milestone presentation cs 410 yellow group november 15, 2010

Milestone PresentationCS 410 Yellow GroupNovember 15, 2010

November 15, 2010 Fall 2010 Yellow Group 2

Poor Economic TimesPoor Economic Times• According to the Bureau of Labor Statistics

the National Unemployment rate has been at 9.6% since October of 2010.

• The Dow Jones Industrial Average just experienced the worst May it has seen since 1940.

• U.S. banks repossessed nearly 258,000 homes nationwide in the first quarter of 2010, a 35 percent jump from the first quarter of 2009.


Declining DonationsDeclining Donations• According to the American

Association of Fundraising Counsel, total giving was down 3.6% in 2009, the largest decline since 1956.

• Contributions to colleges and universities were down 11.9% , the greatest decline ever recorded, according to a 2010 report by the Council for Aid to Education.

November 15, 2010 4Fall 2010 Yellow Group

Changes in Giving in Years Changes in Giving in Years with with

8+ Months of Recession8+ Months of Recession


Sources: The Giving USA Foundation, Center on Philanthropy at Indiana University

Conventional Fundraising Conventional Fundraising Methods are InefficientMethods are Inefficient


OverheadOverhead

• Between 2004 and 2008, fundraising overhead cost the Children’s Health Foundation 86% of their donations.

Source: CBC News Canada


Reasons People Stop GivingReasons People Stop Giving


Source: 2010 Bank of America Study on High Net-Worth Philanthropy

Reasons People Stop GivingReasons People Stop Giving

Source: 2010 Bank of America Study on High Net-Worth Philanthropy November 15, 2010 Fall 2010 Yellow Group 9

ProblemProblem


• Rising overhead and declining donations make it hard for small non profit organizations to meet financial objectives.


Current Donation ProcessCurrent Donation Process


Current Manual Overhead Current Manual Overhead ProcessProcess

Introducing uRai$eIntroducing uRai$e

• Internet-based: 24/7 availability• Social network integration• Supports Mobile Donation• Low overhead• Targeted fundraiser notifications• Bank account integration


Social Networking Social Networking IntegrationIntegration


Facebook Twitter

•More than 500 million active

users

•Average user has 130 friends

•People spend over 700 billion

minutes per month

•26.22% of the World’s

population are currently

Facebook users

•Second most visited site on the

web

•More than 100 million

registered users

•50 million tweets per day in

2010

•51% of active Twitter users

follow companies, brands or

products on social networks

•Tenth most visited site on the

webSources: Facebook, PC World, Alexa, Checkfacebook, Edison Research/Arbitron Internet & Multimedia Study

Recent Growth of Social Recent Growth of Social NetworkingNetworking

• Social networking growth:– Facebook: 400 million active users in February 2010

to 500 million active users in July 2010– Twitter: grew from 2 million users in 2008 to 32

million in 2009• Social networking awareness:― Facebook: from 50% awareness to 88% in the

same period.― Twitter: exploded from 5% of Americans 12 and

over in 2008 to 87% in 2010• U.S. visits to social networking Web sites rose

62 percent from September 2008 to September 2009.


Source: Facebook, Edison Research/Arbitron Internet & Multimedia Study, Hitwise

Mobile DonationsMobile Donations

• Over $30 million raised via mobile donations so far

• 80% of Americans use a cell phone• Over 20 mobile donation campaigns

supported Haiti


Source: MSNBC

Mobile Donation Process Mobile Donation Process FlowFlow


Standard Donation Process Standard Donation Process FlowFlow


Site MapSite Map


Donate to Fundraiser Donate to Fundraiser ScreenScreen


User Profile ScreenUser Profile Screen


Fundraiser Report ScreenFundraiser Report Screen


Major Functional Components Major Functional Components DiagramDiagram


Alerts AlgorithmAlerts Algorithm


Get Donor Get Donor Tags

Find fundraisers with matching tags

Get suggested fundraisersCreate alert message

[Found fundraisers]

Send Email Alert[Accepts emails]

[Does not accept emails]

Send Text Message Alert[Accepts text messages]

[Does not accept text message]

Post to Facebook wall[Accepts Facebook]

[Does not accept Facebook]

[No fundraiser found]

Fundraiser Suggestion Fundraiser Suggestion AlgorithmAlgorithm


Find fundraisers with matching tags Find donors with matching tags Find donors with common donation history

Get new fundraisers Get new fundraisers

Aggreate fundraisers

Calculate interest rank

[Get next fundraiser]

[Done ranking]

Get top ranked fundraisers

Get all suggested fundraisers

[Not for reporting]

[For reporting]

Get donor

Database DiagramDatabase Diagram


Donor

Id FirstName Lastname Email Phone Address City State Zip Password

Fundraiser

Id OrganizationId (FK)Name Description StartDate EndDate Goal

Tag

Id Tag (O)

FundraiserTag

Id FundraiserId (O) (FK)TagId (O) (FK)

Organization

Id Name Description Email Phone Address City State Zip

Member

Id OrganizationId (FK)FirstName LastName Email Phone Password

DonorTag

Id TagId (O) (FK)DonorId (O) (FK)

CreditCardDonation

Id DonorId (FK)TransactionDate Amount CreditCardType Last4OfCreditCardNumber CreditCardDonation

MobileDonation

Id DonorId (FK)FundRaiserId (FK)TransationDate Amount MobileCarrierId (FK)

URaiseApp

Id Name AuthorizationKey

URaiseAppCreditCardDonation

Id CreditCardDonationId (FK)URaiseAppId

MobileCarrier

Id Name

• 5 million page views per month for FREE

• Highly available & fault tolerant platform

• 99.9% uptime service level agreement

• Same infrastructure that supports Google’s

products

• Low maintenance overhead

• PCI standards compliant

Source: Google App Engine

Cloud Services PlatformCloud Services Platform

April 18, 2023 Yellow Group, Fall 2010 27

App Engine Resource App Engine Resource ExpensesExpenses

ResourceFree Default Quota

Billing Enabled Default Quota

Stored Data (billable)

1 GB1 GB free; no maximum

Number of Indexes

200 200

April 18, 2023 28

Resource Unit Unit costCost/1000 page requests

Outgoing Bandwidth

gigabytes $0.12 $0.004

Incoming Bandwidth

gigabytes $0.10 $0.003

CPU Time CPU hours $0.10 $0.027

Stored Data

gigabytes per month

$0.15 $0.004

Recipients Emailed

recipients $0.0001 $0.1

Total $0.138

Yellow Group, Fall 2010

CustomerCustomer

• Non profit organizations that need to:• Save money on advertising• Be flexible according to their needs• Attract new donors

• Case Study: Universities that need to:

• maximize donations• minimize overhead• increase fundraiser transparency


Customer BaseCustomer Base• Over 1.6 million nonprofit organizations

registered with the IRS

• Over 4,400 degree-granting institutions in the United States

Sources: National Center for Education Statistics, National Center for Charitable Statistics


Case StudyCase Study• Old Dominion University

“…to accept a one-time $50 gift that we don't know we will ever receive again we have had numerous people touch the funds, creating and administering accounts, and spending the funds. In man hours alone, it costs far more than $50 to give away this $50 gift!”

Anita Friedmann Assistant Vice

President Office of Development


Rising College ExpensesRising College Expenses

November 15, 2010 32Fall 2010 Yellow GroupSource: Council for Aid to Education

Tuition IncreaseTuition Increase• On average, tuition rates will increase at about

twice the general inflation rate.• From 1958 to 2001, the average annual tuition

inflation rate was between 6% and 9% (1)

• ODU tuition increased 7% this year.• “…tuition and fees at ODU have risen 80

percent since a state-imposed tuition freeze was lifted in 2002.” (2)

1. http://www.finaid.org/savings/tuition-inflation.phtml2. http://hamptonroads.com/2010/04/odu-board-approves-7-percent-tuition-increase



Changes in College Donations Changes in College Donations Related toRelated to

the Stock Market and Recessionsthe Stock Market and Recessions

Marketing GoalMarketing Goal

• Acquire 1% of the market share within the first year

Strategy:– Online and social media marketing– Target middle class– Minimize advertising costs


Marketing MediaMarketing Media

• Google Ad Network– Google owns 80% of Internet advertising

network

• Facebook– Exposure to 500 million users

• Twitter– Exposure to 100 million users

• Since 2008 Internet advertising has become twice as big as broadcast TV advertising and four times as cable.

• Approximately 50% of both YouTube’s and Facebook’s American users are college educated and at least 2/3 make over $50,000 making it a great place to advertise


Distribution of Income and Distribution of Income and AgeAge


Sources: Adplanner

Facebook:

Twitter:

Income Distribution

Income Distribution

Age Distribution

Age Distribution

Return on InvestmentReturn on Investment• Minimize fundraiser processing overhead

o Reduced processing feeso Automated integration with existing LOB applications

• Maximize fundraiser earning potentialo Social network integrationo Mobile donation supporto Automated donor notifications

• Manage fundraiser with more flexibilityo Custom fundraiserso Added transparencyo Automated tax forms e.g 990 and “Thank You” letters


Benefits for DonorsBenefits for Donors– Profile creation for targeted alerts– Offers more transparency so donors

have a better understanding of how their money is being used and how much money is needed

– Streamlined payment options– More features, such as mobile donating,

makes the process of donating easier– Ability to stay connected with

organizations without donating

Price PointPrice Point

• The initial price to the customer for uRai$e is $40 a month with no registration fee.

• 3.2% Processing fee/transaction.• $8.00 Credit card system monthly

fee• $8.00 Recurring transaction monthly

fee


Advertising ExpensesAdvertising Expenses

• Google Ad Network– $5.00 Activation Fee– Cost-per-click Maximum $1.50

• Facebook– Cost-per-click $0.70

Software milestone chartSoftware milestone chart


Software DeliverablesSoftware Deliverables• Web services• User interfaces• Service Engines

– Fundraiser Suggestion– Alerts Services– Credit Card– Mobile Donation– Banking Integration

• Business Rules Application Logic• Business Objects Domain Model• uRai$e Data Access Layer• uRai$e database• Fundraiser Suggestion Data Warehouse


Work Breakdown Structure:Work Breakdown Structure:DesignDesign


Work Breakdown Structure:Work Breakdown Structure:DevelopmentDevelopment


Work Breakdown Structure:Work Breakdown Structure:TestingTesting


Phase 2 StaffingPhase 2 Staffing


Resource BudgetResource Budget


Budget OverviewBudget Overview Phase Total

Phase 2 Staffing

$232,549 Resources $15,845Advertising $20,000Total $268,394


Staffing$232,549

Resources$15,845

Advertising$20,000

Break Even AnalysisBreak Even Analysis


At a cost of $480.00 per year for one customer and a targeted sales of 16,000 units, we will see a profit at 560 units.

RisksRisks• Customer Risks

– Customer data compromised • Technical Risks

– App Engine server failure– Mobile Donations

• Financial Risks– Unwillingness of organizations to use the tool– Development costs– Not enough customers to cover expenses

• Legal Risks– Credit card information stolen


Risk MatrixRisk Matrix


Key

Customer Risks:C1 – Customer data compromised

Technical RisksT1 - App Engine servers failT2 – Mobile Donations

Financial RisksF1 - Unwillingness of organizations to use the toolF2 – Not enough customers to cover expenses

Legal Risks: L1 – Credit card information stolen

How to mitigate risksHow to mitigate risks


Problem Mitigation

Customer data compromised SSL protocol will ensure confidentiality

Unwillingness of organizations to use the tool

Integration with social networks will make it easier to get the word out, and ease of use/reduction of overhead will provide incentive

Credit card information stolen Comply with PCI standards to keep credit card information secure and reduce legal liability for the customer

Mobile Donations Contract with various cell phone providers

Covering expenses Overhead will be decreased by automating various processes and reducing manual work

App engine fails System architecture can be ported to any platform

Team StructureTeam Structure


AppendicesAppendicesA.) Interview with Office of Development and Alumni RelationsB.) Email from Anita Friedmann, Assistant Vice President of the Office of DevelopmentC.) Work Breakdown Structure for Phase 2


SourcesSources• "Accept Donations and Payments Online. Church Contributions and Non-Profit

Donations and Payments Online. Acceptiva." Accept Donations Online and Non Profit Payments. Donation Software. Church Contributions and Donations. Web. 11 Nov. 2010.

• Alexa the Web Information Company. Web. 11 Nov. 2010. <http://www.alexa.com/>.

• Blackbaud Fundraising Software: Nonprofit Accounting Software & Nonprofit Management System. Web. 11 Nov. 2010. http://www.blackbaud.com.

• Choney, By Suzanne. "Mobile Giving to Help Haiti Exceeds $30 Million - Technology & Science - Wireless - Msnbc.com." Breaking News, Weather, Business, Health, Entertainment, Sports, Politics, Travel, Science, Technology, Local, US & World News- Msnbc.com. Web. 25 Oct. 2010. <http://www.msnbc.msn.com/id/34850532/ns/technology_and_science-wireless/>.

• Council for Aid to Education. "CONTRIBUTIONS TO COLLEGES AND UNIVERSITIES DOWN 11.9 PERCENT TO $27.85 BILLION GREATEST DECLINE EVER RECORDED." Web. <http://http://www.cae.org/content/pdf/VSE_2009_Press_Relsease.pdf>.

• "Enrollment in Educational Institutions, by Level and Control of Institution: Selected Years, 1869-70 through Fall 2018." National Center for Education Statistics (NCES) Home Page, a Part of the U.S. Department of Education. Web. 25 Oct. 2010. <http://nces.ed.gov/programs/digest/d09/tables/dt09_003.asp?referrer=report>.


SourcesSources• "Fundraising Software Pricing Info, Price List." Fundraising Software for

NonProfit Donor Management DonorPerfect. Web. 11 Nov. 2010. <http://www.donorperfect.com/fundraising-software/pricing.asp>.

• "Giving Statistics." U.S. National Park Service - Experience Your America. Web. 25 Oct. 2010. <http://www.nps.gov/partnerships/fundraising_individuals_statistics.htm>.

• "Mobile Giving: Organizations Collecting Donations by Text | Mobile Commons." Web. 25 Oct. 2010. <http://www.mobilecommons.com/blog/2010/01/mobile-giving-how-your-organization-can-start-collecting-text-donations/>.

• Membership Management Software | Membership Software | YourMembership.com. Web. 11 Nov. 2010. <http://www.yourmembership.com/pricing/>.

• "Quotas - Google App Engine." Google Code. Web. 11 Nov. 2010. <http://code.google.com/appengine/docs/quotas.html>.


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