Thank you so much for inviting me here today!I’m really excited to talk about the changing face of philanthropy. It’s so important understand and embrace the changes shaping our field and to use this information to improve ourselves and our organizations.So the first thing, I’d like to say is that YOU/WE are the changing face of philanthropy. As this Time Person of the Year cover said so eloquently 6 years agoWe control the Information Age. Welcome to your world!
Before we get started, it’s helpful to have a baseline so that we understand where we’ve been and where we’re going.According to Giving USA – total charitable giving was $298.42 BILLIONin 2011 - an increase of 4 percent over 2010.This can be attributed, at least in part, to the modest economic recovery underway after the prolonged recessionary period from late 2007 to mid-2009.The challenge is that from we are still not back to pre-recession giving levels of $300 billion, also as a percentage, giving has been stuck at about 2 percent of GDP for almost 40 years.
Couple this with the fact that the nonprofit marketplace is BIG. According to the National Center for Charitable Statistics there were 1,280,739 public charities in the U.S.
Welcome to the fundraising smack-down. With giving down or stuck at 2 percent of GDP and 1M+ nonprofits, we’re all competing for funds, for the attention of donors. It’s not a great way to live.
They only way we can succeed is by understanding and embracing the changes before us. AND, instead of fighting over the scraps, we need to ENLARGE the pie of potential donors AND help to UNLEASH GENEROSITY in ourselves and others.We also need to make the structural changes necessary to embrace our “new normal.”
So today, I want to dig in a little to 3 key trends that are changing the face of philanthropy. I also want to leave you with some key questions that you can take back to your organization and you grapple with the “New Normal.”Embrace technology and leverage it for giving – STRATEGICALLY!Embrace social giving.Personalizegiving options for your donors and make them feel like the unique, special and amazing people that they are!
Trend #1 that is changing the face of philanthropy is TECHNOLOGY.Raise your hand if you have a cell phone in your pocket or purse?Raise your hand is you’ve made a donation online?Raise your hand if you’ve made a donation via text?Raise your hand if you’ve dated online? Oops! Wrong presentation!The best fundraisers going forward will leverage technology to extend their work and bolster their success.But they will do it STRATEGICALLY instead of getting caught in “shiny object syndrome.”
So how much money was given online last year? Don’t look at the slide!
And it’s growing especially for smaller orgs.Source: 2011 Online Giving Report, Blackbaudhttp://www.blackbaud.com/onlinefundraising
It’s also important to note that according to the Online Giving Report from Blackbaud, In 2011, 87% of organizations had at least one online gift of $1,000 or more. So if you’re thinking that major gifts still only happen face to face, it’s just not true.Source: 2011 Online Giving Report, Blackbaudhttp://www.blackbaud.com/onlinefundraising
Still, online giving has NOT trended as fast as online banking and online shopping,And this is why you need to be VERY STRATEGIC in your approach to raising money online!Source: 2011 Online Giving Report, Blackbaudhttp://www.blackbaud.com/onlinefundraising
Before diving in… do your homework.Also, there is an order you should follow if you want to raise money online.
Website first!Your website should still be the hub of all your communication activities. Make it EAY for people to understand in 1 minute or less what you do.Next make it easy for people to donate.Also, make it easy for people to repurpose your content, i.e. if they seem something that they like on your site, make it easy for them to SHARE it with others.Finally, learn to write for the web! People don’t READ websites like they read text. When in doubt, remember that LESS is MORE!
98% of visitors to your website leave without making a donation!
Remember: Offline donors are looking for and vetting you online too!
Next, if your want to raise money online, you have to have someone to solicit.So build an email list.Also, buy a commercial email services platform. Do not use Outlook for blast emails.And, make it easy for people to subscribe. Put an email sign up on every page of your website.
This is true of events too. Always give folks a way to connect with you online!
One of the best tactics for both ACHIEVING YOUR MISSION and growing your email list is to engage in online advocacy. Here is an example of a current campaign being run by Emily’s List and MoveON. Again, the “ask” is very clear and they only ask for 4 pieces of information. I also like how they provide a brief video if you want to learn more about the War on Women. You can test whether adding video to your advocacy campaigns detracts or enhancing the sign-up process for users.
I know that some of you are probably thinking – my organization doesn’t DO POLITICAL advocacy. That’s ok. Here is a great example from America Cancer Society of an “advocacy” campaign called Join the Movement for More Birthdays. The KEY point here is that you can think of advocacy more broadly as a way to ENGAGE people in your work. (add definition)
Once you’ve mastered the basics, it’s time to wade into social media. There are SO many social networks out there that it is totally paralyzing. How should you choose which social networks to embrace?Go where your donors already are?Here is the trick about social networking. It’s a way to grow a community.However, and this is a big however, you don’t really own people who “like” you on Facebook until they join your list. So as you develop deeper relationships with people, try to bring them over to your list.
Twitter is a great tool but you won’t make much money with it.Use it if you have the capacity to use it.Twitter is great for seeing who is talking about your issue right now. It’s also good for reaching new audiences. When I first joined Twitter I found that it enabled me to connect with people – like journalists and key bloggers – who wouldn’t return my email. I’m not sure if that is true now that the medium is more mainstream. But you can try.
Here is one thing that I wish for every nonprofit. I wish that every nonprofit had a video to tell me what they do in 2 minutes or less. Here is an example of a great video from a nonprofit called Charity: Water – a nonprofit that brings water to people in the developing world - that makes a very strong and compellng case about what water really means and why it’s SO important for people to support this cause.
Finally, I know you’re hearing a lot about mobile these days. The speed of mobile adoption is really a fascinating phenomenon in our time.According to the International Telecommunication Union (ITU), we are likely to see the number of cell phone subscriptions across the globe hit 5 billion sometime in 2010!And of course, afficianados of mobile say that our phones will enable us to do EVERYTHING some day. I paid my first parking meter fee with my iPhone last week!In the last few years, mobile donations have been growing at a much faster pace than other donations channels when they were first introduced. For example, in 1998, the year after online donations first became a viable fundraising channel, $350,000 was raised via online donations. Compare that to this number: In 2009, the year after mobile donations were first introduced, more than $1.5 million in funds were raised via text-based giving. In 1999, after people had been donating funds online for three years, $1.1 million was raised via the online giving channel. In contrast, in 2010, the third year that donations could be made via mobile phones, a whopping $42 million was raised. So three years after text-based giving first became available, the mobile donation fundraising channel has already raised more than 30 times as many dollars as the online donation channel did when it was in its infancy.This is a testament to how quickly text-based donations are growing.
Here is a quick quiz, how many cell phone subscriptions were there in the world in 2012??• Ericsson (June 2012) believes global mobile penetration reached 87 percent in Q1 2012 and mobile subscriptions now total around 6.2 billion. However, the actual number of subscribers is around 4.2 billion, since many people have several subscriptions. how many cell phone subscriptions were there in the world in 2010?Don’t look at the screen.5 billion!
When people talk about mobile marketing and fundraising they are really talking about 3 different things. And, we can’t get into it all here but I want to give you a taste.You have 3 options when approaching mobile for fundraising. You can do a text to give campaign. However, it’s only an option if your charity has annual revenues greater than $500,000. And, the carriers limit the amount of the donations you ask for.Smart phone apps are another option but think about it. What would make your app so compelling that people would download it and use it regularly. You have to create something that has great utility for consumers, like google maps for driving directions or those all important games that my husband LOVES to play.If you’re dying to get into mobile now, a mobile website is probably the way to go because it will enable people to properly and effectively view your website via their phone. And, as you remember, your website is your home base on the web.With a mobile website, you can control the donation options and you can also share your content with people right when they want it.
The2rd trend that I want to talk about is social giving.Social giving is NOT new. Right?We have always raised money for family, friends, colleagues in need. However, technology has significantly enhanced our ability to reach many more people than ever before and it has significantly lowered the cost of peer-to-peer fundraising. It seems like every day I see a new social fundraising site. They all have funny names. Six Degrees, Crowdrise, pictured here, First Giving, Razoo, Fundly, and Rally and, of course, Causes on Facebook are just a few of the sites out there.Here is what is so cool about these sites, they enable anyone to become a fundraiser on their own. ---Social giving can be so powerful because, as you and I both know sometimes that MESSENGER is more important than the MESSAGE.There are 2 tricks with social fundraising.Finding the influencers in your network who are willing to help you spread the word. Finding a way to stay connected to people who give through friends and family – because they are not necessarily connected to your organization or even your cause. They are connected to their friends. Nonprofits, even those that don’t have missions that lend themselves easily to social engagement, need to find ways to enable social giving.In the future, in addition to being fundraisers, we are going to have to become FACILITATORS of others’ giving by encouraging them to spread the word and help move our causes forward.
Razoo is another site that lets anyone, anywhere become a fundraiser.
Causes on Facebook is another example of a social fundraising site.
Finally, and I have to admit, I’m not sure if this is a welcome trend or not, but charitable giving is becoming much more personal experience and I think this trend is likely to continue into the future. My daughter’s best friend Olivia showed up at camp this year with custom Nikes. I’m so out of it that I didn’t even know that you could customize Nikes.So my thinking is that If I can personalize my sneakers, why can’t I personalize my giving experience?Personalization or restricted giving is something we hate as fundraisers but I’m not sure that there is anything we can do about it.Find ways to MERCHANDISE what you do. Here is what I mean. I love Amazon. I feel like I have a personal relationship with them. EVEN though. I’ve never spoken to an Amazon.com rep. They use the power of segmentaiton and personalization to “speak” to me directly. They recommend books that are similar to ones I’ve already read.They ask for my recommendations on books I’ve purchased.Of course, this benefits them to because the create a virtuous cycle. I purchase more books, I enhance their referral engine.Donor’s choose does this too. As soon as I donate on their site. They feature a testimonial from me about why?
Donor’s choose is the gold standard for offering concrete and CUSTOMIZED giving opportunities to donors. Donors, especially younger donors, want more choices in how they give and what they give to. They want to really understand what their giving does and how it can be spent. It’s up to us to show them where there dollars go.
At my previous company, our members of our online community accrued points when they took certain actions on our site, like commenting on a blog post, forwarding a post, etc. We then gave them opportunities to redeem these butterfly points for very tangible donations to nonprofits.
Global Giving gives you’re an opportunity to give to really discrete projects and needs in the developing world.
Oxfam will even let you give the gift of poop!
And of course it goes without saying that sometimes the most personal thing that you can do for your donors is to simply say a genuine, heartfelt thanks!
Fundraising is hard and Fun and the landscape is changing so dramatically and, so thank you for making a difference in this world.Thank you for getting up every day and giving people an opportunity to share their time, talent and treasure with others.I salute you!
The Changing Face of Philanthropy - Camp Finance 2012
The Changing Face of Philanthropy Jocelyn Harmon Marketing for Nonprofits
6,200,000,000The number of cell phone subscriptions in 2012
Mastering Mobile – 3 Options• Text to Give• Smart phone apps• Mobile Websites
Questions for you?• What are your online fundraising goals?• How can you use technology to raise more money, acquire new donors and retain the ones you have?• What is your staff capacity for managing new media?• Do you have the basics in place, i.e. is your website and email list up to snuff?
Questions for you• Who are yourdonor fundraisers?• How are you enabling your best fundraisers to raise funds for you?• How are you staying connected to these evangelists for your cause who are connected to each other but aren’t connected to you?
3. Donor’s want to Personalize Their Giving Experiences.
Questions for you• How are you personalizing the giving experience for your donors by giving them options for how they express their generosity?• How are you drawing your donors closer to you by making them feel like the special, valuable and unique individuals they are?