Internet Strategies for Nonprofits


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Boston Fundraising Summit
Fall, 2009

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Internet Strategies for Nonprofits

  1. 1. New Opportunities in Online Fundraising <br />Presented by Professor Janine Jacques, Mount Ida College<br />Featuring:<br />Economic Impact, Academic Research<br />Social Networking, Social Vibe, Widgets & Online Raffling<br />
  2. 2. Agenda<br />Economy and Giving<br />Online Donor profile <br />Academic research<br />Social Networking <br />Web Metrics<br />Social Vibe<br />Widgets<br />Online Raffles<br />
  3. 3. Bureau of Labor Statistics consumer expenditure survey<br />
  4. 4. Charitable Giving USA<br />Charitable giving reached $307 billion in 2008 <br />A 5.7 percent drop from 2007 largest decline in recorded history<br />The second recorded decline since 1956<br />1974 donations dropped by 5.4 percent. <br />Two-thirds of public charities receiving donations saw decreases in 2008 <br />
  5. 5. Individual Contributions<br />Individuals contributions accounted for <br /> $229 billion<br />A decrease of 6.3 percent<br />
  6. 6. Who’s doing well…<br />Religious congregations and other religious organizations received an estimated $106.89 billion<br />35 percent of total giving<br />An increase of 5.5 percent<br />Religious gifts averaged $284<br />Median gift amount was $75. <br />
  7. 7. Who is not…<br />Social-services organizations raised 16 percent less than last year. <br />A poll of 228 such organizations (Giving USA) found that 54 percent reported an increase in need for their services in 2008. <br />
  8. 8. Internet Opportunities<br />Websites<br />Email Campaigns<br />Social Networking<br />Blogging<br />Youtube<br />Twitter<br />Online Auctions<br />NetRaffles<br />
  9. 9. Online Giving<br />$15.42 billion was given online to US charities in 2008. This is a 44% increase over 2007&apos;s online giving estimates<br />Online giving accounted for just over 5% of total giving to charities in the US during 2008 <br />A study of 1,350 nonprofits from Q1 2008 to Q1 2009 showed a 30% year-over-year growth in online revenue <br />
  10. 10. AMEX Survey<br />About two-thirds (65 percent) of Americans in this study gave to charity in the past year<br />6 percent gave online <br />The median charitable $50<br />Average online amount ($165)<br />Average offline amount ($174)<br />Two-thirds of donations were $100 or less<br />24% give between Thanksgiving to New Year&apos;s<br />
  11. 11. Internet Giving Benchmarking Analysis <br />Online giving is still small when compared to direct mail giving.<br />Online donors are younger and have higher incomes than traditional, primarily direct mail donors.<br />Online giving has become an increasingly significant source of new donor acquisition.<br />Online donors have slightly lower retention rates overall than traditional donors.<br />Online giving is not a strong renewal channel; every year, large numbers of online donors migrate away from online giving and to other channels, primarily direct mail.<br />Donors in the southwest and mountain regions of the United States are disproportionately more likely to give online.<br />
  12. 12. Online Audience<br />
  13. 13. Communicating with different age groups online<br />Email remains the most popular online activity for older internet users (64+) <br />Yet, email has loosing popularity with younger generations (18-32)<br />Generation Y (internet users age 18-32) communicate through social network sites<br />Teens use IM and Texting<br />
  14. 14. Who is winning the fundraising race?<br /> What’s the secret sauce?<br />
  15. 15. Obama - Online Fundraising Success<br />Campaign raised $750 million dollars<br />$500 million of which was raised online<br />Most donations were under $100<br />The average donor gave more than twice  <br />80 staffers focused on new media:<br />Online content<br />Outreach<br />Social Networking Site<br />3 million Facebook followers<br />500,000 Twitter followers<br />13 million e-mail subscribers<br />
  16. 16. Sam Graham-Felson,former director of blogging for Obama<br />Have a blog (<br />Hire a social media manager to craft content, email, and social networking strategies <br />More email addresses = more $$$. Focus on capturing email addresses<br />“Never point an email campaign message to your homepage—send users to an action page.” Personalized page asking for a donation, a comment to a blog, download a newsletter, or contact a Congressman<br />Be personal, authentic, trustworthy. Remember Please and Thank you <br />Review Data Analytics<br />
  17. 17. Katrina and Tsunami<br />Half of $487 Million donated to Katrina victims raised online<br />$252.5 Million raised online after Tsunami disaster<br />$5.83 billion, or 79% of disaster relief, contributed by individuals<br />
  18. 18. Antecedents to Donations<br />Trust<br />Perceived benefits<br />Attitude towards Nonprofit<br />Attitudes towards Nonprofit Organizations<br />Attitudes towards helping others<br />
  19. 19. Trusted Web Interface<br />‘Trust Engineering’ - Websites<br />Usefulness<br />Ease of Use<br />Benevolence<br />Competence<br />Integrity<br />Risk<br />Reputation<br />
  20. 20. Perceived Benefits<br />Direct benefits for themselves<br />Recognition among their social groups <br />Enhanced self esteem<br />Relief from guilt <br />Direct benefits for their family<br />
  21. 21. New Opportunities - Viral Marketing<br />Social Networking Sites - Facebook<br />Widgets - FirstGiving<br />Social Vibe<br />YouTube<br />Online Raffles - NetRaffle<br />
  22. 22. Facebook<br />Fan Page<br />Causes - audience they reach through Causes is typically younger and are often first time donors<br />
  23. 23. 10 Ten Facebook Causes<br />
  24. 24. Lupus Foundation<br />Increased Cause membership 584% in 6 months<br />Increased online donations in Facebook by 790% in the same time frame. <br />
  25. 25. Facebook Insight<br />
  26. 26. Social Vibe<br />
  27. 27.<br />
  28. 28.<br />™<br />Celebrities for Charity launched ™ in 2005<br />Internet based raffle system that utilizes patentedmethods and technology to enable celebrities and charitable organizations to legally conduct online raffles on a worldwide basis.<br />
  29. 29. Benefits of Online Raffles<br />Proven to generate more money than online Auctions.<br />Exponential return on investment (Time, Energy, Money)<br />Everyone contributes, not just winner of an auction<br />Capture email addresses from all donors<br />
  30. 30. 5 years of ™<br />Online raffles have consistently resulted in an average sale per transaction of $25.00. <br />Raffles can suit an size nonprofit and deliver Small, Medium or Large depending on the distribution, effort and prize.<br />
  31. 31. Small<br />Cystic Fybrosis Washington Redskins <br />$3,725<br />Courtside Celtics Tickets<br />$4,010<br />
  32. 32. Medium<br />Celtics Owners Opening Night<br />$43,057<br />Evens Celts Luxury Suite<br />$53,601<br />
  33. 33. Large<br />JeRod Super Bowl Ring<br />$169,931<br />One More Big Game<br />$187,937<br />
  34. 34. What we learned<br />Distribution<br />Strategic Partnerships with Corporations<br />Shorter Durations<br />Social Networking Opportunities<br />Remember the basics – Why people donate<br />Emphasize charitable giving <br />Emphasize personal benefits (the prize!)<br />
  35. 35. Prize<br />Produce a “Never in a Lifetime” <br />Can you buy this prize anywhere for any price? <br />If the answer is “no,” that’s a good start. The more unique the prize, the more likely you are to get superior results<br />Professional Athletes or Hollywood Celebrity memorabilia or meet-n-greets<br />
  36. 36. Where we are heading<br />Extra Large Raffles:<br />Lincoln Park<br />United State Equestrian Team<br />Packaged solutions<br />Raffle-in-box<br />Subscription based<br />
  37. 37. An example of our vision…<br />There are 61 million golf enthusiasts in the world<br />At auction a round of golf with Tiger Woods raised $425,000 <br />If just 0.5% of the 61 million golfers (305,000 golfers) purchase raffle tickets at the historical average of $25.00 per transaction, the amount raised would be $7,625,000. <br />The difference <br /> $7,625,000 - $425,000 = $7,200,000<br />
  38. 38. The Raffle Process<br />Celebrities for Charity facilitates the raffle by:<br />Using ™ patented methods and technology to conduct the raffle pursuant to its Massachusetts Charitable Gaming License<br />Managing all customer inquiries and technical support issues<br />Managing all legal requirements; including completing and filing the necessary tax returns and related tax payments<br />Facilitating the contact and delivery with the raffle winner<br />
  39. 39. How to get started<br />Think of your prize<br />Think of your distribution<br />Contact<br /><br />Celebrities For Charity Foundation, Inc.38 Main StreetAndover, MA 01810 <br />