Group Fundraising 101: From Benchmarks to Success Stories

Slide 1: Group Fundraising 101 From Benchmarks to Success Stories webinar hosted by: Presented by Peter Deitz micro-philanthropy consultant http://www.foik.org/peter

Slide 2: Introduction Who am I? • Definition Non-profit consultant Creator of Foik • Overview of Services NPTech blogger Citizen philanthropist • Benchmark Figures Drupal evangelist • Tips for Success Lives in Canada Works in the U.S.

Slide 3: 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.

Slide 4: 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.

Slide 5: A few notes about group fundraising • The messaging of a group • In April 2007, group fundraising fundraising campaign and the list web sites generated $3 million in of perspective donors are ‘user donations through 8,602 generated’ campaigns. • Offline equivalent to group • To date, group fundraising is fundraising are child sponsorship responsible for $44 million and UNICEF Halloween boxes dollars in charitable giving. • Group fundraising goes by several • At last count, there were at least names 19 services for implementing a group fundraising event or ▫ Person-to-person strategy. ▫ Network centric ▫ Collaborative ▫ Peer-to-peer ▫ Distributive ▫ Grassroots ▫ Viral

Slide 6: 19 group fundraising platforms you need to know about

Slide 7: Raise Money for… (part 1) 501c3 Organizations Only Anyone with a Paypal account Teachers in the U.S. Individuals in Need

Slide 8: Raise Money for… (part 2) International Development Australian Organizations Canadian Organizations U.K. Organizations Politicians in the U.S.

Slide 9: 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

Slide 10: Group fundraising platforms are.. Commercial Nonprofit

Slide 11: Campaign organizers can produce fundraising widgets Yes No

Slide 12: Campaign organizers can set a fundraising goal Yes No

Slide 13: How much can you raise using a group fundraising service?

Slide 14: Benchmark Figures for Group Fundraising Platforms Benchmark figures for 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 Benchmark figures for “successful” group fundraising campaigns High Low Benchmark $149 $36 $57 Average donation amount $11,393 $5,158 $9,018 Average amount raised per campaign 269 48 157 Average number of contributors

Slide 15: Compared to Other Online Fundraising Benchmarks Group Convio eNonprofit Fundraising E-Benchmarking 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 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.

Slide 16: Processing Fees for Group Fundraising Platforms High Low Benchmark Commission 15% 0% 4.4% Platform Commission Platform Commission GiveMeaning 0% Project Agape 4.50% ModestNeeds 0% Change.org 4.50% DonorsChoose 2.5% + optional 15% MyCause 5% plus bank fees ChipIn 2.9% + $0.30 JustGiving 6.40% DropCash 2.9% + $0.30 FirstGiving 7.35% JustGive.org 3% Fundable 9.9% + $0.30 CanadaHelps 3% BringLight < 10% ChangingthePresent 3% + $0.30 Kiva.org 10% (optional) SixDegrees 4.35% GlobalGiving 10%-15% LinkedIn NA

Slide 17: Four paths to group fundraising success

Slide 18: Path 1 of 4 Sympathy for the campaign organizer

Slide 19: Path 2 of 4 A clear picture of where the money is going

Slide 20: Path 3 of 4 Matching funds combined with a deadline

Slide 21: Path 4 of 4 Creativity & humor work in group fundraising Mira Seeing Eye Dog Fundraiser Fund-a-stache participant for 2007

Slide 22: Comparing Tips for Success Group Fundraising Conventional eFundraising • Design a connectivity strategy • Budget for success (not technology) • Grow your email list • Be nible, be quick • Increase retention of list • Push power to the edges subscribers • Meet them when and where • Carefully track marketing and they are recruitment efforts • Give them what they need • Carefully target and segment e-mail messages • Get out of the way • Act quickly to respond to • Develop new evaluation & timely events feedback mechanisms Source: eNonprofit Benchmarks Study Souce: Power to the Edges: Trends and Opportunities in Online Civicm Engagement

Slide 23: Tips for Campaign Organizers • Adopted from What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising 1. Build a great campaign 2. Donate to your own campaign 3. Post your campaign on your web site and / or blog 4. Add the campaign to your email signature 5. Send the link to people in your email address book 6. Ask bloggers to join your cause 7. Bookmark your campaign on aggregation web sites 8. Take your cause (and laptop) everywhere 9. Thank people and report back on progress made

Slide 24: Contact Information Peter Deitz Micro-Philanthropy Consultant http://www.foik.org/peter peterdeitz@gmail.com 514-907-8725 – Montreal 718-766-5367 – New York City 215-825-7445 – Philadelphia

Slide 25: 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