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Nonprofit Social Network Fundraising


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This is a presentation by Justin Perkins, Director of Nonprofit Services at featuring research on Social Network Fundraising and use of new media for nonprofit marketing.

Published in: Technology, Business
  • Interesting
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  • The Social Network (Two-Disc Collector's Edition) ---
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  • Connected: The Surprising Power of Our Social Networks and How They Shape Our Lives -- How Your Friends' Friends' Friends Affect Everything You Feel, Think, and Do ---
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  • The Social Network ---
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  • this is such a great idea-work with Hospice and am trying to get them to see how useful social networking is, it is the way the world is going now.
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Nonprofit Social Network Fundraising

  1. 1. Fundraising in Social Networks? Justin Perkins Nonprofit Marketing Strategist [email_address]
  2. 2. Social Networking = Word of Mouth
  3. 3. Distributed Work <ul><li>10,000 people doing 10 minutes of work </li></ul><ul><li>=1,667 hours of work </li></ul><ul><li>= 42 weeks for one staffer </li></ul><ul><li>= 4 weeks for 10 staffers </li></ul><ul><li>= $30*1667 hours = $50,000 </li></ul><ul><li>Value of volunteer hour = $18 </li></ul><ul><li>(Value of volunteer time study: </li></ul>
  4. 4. From the Wayback Machine circa 1998
  5. 5. Nonprofit Websites Circa 1998
  6. 6. Broadcast Era Paradigm
  7. 7. Network-centric Paradigm
  8. 8. Social Media Tools
  9. 9. Social Networks & Human Needs <ul><li>The need to connect with others </li></ul><ul><li>The need to create, be creative </li></ul><ul><li>The need to have voice and influence </li></ul>
  10. 10. Online User Behavior Shifting <ul><li>Instant gratification </li></ul><ul><li>Short attention span </li></ul><ul><li>Customization </li></ul><ul><li>Informal, quick, personal </li></ul><ul><li>User-generated content & participation </li></ul>
  11. 11. Informal and Personal Web <ul><li>Rise of bloggers </li></ul><ul><li>Personal voice </li></ul><ul><li>Transparency and trust </li></ul><ul><li>3-way communication </li></ul><ul><li>A Facebook “Poke” might go further than a press release </li></ul>
  12. 12. Who Should Try Social Networking Campaigns? <ul><li>You have already maximized your email marketing strategies </li></ul><ul><li>You have lots of young, tech-savvy volunteers </li></ul><ul><li>You have huge email networks and budgets to experiment </li></ul><ul><li>You have dedicated staff for care and feeding </li></ul><ul><li>You have hip messaging </li></ul><ul><li>You’re willing to give up control </li></ul><ul><li>You have a recognized brand </li></ul><ul><li>You do local events </li></ul>
  13. 13. Care2 Today: Largest Do-gooder Social Network <ul><li>More than 10.5 million Care2 members are making a difference by: </li></ul><ul><li>Taking Action </li></ul><ul><li>Volunteering </li></ul><ul><li>Donating </li></ul><ul><li>Telling friends </li></ul><ul><li>Sharing news </li></ul><ul><li>Care2 helps nonprofits grow through introducing millions of Care2 members to nonprofits! </li></ul>
  14. 14. Care2 Nonprofit Partners
  15. 15. Be Prepared Are you ready to quickly reach several hundred thousand people who trust your organization?
  16. 16. Be Prepared for Your Katrina-like Moments <ul><li>It’s all about your “list”- starting with email </li></ul><ul><li>Care2 recruited 5000 new donors in 1 week </li></ul><ul><li>Raised $205k for American Humane </li></ul><ul><li>Also raised $150k from self-organizing Care2 members </li></ul>
  17. 18. Your “List” Mobile phone list Social media “friends” direct mail list Email list Phone list
  18. 19. Adults prefer contact via email Where do people spend most of their time at work? The inbox. Most people donate online while at work.
  19. 20. Email = Best Lever for Online Impact <ul><li>Efficient </li></ul><ul><li>Timely </li></ul><ul><li>Drive traffic precisely </li></ul><ul><li>Measurable </li></ul><ul><li>Controllable </li></ul><ul><li>Proven ROI for $ and Advocacy </li></ul><ul><li>Personal medium </li></ul><ul><li>One to one </li></ul><ul><li>One to many </li></ul><ul><li>Viral </li></ul><ul><li>Even Grandma uses it now! </li></ul>The value of an email address to a nonprofit is $9.50!
  20. 21. Power of Email vs. Social Networks for Fundraising <ul><li>In June of 2007, M&R helped Save Darfur raise $415,000 via email series to about 1 Million supporters in 10 Days </li></ul><ul><li>Over 1 year on Facebook Causes, Save Darfur raised $28,000 from nearly 1 million “friends”. </li></ul><ul><li>~ 3 cents per friend </li></ul><ul><li>Very few cases of replicable, profitable campaigns on Social Networks when investing staff time </li></ul><ul><li>Nonprofits raised $3 Million on Facebook Causes in 2008, but at an estimated cost of $300 Million to sector </li></ul>
  21. 22. Correlation of Email to Fundraising Nonprofit benchmark studies:
  22. 23. Majority of Online Fundraising via email Nonprofit benchmark studies:
  23. 24. Long, long tail of Facebook Causes <ul><li>Only .2% of Facebook Causes account for 40% of all money raised </li></ul><ul><li>Only 513/ 180,000 Causes have more than 20,000 supporters </li></ul><ul><li>Median donation is $.01 per Cause member </li></ul><ul><li>ROI on time invested is negative – estimate of 300 to 1 loss </li></ul><ul><li>Difficult to communicate with donors en-masse </li></ul><ul><li>Most Causes raise 58% of all donations from the top 5 donors – 20% from the top donor </li></ul><ul><li>If you can get 1% of an equivalent email list to donate, you should be able to raise 50-77 times more than on Facebook </li></ul>
  24. 25. Median dollars raised = $570
  25. 26. MySpace: a Place for Donors? Hint: the study reveals result similar to the “long, long tail of Facebook Causes” study. In other words, very few nonprofits have been profitable on social networks.
  26. 27. Social Networking isn’t Free or Easy Yes, the dream has a few kinks in it: <ul><li>There are very few successful super-organizers in the world </li></ul><ul><li>The good super-organizers are spread very thinly across over 1 million organizations and significant financial impact for any one organization is limited </li></ul><ul><li>Financial returns to orgs from Peer-to-Peer (social network) fundraising is insignificant for MOST orgs and not a scalable strategy </li></ul><ul><li>MOST donors are happy giving $50, feeling good, and getting on with life – they aren’t actively seeking to do more. </li></ul>
  27. 28. Opportunity Cost is a Real Cost, Folks! Total cost per email = $5.20 For any online marketing Determine Goals, Organizational Metrics and Track! Staff Salary + Benefits (+30%) Annual Email Subscribers $40,000 + $12,000 10,000 email addresses Set specific goals and a common metric to track organizational success!
  28. 29. Social Networks Fundraising & Advocacy ROI Calculator If you’re expecting to use social networks to raise money with minimal work, you can expect to see a -90% ROI against time spent by staff. This is a conservative estimate using widely published benchmarks for online marketing, and a conservatie hourly wage of $10/hr.
  29. 30.
  31. 32. Think like a Rockband
  32. 33. From Tweets to $250,000
  33. 35. Nonprofit Marketers’ Toolbox
  34. 36. Choose the Right Tool Sales Cycle
  35. 37. Cutting Through the Noise <ul><li>Huge email lists </li></ul><ul><li>Smart Guerilla marketing – leverage news </li></ul><ul><li>Constituent-centered communication </li></ul><ul><li>Efficient use of web presence and staff </li></ul><ul><li>Coordinated efforts across org silos </li></ul><ul><li>Data integration and targeting! </li></ul>
  36. 38. Old Nonprofit Paradigm <ul><li>If you build it, they will come </li></ul><ul><li>Crank out reports and press releases </li></ul><ul><li>Slap press releases on websites </li></ul><ul><li>Wonky, organization and issue-centric </li></ul><ul><li>Static </li></ul><ul><li>One-to-many </li></ul>wah wah, wah
  37. 39. New Paradigm <ul><li>Audience-centric </li></ul><ul><li>Story-telling </li></ul><ul><li>Search-engine optimized </li></ul><ul><li>Timed with the news </li></ul><ul><li>Creative, fun, personal, bloggie-style writing </li></ul><ul><li>Funky lamb-chops </li></ul><ul><li>Many-to-many </li></ul>
  38. 40. Sales Cycle Be conscious and realistic about the goals and possible outcomes for each tool that you use. What phase of the sales cycle are you serving?
  39. 41. Microsoft Instant Messenger & HSUS
  40. 42. Where it’s all headed: Data Integration & Targeting
  41. 43. Your “List” Mobile phone list Social media “friends” direct mail list Email list Phone list
  42. 44. Social Network Participation
  43. 45. Number of Friends/Contacts on Social Networks
  44. 46. Age of Constituents by Social Network
  45. 47. Breakdown by Gender
  46. 48. Employer Matching Gifts
  47. 49. 3 Key Takeaways! <ul><li>Be prepared for the big moment– be prepared to be lucky </li></ul><ul><li>Be everywhere you can be, but prioritize -- right tools for the right purpose </li></ul><ul><li>Set goals and track – don’t just keep up with the Joneses! </li></ul>
  48. 50. Contact Justin Perkins Director of Nonprofit Services [email_address] 303-475-4827 LinkedIn: For Nonprofit Marketing & Communications tips, visit Lots of Social Networking Case Studies in the archives.
  49. 51. Appendix
  50. 52. About Justin Perkins Justin Perkins joined Care2 in 2006 with an eclectic background as a social entrepreneur, accidental techie, new media marketing expert and former State water resources administrator for a major watershed in Colorado. Justin develops partnerships with nonprofits and customizes strategic campaigns for them to reach Care2's audience of 10 million members. He also develops new tools to help nonprofits with marketing and fundraising. Justin launched, Care2’s popular nonprofit marketing blog, as a way to share cutting edge case studies and best practices for nonprofit online marketing. He has an MBA from the University of Colorado, enjoys trail running & skiing, sells roasted nuts at the farmers markets on the weekends, and frequently writes & speaks at conferences about online marketing. Contact Justin if your nonprofit would like a free hour of online marketing consulting.
  51. 53. Care2 Helps Nonprofits Grow <ul><ul><li>Care2 members are a great resource for nonprofits: </li></ul></ul><ul><ul><li>Email list growth </li></ul></ul><ul><ul><li>Donor leads </li></ul></ul><ul><ul><li>Surveys & Research </li></ul></ul><ul><ul><li>Branding </li></ul></ul><ul><ul><li>Drive Traffic to Site </li></ul></ul><ul><ul><li>Education & Outreach </li></ul></ul><ul><ul><li>Online advocacy </li></ul></ul>
  52. 54. The Largest Ideal Audience for Nonprofit Advertising…
  53. 55. … full of Engaged Influentials, Online and Offline Care2 is an active online community. What makes them really special is their propensity to do more…
  54. 56. Links for more research
  55. 57. Main Ways that NPO’s Use Social Networks Goal Examples Success? Awareness & Outreach New programs, building buzz Yes Advocacy Passing legislation Some Fundraising Donations Minimal
  56. 58. Social Network Profile = Mini Website <ul><li>Social Network Profile: </li></ul><ul><li>Layout, design, optimization </li></ul><ul><li>Grow Friends list </li></ul><ul><li>Post content </li></ul><ul><li>Get people to do stuff </li></ul><ul><li>Brand control </li></ul><ul><li>It talks back at you </li></ul><ul><li>Competing w/ other profiles for attention </li></ul><ul><li>Website: </li></ul><ul><li>Layout, design, optimization </li></ul><ul><li>Grow email list </li></ul><ul><li>Post content </li></ul><ul><li>Get people to do stuff </li></ul><ul><li>Brand control </li></ul><ul><li>It talks back at you </li></ul><ul><li>Competing w/ other sites for attention </li></ul>
  57. 59. Social Network Profile vs. Website (Pros) <ul><li>Social Network Pros: </li></ul><ul><li>The tech platform is free </li></ul><ul><li>Located in connected audience </li></ul><ul><li>In context of connected friends </li></ul><ul><li>Info can spread easier </li></ul><ul><li>Posting content can be easier </li></ul><ul><li>Website Pros: </li></ul><ul><li>Tracking of performance </li></ul><ul><li>Customization </li></ul><ul><li>Control of brand </li></ul><ul><li>Optimize for goals </li></ul><ul><li>Higher conversion rates </li></ul><ul><li>More people using “Search” than Social Networks </li></ul><ul><li>Proven ROI </li></ul>
  58. 60. Social Network Profile vs. Website (Cons) <ul><li>Social Network Cons: </li></ul><ul><li>Hard to track important stats </li></ul><ul><li>Harder to customize & optimize </li></ul><ul><li>ROI unproven & costs deceiving </li></ul><ul><li>Lots of competition & noise </li></ul><ul><li>Managing multiple systems </li></ul><ul><li>Time-consuming </li></ul><ul><li>Less control </li></ul><ul><li>Website Cons: </li></ul><ul><li>Can be costly to do well </li></ul><ul><li>Most people aren’t surfing for nonprofit websites </li></ul><ul><li>Pace of technology hard to keep up </li></ul><ul><li>Requires technical staff or consultant </li></ul><ul><li>Driving traffic to website a challenge </li></ul>
  59. 61. Humane Society of the United States- Seal Campaign on MySpace
  60. 67. Oxfam America in MySpace: meeting people where they are
  61. 68. Care2 campaign on MySpace