Group Fundraising 101 From Benchmarks to Success Stories Presented by Peter Deitz micro-philanthropy consultant http://www.foik.org/peter webinar hosted by:

Introduction Definition Overview of Services Benchmark Figures Tips for Success Who am I? Non-profit consultant Creator of Foik NPTech blogger Citizen philanthropist Drupal evangelist Lives in Canada Works in the U.S.

Definition

Overview of Services

Benchmark Figures

Tips for Success

Who am I?

Non-profit consultant

Creator of Foik

NPTech blogger

Citizen philanthropist

Drupal evangelist

Lives in Canada

Works in the U.S.

Group fundraising is… The process of gathering money and other gifts in kind over the internet, by empowering individuals to convey the value of a program or project to perspective donors of their own choosing through the use of blogs, widgets, images, video, and social networking web sites.

The process of gathering money and other gifts in kind over the internet,

by empowering individuals to convey the value of a program or project to perspective donors of their own choosing

through the use of blogs, widgets, images, video, and social networking web sites.

You know it’s group fundraising when… Your supporters are using blogs and other social networking tools to communicate your organization’s mission and solicit money from people you don’t know; You are showing people how they can create fundraising pages or widgets in support of a program or project. From Flipping the Funnel: Give Your Fans the Power to Speak Up Turn strangers into friends Turn friends into donors And then... do the most important job: Turn your donors into fundraisers.

Your supporters are using blogs and other social networking tools to communicate your organization’s mission and solicit money from people you don’t know;

You are showing people how they can create fundraising pages or widgets in support of a program or project.

From Flipping the Funnel: Give Your Fans the Power to Speak Up

Turn strangers into friends

Turn friends into donors

And then... do the most important job:

Turn your donors into fundraisers.

A few notes about group fundraising The messaging of a group fundraising campaign and the list of perspective donors are ‘user generated’ Offline equivalent to group fundraising are child sponsorship and UNICEF Halloween boxes Group fundraising goes by several names Person-to-person Network centric Collaborative Peer-to-peer Distributive Grassroots Viral In April 2007, group fundraising web sites generated $3 million in donations through 8,602 campaigns. To date, group fundraising is responsible for $44 million dollars in charitable giving. At last count, there were at least 19 services for implementing a group fundraising event or strategy.

The messaging of a group fundraising campaign and the list of perspective donors are ‘user generated’

Offline equivalent to group fundraising are child sponsorship and UNICEF Halloween boxes

Group fundraising goes by several names

Person-to-person

Network centric

Collaborative

Peer-to-peer

Distributive

Grassroots

Viral

In April 2007, group fundraising web sites generated $3 million in donations through 8,602 campaigns.

To date, group fundraising is responsible for $44 million dollars in charitable giving.

At last count, there were at least 19 services for implementing a group fundraising event or strategy.

19 group fundraising platforms you need to know about

19 group fundraising platforms you need to know about

Raise Money for… (part 1) 501c3 Organizations Only Anyone with a Paypal account Teachers in the U.S. Individuals in Need

501c3 Organizations Only

Anyone with a Paypal account

Australian Organizations International Development U.K. Organizations Raise Money for… (part 2) Canadian Organizations Politicians in the U.S.

Australian Organizations

Group fundraising services share donor data with… The recipient organization * Only the campaign organizer No one * Most of these services provide individuals with the option to disclose donor data to the recipient organization

The recipient organization *

Only the campaign organizer

Group fundraising platforms are.. Commercial Nonprofit

Commercial

Nonprofit

Campaign organizers can produce fundraising widgets Yes No

Yes

No

Campaign organizers can set a fundraising goal Yes No

Yes

No

How much can you raise using a group fundraising service?

How much can you raise using a group fundraising service?

Benchmark Figures for Group Fundraising Platforms Benchmark figures for group fundraising campaigns Benchmark figures for “successful” group fundraising campaigns High Low Benchmark Average donation amount $55 $30 $43 Average amount raised per campaign $3,230 $119 $692 Average number of contributors 40 4 16 High Low Benchmark Average donation amount $149 $36 $57 Average amount raised per campaign $11,393 $5,158 $9,018 Average number of contributors 269 48 157

Compared to Other Online Fundraising Benchmarks Getting people to start campaigns is the hard part. Once they’re started, the results will exceed what you could have accomplished on your own. NetworkforGood reports that 76% of donors say they are influenced by friends and family when choosing an organization to donate to. Group Fundraising Convio E-Benchmarking eNonprofit Benchmark Study Open rate --- 22% 25% Click-through rate --- 3% 1.5% Response rate Possibly 35% 0.28% 0.3% Average Amount $43 $56 $70

Processing Fees for Group Fundraising Platforms High Low Benchmark Commission 15% 0% 4.4% Platform Commission GiveMeaning 0% ModestNeeds 0% DonorsChoose 2.5% + optional 15% ChipIn 2.9% + $0.30 DropCash 2.9% + $0.30 JustGive.org 3% CanadaHelps 3% ChangingthePresent 3% + $0.30 SixDegrees 4.35% Platform Commission Project Agape 4.50% Change.org 4.50% MyCause 5% plus bank fees JustGiving 6.40% FirstGiving 7.35% Fundable 9.9% + $0.30 BringLight < 10% Kiva.org 10% (optional) GlobalGiving 10%-15% LinkedIn NA

Four paths to group fundraising success

Four paths to group fundraising success

Path 1 of 4 Sympathy for the campaign organizer

Path 2 of 4 A clear picture of where the money is going

Path 3 of 4 Matching funds combined with a deadline

Path 4 of 4 Creativity & humor work in group fundraising Fund-a-stache participant for 2007 Mira Seeing Eye Dog Fundraiser

Comparing Tips for Success Group Fundraising Conventional eFundraising Design a connectivity strategy (not technology) Be nible, be quick Push power to the edges Meet them when and where they are Give them what they need Get out of the way Develop new evaluation & feedback mechanisms Souce: Power to the Edges: Trends and Opportunities in Online Civicm Engagement Budget for success Grow your email list Increase retention of list subscribers Carefully track marketing and recruitment efforts Carefully target and segment e-mail messages Act quickly to respond to timely events Source: eNonprofit Benchmarks Study

Group Fundraising

Conventional eFundraising

Design a connectivity strategy (not technology)

Be nible, be quick

Push power to the edges

Meet them when and where they are

Give them what they need

Get out of the way

Develop new evaluation & feedback mechanisms

Souce: Power to the Edges: Trends and

Opportunities in Online Civicm

Engagement

Budget for success

Grow your email list

Increase retention of list subscribers

Carefully track marketing and recruitment efforts

Carefully target and segment e-mail messages

Act quickly to respond to timely events

Source: eNonprofit Benchmarks Study

Tips for Campaign Organizers Adopted from What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising Build a great campaign Donate to your own campaign Post your campaign on your web site and / or blog Add the campaign to your email signature Send the link to people in your email address book Ask bloggers to join your cause Bookmark your campaign on aggregation web sites Take your cause (and laptop) everywhere Thank people and report back on progress made

Adopted from What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising

Build a great campaign

Donate to your own campaign

Post your campaign on your web site and / or blog

Add the campaign to your email signature

Send the link to people in your email address book

Ask bloggers to join your cause

Bookmark your campaign on aggregation web sites

Take your cause (and laptop) everywhere

Thank people and report back on progress made

Contact Information Peter Deitz Micro-Philanthropy Consultant http://www.foik.org/peter [email_address] 514-907-8725 – Montreal 718-766-5367 – New York City 215-825-7445 – Philadelphia

Peter Deitz

Micro-Philanthropy Consultant

http://www.foik.org/peter

[email_address]

514-907-8725 – Montreal

718-766-5367 – New York City

215-825-7445 – Philadelphia

Sources Show Me the Numbers: Can Group Fundraising Help You, Peter Deitz, June 2007 How to Use the Internet for Group Fundraising , Peter Deitz, October 2006 Flipping the Funnel: Give Your Fans the Power to Speak Up , Seth Godin, January 2006 The Online Marketing (eCRM): Nonprofit Benchmark Index™ Study , Convio, January 2007 eNonprofit Benchmarks Study: Measuring Email Messaging, Online Fundraising, and Internet Advocacy Metrics , M+R Strategic Services and Advocacy Institute, February 2006 Power to the Edges: Trends and Opportunities in Online Civic Engagement , The e-Volve Foundation and Philanthropy for Active Civic Engagement (PACE), May 2005 What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising , NetworkforGood, May 2007

Show Me the Numbers: Can Group Fundraising Help You, Peter Deitz, June 2007

How to Use the Internet for Group Fundraising , Peter Deitz, October 2006

Flipping the Funnel: Give Your Fans the Power to Speak Up , Seth Godin, January 2006

The Online Marketing (eCRM): Nonprofit Benchmark Index™ Study , Convio, January 2007

eNonprofit Benchmarks Study: Measuring Email Messaging, Online Fundraising, and Internet Advocacy Metrics , M+R Strategic Services and Advocacy Institute, February 2006

Power to the Edges: Trends and Opportunities in Online Civic Engagement , The e-Volve Foundation and Philanthropy for Active Civic Engagement (PACE), May 2005

What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising , NetworkforGood, May 2007