Social Network Fundraising: Facts, Myths, and Strategies that Work

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Social Network Fundraising: Facts, Myths, and Strategies that Work

  1. 1. Social Network Fundraising:Facts, Myths, and Strategiesthat Work#12NTCSocialNetJon Biedermann
  2. 2. Social Network Fundraising: Facts & MythsThe 8,000 lb. fundraising gorilla? Social Network Fundraising: Facts & Myths Slide 2
  3. 3. Social Network Fundraising: Facts & Myths 5% • .003% • 6%**July 2011 NCDC Dimensions Article by Jon Biedermann, VP Fundraising Solutions, SofterWare, Inc. Social Network Fundraising: Facts & Myths Slide 3
  4. 4. Social Network Fundraising: Facts & MythsOnline Giving 5%-7%* of total USA givingOther Sources in 2010 was online *Various Sources Social Network Fundraising: Facts & Myths Slide 4
  5. 5. Social Network Fundraising: Facts & MythsOnline Giving Online giving growing 30% per year. Could reachOther Sources 33% in 7 years Social Network Fundraising: Facts & Myths Slide 5
  6. 6. Social Network Fundraising: Facts & Myths From 2007- June 2011, over $35m* raised through FaceBook Causes ($7.7m per yr. average) *Causes Advertising Social Network Fundraising: Facts & Myths Slide 6
  7. 7. Social Network Fundraising: Facts & Myths From 2007- June 2011, $1.2 trillion* total raised. For every dollar raised on FaceBook, $33,000 raised via.003% other means. *2011 Giving USA Foundation Report Social Network Fundraising: Facts & Myths Slide 7
  8. 8. Social Network Fundraising: Facts & Myths 2010: 35% raised less than $1,000 on Facebook. Only 0.4% raised more than $100,000.*.003% *2011 NTEN Nonprofit Social Network Benchmark Report Social Network Fundraising: Facts & Myths Slide 8
  9. 9. Social Network Fundraising: Facts & MythsAverage size of FaceBook following of0.4% raising more than $100,000: 99,91130% of above dedicate 2 + staff tomanaging their social networks *2011 NTEN Nonprofit Social Network Benchmark Report Social Network Fundraising: Facts & Myths Slide 9
  10. 10. Social Network Fundraising: Facts & MythsAverage age of typical donor around 60. Direct mail - 68.* Only 6%** of Americans 65 or older use FaceBook or other social network sites *Chronicle of Philanthropy: philanthropy.com/article/Direct-Mail-Beats-Predictions/62859 **Pew Research, June 2011: http://bit.ly/maossa Social Network Fundraising: Facts & Myths Slide 10
  11. 11. Social Network Fundraising: Facts & MythsNonprofit Goals for Social Networks:• 75% report goal is to “engage supporters”• 73% report goal is to “grow membership”.Fundraising is at 65%. Even fewer (56%) statefundraising as a goal for the next year. *2011 NTEN Nonprofit Social Network Benchmark Report Social Network Fundraising: Facts & Myths Slide 11
  12. 12. Social Network Fundraising: Facts & MythsBudget, Staffing and Resources52% of nonprofits have no formal budget for socialnetworks; just 4% allocate more than $50,000 annually.86% commit some staff time to social networks, withthe majority (61%) allocating a quarter of a full-timeemployee equivalent (FTE). *2011 NTEN Nonprofit Social Network Benchmark Report Social Network Fundraising: Facts & Myths Slide 12
  13. 13. Social Network Fundraising: Facts & Myths Why so little raised on FB? 1.Majority of donors not on FB*. For every 110 FaceBook “likes”, a nonprofit has 1,000 email subscribers** 2.Donors don’t equate FB with fundraising* 3.Use FB to interact with younger folk (son, grandkids, etc.)* *2011 Giving USA Foundation Report **2011 M+R and NTEN eNonprofit Benchmarks Study Social Network Fundraising: Facts & Myths Slide 13
  14. 14. Social Network Fundraising: Facts & MythsThe 8 lb. fundraising monkey. Social Network Fundraising: Facts & Myths Slide 14
  15. 15. Social Network Fundraising: Facts & MythsWhile fundraising via online social networks is slowly growing, not enough donors currently visit these sites. Should nonprofits abandon these tools? NO! Social Network Fundraising: Facts & Myths Slide 15
  16. 16. Social Network Fundraising: Strategies That Work Today is Environmental Awareness Day!They are great tools to combine with website, email, direct mail, etc.. Social Network Fundraising: Facts & Myths Slide 16
  17. 17. Social Network Fundraising: Strategies That Work Today is Environmental Awareness Day!Staff resources may dictate a more focused strategy. Social Network Fundraising: Facts & Myths Slide 17
  18. 18. Social Network Fundraising: Strategies That Work Percent of Nonprofit with presence on:89%* 57%* 30%* 47%* • Build close relationships with closed groups • Great advocacy/awareness tools • Low cost if focused on one or two outlets *2011 NTEN Nonprofit Social Network Benchmark Report Social Network Fundraising: Facts & Myths Slide 18
  19. 19. Social Network Fundraising: Strategies That WorkSocial Network member community growth – 2010-2011: 161%* 2%* 265%* 504%* *2011 NTEN Nonprofit Social Network Benchmark Report Social Network Fundraising: Facts & Myths Slide 19
  20. 20. Social Network Fundraising: Strategies That Work If the goal is to increase fundraising results and expand client reach and base,tap into other people’s social networks! Why people give: 50% say “A friend asked me.” Social Network Fundraising: Facts & Myths Slide 20
  21. 21. Social Network Fundraising: Strategies That Work(formerly Kintera) Peer-to-peer online fundraising, combined withonline social networks, is a potent fundraising combination. Social Network Fundraising: Facts & Myths Slide 21
  22. 22. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 22
  23. 23. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 23
  24. 24. Social Network Fundraising: Strategies That Work“Important legislation “Meet our Is being voted on. Executive Director!” Please contact your “Join us at the representative.” The Mission Land Conservation Rally!”“Thank you for is the “Did you knowyour donation!” Message driving a hybrid reduces your carbon footprint “Show the world you care by 45%?” with our t-shirt!”“Our Walk-a-thon is coming up. Help us reach our goal?” Social Network Fundraising: Facts & Myths Slide 24
  25. 25. Social Network Fundraising: Strategies That Work The Mission is the Message“Our Walk-a-thon is coming up. Help us reach our goal?” Social Network Fundraising: Facts & Myths Slide 25
  26. 26. Social Network Fundraising: Strategies That Work Your supporter“I’m walking to protect the environment. Help me reach my goal!” Social Network Fundraising: Facts & Myths Slide 26
  27. 27. Social Network Fundraising: Strategies That Work “I care about this “I care about you important cause!” so I’ll help!” Your Friend, supporter Your Family, ColleaguNonprofit e Family, friends, colleagues respond due to personal affinity for supporter. Social Network Fundraising: Facts & Myths Slide 27
  28. 28. Social Network Fundraising: Strategies That Work “This is a very “Who are you?” important cause!” ? Friend, Your Family, ColleaguNonprofit e Without your supporter, donors don’t know you. Social Network Fundraising: Facts & Myths Slide 28
  29. 29. Social Network Fundraising: Strategies That Work “I endorse this “You’re so great! important cause!” Here’s $100!” Friend, Family, Your Colleagusupporter e Supporter lends his/her “brand”. Social Network Fundraising: Facts & Myths Slide 29
  30. 30. Social Network Fundraising: Strategies That WorkSupporter becomes the message. The “hero” of the landing page. Social Network Fundraising: Facts & Myths Slide 30
  31. 31. Social Network Fundraising: Strategies That Work Friend, Family, Colleagu eThey like and trust your supporter, which leads to donation. Social Network Fundraising: Facts & Myths Slide 31
  32. 32. Social Network Fundraising: Strategies That Workbafound.donorpages.com/2011ARTERIALCHALLENGE bafound.donorpages.com/TAYLORWALK Social Network Fundraising: Facts & Myths Slide 32
  33. 33. Social Network Fundraising:Strategies That Work bafound.donorpages.com/BRAINPOWER Social Network Fundraising: Facts & Myths Slide 34
  34. 34. Social Network Fundraising:Strategies That Work bafound.donorpages.com/teamcindy2011 Social Network Fundraising: Facts & Myths Slide 35
  35. 35. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 36
  36. 36. Social Network Fundraising: Strategies That Work 4 donors to 1 fundraiser ratio is considered OK. 7 to is considered good. Ratios for DonorPages client events sites reach 12 or 14 to 1.In Team Cindy’s case, 536 donors helping 18 fundraisers – thats nearly a 30 to 1 ratio! That averages out to $88.00 per donation. Social Network Fundraising: Facts & Myths Slide 37
  37. 37. Social Network Fundraising: Strategies That WorkThis fundraiser’s page had a 53 to 1 donor/fundraiser ratio. Her page averaged $110 per donation. Social Network Fundraising: Facts & Myths Slide 38
  38. 38. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 39
  39. 39. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 40
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  41. 41. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 42
  42. 42. Social Network Fundraising: Strategies That WorkPeople using online tools raise 6x more then those who don’t. Twitter users raise 10x more then those not using Twitter. But fewer then half of constituent fundraisers ask their online social network when fundraising. They use email or other means. Social Network Fundraising: Facts & Myths Slide 43
  43. 43. Social Network Fundraising:Strategies That Work • Too busy – no time • Anxiety about asking for money • Too shy – not good with words • Have to handle cash or checks • Don’t have tools or know-how • Many leisure distractions • Other reasons? Social Network Fundraising: Facts & Myths Slide 44
  44. 44. Social Network Fundraising:Strategies That Work • Much less time • No “face to face” ask • Provide a message they can personalize • Easy posting to FaceBook & Twitter • Online Donations – no checks! • Friendly Competition & Recognition Social Network Fundraising: Facts & Myths Slide 45
  45. 45. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 46
  46. 46. Social Network Fundraising:Strategies That Work Reports on site usage and donations. Social Network Fundraising: Facts & Myths Slide 47
  47. 47. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 48
  48. 48. Social Network Fundraising:Strategies That Work By type of Organization* *2010 DonorPages Reporting Social Network Fundraising: Facts & Myths Slide 49
  49. 49. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 50
  50. 50. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 51
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  60. 60. Social Network Fundraising: Strategies That WorkTypes of Peer-to-Peer Online Fundraising Sites Nonprofit Managed Primarily Supporter Chosen NP purchases upfront Supporters choose NP* • DonorPages • FirstGiving • BlackBaud Sphere • Fundly (formally Kintera) • CrowdRise • Convio * Pay-as-you-fundraise. Can pay more to upgrade Social Network Fundraising: Facts & Myths Slide 61
  61. 61. Social Network Fundraising: Strategies That Work CostsVariable Factors: • Convio $$$$$ • BlackBaud Sphere $$$$1. Upfront costs (set-up) • DonorDrive $$$2. Annual Fees • Givezooks $$$3. Merchant rates (CC/ACH) • Fundly $$$4. Fixed per transaction costs • DonorPages (standard) $$$5. Additional surcharge rates • CrowdRise $$$6. Level of fundraising/Number • BlackBaud ETapestry $$ of Pages (fees may go up) • DonorPages (low upfront) $$ • DoJiggy $$ • FirstGiving $$ • Razoo $$ • Eventbrite $ Social Network Fundraising: Facts & Myths Slide 62
  62. 62. Social Network Fundraising:Strategies That Work Costs – Weigh all Factors Social Network Fundraising: Facts & Myths Slide 63
  63. 63. Social Network Fundraising: Strategies That Work Ease of Use/Feature SetEase-Of-Use Feature Set• FirstGiving • Convio• Razoo • BlackBaud Sphere• Eventbrite • Fundly• Active.com (activegiving) • DonorPages• CrowdRise • DonorDrive• DonorPages • Givezooks• DonorDrive • CrowdRise• BlackBaud ETapestry • BlackBaud ETapestry• Givezooks • FirstGiving• Fundly • Razoo• BlackBaud Sphere • DoJiggy• Convio • Eventbrite• DoJiggy • Active.com (Activegiving) Social Network Fundraising: Facts & Myths Slide 64
  64. 64. Social Network Fundraising: Strategies That WorkEase of Use Key Item: Integrate with Database Integrated: DonorPages to DonorPerfect Social Network Fundraising: Facts & Myths Slide 65
  65. 65. Social Network Fundraising:Strategies That Work Social Network Fundraising: Facts & Myths Slide 66
  66. 66. Social Network Fundraising:Strategies That Work Fundraisers Donors Social Network Fundraising: Facts & Myths Slide 67
  67. 67. Social Network Fundraising:Strategies That Work Fundraisers Donors Yoursupporter Friend, Family, Colleagu e Social Network Fundraising: Facts & Myths Slide 68
  68. 68. Social Network Fundraising: Strategies That Work Your supporter Friend, Your Family, ColleaguNonprofit e Treat them differently than someone who sought you out. Social Network Fundraising: Facts & Myths Slide 69
  69. 69. Social Network Fundraising:Strategies That Work  Tap into constituent social networks to fundraise  Empower constituents to be your fundraising army  Make it easier for constituents to promote your message on popular social networks  Reduce new donor acquisition expenses  Save time by integrating with your database  Encourage exponential, viral growth of your mission message & constituent community  Allows you to focus on donor stewardship while supporters help grow your donor base Social Network Fundraising: Facts & Myths Slide 70
  70. 70. Questions? About DonorPages:www.donorperfect.com/donorpages About DonorPerfect’s Consultant Program: www.donorperfect.com/partners jonb@donorperfect.com Social Network Fundraising: Facts & Myths Slide 71
  71. 71. Evaluate This Session!Each entry is a chance to win an NTEN engraved iPad! INSERT QR CODE HERE or Online at www.nten.org/ntc/eval Social Network Fundraising: Facts & Myths

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