Strategic Online Communications for Nonprofits

Posts Tagged ‘online giving’

The case for moving to an online fundraising strategy just became even more compelling.

According to a report recently released by the Giving USA Foundation, donations to charitable causes in the United States reached an estimated $307.65 billion in 2008, marking a 2% decline over 2007.  This is the first decline in giving since Giving USA began publishing annual reports in 1956.

The report reveals that two-thirds of public charities receiving donations saw decreases in 2008, while demand for services increased at 54% of human services charities in the same year.  In spite of the widespread increase in demand, 60% of the human services organizations surveyed were planning to cut staff or services in 2009 due to funding shortages.

While online giving represents just 5% of the total $307 billion donated in 2009, there are clear indications that many donors are moving online.  According to a Blackbaud analysis of Giving USA data, over $15 billion was given online to US non-profits in 2008– marking a substantial increase over the estimated $6.9 billion given online in 2006 (ePhilanthropy Foundation).

Online giving is not only favored by younger generations.  A 2008 study entitled “The Wired Wealthy” revealed that 51% of wealthy donors said they prefer to give via the Internet and 46% of those surveyed intend to make more of their donations online in the coming years.  An article in the Christian Science Monitor further emphasizes the benefits of online donations: “first gifts given online are 1-½ times larger than first gifts via mail; repeat gifts are also larger.”

New technologies and interactive websites are increasingly engaging new donors and offering individuals ways to get directly involved in their favorite causes.  This approach is working well for many non-profits, particularly small and medium-sized organizations who can now reach more people with fewer resources.  For larger organizations, it results in significant cost-savings as fewer personnel are required to manage mailings, checks, and other administrative details associated with traditional fundraising campaigns.

An online fundraising strategy will become increasingly critical in the coming years, as traditional fundraising activities become more expensive, resources become more scarce, and newer generations flock to the Internet to give to their favorite charities.

And for those organizations who aren’t ready to invest in an online fundraising strategy, it is important to at least make sure that their online presence is up to par.  About 75% of individuals who donate do research online before they give– regardless of whether they end up giving online or not.

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

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.

According to the Philanthropy Journal (June 2008), giving in the United States reached a record $306 billion in 2007.  Individuals accounted for 75% of the donations, and tapping into this vast network of potential donors is easier than ever thanks to the Internet and new software applications.

The total amount of money that non-profit charities raised online in 2008 increased over 2007, with 26% more revenue generated from 43% more individual donors (Chronicle of Philanthropy, May 2009).

A strong online fundraising strategy, featuring a dynamic and interactive site designed for constituents, helps non-profit organizations keep a competitive edge and increase individual and major donor contributions.

Upleaf can develop streamlined fundraising strategies and tools including:

1.       Online giving pages to make one-time and recurring donations quick and easy

2.       Viral social networking campaigns to increase individual contributions

3.       Donor tracking and grant management tools

4.       Online marketing and communication strategies

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