the ecology of online giving
DESCRIPTION
An overview of the different online fundraising options available to nonprofit organizations, including on-site donation options, e-cards, virtual gifts, Facebook applications, peer-to-peer crowdfunding sites such as FirstGiving, social media fundraising and mobile giving. Plus a peek into the future of online giving!TRANSCRIPT
The New Ecology of Online Giving and The Giving
Evolution
April 21, 2011
Debra Askanase, Community Engagement Manager, FirstGiving
How this webinar works
• A link to the slides and a recording will be sent after the webinar
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• Use the hashtag #fgwebinar to tweet about this webinar
Upcoming webinars
• May 19: Introduction to Location-Based Marketing for Nonprofits, with Estrella Rosenberg
• June 16: Outstanding Peer-to-Peer Fundraising in Practice
All webinars are 1pm EST/ 10am PST
About the presenters
Debra AskanaseCommunity Engagement Manager
Who is FirstGiving
Fundraising solutions
Personal Support for your nonprofit, donors, and fundraisers
Easy, tested, and secure transaction processes for the donor
Peer-to-Peer Fundraising Pages
and Event Registrations
Donor Analytics and
Market Research
Online Donations
Today’s agenda
The giving evolution: who’s in control now?
The rise of influence networks
The ecology of giving: on-site donations
The ecology of giving: off-site donations
Donation payment processing: brief overview
Social media fundraising: where it’s going
The (not-so-distant) future of online giving
The old way = conceit of ownership
nonprofit organization
supporter list
Yearly appeal
Special appeals
Fundraising events
The donor revolution is not on its way.
It has arrived.
“Donor legacy mindset” = a thing of
the past
It’s about causes, not the organization
Every. Single. Day.
Nonprofits must earn donor loyalty
Donors are in control seeking out a cause and a nonprofit to match their
passion
Non-profit
Non-profit
DonorDonor
Donor
Donor
Donor
Donor
Donor
Donor
To young donors, nonprofits
themselves are fungible
Non-profit
…and they now choose how they donate
to which organizationand when
Technology has put donors in the driver’s seat
Access to information
The rise of influence networks
Online donation solutions where donors live - online
The recommendation engine is driving purchasing decisions
Influencing
purchasing
decisions
“Millennial donors say they would be likely
or highly likely to give if asked by:
a family member (74.6%)
or a friend (62.8 %)”- Millenial Donor Report, 2010
Donate Button for websites
Pre-2000
Donate using mobile phone/SMS
2005 2009 2011
Donate via social networks
Project-based website
donations
Personal Fundraising through donation portals
Generalized online donation portals
Cross-platform donation
portability
Abbreviated History of Online
Donations
Annual US giving: $300 billion
http://www.blackbaud.com/bb/online/fundraising.aspxhttp://philanthropyblog.bwf.com/2011/03/convio-reports-on-growth-of-online.htmlt
http://www.onlinegivingstudy.org/quarterlyindex
The rise in online giving
Online US giving: 5% to 7% of $300b
Online giving growth: -35% in 2010 (Blackbaud)
-40% in 2010 (Convio)-24% in 2010 (Network for Good)
-- 27% in 2010 (FirstGiving peer to peer)
Culture and comfort of online purchasing is fueling the rise in online donations
The story of unique donors
Technology solutions have stepped in to fill the void
Be where the giving happens
On a nonprofit website
Home-grown systems situated on the
website
Donation button
Virtual gifts
Gift e-cards
On a nonprofit website: Donation button
On a nonprofit website: donation forms
Gift e-cards on the website
External to the nonprofit website
Peer to peer crowdfunding platforms
Widgets of all types (located on other
sites)
Facebook applications
Niche fundraising and donation portals
Using a Facebook Application
Features:
- The application does not necessarily live on FB
- Must log into Facebook to use the app
- Donate through third party processor- Can easily share the donation
through Facebook. The API is dependent on FB.
- Facebook is moving into the payment space
http://venturebeat.com/2011/03/21/facebook-payments/
Facebook Apps: Virtual Gift example
Facebook Apps: Causes
Facebook Credits
- 30% of any transaction goes to Facebook
- Most commonly used to buy games- Has the potential to be used for
donations- Now a subsidiary of Facebook
payments subsidiary (as of March 21, 2011)
For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-payments/?source=facebook
Donate anywhere: Widgets
Peer to peer crowdfunding platforms
What a fundraiser will typically need to do:-Register on the site and create a log-in-Search for a 501(c)3 beneficiary on the site (pre-vetted by either the IRS master file and/or GuideStar)-Select your 501(c)3 beneficiary-Create a fundraising page-Ask for donations from friends and family (and even strangers) online-View donations back-end account management
Niche fundraising or donation portals
Three models of donation payment processing
Donor-centric disbursement
“Social media fundraising” usually means this
Or this…leveraging the power of social media
The bleeding edge: social media platforms for fundraising
“Social media does not raise money, people raise money”
-Holly Ross, NTEN Executive Director
http://www.nten.org/blog/2009/07/06/three-lessons-social-media-fundraising
Mobile giving
http://www.nten.org/NTENChange
Accelerated growth in on-site giving
The (near) future of online giving
Accelerated growth in peer to peer giving
Explosion of APIs powering other sites
Growth of mobile giving options (including donation portals)
Project-based donations, not only to nonprofits
Personalized, geo-local online giving experiences
Sign up for our upcoming webinars
• May 19: Introduction to Location-Based Marketing for Nonprofits, with Estrella Rosenberg
• June 16: Outstanding Peer-to-Peer Fundraising in Practice
All webinars are 1pm EST/ 10am PST
Connect with us in our social spaces
Facebook: facebook.com/firstgivingTwitter: twitter.com/firstgiving
FirstGiving Insights blog: http://insights.firstgiving.com
Online Fundraising blog: http://blog.firstgiving.com
FirstGiving for Runners blog:http://runners.firstgiving.com
Thank you!
Interested in working with FirstGiving?Lee Johnson
Email: [email protected]: (415) 243-0757