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Group Fundraising 101: From Benchmarks to Success Stories (revised)


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Slides from my NTEN webinar on October 11, 2007:

In this repeat webinar, non-profit consultant Peter Deitz will present his original benchmark figures for group fundraising as well as new research on the effective use of Facebook applications for distributed fundraising campaigns. Published in June on TechSoup, the benchmark figures were derived from the internal statistics of five leading services (ChipIn, Firstgiving, GiveMeaning, SixDegrees, and

This webinar explains how nonprofits can use the benchmark figures to integrate group fundraising into larger annual or capital campaigns. The webinar will also feature current success stories of non-profits using group fundraising and Facebook to reach new donors while deepening their relationships with existing supporters. The Facebook applications discussed in this webinar include: Causes, ChipIn, Fundraising, and

Published in: Economy & Finance, Technology
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Group Fundraising 101: From Benchmarks to Success Stories (revised)

  1. 1. Group Fundraising 101 From Benchmarks to Success Stories Presented by Peter Deitz micro-philanthropy consultant webinar hosted by: Revised with advice on using Facebook in your group fundraising strategy
  2. 2. Introduction <ul><li>Definition </li></ul><ul><li>Benchmark Figures </li></ul><ul><li>Facebook and Group Fundraising </li></ul><ul><li>Overview of Services </li></ul><ul><li>Tips for Success </li></ul><ul><li>Consultant to non-profits and philanthropists </li></ul><ul><li>About Micro-Philanthropy blogger </li></ul><ul><li>Author of several articles on distributed fundraising </li></ul><ul><li>Founder of Social Actions </li></ul><ul><li>U.S. citizen living in Montreal </li></ul>
  3. 3. Group fundraising is… <ul><li>The process of gathering money and other gifts in kind, by empowering individuals to solicit money from and communicate with perspective donors of their own choosing through the use of blogs, widgets, images, video, offline events, and social networks. </li></ul>By contrast, traditional fundraising is the process of soliciting and money or other gifts in-kind, by requesting donations from individuals, businesses, charitable foundations, or governmental agencies.
  4. 4. You know it’s group fundraising when… <ul><li>Your supporters are using blogs and other social media to communicate your organization’s mission and solicit money from people you don’t know; </li></ul><ul><li>You are showing people how they can create fundraising pages or widgets in support of a program or project. </li></ul><ul><li>From Flipping the Funnel: Give Your Fans the Power to Speak Up </li></ul><ul><ul><li>Turn strangers into friends </li></ul></ul><ul><ul><li> Turn friends into donors </li></ul></ul><ul><ul><li>And then... do the most important job: </li></ul></ul><ul><ul><li> Turn your donors into fundraisers. </li></ul></ul>
  5. 5. A few notes about group fundraising <ul><li>The messaging of a group fundraising campaign and the list of perspective donors are ‘user generated’ </li></ul><ul><li>Offline equivalent: A combination of child sponsorship drives and UNICEF Halloween boxes </li></ul><ul><li>Group fundraising goes by several names </li></ul><ul><ul><li>Person-to-person </li></ul></ul><ul><ul><li>Network centric </li></ul></ul><ul><ul><li>Collaborative </li></ul></ul><ul><ul><li>Peer-to-peer </li></ul></ul><ul><ul><li>Distributive </li></ul></ul><ul><ul><li>Grassroots </li></ul></ul><ul><ul><li>Viral </li></ul></ul><ul><li>In April 2007, group fundraising web sites generated $3 million in donations through 8,602 campaigns. </li></ul><ul><li>To date, group fundraising is responsible for at least $44 million dollars in charitable giving. </li></ul><ul><li>At last count, there were at least 19 services for implementing a group fundraising event or strategy. </li></ul>
  6. 6. <ul><li>How much can you raise using a group fundraising service? </li></ul>
  7. 7. Benchmark Figures for Group Fundraising Platforms Benchmark figures for group fundraising campaigns Benchmark figures for “successful” group fundraising campaigns High Low Benchmark Average donation amount $55 $30 $43 Average amount raised per campaign $3,230 $119 $692 Average number of contributors 40 4 16 High Low Benchmark Average donation amount $149 $36 $57 Average amount raised per campaign $11,393 $5,158 $9,018 Average number of contributors 269 48 157
  8. 8. Compared to Other Online Fundraising Benchmarks Getting people to start campaigns is the hard part. Once they’re started, the results will exceed what you could have accomplished on your own. NetworkforGood reports that 76% of donors say they are influenced by friends and family when choosing an organization to donate to. Group Fundraising Convio E-Benchmarking eNonprofit Benchmark Study Open rate --- 22% 25% Click-through rate --- 3% 1.5% Response rate Possibly 35% 0.28% 0.3% Average Amount $43 $56 $70
  9. 9. Processing Fees for Group Fundraising Platforms High Low Benchmark Commission 15% 0% 4.4% Platform Commission GiveMeaning 0% ModestNeeds 0% DonorsChoose 2.5% + optional 15% ChipIn 2.9% + $0.30 DropCash 2.9% + $0.30 3% CanadaHelps 3% ChangingthePresent 3% + $0.30 SixDegrees 4.35% Platform Commission Project Agape 4.50% 4.50% MyCause 5% plus bank fees JustGiving 6.40% FirstGiving 7.35% Fundable 9.9% + $0.30 BringLight < 10% 10% (optional) GlobalGiving 10%-15% LinkedIn NA
  10. 10. <ul><li>How significant are the Facebook fundraising applications? </li></ul>
  11. 11. Observation 1 of 3 Facebook is very crowded.
  12. 12. Observation 2 of 3 You can use all five applications.
  13. 13. Observation 3 of 3 Nothing beats “post an item.”
  14. 14. <ul><li>20 group fundraising platforms you need to know about </li></ul>
  15. 15. Raise Money for… (part 1) <ul><li>501c3 Organizations Only </li></ul><ul><li>Anyone with a Paypal account </li></ul>Teachers in the U.S. Individuals in Need
  16. 16. <ul><li>Australian Organizations </li></ul>International Development U.K. Organizations Raise Money for… (part 2) Canadian Organizations Politicians in the U.S.
  17. 17. Group fundraising services share donor data with… <ul><li>The recipient organization * </li></ul><ul><li>Only the campaign organizer </li></ul>No one * Most of these services provide individuals with the option to disclose donor data to the recipient organization
  18. 18. Group fundraising platforms are.. <ul><li>Commercial </li></ul><ul><li>Nonprofit </li></ul>
  19. 19. Campaign organizers can produce fundraising widgets <ul><li>Yes </li></ul><ul><li>No </li></ul>
  20. 20. Campaign organizers can set a fundraising goal <ul><li>Yes </li></ul><ul><li>No </li></ul>
  21. 21. <ul><li>Four paths to group fundraising success </li></ul>
  22. 22. Path 1 of 4 Sympathy for the campaign organizer
  23. 23. Path 2 of 4 A clear picture of where the money is going
  24. 24. Path 3 of 4 Matching funds combined with a deadline
  25. 25. Path 4 of 4 Creativity & humor work in group fundraising Fund-a-stache participant for 2007 Mira Seeing Eye Dog Fundraiser
  26. 26. Comparing Tips for Success <ul><li>Group Fundraising </li></ul><ul><li>Conventional eFundraising </li></ul><ul><li>Design a connectivity strategy (not technology) </li></ul><ul><li>Be nible, be quick </li></ul><ul><li>Push power to the edges </li></ul><ul><li>Meet them when and where they are </li></ul><ul><li>Give them what they need </li></ul><ul><li>Get out of the way </li></ul><ul><li>Develop new evaluation & feedback mechanisms </li></ul><ul><li>Souce: Power to the Edges: Trends and </li></ul><ul><li>Opportunities in Online Civicm </li></ul><ul><li>Engagement </li></ul><ul><li>Budget for success </li></ul><ul><li>Grow your email list </li></ul><ul><li>Increase retention of list subscribers </li></ul><ul><li>Carefully track marketing and recruitment efforts </li></ul><ul><li>Carefully target and segment e-mail messages </li></ul><ul><li>Act quickly to respond to timely events </li></ul><ul><li>Source: eNonprofit Benchmarks Study </li></ul>
  27. 27. Tips for Campaign Organizers <ul><li>Adopted from What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising </li></ul><ul><ul><li>Build a great campaign </li></ul></ul><ul><ul><li>Donate to your own campaign </li></ul></ul><ul><ul><li>Post your campaign on your web site and / or blog </li></ul></ul><ul><ul><li>Add the campaign to your email signature </li></ul></ul><ul><ul><li>Send the link to people in your email address book </li></ul></ul><ul><ul><li>Ask bloggers to join your cause </li></ul></ul><ul><ul><li>Bookmark your campaign on aggregation web sites </li></ul></ul><ul><ul><li>Take your cause (and laptop) everywhere </li></ul></ul><ul><ul><li>Thank people and report back on progress made </li></ul></ul>
  28. 28. Sources <ul><li>Show Me the Numbers: Can Group Fundraising Help You, Peter Deitz, June 2007 </li></ul><ul><li>How to Use the Internet for Group Fundraising , Peter Deitz, October 2006 </li></ul><ul><li>Raise Money on Facebook: Four Fundraising Applications You Need to Know About , Peter Deitz, September 2007 </li></ul><ul><li>Flipping the Funnel: Give Your Fans the Power to Speak Up , Seth Godin, January 2006 </li></ul><ul><li>The Online Marketing (eCRM): Nonprofit Benchmark Index™ Study , Convio, January 2007 </li></ul><ul><li>eNonprofit Benchmarks Study: Measuring Email Messaging, Online Fundraising, and Internet Advocacy Metrics , M+R Strategic Services and Advocacy Institute, February 2006 </li></ul><ul><li>Power to the Edges: Trends and Opportunities in Online Civic Engagement , The e-Volve Foundation and Philanthropy for Active Civic Engagement (PACE), May 2005 </li></ul><ul><li>What Kevin Bacon Knows about Web 2.0: Six Degrees of Person-to-Person Fundraising , NetworkforGood, May 2007 </li></ul>
  29. 29. Contact Information <ul><li>Peter Deitz </li></ul><ul><li>Micro-Philanthropy Consultant </li></ul><ul><li> </li></ul><ul><li>[email_address] </li></ul><ul><li>514-907-8725 – Montreal </li></ul><ul><li>718-766-5367 – New York City </li></ul><ul><li>215-825-7445 – Philadelphia </li></ul>