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Online Fundraising

Social Media for Revenue or Volunteers? Maybe Not

Keith Burtis on Flickr Creative CommonsThe results of two new surveys paint a bleak picture of the effectiveness of social media for fundraising and volunteer recruitment. The first from Philanthropy Action, has the depressing title, "Social Networking and Mid-Size Nonprofits: What's the Use?" The survey is based on responses from about 200 mid-sized nonprofits (defined as having revenues between $1 and $5 million annually) between July 2008 and March 2009. It concludes that:

Social technologies are not delivering much in terms of fundraising or attracting volunteers. While the majority (of respondents) began using social networking with an expectation that it would help the organization attract donors and volunteers, results have been particularly disappointing in those categories. More than 70 percent of respondents indicated that they had raised less than $100 or did not know whether they had raised any money.

However, despite poor results to date, "the overwhelming majority of respondents... say they are going to increase their investment in the use of social networking."

A second survey, from the Cone communications agency, reached similar conclusions.

The Phone Test

Here's an idea from our friend Laura at Idealware: what if you measured any communications method by whether it would have more or less impact than spending the same amount of time calling donors on the phone?

…You could spend that time simply calling donors and constituents at random, to thank them, or to ask them a quick set of questions (how did they like the services they used? what do you do well? not so well?). If you've never done this, it can be pretty magical. Often people are amazed that you've called, happy to talk, and have useful insights. It gives you a great sense as to who your constituents actually are and what they care about. And not coincidentally, my experience is that it fosters great new connections. People want to volunteer, wanted to ask you something, and, not coincidentally, donate at considerably higher rates after. Nothing starts a conversation like, well, an actual conversation.

I love the way Laura articulates this. When we adopt social media strategies, we often tell ourselves that it's not just about donations, it's about starting a conversation. There are plenty good reasons why it's important to keep conversations going with supporters, but are Twitter and Facebook always the best way? If your goal is to have a conversation, then why not pick up the phone and have one?

This is not to say that there's no place for social media; rather, I think that the phone test can actually help you articulate the purpose of any communications tactic, be it a fundraising letter, a donor event, a print ad, or a Facebook page. If you can clearly identify who the target audience is for a particular effort and what action you want that audience to take, you can put together the right campaign for achieving that goal. It might be a letter, an email blast, or a social media campaign, and it might be a phone call.

America's Giving Challenge 2009

The latest round of the America's Giving Challenge is on. This is a national competition to encourage people to use their personal and social networks to help win cash for their favorite nonprofit. The Giving Challenge is not focused on how much money you can raise, but on how successful you are at getting people to donate to your cause. The goal is to get as many unique daily donations as possible (minimum of $10), to your cause each day. The contest runs through November 6, 2009.

Guilting Donors in 30 Seconds or Less

This week, Slate has a cute article on the lines public radio stations use to get pledge drive donations. If you listen to public radio, these will all have a familiar ring, particularly around this time of year:

The New York Jets would never let fans into the big game for free and then request donations as they leave the stadium. Public radio gives away its product and then asks listeners to pay once they're hooked, like the mythical schoolyard drug slinger. The strategy here is to remind listeners how much they rely on public radio (rely is probably the most oft-repeated word during these campaigns) and to ask them to put a price on their dependence. Most stations play it straight — "Think about how much you use WAMU and how you would quantify that in terms of your budget if you received a bill only a couple of times a year." Sometimes, however, this tactic can feel overbearing — and off-putting. When a host throws out a virtual bill ("WNYC pays over $5 million a year for NPR News and the BBC"), I want to send it back unpaid.

The one that drives me crazy, both as a public radio fan and as a member of the nonprofit community, is the "help us stop this dreaded pledge drive!" approach. Shouldn't our fundraisers be a cherished event for donors to look forward to every year?

Major Gift Fundraising: Facts and Opinions from a Recovering Fundraising Consultant

This week, Craig Harris, the founder and CEO of NOZA, Inc. is sharing his wisdom on developing a major gifts program at nonprofits. NOZA (a TechSoup donor partner) is a Santa Barbara based technology company that has developed a platform to convert unstructured web data into searchable databases. Prior to founding NOZA, Craig founded South Coast Strategies, a fundraising consulting firm. Craig graduated from U.C. Santa Barbara in 1995 and then spent two years as Peace Corps Volunteer in Paraguay. Upon finishing his Peace Corps service he began his nonprofit career as the founder and first executive director of Servicios Ecoforestales Para Agricultores (SEPA), a large agroforestry demonstration farm in Eastern Paraguay. Eligible nonprofits and libraries can request a special NOZA discount through the end of this week.

Where do major gifts come from?Donate box from Mindful One on Flickr

Major gifts come from three primary sources: (1) Corporations (2) Foundations (3) Individuals.  According to the annual GivingUSA Foundation statistics (PDF) charitable giving in the U.S. topped $307 billion in 2008. Here is where the money came from:

  • Corporations:  $14.5 billion (5%)
  • Foundations:   $41.2 billion (13%)
  • Individuals:      $251.9 billion (82%)

While foundation and corporate giving play a major role in U.S. philanthropy, most of the money comes from people. Having spent several years as a fundraising consultant, I've worked with organizations that excelled at major gift fundraising, and I've worked with organizations that couldn't raise a major gift to save their mission. One of the common threads for the successful organizations is that they followed the money, focusing the majority of their time and resources on individuals. Those that failed typically hid behind the relative ease and comfort of shotgun blasting grant proposals and letters to foundations and corporations. In fact, I'm yet to find an organization that was able to develop and SUSTAIN a major gift program from only foundations and corporations. While the relative proportion of individual/corporate/foundation giving will vary from organization to organization, for those just getting started with major gift fundraising, my advice is to focus on individuals.

Why do people give major gifts?

What is the number one reason why people make major gifts to nonprofit organizations? Because they were asked. During my early years as a fundraising professional, I once heard a line during a fundraising workshop that I've always remembered: "People don't give money to causes. People give money to people with causes."

Why Do Online Donors Leave?

Here's a fantastic blog post at NTEN from Network for Good's Rebecca Higman and Katya Andresen (we've linked to Katya's excellent blog numerous times in the past). Rebecca and Katya try to pin down the seemingly erratic behavior of online donors and offer some lessons on how we can develop longer relationships with Internet supporters.

Imagine a scenario when a check arrives in the mail as a result of a direct mail campaign. That supporter may receive a hand-written thank-you note back via mail. Perhaps even a phone call. And, of course, the donor database is updated immediately!

What about an online donor? Is his or her name ever retrieved from the online report? Is he or she added to a direct mail list? What about the thank-you? Is it sent back via Facebook or email, or will there be a snail-mail letter on the way?

It seems there's a bit of a discrepancy.

They go on to suggest that for follow-up communications with an online donor, you should defer to the donor's medium of choice. "Would you add a direct mail donor to your email list and remove her from your direct mail list? Probably not. If a supporter donates online through a nonprofit website or social network like Facebook, that supporter should be thanked online through that same medium." I would add that not only should the thank-you note arrive in Facebook instead of snail mail, but it shouldn't sound like a snail mail letter either: it should have the personal tone of an online exchange.

Boston-Area Nonprofits: Email Fundraising Bootcamp Next Week

Our friends at Idealware have partnered up with Third Sector New England to offer a one-day, intensive bootcamp on October 7 to help organizations maximize their fundraising through email. And, they've extended an offer to TechSoup users for a special 15% discount off the registration fee by using the discount code TS325 when registering.

Here's more info from their site:

Converting Fresh Leads into Donors

CARE2 is holding a webinar on strategies for successfully welcoming, cultivating, and converting new leads into donors. Holly Ross of NTEN will moderate a panel with Heidi Hess of Children's Defense Fund and Greg Zelder of the California State Parks Foundation. They will review data about nonprofits' speed and type of responses to newly acquired email subscribers, then focus on specific online engagement and conversion strategies that have worked for them — as well as approaches that have failed (and why).

What: While They're Hot! Converting Fresh Leads into Donors

When: Thursday, October 1, 2009 at 2 p.m. Eastern

Free TechSoup Talks Event Registration Webinar Today!

Later today, TechSoup will be hosting a free TechSoup Talks! webinar with one of our donor partners, Acteva, to discuss the features and answer questions about their event-registration, ticketing, and management tool. Here are more details:

Acteva: Event Registration Made Easy
11 am Pacific today!

Are you planning an event for your organization? Have a big fundraising banquet coming up? What about a member conference or alumni gathering? Maybe you run a theater or hold paid training events for community members. Acteva might be the right event registration solution for your nonprofit or library!

Through TechSoup, Acteva Plus event registration, ticketing, and payment management solutions is available for donation to nonprofit organizations and public libraries for a $50 admin fee.

In this webinar, TechSoup's Becky Wiegand will interview Ed Lemire, Acteva's Executive Vice President, and Jonathan Cohen from Cohen Camps — sponsors of Camps Pembroke, Tel Noar, and Tevya — who recently held two events for his camp alumni using Acteva. We'll discuss the overall features of Acteva's toolset and the ins and outs of planning your next successful event!

Join us at 11 Pacific: https://cc.readytalk.com/cc/schedule /display.do?udc=1ljm0iyzznp2

In addition to this webinar, we'd like to invite you to share your experiences using Acteva to plan an event at your organization, to ask any questions about how their tool functions, or about their donation program for nonprofits and libraries through TechSoup. You're welcome to discuss your thoughts on other event registration, payment processing, and ticketing tools you've used as well.

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