How a nonprofit can survive and thrive in the world of crowd collaboration


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How does your nonprofit know when to use peer-to-peer fundraising or crowdfunding?

Join Georgia Wright-Simmons (Senior Business Development Associate, Launcht) and Dan Fonseca (Inbound Marketing Coordinator, FirstGiving) as they explore the differences and similarities between peer-to-peer fundraising and crowd-funding for nonprofits.

Georgia and Dan will cover:

-When each fundraising strategy makes sense to implement
-The differences between peer-to-peer fundraising and crowdfunding
-General guidelines in application
-Case studies examples

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  • Facing these facts, it’s scary to launch a new huge online fundraising event or initiative with very little precedence to base operations off of, and with online fundraising still only taking up 7% of all donations, why bother?Because it’s essential.Read quoteOnline fundraising is still a small piece of the pie, but it is essential to get in the game now and be creative so that you can keep being relevant as opposed to having to catch up later and reestablish your brand
  • The answer is to engage in multi-channel fundraisingMulti-channel is the new normal—while older generations still respond best to direct mail, Gen X and Y (31% of total giving in 2012) largely give via mobile or internet and share through social media (marketing– combines giving and marketing and gives donors a sense of control over their giving dollars
  • Why Multi-Channel is key. Different generations respond to different approaches What does it mean? Meeting people where they areCloud collaboration, big scary term, basically all it means is engaging people online
  • Misconception 1: Generation Y is selfish and doesn’t want to give Reality: Gen Y is particularly concerned with finding meaning in their lives—members of the millennial generation are more likely than any other generation to cite the “desire to make the world a better place to live” as a key motivator for their philanthropic givingMisconception 2: This is the end of traditional fundraising Reality: don’t get rid of direct mail or Donate Now– never good to have all your eggs in one basket, and while we need to get people where they are, a diverse offering will benefit you on many levels (direct mail marketing for online fundraising, online fundraising building brand awareness so that people will pay more attention to direct mail); As an example—the University of Arizona recently launched a crowdfunding site and in an interview said that 90% of donations made on the site were from first-time donors. Now what does that say? They’ve attracted a ton of new donors through this medium! But it also isn’t attracting many repeat donors. It’s a great tool, but it is another tool in your tool kit; it does not create an entirely new toolkit for youPanacea—putting something up online will be our salvation! We can put it up and forget about it and we’ll start making money Reality: online fundraising is just like all other fundraising—it takes preparation and ongoing work to make it a useful toolFinal misconception: online fundraising is still a niche that not many people know about Reality: Crowdfunding has gone way beyond Kickstarter and Peer-to-peer is fairly well established
  • Online Giving is still a small piece of the fundraising pie– only 7% of total giving, but it’s also the fastest growing sector, increasing 10-fold more than overall giving between 2011 and 2012While it’s a small part of the total, it’s adding to the bottom of your pyramid, you’re building out your $5,000 gifts of 2025—it’s small now, but essential to your future development
  • Transparency: We are in the Age of Information and donor expectations have changed. People want a greater level of transparency and want to feel involved in the process: 57% of Gen Y and 49% of Gen X donors said they wanted to be able to see the impact of their donation—online gives you multiple channels to do this (easy reporting)Internet giving allows donors to feel like they have more agency—they get to be a pert of the process (psych study showing that when you get people to do favors for you they like you more “Ben Franklin Effect”) blurs the line between who is leading whom—donors see it as making the process more democratic, and they can vote with their dollars and their reputation (they share your causes w/ their network)The cloud provides many entry points—sharing via social media has a very low barrier for engagement and can bring in new donors—great way to gain new donors and build legitimacy through word of mouthBuilds engagement beyond donating– besides the obvious social media sharing engagement, p2p creates a way for donors to become more invested in a particular nonprofit by creating a campaign on their behalf ““You don’t want to tell donors why they should give. You want them to tell you why they should give.”— Kimberly Kubik, Director of Institutional Advancement, Shady Hill School (Blackbaud); Online also allows you to keep donors abreast of what’s happening w/ the initiative during and after the fundraising round—provides year-round points of contact and creates transparency that will encourage donors to give again in the future (cultivating major donors)Ease of use; 90%+ of people are already online—all they have to do is put in their credit car information (no stamps, trips to the post office, can do it immediately) provides instant gratification to donorLow capital requirements: don’t need a developer to get up and running—these are out of the box solutionsP2P can turn a just-out-of-college kid into a major donor if they know how to leverage their social network and bring in progressively larger donations from their friends/ family (power of the crowd)Your funders want greater transparency Internet giving fosters a sense of donor agencyThe Cloud creates endless opportunities for donor entry Fundraisers build engagement beyond donatingIt’s easy—for you and your supportersIt’s cost-effectiveAnd it provides exponential benefits
  • Many non-profits know they need to expand their online presence, but they don’t know what to do beyond the core site and “Donate Now” button; we’re not calling for the death of the Donate Now button, but I am here today to show you two simple, effective ways to get something more innovative going
  • Increasing your baseImproving your online presenceShowcasing specific initiatives Engaging Gen YAttracting first time donors2 Approaches: Initiative-based fundraising Peer-to-PeerArizona U statistic 90% new donors
  • Jkick is using their site to connect members of a pre-existing community and allowing them to discover interesting, relevant projects in their area; they use the site to provide a service to their members, created a mini crowdrise for their community
  • Pace Universities (Universities using crowdfunding to make donating more attractive to younger donors); they use their site to encourage new and existing donors to donate directly to themCore difference between this and the Jkick model: here, all of the money goes through the school, whereas with Jkick, the money goes to the project owners
  • FHSSA runs a crowdfunding platform to show off various initiatives it’s running at any given time so that people feel more motivated to give by virtue of the fact that they feel they have power over where their money goes
  • Pepsi Refresh e.g.Talk about traditional ideas of marketing but success storiesGive up control, but get interesting market feedback and all press is good pressIn development of Pepsi-Refresh type initiatives; great way to make your CSR (corporate social responsibility) dollars do double doody
  • Create IconsChoose your goal: where do you want to end up, and work back from thereSource the softwareCreate your Crowd Mobilize!
  • Building legitimacyEvent-basedTurn donors into ambassadorsExpand your donor list – 55% of those who contribute to a peer-to-peer fundraising campaign are new donors
  • If this wasn’t already clear—your online fundraising is part of a bigger marketing/ fundraising plan and in an ideal state will create synergy with that plan. You use traditional marketing to promote your online fundraiser, and the online fundraiser will build brand recognition (and funds) to encourage people to fund you independently through other channels in the future
  • Preparation—Just because it’s online doesn’t mean it’s free and easy. Prepare for your success just as you would with any other fundraiserNote the arrows pointing out. Work does not stop when you Go Live—then you need to reach out beyond your core supporters and help get the actual funds
  • MVP—maybe most of you recognize this as “Most Valuable Player” and in many ways this mentality will be most valuable to you, but in this case it refers to the “minimum viable product,” or the simplest solution you can create and still have it fulfill you needs. We have a lot of people who come to us with a lot of so-called requirements that are based on their intuition, and we always tell them that a huge upside of the internet is that it is dynamic—start small, start with something simple and test it to get feedback from the people you’re targeting, and then build out from there. You always have the ability to change elements, and change them quickly, if you discover something isn’t working for you
  • Finally, follow up. This is a great opportunity to work on stewardship. You have brought in new donors, now keep them engaged. First, say Thank you. Little gestures make a big difference. From there, keep them updated on what’s happening with the campaign they donated to so that they continue to feel informed, involved, and invested
  • Final thoughts: the upside here is huge, and getting started is easy. Don’t be intimidated by the options. Start with a single focus and build out slowly and before you know it you’ll have your own unique online presence and a constantly expanding list of new donors and contacts
  • How a nonprofit can survive and thrive in the world of crowd collaboration

    1. 1. How a Nonprofit can Survive and Thrive in the World of Crowd Collaboration February, 20, 2014 #FGWebinar
    2. 2. Presenters Dan Fonseca Georgia Wright-Simmons • Senior Business Development Associate at Launcht • Marathon runner (Boston 2014) • Originally from Iowa • Inbound Marketing Coordinator at FirstGiving • Musician • Thinks trail mix is tasty #FGWebinar
    3. 3. ―What we face now is a pace of change that is unprecedented. Major innovations that used to change our lifestyles maybe once or twice in a generation, we’re seeing that now almost on an annual basis. So what needs to be top of mind for all [non-profits], no matter how established their brand is, is to stay relevant among our [donors]. We have to think about how the lives of our end users are changing, whether that end user is a consumer, a patient, a doctor or anyone else. And to remain relevant we need to be new ecosystem.” — Kim Kadlec Worldwide Vice President, Global Marketing Group Johnson & Johnson Quoted in ZMOT #FGWebinar part of their
    5. 5. Why Multichannel Matters: People Give in Many Different Ways Give Online Checkout Donations 52 53 51 47 Give in Response to Direct Mail 40 42 52 44 40 27 22 10 Generation Generation Y X Boomers #FGWebinar Matures All stats from Blackbaud report unless otherwise noted
    6. 6. Misconceptions • Generation Y is NOT selfish and should not be discounted • Using crowdfunding technology is not a niche restricted to ―hipsters‖ and ―artists‖ • Online fundraising is NOT the end of traditional fundraising • Online fundraising is NOT a panacea #FGWebinar
    7. 7. ONLINE FUNDRAISING Percent Increase from 2011 to 2012 Percent of Total Donations Percent Increase from 2011 to 2012 7% 10.7% Online Giving Overall Giving 1.7% 93% Online #FGWebinar Other Sources *Other sources include major gifts, annual fund, checks, telephone, direct mail, and event
    8. 8. Benefits of Online Fundraising • Online fundraising improves your transparency, showcasing the depth and breadth of what you do • Online fundraising gives donors a sense of agency—they have the power to choose where their money goes • People feel a stronger connection to the projects they fund than to organizations in general • Crowdfunding and Peer-to-peer fundraising create avenues for peer endorsement, which builds trust with new donors • The Cloud creates endless opportunities for donor entry • Fundraisers build engagement beyond donating • Online fundraising is very cost-effective for your organization • It is easily quantifiable and trackable #FGWebinar
    9. 9. What ARE crowdfunding and peer-to-peer fundraising? #FGWebinar
    10. 10. Crowdfunding: Build your base Major Donors Recurring & Annual Donors Occasional Donors & Event Participants #FGWebinar
    11. 11. Crowdfunding Opportunities • Connect members of an existing community • Umbrella organization giving small associated nonprofits access to a larger donor pool Benefits: • Surface new projects, connecting money with ideas beyond email lists • Putting small nonprofits on a big platform #FGWebinar
    12. 12. Crowdfunding Opportunities • Breaking annual fund into more concrete and interactive projects Benefits: • Connect young and new donors with projects they identify with in a very concrete way • Significantly increase clickthrough on email outreach: UVMStart had a 14% clickthrough on email outreach about their crowdfunding platform #FGWebinar
    13. 13. Crowdfunding Opportunities • Initiative-based fundraising • Based around specific fundraising efforts, with the goal of increasing transparency Benefits: • Connecting donors with impact rather than with mission • Giving donors a sense of control over where their dollars go #FGWebinar
    14. 14. Crowdfunding Opportunities • Brands crowdsource where their philanthropy dollars go Benefits: • Philanthropy dollars do double duty, marketing the company and creating positive associations • Brings attention to brand’s connections with non-profits #FGWebinar
    15. 15. Three Steps to Getting Setup 1. Choose which strategy makes the most sense for your organization and initiatives 2. Structure your site and populate it with content 3. Reach out to top supporters—ask them to create campaigns on your site or be your champions: the first to donate and share #FGWebinar
    16. 16. Peer-to-peer Fundraising: Increase Engagement Using a Specific Event Fundraisers Recurring Donors & Event Participants Occasional Donors #FGWebinar
    17. 17. Peer-to-peer Fundraising Blackbaud #FGWebinar
    18. 18. 4 problems personal peer-to-peer fundraising page solve for your nonprofit 1. 2. 3. 4. Lack of engagement on a supporter’s behalf Lack of exposure to new networks Not meeting fundraising goals Poor job marketing the brand #FGWebinar
    19. 19. Peer-to-Peer Screenshot #FGWebinar
    20. 20. Steps for Getting Started A nonprofit ready to take advantage of peer-topeer fundraising will have the following: 1. A strong supporter base 2. A peer-to-peer fundraising worthy event • • Traditional endurance events “Thons” – Bowl-a-thon, dance-a-thons, etc. 3. Information to arm the fundraiser with • Logos, email templates, best practices, mission updates, etc. 4. The right peer-to-peer fundraising platform #FGWebinar
    21. 21. Crowdfunding / Peer-to-Peer? Making a Decision Crowdfunding: Peer-to-Peer: • Cause and Project Based • Event Based • Bring in new donors • Increase engagement of top supporters • Provide depth and breadth • Focused on a single cause • You control your message • Supporters share your message #FGWebinar
    22. 22. PLANNING FOR SUCCESS What was once a message is now a conversation between funders and the organizations they support #FGWebinar
    23. 23. Equal Thought, Not After Thought: Creating a Holistic Strategy • Integrate with your current marketing plan #FGWebinar
    24. 24. Equal Thought, Not After Thought: Creating a Holistic Strategy Crowdfunding ≈ 1-3 months of preparation Identify top supporters Choose a worthy event and build a platform Equip your campaigns with useful materials Help Initial campaigns plan outreach Reach out to donors before launch Peer-to-peer fundraising ≈ 2-4 months of preparation #FGWebinar Go Live
    25. 25. Equal Thought, Not After Thought: Creating a Holistic Strategy Be Dynamic: Perfect is the Enemy of Good Collect Data Start with an ―MVP‖ #FGWebinar Iterate based on Data
    26. 26. Equal Thought, Not After Thought: Creating a Holistic Strategy • Follow Up Thank you! #FGWebinar
    27. 27. Online fundraising has the potential to turn small victories into big wins ―The average donor gives $50 while the average fundraiser raises about $500‖ Donor $ Network #FGWebinar
    28. 28. Wrapping it all up! • Multichannel approach is key • Crowdfunding is great for project based initiatives • Peer-to-peer fundraising works well with event based initiatives • Planning is key. Budget 1-2 months for crowdfunding campaigns and 3-4 months for peer-to-peer campaigns • Keep them engaged. Thank them and keep in touch. #FGWebinar
    29. 29. Questions? #FGWebinar
    30. 30. Be a part of our communities Facebook: Twitter: @firstgiving Blog: Facebook: Twitter: @launcht Blog: #FGWebinar
    31. 31. Interested in learning more? FirstGiving Contact our Online Fundraising Consultants • Email: • Telephone: 617 542 0010 x 4 Launcht Contact our team for more information • Email: • Telephone: 617 765 2000 #FGWebinar
    32. 32. Thank you! • Georgia Wright-Simmons – Senior Business Development Associate – Launcht – • Dan Fonseca – Inbound Marketing Coordinator – FirstGiving – #FGWebinar