It’s NOT business as usual for Non-Profit Organizations. Yesterday's growth drivers are becoming increasingly obsolete; demographic shifts are resetting donor and participant expectations; and the promise of technology to reach new donors has never been more real. Julia Campbell walks you through the three ways to thrive in the new normal for NPOs.
Keynote sponsored by DonorDrive: https://www.donordrive.com/
6. PLAYING FIELD IS GETTING
MORE CROWDED.
In 2000, Giving USA reported that there were around 688,600 charities in
the United States.
By the end of 2020, they estimate there will be more than 1.7 million.
1 in 5 Americans have given to an individual’s medical-related fundraiser.
7. MANY MAJOR LEGACY WALKS
IN DECLINE.
P2P Top Thirty Study shows that many of these giants peaked in 2007.
9. Giving USA’s 2019 report
revealed a decline in
general and mid-level
donors (defined as donors
who make gifts less than
$250 and between $250
and $999 respectively).
10.
11. DONOR
BEHAVIORS
AND
EXPECTATIO
NS ARE
SHIFTING.
Younger generations tend to:
Want participation at a deeper
level.
Expect personalization and a
frictionless fundraising and
donation experience (Netflix,
Amazon).
Want to be recognized for their
contributions within their networks
(not just a trophy or a t-shirt).
17. THE NEW
PATH TO
SUCCESS
Analyze your roadmap
for growth and get crystal
clear on your objectives.
Identify the
demographics that you
need to engage to
accomplish these
objectives.
Invest in the best tools,
tech, and talent to do the
job.
19. ANALYZE YOUR GROWTH
ROADMAP
Review prior year’s stats and how they compare to the year before that.
Compare online and offline donations.
Identify your peak fundraising times throughout the year.
What are some reasons for these peaks?
Look at the number of fundraising campaigns created on your behalf in the
last year.
How many were active versus inactive?
20. ANALYZE YOUR GROWTH
ROADMAP
List out the growth strategies that worked well.
List out the growth strategies that did not work well or presented
challenges.
Get crystal clear on your objectives for the next year or next few months.
24. IDENTIFY DESIRED
DEMOGRAPHICS
Who in your existing community has real potential to grow your
program?
Choose the low-hanging fruit first.
Identify prospects already in your database.
Who gave you between $100-$500 last year but didn’t create a personal
fundraising campaign?
How can you reach out more effectively and creatively to this audience?
Call lapsed fundraisers or organize a re-engagement campaign.
25. IDENTIFY DESIRED
DEMOGRAPHICS
Identify your top fundraisers. Who are they?
What type of fundraising did they do? Could they be enticed to do a new
campaign?
Which donor segments grew this year?
How are you reaching them and engaging them where they are?
26. IDENTIFY DESIRED
DEMOGRAPHICS
Which new segments do you need to reach to grow your program?
What do you know about them?
Where do they spend time online?
What are their habits, behaviors, preferences, motivators?
How can you help them create a more meaningful life?
Develop an action plan to reach them where they are.
27. CHILDREN’S MIRACLE
NETWORK HOSPITALS’
DANCE MARATHON
Developed a targeted
acquisition strategy to
quantify and qualify
prospective campuses,
as well as reengage
lapsed programs.
Dedicated research and
time to fully understand
their campus partners’
incentives and what they
need to succeed.
37. LIVESTREAM FUNDRAISING
Benefits:
Excitement builds as it unfolds and happens in real time.
Encourages more donations by making viewers part of the action.
Supporters can give instantly, without missing a minute of the stream.
Fundraisers can thank their donors live and in real time.
38.
39.
40.
41. WE MUST INVEST IN
THE TECH AND THE
TOOLS BUILT FOR
TOMORROW, NOT
FOR TODAY.
42. INVEST IN TOOLS AND
TALENT
Conduct an audit of your digital fundraising tools.
Can the experience be improved? How can you create a more frictionless,
personalized experience for donors and fundraisers?
See what integrations are available with Facebook and other social media
fundraising tools.
43. INVEST IN TOOLS AND
TALENT
Build your livestream fundraising strategy. Think of at least two livestream
opportunities at your organization that you can leverage.
Identify and train people to run fundraising campaigns for you using these
tools.
Create a Social Fundraising Toolkit.
Put it on your website with clear instructions, examples, and ideas.
44.
45. TROUBLE IN PARADISE
The multi-year retention rate of donors averaging 45.5%.
51% of fundraisers say they will leave their current nonprofit within 2 years.
30% of these fundraisers say they’re planning to leave the fundraising
trade altogether.
Things need to dramatically change.
We have to give talented, ambitious, creative people the discretion
and budget to make their ideas a reality.
Technological, cultural, and societal shifts have always forced nonprofit fundraising to reinvent itself again and again.
In the next few minutes, I’ll review what I see are the three most sweeping changes happening in the fundraising space.
What we know
Examples from the heyday of fundraising: Telethons, bespoke email campaigns, purchasing email and mailing lists, reliance on big sustainers - none of that can be relied upon anymore.
We can’t ensure success like we did 10, even 5 years ago.
Long gone are the days when donors gave to nonprofits simply because of name recognition and the number of years a charity has been around.
The playing field is getting increasingly crowded, and competition is fierce.
1 in 5 Americans report contributing to a medical-related
After that, the economic recession put a dent in charitable giving in general, and the popularity of fund-raising events never fully recovered.
Demographic shifts
There is more competition for a smaller pool of donors and active social fundraisers.
This is due to forces beyond our control -
The increasing wealth gap
Decreasing access to disposable income
Changes to the tax law
The popularity of individual fundraising campaigns for medical expenses and the like on GoFundMe etc.
Trust in institutions is declining.
All of this results in a smaller number of donors overall, but especially fewer smaller dollar donors – the bread and butter of p2P fundraising.
Each generation living today has come of age with profoundly different experiences concerning mass communication and fundraising, and these differences directly impact how they give to nonprofits.
Seniors who came age during the era of print media still prefer print communications
The same is mostly true of baby boomers, however, they are young enough to be experiencing the rise of new media in their daily lives which consequently is impacting their life-long giving habits.
Gen X and gen Y both came of age during the rise mass Internet communications and increasingly shun print communications while adapting quickly to new trends in mobile and social giving.
Gen Z who will come of age in a post-print era will be connecting to causes and giving to nonprofits through technologies that haven’t been invented yet.
The donor of today has different expectations.
They want participation at a deeper level
They expect personalization and a frictionless fundraising and donation experience (Netflix, Amazon)
They want to be recognized for their contributions - with their networks (not just a trophy)
We must embrace multiple communications and fundraising tools if we want to reach donors and supporters of all ages.
My hope for the promise of technology is that it will democratize philanthropy and fundraising, and make it accessible to anyone with an internet connection or a smartphone.
The new mobile giving app Millie looks and feels like Tinder – it shows you causes and organizations that you might want to support - swipe right and donate to charity, swipe left for not now.
The Point mobile app was designed to make volunteering as easy as taking an Uber.
When we fully understand and can clearly identify these three major shifts, we can start to create a plan to embrace rather than reject them.
Doesn’t matter if you regret that the good old days are over.
It’s a new age for fundraising
This is what you need to be thinking about and carefully considering.
How can we as fundraising leaders be proactive instead of reactive to these dramatic shifts in fundraising?
Let’s talk about the individual actions driving growth at your organization.
I’m going to go over three strategic steps that you will need to take to maximize your time at this conference and to help you when you get back to the office.
I realize that we are all here to find information, tools, and technology that will help us grow our fundraising programs.
We are not entitled to growth
we can’t just expect our programs to grow year-after-year.
There is no high tide lifting all ships.
We cannot continue to toe the line and keep the status quo if we want to drive growth for our organizations.
Clearly analyze what you are already doing and which segments of your donors and fundraisers have the most potential to grow your program.
Find the trends. Always be asking why.
Clearly analyze what you are already doing and which segments of your donors and fundraisers have the most potential to grow your program.
Find the trends. Always be asking why.
After carefully evaluating their own growth roadmap, the American Association for Cancer Research decided to make Charity Streaming a key strategy in their growth plan.
They saw the potential for growth
Recognizing the challenges that they face – they hadn’t done this before, and they feared that AACR isn’t the most sexy or accessible cause for creators to connect to, they still made it work, by carving out a budget to hire a charity streaming expert to help them get started.
After clearly analyzing our growth plan and who we already have on board that can help us grow, we can figure out who we still need to engage.
Along with the segments of our communities that have real potential to grow your program – who is already here –
What are the NEW segments that we need to reach?
The core of fundraising has been and will continue to be about relationships.
This isn’t about us and our agenda, it’s about our current donors and our future prospects, where they are and how they want to interact with us
Yes you will always be asking and thanking your all-stars and cultivating your loyal donors. But in order to grow, we need to constantly be reaching new fundraisers and new donors.
Children’s Miracle Network Hospitals’ identified their desired demographic and did the necessary research to figure out how to best reach them, engage them, and work directly with them.
Reaching them isn’t enough – making people AWARE of something isn’t enough – what’s your strategy to actually ENGAGE this desired demographic?
Also, what’s in it for them – your donors and your social fundraisers? The best part of this strategy is that it’s not just about the organization – It’s about best supporting their campus partners for the long-term.
The goal is to grow the program in a way that best first the desires and needs of the participants (the students)
This isn’t about transactions. Money will come and go.
This is about creating a shared identity with fundraisers so strong they would get a tattoo!
This is the most important step. We need to stop playing it safe.
In order to achieve your growth objectives and engaged these desired demographics, your organization is going to require a serious investment in technology and talent in the next year.
This is an unavoidable fact.
There are two prongs to this important step - investing in the right tools and investing in the right talent. Let’s talk about tools first.
It’s about meeting donors where they are and offering approachable, affordable ways for them to get involved.
As online and mobile giving get more sophisticated and instant, it has the potential to be substantially more effective than direct mail ever was.
We all need to do a better job integrating giving into every day life.
Donors and fundraisers expect it to be driven by an experience they are used to in a consumer environment (Amazon, Netflix) - Two clicks, easy, personalized, zero friction
It’s imperative that nonprofits offer all the digital payment methods your supporters prefer: Credit cards, eChecks, PayPal, Apple Pay, etc.
Salvation Army - cashless kettles, Apple and Google Pay
Rhodri Davis - Charities Aid Foundation calls VR and AR for nonprofits “empathy machines”
Mark Zuckerberg calls these technologies “the holy grail of social experiences”
Pencils of Promise example: In 2015, PoP wanted to increase donations at their annual celebrity-studded gala and used a VR experience to do so.
PoP knew if they could show attendees what it was like to go to school in a developing nation, it could create an unmatched emotional connection that might inspire more donations for their students. So, at their gala, they gave attendees VR headsets that transported them to a school in Ghana.
The results were stunning. The VR experience helped PoP raise an additional $500,000 for a total of $2.4 million that evening in response. Plus, their video was viewed nearly two million times on Facebook.
You’ve seen the headlines and I’m sure you’ve either started a fundraiser or even donated to one
Facebook Fundraisers - $4 billion raised from over 50 million people since its inception
Using Facebook fundraising tools, Team World Vision raised 54% more on Giving Tuesday 2019 than 2018.
This is because they understood the nature of Giving Tuesday as a global social fundraising event and met people where they are. They don’t write checks on giving Tuesday.
Donate button now available on Instagram business profiles and within Instagram Stories – early adopter charities taking advantage and showing their fundraisers how they work
Explaining the benefits
Being proactive – not just reactive
YouTube Giving Tools help YouTube creators raise money right from their channels, their individual videos, and their livestreams.
YouTube giving tools work much like Facebook giving tools, featuring a donate button and a frictionless two-click donation process.
During live streams, using a feature called Super Chat, viewers can pay to have their messages pop up more prominently during live streams — and normally that money goes to the creators.
With Super Chat for Good, creators can instead route that money to the charity of their choice.
It’s easy to understand the appeal of livestream fundraising.
Streaming has redefined how people consume content and interact, and it's making a huge impact on charity fundraising.
The technology is an opportunity to bring people closer together – to build connections, relationships, and a sense of shared identity, we are all in this together. Humans crave this
The most well-known platform, but also the most misunderstood by fundraisers, is Twitch.
On Twitch, creators spend hours outside of their live stream perfecting their craft and analyzing data to make business decisions.
It is important to know that playing a game on stream is just a content decision
Also, while gaming is the most prevalent thing streamed on Twitch it is not the only type of content.
You can watch art, music and fitness outside of gaming.
People are streaming their interests, hobbies, and passions.
Since 2011 Twitch Creators have amassed over $150 million for charities around the world.
Now here’s what I want to truly emphasize.
I understand that some of these platforms may not fit in 100% with your workflow of yesterday.
But to be relevant in today’s fundraising world, let alone tomorrow’s, you can’t ignore them.
We must, as fundraising leaders, invest in the tech and the tools built for tomorrow, not for today.
Justin Wheeler said – Don’t overcomplicate it!!!
See if your P2P platform integrates with Facebook and other social media fundraising tools.
Make a plan to encourage people to fundraise for you using these tools. Create a Social Fundraising Toolkit and put it on your website with clear instructions, visuals, and ideas.
Jim Collins, good to great – get the right people on the bus.
Beyond the tools, we have to get the right people on the bus to manage through these changes, and we have to give them the discretion and the budget to succeed.
The reality is this
Clearly, with the multi-year retention rate of donors averaging 45.5%, with 51% of the fundraisers ready to abandon their current posts and 30% ready to abandon ship altogether there’s trouble in paradise.
Neither the donors nor the fundraisers who serve them are satisfied.
It’s important to note that I’m not suggesting spending all your time tweaking and improving existing stagnant programs.
I’m suggesting innovating and inventing something new.
What if just 1% of your revenue was invested into R&D?
What would that look like? What are the opportunities?
Well Julia, this sounds great. But how do we go back to our office and convince the boss and the board to pony up for these great ideas?
How do we talk about innovation in a way that won't scare everyone away?
We must become visionaries.
Being a visionary means creating a powerful vision for the change that we seek.
You may feel like Greta Thunberg, sitting alone, screaming into the void.
But if you are persistent, compelling, and if you can paint a picture, this will inspire people to follow you or at least pique their curiosity.
What you do with your vision after you create it will determine your success.
You need to communicate it frequently and powerfully, and embed it within everything that you do.
Amass stories, examples, case studies
Take the research and examples learned from this conference. Lean on partners. Talk to others at this conference - network! How did they get their strategies accepted by the Board? What did they use to accomplish that?
Data, statistics
Address peoples' concerns and anxieties, openly and honestly. Visionaries and effective communicators are passionate, but they are not patronizing.
If you ask for $25,000, be specific about what will be delivered.
You’ve inspired people with your vision – now this is the who what when where why, the plan
You need to develop a plan to make their technology investment worthwhile. You have to be the champion and the catalyst for investment in your P2P program.
Remember why you are here - you are here to find the best ways to invest your very limited time and money for maximum results.
Knowing the changes you need to make isn’t enough.
You have to lead the change at your organization.
The reality is that successful peer-to-peer fundraising campaigns constantly evolve and take risks.
Innovative fundraisers, like all of you, understand that the benefits outweigh the risks.
This is on you. It’s your job. Be the impetus of change that your mission we desperately needs and deserves.