Strategic Online Communications for Nonprofits

The tanking economy is creating uncertainty for many non-profit organizations.  Individual donations are down, private foundation contributions are decreasing, and many local and state government grants have been cut.

Rather than despair, it is time to develop creative online fundraising strategies that build your long-term equity.  Online fundraising can be unpredictable and may not pay off right away in today’s environment, but it is an essential component of every medium or long-term fundraising strategy.  Many organizations reported an increase in online giving in 2008 despite the financial crisis.

There are seven tips to keep in mind when developing your online fundraising strategy:

1. Avoid overkill. While it may sound counterintuitive, restrain your number of requests for contributions. Being too aggressive can actually turn past or potential donors away, particularly individuals currently facing their own tough financial situation. The more urgent requests you send, the less likely they may be to pay attention to you in the future. Make sure that for every request for funding you send, you send a separate communication that highlights the results of your work-and doesn’t request money.
2. Actively engage your constituents. Find ways to keep your constituents involved in your cause that don’t require donations. Encourage them to support you through advocacy, blogging, spreading the word to their social networks, and show your appreciation for those valuable in-kind contributions. The loyalty you build now will pay off in the long-term, when the economy begins to recover.
3. Seek small, recurrent donations. Make it easy for people to sign up for small automatic monthly donations– $5 to $10 a month is much easier for people to take on when faced with an uncertain future.
4. Consider offering cause-related products. Recent experience has demonstrated more success raising funds through the purchase of cause-related products than through traditional donations. Individuals are more willing to purchase a $25 T-shirt or tote bag with a compelling social message than they are to simply donate $15 to a social cause. Such products also help increase institutional visibility and loyalty over time.
5. Use social networking– realistically. According to the April 2009 Nonprofit Social Network Survey Report, more and more nonprofit organizations are turning to social networking to strengthen their reach and exposure. Facebook is the most popular venue (74% of 980 non-profits surveyed maintains a presence there) but community sizes are still rather small, with an average of 5,000 members. Average annual Facebook fundraising returns are low, under $10,000. Most organizations judged the success of their social networking strategy by the number of members and amount of user-generated content and their primary goal was cited as marketing rather than fundraising, which in most cases was considered a worthy investment.
6. Make it easy to donate. Be sure that your website, social network pages, email blasts, and other forms of communication include a prominent “Donate” button linked to a short, user-friendly donation page. Donating should take no more than 2-3 minutes, and upon completion the individual should receive a printable email note of appreciation for their tax records.
7. Set realistic goals. Remember that giving is down for everyone this year, and fundraising goals should be realistic. Include additional parameters for success– your efforts engaging new constituents this year will likely lead to increased revenues in coming years. Focus on building loyalty and broadening your database of contacts for the future, and above all don’t get discouraged if your efforts don’t pay off right away. All trends are pointing toward online giving so you’re on the right track!

By Elizabeth Beachy, Upleaf Co-Founder. Upleaf is dedicated to helping non-profits increase their social impact through strategic online communications.

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