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Online Fundraising:Its NOT About the Money!
Chris SmithCFO
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About Me
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2014 US charitable giving was
$358 Billion
Giving USA Foundation
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$25 Billionof those donations
NOT loyal to any one organization
Money for Good Report
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1/2 have annual revenue < $1 Million
National Center for Charitable Statistics
1.5 Million Nonprofits in the US
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Unsustainable Donor Retention a for profit company would go out of business!
Bloomerang
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Fundraising Methods =Treading Water
Bloomerang
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How Donors Really Feel• 75% of Americans think they donate more than avg
• 72% actually contribute below the national avg
• 49% don’t know how nonprofits use their money
• 34% feel hassled
• 20% unsure who benefits from their funding
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How Donors Really Feel• 61% prefer to give to well-known nonprofits but
not necessarily the most effective organizations
• 67% are loyal to their primary causes
• 13% intend to give to different nonprofits
• 9% compare nonprofits before giving
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Why? Lack of Engagement
Transparency AccountabilityAll are critical elements of an
engaged, trusting relationship
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Generational ShiftGeneration Born
Depression 1912-1921
WW II 1922-1927
Post-War 1928-1945
“Traditionalists”18% of total population
“New Philanthropists”82% and growing
Leading Boomers 1946-1954
Trailing Boomers 1955-1964
Generation X 1965-1976
Millennial / Generation Y 1977-1984
Great Recession/ Boomerang 1985-?
Fundraising methods used today were developed for the “Traditionalists” many years ago, and have not really evolved for the “New Philanthropists”
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TraditionalistsDepression (1912 – 1921)
Defining Moment:
Shared Values:
• Great Depression • Practicality
• Savings
• Safety/security
• Friends/family
• Trust charities
Best Approaches:
Marketing Tips:
• Bequests • Simple & straightforward
• Unrestricted endowment
• Visuals and other cues
• Help the needy in tough times
• Printed/ face to face
• Secure our future • No reverse type
World War II (1922 – 1927)
Defining Moment:
Shared Values:
• WW II • Patriotic
• Respect for authority
• Romantic
• Self-reliant
• Trust charities
Best Approaches:
Marketing Tips:
• Save the world • Concierge-level treatment
• Delayed gratification
• Rebates/coupons/discounts
• Remembered for sacrifices
• Matching gifts/challenges
• Immortality of named bequests
• Print• Families trust them
Post War (1928 – 1945)
Defining Moments:
Shared Values:
• End of WW II • The American dream
• Strong economy • Conformity
• Move to burbs • Stability
• McCarthyism • Family
• Rock & roll• Civil rights movement
• Self-fulfillment• Trust charities
Best Approaches:
Marketing Tips:
• Current gifts • Volunteer opportunities
• Beneficiary designation
• Active images
• Gift annuities • Outcomes-based
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New PhilanthropistsLead Boomers (1946 – 1954)
Defining Moments:
Shared Values:
• Assassinations of JFK, RFK, MLK
• Personalized/ social expression
• Vietnam war • Individualism
• Moon landing • Youth/ health/ wellness
• Lack of trust for charities
Best Approaches:
Marketing Tips:
• Social justice meets personal planning
• Impact, outcomes and verifiability
• Restricted gifts, complex assets, structured gifts
• Large type/ high contrast/ no glossy
• Advisor partnerships
• Fun, individualism and excitement
• Beneficiary designations
Generation X (1965 – 1976)Defining Moment:
Shared Values:
• Large national debt/ stock crash
• Free agency/ independence
• Challenger explosion
• Dependence on friends
• Fall of Berlin wall • Cynical about future
• 1st Persian Gulf War
• Street smart• Quality of life
• AIDS crisis • Lack of trust for charities
Best Approaches:
Marketing Tips:
• Custom gift solutions
• Impact, outcomes verifiability and accountability
• Beneficiary designations
• Not attractive or rich-facts
• Restricted gifts • Subtlety/ irony/ irreverence
• Advisor partnerships
Trailing Boomers (1955 – 1964)Defining Moments:
Shared Values:
• Fall of Vietnam • Lonely individualism
• Watergate • Cynicism/ distrust
• Nixon resignation • Health and wellness
• Energy crisis • Family commitments
• Lack of trust for charities
Best Approaches:
Marketing Tips:
• Gift outcomes • Impact, outcomes verifiability and accountability
• Full range of charitable tools
• Conscious of distrust
• Restricted gifts • Robust stewardship
• Advisor partnerships
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New PhilanthropistsMillennials (1977 – 1984)
Defining Moments:
Shared Values:
• The internet • Hopeful about financial future
• Economic boom • Heightened fears
• Columbine • Change is good
• September 11 • Tolerance/ diversity
• Wars in Iraq and Afghanistan
• Lack of trust for charities
Best Approaches:
Marketing Tips:
• Beneficiary designations
• “Get out of the way”
• Restricted gifts exclusively
• Change it up
• Modest annual donations focused on mission
• Fresh & multi-channel
• Brand conscious loyal
Boomerang (1985 – ?)Defining
Moments:Shared Values:
• TBD • TBD
Best Approaches:
Marketing Tips:
• TBD • TBD
?
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Generation X gives to3.3 Nonprofits
Baby Boomers Give to 4.5 Nonprofits
Millennials give like they buy…Sporadically & Impulsive
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Your “Donate Now” button is NOT READY for this!
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8.9%2014 online giving growth
Hint: that’s faster than overall growth of 2.1%!
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9.5% of donations made on mobile devices
Hint: this will continue to accelerate!
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What is Crowdfunding?• The practice of funding a project or venture
by raising monetary contributions from a large # of people, typically via the internet.
• Traditional fundraising is a form of offline crowdfunding, with a focus on MAJOR DONORS.
• Crowdfunding has been around a long time. But the internet, especially mobile has completely changed the game!
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Crowdgiving is Different than Traditional Fundraising!
MAJOR GIVING MODEL:
• Prospect for potentials• Develop a relationship by engaging with them
before the ask• Ask, but in the right way and not too often• Engage with them after the give – thank them,
show impact, transparency and accountability• Nurture the relationship, it’s fragile!• A small “everyday” donation is a burden
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Crowdgiving is Different than Traditional Fundraising!
CROWDGIVING:
• Your supporters prospect for you• Engage with them electronically, on their terms• Ask by using a campaign with visuals and
storytelling that compels the potential donor to give
• Engage with them after the give – thank them, show impact, transparency and accountability
• Make it easy for them to leverage their networks• Keep them in the loop, on their terms• A small “everyday” donation is an opportunity
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View 1st time “Everyday” donor as a QUALIFIED LEAD
• There’s something about your organization they like, somehow they found out about your organization– Personal ask by a family member or friend?
• Get a 2nd transaction you will get a total of 18 on average – 1st time = I like you– 2nd time = you won me over, I’m committed
• Give them a reason to come back! – Engage, be Transparent and Accountable
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73% of MAJOR DONORS
start with a donation of
$25 Hint: they test the water before writing a big
check!
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Crowdgiving = Engage MAJOR
DONORSsooner and better!
Hint: they like to see others giving and volunteering!
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ENGAGEMENT via Crowdgiving • Craft a beautiful branded campaign that will compel donors
to give• Share the campaign with your existing supporters, ask them
to share to their networks• Provide a great donor experience with a donation flow that’s
quick and easy and simple to share out socially• Thank your donor onscreen with a customized content
including videos and pictures• Email the thank you as well with tax information for their
records• Reach out during the campaign to let your donors know
status – they’re not checking in but they are interested. Ask to share
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ENGAGEMENT via Crowdgiving • Reach out and let them know how the campaign finished
– They’re not checking in but they are interested. – Thank them again
• Reach out to them after you spend the money raised to show them the impact (pictures, videos, stories). Close the loop
• Keep them updated between asks as to what’s happening at your organization. Let them see you working and getting support. Don’t just reach out to them when you need money!
• Remind them of their donation at the end of the year to help them with their tax return prep
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TRANSPARENCY via Crowdgiving • Build a campaign that is very specific• Tell the potential donor why you need the specific
thing, what impact it will have and on who• Explain what the cost of the specific thing is and
why it is important to the mission• Be clear how much the fees are and why there
need to be fees• Keep your donors updated during the campaign as
to its success OR failure
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ACCOUNTABILITY via Crowdgiving
• Spend the funds raised exactly how you said you would in the campaign
• Share the impact with all of the donors that made it happen by sending them pictures, videos or even inviting them onsite to see their contribution at work
• Respectfully maintain contact with them between asks to let them know what your organization is up to
• Maintain clear and open lines of communication, especially in times of crisis or difficulty
• Treat your donors and volunteers as investors in your org
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Key Crowdgiving Takeaways• Fundraising is inherently inefficient & resistant to change• Make it easy and fun! Fundraising doesn’t have to be dry! • Do more with less - spend more time fulfilling your
mission to change the world, not fundraising. • Embrace the significant generational differences
– Younger: online, quick, easy, accountability, impact, distrusting – Older: trusting, mobile is how they access the internet
Build relationships, don’t simply ask for money!
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Key Crowdgiving Takeaways• If you do it right, there’s no donor fatigue in crowdfunding
- paradigm shift needed. Close the loop.• Treat donors and volunteers as investors, because that’s
what they are!• Assume every donor may be a major donor, no matter the
size of gift. Bill Gates example• Access and engage your future major donors sooner• Increase your donor database via peer-2-peer fundraising
Engagement, Transparency & Accountability
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What’s wrong with Crowdfunding Platforms?
Existing platforms were not designed for nonprofits. Fundraising for nonprofits is much, much different than funding a film, project, product or personal cause. Square peg / round hole.
The Unanswered Questions:• Where to begin? Hundreds of platforms to chose from.• Now what? You get no coaching, you’re on your own. • Where’s the “magic money”? You didn’t tell me that donors
need to be driven to the button!• How do I do that? Social media? I’m already overworked!!!
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Why Not Use the Well Known Crowdfunding
Platforms?Result: frustrated nonprofit folks who give up on crowdfunding. They feel its a big waste of time & resources, which they never have enough of!
Problem: the tools are not made for the job. It’s like using a tiny brush to paint an entire room. It can be done, but boy will it be hard and frustrating! Think square peg in a round hole.
Nonprofit fundraising is different than funding a project, movie, personal cause, etc – IT’S ABOUT BUILDING RELATIONSHIPS!
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Think UX 1st: responsive design that is screen size agnostic, intuitive, clean, simple
Easily create a beautiful, meaningful and specific campaign Include powerful eye catching imagery with a compelling story Empower your supporters via peer-to-peer fundraising Encourage your supporters to share to their social networks Agility - determine what best strikes a chord by editing on the fly,
experiment, test, multi-channel Monitor progress and coach your fundraisers with powerful campaign
management Simple and clean donation flow that eliminates speed bumps Thank your supporters after they give Engage supporters before, during and after the campaign Repeat
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Develop a meaningful, specificcampaign
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The Face of a CampaignEye Catching Imagery
Is this image relevant to my campaign? Is it good quality and the proper orientation? (not blurry or pixelated)Is the image appropriately cropped? Is it visually engaging?
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The Heart of a CampaignCompelling Story
3 Essential Questions
Who or what is your campaign supporting?
What is the conflict?
How will your donor’s gift help make an impact?
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The Legs of a CampaignPeer-to-Peer Fundraisers
Fundraising Champions give your campaign the muscle it needs to move forward by tapping their networks with a personal connection.
Personal asks = donations Donations = expanded donor base
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Make it Easy and Fun to be a Fundraiser!
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The Voice of a CampaignEmail and Social Sharing
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The Mastermind Campaign Manager Toolkit
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Engage year round!
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What is a Nonprofit Giving Platform?
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Maintain Your Brand and Identity
Complement Your Web Site
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CrowdGivingBeautiful, simple, and effective
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Optimized Donation FlowMinimal data = painless, fast and fun
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Optimized Donation FlowDonors can chose to cover the fees, maximizing what you receive
Transparency 70% of donors check this box!
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Personalized Thank You ReceiptsImmediately on screen & by email
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Peer-to-Peer FundraisingEASY and FUN to set up. Piece of cake.
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Peer-to-Peer FundraisingCoach them to success!
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Peer-to-Peer FundraisingYou can easily monitor everyone’s progress!
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Event-Based FundraisingTickets, registration, teams, analytics, swag
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Complete Volunteer IntegrationBuild lifelong relationships
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Complete Volunteer IntegrationHigher Ed Service Learning
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Volunteer & Donor Management
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Real Time AnalyticsKnow the best time to ask for $$$!
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Beautiful, Compelling CampaignsQUICK and FUN to create, edit on the fly
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Easily edit your campaigns on the fly – figure out what works best with your audience!
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Dashboard to Manage Your Campaign
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Engagement: Social ContentLet your supporters tell their story
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Mobile Friendly, Responsive Design
Size doesn’t matter!
Monitor, tablet, phone
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Complete Volunteer & Donor ProfileTrack donations, hours & virtual trophies
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• A powerful 24-hour online fundraising event that unites a community around local causes. A great way to build community, expose nonprofits to donors, teach organizations to use digital tools and generate excitement for all involved. Leverage the marketing power of the whole and the platform being used.
• Think Jerry Lewis Telethon, but online
Day of Giving
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The DoG PotentialNorth Texas is the Gold Star!
– Year 1 = $1.2 million, ~350 nonprofits– Year 7 = $33.1 million, ~2,000+
nonprofits
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https://www.givegab.com/about/case_studies
“Change is hard. GiveGab was not. The FAQ’s and Toolkit helped me and I was able to help my constituents. It was GiveGabTastic!”
“Working with GiveGab has been a wonderful experience for ProLiteracy. Givegab.com is a great platform to begin with but it’s the staff support that really sets it apart. This being our first Day of Giving, we were very grateful to have a Give Gab team help us walk through the setup, getting our members involved and excited, teaching people how to use the site, marketing ideas and a bunch of other behind-the-scenes help. We couldn’t have been as successful without their help. I’d recommend Give Gab to anyone trying to crowdfund or find volunteers, and I already have!”
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Many Case Studies!
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Risk-Free, Simple and Transparent Pricing
We are completely aligned with our nonprofit partners - we only succeed if they succeed. It makes absolutely no sense to us to charge ANY fees to a nonprofit before they raise $ one. Why would we start them in the hole when they are trying to raise money? Subscriptions, contracts, commitments, etc are for cowards – we are so confident that you’ll love our platform and use it over and over that we take all the risk!
• Platform Fee 5% + Credit Card. No other fees, period!
• 70% of donors elect to cover, result is avg cost of 2.4%• Net funds are direct deposited by Stripe daily, we
don’t have access to credit card info or the funds, only our small fee
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5.0% GiveGab Platform Fee+2.7% Credit Card Fee (Stripe) 7.7% Maximum Fee -5.3% Donors Elect to Cover 70%* 2.4% All in Fee!!!(That’s less than a standard credit card or PayPal fee!)
The Simple Math Behind Low Fees
*Over 100’s of campaigns. Our platform fee is completely paid for by the donors at 65%!
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Chris Smith Chief Financial Officer
[email protected] 914-443-2850
@smithGiveGabinkedin.com/in/kcichris