Fundraising from Online Communities

Fundraising using Social Media

Noam Kostucki

Fundraising Quiz!
How many charities are there in the UK?
A) 16,900
B) 69,000
C) 169,000
D) 647,000
How much money is raised by the charity
sector in the UK?
A) £780 million
B) £6 billion
C) £24 billion
D) £49 billion
What fundraising activity has the highest
return on investment?
A) Legacies
B) Corporate
C) Trusts & Foundations
D) Individuals

Fundraising Quiz!
What is the most effective strategy for
fundraising?
A) Establish priorities
B) Set up a fundraising committee
C) Diversity the range of donors
D) Identify prospective donors
How much did companies give to the
charity sector?
A) £540 million
B) £2.4 billion
C) £12.4 billion
D) £26.7 billion
How much money is £100 worth of
gift aid?
A) £105
B) £115
C) £125
D) £150

Why are Social Networking
Sites (SNS) eating
organisations marketing
At beginning of internet, no
marketing.

The banners and people went mad!
budget?
Then Google and invention of
AdWords... genius!

Now what’s happening?

The UK Internet in

• Online posts are only 2nd to word of mouth as a reason to buy
(Small World Labs)

• 20,000,000 Facebook users in the UK… and still growing!
(ReadWriteWeb)

• 76% of internet usage is social networking (Marketing Charts)

• 54% social networking users over 35 (Universial Maccan)

• Social networking users
– visit 9x more often your website (Small Lab World)
– spend 6.5 minutes on your website versus 38 seconds for non
social networking users (Small Lab World)
– spend 54% more (Ebay)
– remain customers for 50% longer (AT&T)

Do you recognize this painting?

Do you recognize this painting?

The Family of Sir William Young talking
about you on Facebook.

How many people can
you reach?
General: business, music, blogging, videos 130,000,000

Friends and family 450,000,000

Live updates: general 75,000,000

3rd most visited
Sharing videos: 6,300,000,000 videos
website in world

Free calls, video calls and audio
11,000,000
conferences

Professional social network 60,000,000

Sharing photos: 4,000,000,000 pictures 32,000,000

• Wikipedia: 181 SNS

15

• Mashable: 350+ SNS

15

• Mashable: 350+ SNS
• Ning: 2,000,000 SNS on 20/1/2010

15

35-54 = fastest growing (276.4% growth rate)
55+ = second fastest (194.3% growth rate)
... in 6 months!
18

2
+2
----------
7465922

“In an increasingly complex world, sometimes
old questions require new answers”

And in 2 days, it will feel
like this...

$487,500 for Haitian charities

The Giving Pyramid

LEGACY

BIG GIFT

Regular Donor

Occasional Donors/
Subscribers

Warm Supporters

The general public

What is Effective Fundraising?

44

Predictable
income

If you’re here, Need to
you’re track
GOOD!!! income
sources

Fixed cost
commitment
Need good
reserve
policy
PROBLEM!!!

• Who gives you money?

• Why do they give?

• How do you select your
funders / donors?

• How do you who to
target?

• How do you choose your
fundraising strategy?

• What do you need to
know?

Effective Fundraising
for
Museums

!

*
:';8$"#&*/'*5$./*6#$"*0)3#./;#)/*/70.*6#$"*(055<**
Trusts & Foundations (£/millions) Individuals (£/millions)
!
Business (£/millions) 2008 total PI (£/millions)
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Individual Giving
(Arts & Culture)
In 2007/08 individual giving reached a record total of £382 million in the UK. This is a staggering £236 million
increase over just eight years.

Low-level giving is up to £100 but normally between £5-£10;
Mid-level giving is up to £1,000, but normally it is below £500;

Around 90% of donations received by cultural organisations are low- and mid-level donations (most frequently low-
level);

These donations tend to happen at the point of sale when attendees decide to round up a ticket price;

Donors who give several times throughout a year tend to give a larger overall financial donation than those who
give once – the message is to get people to keep giving small amounts regularly.

Reasons around local pride and a personal connection were the most commonly cited reasons for giving to a
particular organisation;

90% of donors come from the most committed art attendees – having attended the venue/organisation three or
more times in the past two years;

75% of donors were engaged with the organisation in some manner from members/visitors, a friend, patron, on a
mailing list, volunteers through to trustees. Low-level givers tended to be involved through things like volunteering,
while mid-level donors tended to be trustees and ambassadors;

So what motivated their first ever donation? The answer is simple – being asked! Direct approaches activated 40%
of first-ever donations

Many of the donors interviewed were part of the organisationʼs Friends scheme, of them 47% said being Friend
encouraged them to give and 43% said it made no difference;

Main reason for attending at least one museum or gallery during the past
12 months by different frequencies of attendance (2005-06) Main factor that would encourage those who already visit
At least Less often but at 1-2 museums or galleries 1-2 times a year to go more often
(2005-06)
once a least 3-4 times a times a
month year year Overall More for
children Other
(%) (%) (%) (%) 4% 12%
To see an exhibition/display 42.9 36.5 26.3 30.8 Better public
General interest in the subject of the
30.1 28.2
Users 29.3
29.8
transport
6%
More free time
45%
museum/collection
More variety
Something to interest the children 9.2 13.9 16.7 15.2 6%
Been before and wanted to go again
Museum visitors (2004-05) 4.0
3.9 3.4 3.6 Cheaper
For an event, activity or workshop 3.2 1.2 1.3 1.4 admission
As part of a group orMale * 46%4.3 6% Exhibition of
tour 2.1 6.5 5.5 interest
Other reasons Female * 8.5 54%4.6 3.5 4.0 More
13%
information
To meet people <0.05 2.6 4.7 3.7 8%
Adult "
Reference to sightseeing/being on 70% Source: DCMS, 2006b
<0.05 2.4 4.6 3.7
holiday/a day out etc DCMS museums # 78%
Any references to
<0.05
spontaneous decision Child " 30%2.3 3.3 2.8
Source: DCMS, 2006b
Museum visitors age proﬁle (2005)
DCMS museums # 22% Digest 2006 • Digest 2006 • Digest 2006 • 21 • Digest 2006 •

Outer ring:
Main reason for non-attendance at museums23%
Overseas and England
galleries during the past museums (2005-06)
DCMS 12 months # ! 25%
population 16-24
Source: * Ipsos MORI, 2006;
No need Other Library visits (000) 65+
6% 11% VisitBritain, 2006b; really
"
15%
2004-05 2003-04 Not
# From DCMS
2002-03 2001-02 2000-01 20%
Public libraries
Lack of ! 288,360 285,397 interested
273,993 270,775 275,643
Excludes overseas visitors 34% to 12% 11%
Academic libraries the Geffrye Museum and Royal
transport 99,739 100,734 96,551 95,762 97,124
Other reasons include: 25-34
National 7% 394
Armouries. 398 408 • it 432 too much 456
costs 16% 17% 16%
Source: Public – CIPFAc; Academic – SCONUL; National – British Library • have been in past/no need
Never to go again 14%
occurred to • I wouldn’t enjoy it
55-64 19%
me
Library visits – frequency (2005-06) 25%
7%
Percentage of adults attending at leastenough
Not one library during the past 12 months 48.3% 19%
time 16%
Frequency of visits of those attending at least one library during the past
Poor health 27% 35-44
12 months: 8%
45-54 Inner ring:
At least once per week 7.8%
Source: DCMS, 2006b at least once per month
Less often, but 16.7% museum
Less often, but at least 3-4 times a year 13.4% visitors
1-2 times a year 10.3%
Not visited in past year Source: Ipsos MORI, 2006; ONS
51.8%

“To avoid the hassle of paperwork”
£50K+, 60-64,

“Just for cash ﬂow reasons” £50K+, 75-79,

“Can make it an equivalent to a larger donation”
£15K-£20K, 35-39,
45$%2"601.*-%07%,0/01)%8/$"19-%:;<=%>$1$%90>?9$3$9%,0/01)%>5.9)*%"/0*5$1%7.7*5%8@"A%
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“At that level once a year is easier, just one lump sum”
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£10K-£15K, 65-69,
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9"1#$%,0/"*.0/)%"@@0+/*)%701%"%9"1#$%E10E01*.0/%07%*5$%*0*"9%#.3$/AH%%%
“I think it seemed more practical and we thought that from the organisationʼs point of view it was better to have
that lump sum and to get all the interest from it over the years”
I"1#$%,0/"*.0/)%"1$F%07%@0+1)$F%!"#$%&'(&)*+!,)-$.)/'()01&)&21"3)'(4)1,,!/!1(&)!()&1%
Undisclosed, 75-79,
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“I would forget if it was spread out; Iʼd rather just pay it. It gives you a chance to reconsider at the end of the year”
2"601.*-%07%01#"/.)"*.0/)%"1$%2.@10%"/,%)2"99?).L$,F%0E$1"*./#%"*%"%90@"9%9$3$9%*0%)$1
£10-£15K, 55-59,
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@0+9,%2$$*%7./"/@."9%/$$,)%./%"%E10E01*.0/"*$%-$*%$77$@*.3$%>"-A%%%
For those who preferred to contribute more often, convenience was also a theme, but also allowing for unplanned
giving/requests and perhaps as a (conscious) tactic to inﬂate the total amount contributed.
“Money raised from the trips goes to the gallery” £25K-£30K, 30-34,
8.295"461&7&1'4./3,"./+:'#"7"/#'0%&;$&/<='3/4'5&,>.4'
“Mainly because I was asked by [fundraiser] – [...] depending on what it is for I sometimes say yes [...] I am very
45$%)+13$-%07%,0/01)%"990>$,%701%"%201$%,$*".9$,%900M%"*%,0/"*.0/%3"9+$)%"/,%50>%
encouraged by what I see [at the theatre] so I am very happy to give”
#.3./#%2$*50,)%"/,%71$N+$/@-A%%D/$%.))+$%./%.,$/*.7-./#%./,.3.,+"9%#.3./#%E"**$1/)%
Undisclosed, 75-79,
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*5$-%@"/%"9)0%G$%)E0/*"/$0+)%01%1$)E0/).3$F%*5$%1$)+9*%07%"%E102E*%01%"/%",%50@%1$N

Challenge 1:

It cost £500 to organize a sponsored cycle
event(including staff time). As a result, £1,000 was
raised. What was the ROI in percentage terms?

Challenge 2:

Sally spend a total of 35
hours completing a
funding application
form. Her hourly rate is
£25. As a result, the
organization was
awarded a grant of
£50,000. What is the
ROI in percentage
terms?

Your fundraising strategy

looks like this…

The most important part of a plan is not the
plan itself but the process of planning
D. Eisenhower

Establish your presence to: Expand the reach to:
1. Support your cause and services 1. Create strategic partnerships
2. Create new interest and opportunities 2. Identify and recruit influencers to spread
3. Reach more potential donors and your message
volunteers 3. Gain competitive intelligence across
4. Reinforce your credibility and retain diverse audiences
supporters 4. Be the sector’s leader – not a follower
5. Create buzz for events and campaigns 5. Get your message out to many – fast and
6. Improve your visibility on search engines cheap

Keep an eye on the prize

1.
2.
3.

What matters most is how
you present yourself

Online Funding Sources
Funding
sources

Online Funding Sources
Funding Pros & Cons Motivation
sources

And a completely different
way of using the internet
for fundraising...

Crisis ‘Send a
Singer’
Christmas
online
fundraising
campaign hits
its £1m target

Overview
• £1,006,000 raised
• 25% increase on 2006 total.
• 97 companies participated.
• 70% of 2006 participants took part in 2007.
• 20% of 2007 participants were new, accounting
for £108,000 of income from new business.
• Average donation was £10,371 (46% increase).

ROI
• £12.12 was raised for every £1 spent

Micro-site and digital
• 47,139 absolute unique visitors to the site.
• The site was viewed in 117 different countries.
• Video MPU achieved a click through rate of
0.56% after serving 116,283 impressions.

PR
• Opportunities to see = 13,356,486 (255%
increase).
• Advertising value equivalent = £32,639 (920%
increase).

Community Fundraising

Noam Kostucki

You don’t know
what motivates
volunteers!

You don’t know
what motivates
volunteers!
… or do you?

1. Autonomy

2. Mastery

3. Purpose

4. Personal interests

5. Belonging

Noam Kostucki
www.linkedin.com/in/noamkos

Connect on

Text

Old school...
nkostucki@dsc.org.uk
020 7391 4861

Fundraising from Online Communities

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