Group Fundraising 101: From Benchmarks to Success Stories


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Contains slides from my NTEN webinar on the subject.

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  • Group Fundraising 101: From Benchmarks to Success Stories

    1. Group Fundraising 101 From Benchmarks to Success Stories Presented by Peter Deitz micro-philanthropy consultant webinar hosted by:
    2. Introduction <ul><li>Definition </li></ul><ul><li>Overview of Services </li></ul><ul><li>Benchmark Figures </li></ul><ul><li>Tips for Success </li></ul><ul><li>Who am I? </li></ul><ul><li>Non-profit consultant </li></ul><ul><li>Creator of Foik </li></ul><ul><li>NPTech blogger </li></ul><ul><li>Citizen philanthropist </li></ul><ul><li>Drupal evangelist </li></ul><ul><li>Lives in Canada </li></ul><ul><li>Works in the U.S. </li></ul>
    3. Group fundraising is… <ul><li>The process of gathering money and other gifts in kind over the internet, </li></ul><ul><li>by empowering individuals to convey the value of a program or project to perspective donors of their own choosing </li></ul><ul><li>through the use of blogs, widgets, images, video, and social networking web sites. </li></ul>
    4. You know it’s group fundraising when… <ul><li>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; </li></ul><ul><li>You are showing people how they can create fundraising pages or widgets in support of a program or project. </li></ul><ul><li>From Flipping the Funnel: Give Your Fans the Power to Speak Up </li></ul><ul><ul><li>Turn strangers into friends </li></ul></ul><ul><ul><li> Turn friends into donors </li></ul></ul><ul><ul><li>And then... do the most important job: </li></ul></ul><ul><ul><li> Turn your donors into fundraisers. </li></ul></ul>
    5. A few notes about group fundraising <ul><li>The messaging of a group fundraising campaign and the list of perspective donors are ‘user generated’ </li></ul><ul><li>Offline equivalent to group fundraising are child sponsorship and UNICEF Halloween boxes </li></ul><ul><li>Group fundraising goes by several names </li></ul><ul><ul><li>Person-to-person </li></ul></ul><ul><ul><li>Network centric </li></ul></ul><ul><ul><li>Collaborative </li></ul></ul><ul><ul><li>Peer-to-peer </li></ul></ul><ul><ul><li>Distributive </li></ul></ul><ul><ul><li>Grassroots </li></ul></ul><ul><ul><li>Viral </li></ul></ul><ul><li>In April 2007, group fundraising web sites generated $3 million in donations through 8,602 campaigns. </li></ul><ul><li>To date, group fundraising is responsible for $44 million dollars in charitable giving. </li></ul><ul><li>At last count, there were at least 19 services for implementing a group fundraising event or strategy. </li></ul>
    6. <ul><li>19 group fundraising platforms you need to know about </li></ul>
    7. Raise Money for… (part 1) <ul><li>501c3 Organizations Only </li></ul><ul><li>Anyone with a Paypal account </li></ul>Teachers in the U.S. Individuals in Need
    8. <ul><li>Australian Organizations </li></ul>International Development U.K. Organizations Raise Money for… (part 2) Canadian Organizations Politicians in the U.S.
    9. Group fundraising services share donor data with… <ul><li>The recipient organization * </li></ul><ul><li>Only the campaign organizer </li></ul>No one * Most of these services provide individuals with the option to disclose donor data to the recipient organization
    10. Group fundraising platforms are.. <ul><li>Commercial </li></ul><ul><li>Nonprofit </li></ul>
    11. Campaign organizers can produce fundraising widgets <ul><li>Yes </li></ul><ul><li>No </li></ul>
    12. Campaign organizers can set a fundraising goal <ul><li>Yes </li></ul><ul><li>No </li></ul>
    13. <ul><li>How much can you raise using a group fundraising service? </li></ul>
    14. 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
    15. 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
    16. 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 3% CanadaHelps 3% ChangingthePresent 3% + $0.30 SixDegrees 4.35% Platform Commission Project Agape 4.50% 4.50% MyCause 5% plus bank fees JustGiving 6.40% FirstGiving 7.35% Fundable 9.9% + $0.30 BringLight < 10% 10% (optional) GlobalGiving 10%-15% LinkedIn NA
    17. <ul><li>Four paths to group fundraising success </li></ul>
    18. Path 1 of 4 Sympathy for the campaign organizer
    19. Path 2 of 4 A clear picture of where the money is going
    20. Path 3 of 4 Matching funds combined with a deadline
    21. Path 4 of 4 Creativity & humor work in group fundraising Fund-a-stache participant for 2007 Mira Seeing Eye Dog Fundraiser
    22. Comparing Tips for Success <ul><li>Group Fundraising </li></ul><ul><li>Conventional eFundraising </li></ul><ul><li>Design a connectivity strategy (not technology) </li></ul><ul><li>Be nible, be quick </li></ul><ul><li>Push power to the edges </li></ul><ul><li>Meet them when and where they are </li></ul><ul><li>Give them what they need </li></ul><ul><li>Get out of the way </li></ul><ul><li>Develop new evaluation & feedback mechanisms </li></ul><ul><li>Souce: Power to the Edges: Trends and </li></ul><ul><li>Opportunities in Online Civicm </li></ul><ul><li>Engagement </li></ul><ul><li>Budget for success </li></ul><ul><li>Grow your email list </li></ul><ul><li>Increase retention of list subscribers </li></ul><ul><li>Carefully track marketing and recruitment efforts </li></ul><ul><li>Carefully target and segment e-mail messages </li></ul><ul><li>Act quickly to respond to timely events </li></ul><ul><li>Source: eNonprofit Benchmarks Study </li></ul>
    23. Tips for Campaign Organizers <ul><li>Adopted from What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising </li></ul><ul><ul><li>Build a great campaign </li></ul></ul><ul><ul><li>Donate to your own campaign </li></ul></ul><ul><ul><li>Post your campaign on your web site and / or blog </li></ul></ul><ul><ul><li>Add the campaign to your email signature </li></ul></ul><ul><ul><li>Send the link to people in your email address book </li></ul></ul><ul><ul><li>Ask bloggers to join your cause </li></ul></ul><ul><ul><li>Bookmark your campaign on aggregation web sites </li></ul></ul><ul><ul><li>Take your cause (and laptop) everywhere </li></ul></ul><ul><ul><li>Thank people and report back on progress made </li></ul></ul>
    24. Contact Information <ul><li>Peter Deitz </li></ul><ul><li>Micro-Philanthropy Consultant </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul><ul><li>514-907-8725 – Montreal </li></ul><ul><li>718-766-5367 – New York City </li></ul><ul><li>215-825-7445 – Philadelphia </li></ul>
    25. Sources <ul><li>Show Me the Numbers: Can Group Fundraising Help You, Peter Deitz, June 2007 </li></ul><ul><li>How to Use the Internet for Group Fundraising , Peter Deitz, October 2006 </li></ul><ul><li>Flipping the Funnel: Give Your Fans the Power to Speak Up , Seth Godin, January 2006 </li></ul><ul><li>The Online Marketing (eCRM): Nonprofit Benchmark Index™ Study , Convio, January 2007 </li></ul><ul><li>eNonprofit Benchmarks Study: Measuring Email Messaging, Online Fundraising, and Internet Advocacy Metrics , M+R Strategic Services and Advocacy Institute, February 2006 </li></ul><ul><li>Power to the Edges: Trends and Opportunities in Online Civic Engagement , The e-Volve Foundation and Philanthropy for Active Civic Engagement (PACE), May 2005 </li></ul><ul><li>What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising , NetworkforGood, May 2007 </li></ul>