Foundation <ul><li>Technologies </li></ul><ul><li>Group Box </li></ul><ul><li>Goal Box </li></ul><ul><li>Time Box </li></ul><ul><li>Press Box </li></ul><ul><li>Incentives </li></ul><ul><li>January 8th Kickoff </li></ul><ul><li>June Sign-up America </li></ul><ul><li>October Q3 Push </li></ul>
  29. 29. Case Study: 1600 Penn Ave. Email (DEMS) <ul><li>Key Campaign </li></ul><ul><li>Get 1600 donations during the State of the Union address </li></ul><ul><li>Dynamically refreshing email </li></ul>
  30. 30. INTERNET FUNDRAISING TOOLS AND DEMOS
  31. 31. Elements of Fundraising Tools <ul><li>Backend – Accounting/Strategy </li></ul><ul><li>Frontend – Webpage/Marketing </li></ul><ul><li>Processing – Merchant/Gateway/Security </li></ul><ul><li>Donor Management – Database </li></ul><ul><li>Reporting – Google/Crystal/Custom </li></ul><ul><li>Communication – Mail/Email/Other </li></ul><ul><li>Campaigns – Goals/Measuring </li></ul><ul><li>Targeting – User Pyramid </li></ul>
  32. 32. The Internet Genration Source: Peter Dietz
  33. 33. The Funnel Source: Landing Page Optimization – Tim Ash
  34. 34. 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.
  35. 35. Some new approaches <ul><li>Auctions - eBay </li></ul><ul><li>Online Books – Amazon Affiliates </li></ul><ul><li>Products - Branding </li></ul><ul><li>Subscriptions – Content Driven </li></ul><ul><li>Direct Donations – Online forms </li></ul><ul><li>Insurance – Online applications </li></ul>
  36. 36. Software/ ASP <ul><li>Big Boys </li></ul><ul><li>Capwiz </li></ul><ul><li>Convio </li></ul><ul><li>Razors Edge </li></ul><ul><li>GetActive </li></ul><ul><li>Kintera </li></ul><ul><li>Others </li></ul><ul><li>Slatecard </li></ul><ul><li>SalesForce.com </li></ul><ul><li>DonorPerfect </li></ul><ul><li>Telosa </li></ul><ul><li>GroundSpring </li></ul>
  37. 37. Widgets

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