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The Future is Now: Tomorrow’s Fundraising Models Starting Today


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Online fundraising has changed tremendously over the past decade. The importance of social, mobile, and crowdfunding mean that what worked before might not work in the future. This session will focus on today's proven best practices and emerging online giving opportunities. We'll be showing real examples from real nonprofit organizations leveraging the real next generation of online fundraising options.

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The Future is Now: Tomorrow’s Fundraising Models Starting Today

  1. 1. The Future is Now: Tomorrow’s Fundraising Models Starting Today #14NTCFuture Sarah Janczak Miriam Kagan Steve MacLaughlin David J Neff
  2. 2. Agenda Slide 1#14NTCFUTURE Intros Market Trends Future Fundraising Models Organization and community-driven giving days Grassroots, bottom-up initiatives Corporate matters Q&A
  3. 3. Sarah Janczak, @sejanczak Senior Associate, PwC, @PwC_Advisory Slide 2#14NTCFUTURE • First year at NTC: 2009 • Current nonprofit passion: Salvage Vanguard Theater • Most worried AND excited about for our industry: acceleration rate of how we interact with technology
  4. 4. Miriam Kagan, @miriamkagan Senior Fundraising Principal, Kimbia, @kimbiainc Slide 3#14NTCFUTURE • First year at NTC: 2009ish • Longest-supported nonprofit: The Wild Animal Sanctuary • Most worried AND excited about for our industry: data, data, analytics.
  5. 5. Slide 4#14NTCFUTURE
  6. 6. Steve MacLaughlin @smaclaughlin Director, Idea Lab at Blackbaud Author, speaker, and NTEN board member Slide 5#14NTCFUTURE • First year at NTC: 2008 • Longest-supported nonprofits: Indiana University, The Salvation Army, Cornell Lab of Ornithology, and Room to Read • Most worried AND excited about for our industry: The growing gap between nonprofits that do online giving really well and those that don’t.
  7. 7. David J. Neff @daveiam Author, TEDx Speaker, Digital Strategy at PwC, Founder at Lights. Camera. Help. @npfilm Slide 6#14NTCFUTURE • First year at NTC: 2006ish • Longest-supported nonprofits: The American Cancer Society, Movember, Best Friends Animal Society and MLFNOW • Most worried AND excited about for our industry: Changing demographics, needed consolidations and idiots starting redundant nonprofits.
  8. 8. The Trends Slide 7#14NTCFUTURE
  9. 9. Where are we? Slide 8#14NTCFUTURE Source: Blackbaud 2013 Charitable Giving Report
  10. 10. Where are we? Slide 9#14NTCFUTURE Source: Blackbaud 2013 Charitable Giving Report
  11. 11. Where are we? Slide 10#14NTCFUTURE Source: Blackbaud 2013 Charitable Giving Report
  12. 12. Where are we? Slide 11#14NTCFUTURE Source: Blackbaud 2013 Charitable Giving Report
  13. 13. Where are we? Slide 12#14NTCFUTURE Source: Blackbaud 2013 Charitable Giving Report
  14. 14. Where are we? Slide 13#14NTCFUTURE
  15. 15. Giving Days Slide 14#14NTCFUTURE
  16. 16. Giving Days: What Are They? • A time-limited (in most cases 12- 24 hours) online fundraising competition • Bringing together your communities (donors, participants, advocates, • alumni, corporate partners, etc) • Raising money for your community, nonprofits, programs, institutions • A single online donation campaign • Driven by a sense of urgency around matching funds and/or prizes Slide 15#14NTCFUTURE
  17. 17. Giving Days: Why Do They Work? • Increase revenue from a new revenue stream (across channels)-it’s not just online • Attract new donors and appeal to more hands-on fundraising demographic • Generate buzz and excitement in the community, with sponsors, and on social media • The long-tail effect: successful days may inspire major donors to give matches, endow future programs, etc • Increase lapsed participant, donor, alumni participation-new exciting way to engage Slide 16#14NTCFUTURE Dean’s reception held by Columbia College, one major donor was so excited by the results of giving day he enthusiastically declared he was going to match the $1.2 million raised by Columbia College that day During a Dean’s reception held by Columbia College, one major donor was so excited by the results of the prior year giving day he enthusiastically declared he was going to match the $1.2 million raised by Columbia College that day.
  18. 18. Giving Days: Success Requires Planning • As with any program or campaign, Giving Days require organizations to invest resources and time to plan, execute, and follow-up. The rules of good marketing still hold true. Slide 17#14NTCFUTURE
  19. 19. Giving Days: Will it Work for Me? • Nonprofits and communities across a wide variety of verticals are getting started, with Foundations and Higher Ed leading the way. Slide 18#14NTCFUTURE
  20. 20. Giving Days: Foundations • Communities Foundation of North Texas Raises Over $25 MILLION, 75K+gifts IN 24 HOURS. Slide 19#14NTCFUTURE
  21. 21. Giving Days: Higher Ed • Columbia University raises Nearly $8 Million from over 9.5K donors in 24 hours. (with 31% online conversion rate) Slide 20#14NTCFUTURE
  22. 22. Giving Days: Give Local America Slide 21#14NTCFUTURE May 6, 2014 Foundations and Communities across the nation: local and national sponsor matches Expected to recruit 20-60% new donors for participating organization
  23. 23. Giving Days: How do I get started? • Consider the Giving Day Model that may work for your organization: program or fund-centric? Affiliate or chapter-centric? Around a specific event or milestone? • Reach out to your local Community Foundation: are you on their Giving Day list? • Approach a major donor or major donor prospect, corporate partner or sponsor with innovative match offer • Find the right technology partner • Plan Slide 22#14NTCFUTURE
  24. 24. Alternative Funding Slide 23#14NTCFUTURE
  25. 25. W Alternative Giving Models Slide 24#14NTCFUTURE Huh? We will cover the following: • Crowdshaped Fundraising • Incubators/Accelerators • Pitch Contests
  26. 26. W Crowdshaped Fundraising Slide 25#14NTCFUTURE What does that even mean? Commonly referred to as crowdfunding. However this has started to change. Evolving to crowdshaping. Not just crowdfunding. It’s the collective effort of individuals who network and pool their money, usually via the Web, to support efforts initiated by other people or organizations. Crowd funding is used in support of a wide variety of activities, including disaster relief, citizen journalism, support of artists by fans, political campaigns, startup company funding, films or free software development, inventions development and scientific research.
  27. 27. W Crowdshaped Fundraising Slide 26#14NTCFUTURE 3 Billion in the crowdfunding industry in 2103. 66 million dollars raised for arts projects in 2011 through crowdfunding. Grew around 100% in 2013. $93 billion dollar market by 2025. In the last 5 years sites have grown from a handful to over a 1,000.
  28. 28. W Crowdshaped Fundraising Slide 27#14NTCFUTURE
  29. 29. W Incubators/Accelerators Slide 28#14NTCFUTURE What does that even mean? Let’s steal a great idea from the for-profit/start up community. It’s the idea that some companies and great ideas need a quick push out the gate. They need a place that will give them access to funds, brains, legal help, office space and more. Here’s how that can work: 1.An Accelerator identifies high growth potential organizations. 2.They vet them carefully. 3.Then they help them subscribe to the financial and human capital needed to execute their growth plans.
  30. 30. W Incubators/Accelerators Slide 29#14NTCFUTURE SVP with 2700 partners in 32 cities in 6 countries who have helped 500+organizations. SVP has giving $46.5 million. Cost in EU of setting up a business incubator is just under € 4 million. 76% are nonprofit in the EU. Points of Lights has committed $400,000 in investment across 34 teams. Innovation+ with Greenlights Points of Light
  31. 31. W Pitch Contests Slide 30#14NTCFUTURE What does that even mean? Let’s steal a great idea from the for-profit/start up community. It’s the idea that some companies and great ideas need a quick purely financial push. They need a place that will give them access to funds and quickly. That’s Fast Pitch event. Here’s how that can work: 1.Vetted finalists will have 3-5 minutes to pitch a panel of judges. 2.They will also pitch the audience. 3.A variety of cash awards totaling are awarded among the team. 4.Each judge brings their own $$ and the audience can donate as well.
  32. 32. W Pitch Contests Slide 31#14NTCFUTURE Philantropitch Mashable Social Good Pitch Caravan Studios No solid data on size of market. Varies between $5k - $100k. Some have no prize, just opportunity to reach. funders/partners in audience. Some accelerators end in a pitch day.
  33. 33. W Pitch Contests Slide 32#14NTCFUTURE
  34. 34. W How do I start? Slide 33#14NTCFUTURE 1) Do your research. Research fees, credit card providers, time limits and the legality of your project. Get real about your total costs. 2) Talk to your existing crowd. Are they interested in this? Conduct a survey. Ask on social channels. Listen first. 3) Make a great video. Put a face, voice and feel to your campaign. Stick with that feel throughout your setup and marketing. 4) Plan perks people want. What incentives drive your crowd? What are your thank you gifts? Physical or digital? 5) Create multiple entry points. Not everyone has $45 to spare. What will you do for folks who chip in $15? What if they give $10,000?
  35. 35. Corporate Giving: Or, the Dark Side is Not Really That Dark Slide 34#14NTCFUTURE Flickr: ynnil
  36. 36. Corporate Giving: The Facts Slide 35#14NTCFUTURE 72% 15% 7% 6% 2012 Contributions by Source Individuals Foundations Bequests Corporations -10 -5 0 5 10 15 Individuals Foundations Bequests Corporations Annual Percentage Shift in Charitable Giving 2011-2012 Percentage of Increase Total Charitable Giving in the US in 2012 = $316.23 Billion *Source: Giving USA 2013
  37. 37. Corporate Giving: Types of Partnerships Assess your organization’s needs to find the type of corporate gift that’s right for you. • In kind & product donations • Dollars for Doers & matching gift programs • Corporate community fundraisers • Grants & old fashioned donations Slide 36#14NTCFUTURE Photos from NVIDIA Project Inspire 2011, $380,000 in materials & 1500 volunteers donated to Full Circle farm.
  38. 38. Corporate Giving: Find the Right Fit Corporations have unique strategic initiatives tied to their charitable outreach programs. Be strategic about connecting your mission to the right giving programs. • Start local, then search national programs • Your board is your best resource • Prepare the right data and testimonials to back up your ask Slide 37#14NTCFUTURE Flickr: Choconancy1
  39. 39. Corporate Giving: How to Approach Connecting with a Corporate sponsor is more than a simple ask, it’s building a relationship. • Know your audience • Initiate contact casually • Personalize the ask Slide 38#14NTCFUTURE Flickr: rainy city
  40. 40. Corporate Giving: Maintain a Relationship Like any important donor relationship, corporate sponsorship takes effort to maintain. • Track and report on the success of your funding • Spread the word about your sponsor’s generosity • Cultivate a pro-corporate culture among your staff & board through transparency and openness • Understand the opportunity your organization brings your sponsor, along with gratitude for their involvement Slide 39#14NTCFUTURE Flickr: Matthew Burpee
  41. 41. Corporate Giving: Who Gives the Most? Slide 40#14NTCFUTURE 1. 2. 3. 4. 5. Community development, Financial education, affordable housing, and environmental stewardship. Hunger relief & healthy eating, sustainability, women’s economic empowerment. Economic development, health, education. Education, veteran’s services, economic development. Education, health, environment – biodiversity & conservation. The top five most charitable companies in the US in 2012* along with their strategic initiatives: *Source: The Chronicle of Philanthropy
  42. 42. Corporate Giving: Other Resources • National Council of Nonprofits Corporate Sponsorship Toolkit type/toolkits/corporate-sponsorship-toolkit • Corporate Giving Online, Foundation Center database of corporate donors • Business 4 Better Conference & Exhibition, a community that helps facilitate nonprofit & corporate partnerships • IEG, Sponsorship Resources & Consulting Slide 41#14NTCFUTURE
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