Online vs. Offline Fundraising

Slide 1: How Internet Fundraising Differs from Traditional Fundraising Justin Hart, Vice President Communications, Lighted Candle Society founder, MyManMitt.com

Slide 2: About Justin • Background as Internet Strategist for Fortune 500 companies • Currently, Vice President, Communications, Lighted Candle Society • Founder MyManMitt.com • Fundraiser

Slide 3: About The Lighted Candle Society – Founded by Ed Meese and John Harmer in 1999 – Non-profit 501c(3) – Published monographs and newsletters John Harmer – Numerous books – Annual dinners (honorees include: Jim Clancy, Michael Reagan) – Fighting Pornography – LightedCandle.org Ed Meese

Slide 4: 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

Slide 5: 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”

Slide 6: Understanding trends in fundraising • Key Trends – “Growing” use of the Internet – Innovation – Involving everyone – Contemporary marketing practices

Slide 7: 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

Slide 8: 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

Slide 9: Understand Why People Give • About You • About Them – Believe you are – Investment making a difference – Get something in – They value your work return – Return a favor – Feel good about – Solve a problem themselves – Send a message – Tax deduction – Quality information – Align with peers – Bring justice

Slide 10: Trends in ePhilanthropy • Opportunity for activism • Avenue for advertising • Space for marginalized voices • Interconnected portal of information • Bolster organization • Fundraising!

Slide 11: Understand what the Internet does well Accelerates Information Improves Presentation Enhances Communication Enhances Efficiency Fosters Collaboration “Always On” Instant Notification Personalization Streamlines Transactions Anonymity Drives Automation Localization

Slide 12: Accelerate Information Accelerates Information disinformation •React in real time Trigger Happy •Push and Pull •Content rich Viral Potential •Even playing field •Messaging Degrades trust Fundraising: immediacy, alerts Low cost/high risk

Slide 13: Enhances Communication Enhances Communication Information overload •Multi-channel: White noise email, Internet… •Conversations Spammer •Track donors Fundraising: No second chances customized campaigns, the activist itch The medium rules

Slide 14: Fosters Collaboration Fosters Collaboration Cheapens collaboration •Move them up the Its basically free. pyramid •Empowers donors Can spiral downward Fundraising: “get sticky”: discussion boards, If you build it… testimonials, blogs, new media, local chapters Precedent setting

Slide 15: Instant Notification Instant Notification Accelerates expectations •Ride the wave of “did you miss this?” current news •Harden electronic “synapses” “can’t you help me? Fundraising: time- driven, goal-driven Don’t fail campaigns, donors part of the news cycle Quality vs. quantify

Slide 16: Streamlines Transaction Streamline Transactions Liability/Failure Risks •Handle large Are you secure? volume donations •Reduce overhead Offline backup? Fundraising: merchant accounts, data, data, data Easy in, easy out Expectations

Slide 17: Drives Automation Drives Automation No Human Touch •Reduce overhead Donors are smart •Everything is measurable Donors want attention Fundraising: find what works, reproduce it Ear to the ground gone Generation factor

Slide 18: Improves Presentation Improves Presentation New skillsets •Tell the story Shed old formats •Get the reaction you want Doing right: $$$ •Get sticky Fundraising: the Not easy, regardless perfect way to show there are people at the end Fail quickly, learn

Slide 19: Increase Efficiency Increase Efficiency Overconfidence •Adapt to change Entropy is natural •Overcome time crunch Robot perception •Get organized! Fundraising: Patience is critical prove model, rinse, repeat Need to waste time

Slide 20: “Always On” “Always On” “Always On” •Midnight guilt Support for issues •Create your own cycles Expectations Fundraising: Google ads, give users something to Consistency do, quick and easy. 24/7 eyeballs

Slide 21: Personalization Personalization Intrusion •Track, capture info It’s Fake •Customize the experience Security Fundraising: Get to know your donors, piece by Too much data? piece Lose trust

Slide 22: Anonymity Anonymity Degraded Responsibility •Lessen spam fears When no one is around •Play on the internal polls Risk Fundraising: Promise anonymity in exchange for a Lose the chance for trust donation. The unjust judge parable. Lose the peer plug

Slide 23: Localization Localization Degraded Local Prowess •All politics is local The HQ campaign fails •Automate the easy stuff Contrived, artificial Fundraising: Cater to local people, events, challenges Don’t get it wrong! using data Can’t build rapport

Slide 24: Offline / Online Fundraising - The Upside • Offline • Online – Natural trust building – Reduce overhead the old fashioned way exponentially – People with money are – Can’t ignore, everyone offline people (this is must do this changing) – Proven, predictable – Trending online – You can never ignore – Data rich! this – Targets are limitless – People giving to – Meets the speed factor people

Slide 25: Offline / Online Fundraising - The Downside • Offline • Online – Costly – Terrible at building – Less and less trust effective – White noise – Reach is limited – Risks everywhere! – Hard, hard work! – New, unproven – Must innovate – Innovation a must – Time commitment

Slide 26: Case Study: Mitt Romney Campaign Four Boxes Approach • January 8th Kickoff • Group Box • June Sign-up America • Goal Box • October Q3 Push • Time Box • Press Box

Slide 27: Case Study: Mitt Romney Campaign part II Technologies Models • Website • Students for Mitt • YouTube • Moms for Mitt • Empowering Tools • Young Professionals • Serious Fundraisers

Slide 28: Case Study: Legacy Law Foundation Technologies Incentives • Group Box • January 8th Kickoff • Goal Box • June Sign-up America • Time Box • October Q3 Push • Press Box

Slide 29: Case Study: 1600 Penn Ave. Email (DEMS) Key Campaign • Get 1600 donations during the State of the Union address • Dynamically refreshing email

Slide 30: INTERNET FUNDRAISING TOOLS AND DEMOS

Slide 31: 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

Slide 32: The Internet Genration Source: Peter Dietz

Slide 33: The Funnel S o u r c

Slide 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.

Slide 35: Some new approaches • Auctions - eBay • Online Books – Amazon Affiliates • Products - Branding • Subscriptions – Content Driven • Direct Donations – Online forms • Insurance – Online applications

Slide 36: Software/ ASP Big Boys Others • Capwiz • Slatecard • Convio • SalesForce.com • Razors Edge • DonorPerfect • GetActive • Telosa • Kintera • GroundSpring

Slide 37: Widgets