group fundraising: how does it work and what's out there?

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Group Fundraising

Ben Rattrayben@change.org

How Does It Work and What’s Out There?

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What is Peer-to-Peer Fundraising?

Vs.

Peer-to-Peer FundraisingTraditional Fundraising

Nonprofit

Potential Donors

Nonprofit

Donors

ImpersonalOne-wayExpensive

PersonalInteractiveInexpensive

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History of Peer-to-Peer Fundraising

Has always been aroundHouse partiesWalk-a-thonsCanvassing

But, limited useNot easy to collect moneyDifficulty asking people in personNo ongoing communication

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What’s Different Now?

Anyone can start a campaign

Easy to invite friends, rapidly spread the message, and collect money

Create a community

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Why is Peer-to-Peer Fundraising Powerful?

The power of personal connections

Magnified impact

Social recognition

Result: better engagement & giving experience

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Tools for Peer-to-Peer Fundraising

(1) Fundraising Pages

(2) Fundraising Widgets

(3) Leveraged Communications

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Tools: Fundraising Pages

Serves as a personal webpage/donation pagePhoto / message / goal / list of donors and comments

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Tools: Widgets

Effectively a mini fundraising page Can be put anywhere on the web87 million people have used a widget online

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Tools: Leveraged Communications

(i) Email (ii) Blogs (iii) Social Networks

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Sources for Fundraising Tools

Exclusively for Fundraising

Social Networking & Fundraising

New Giving Channels

Traditional Providers

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Examples of Successful Campaigns

Robin Maxwell Raised $18,000 from 1078 donorsReceived $10,000 matching donationBeneficiary: local MS Chapter

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Examples of Successful Campaigns

Beth Kanter & Michele MartinRaised $41,000 from 1,650 donorsReceived matching grant of $50,000Beneficiary: Sharing Foundation

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Examples of Successful Campaigns

Amy Eldridge, Love Without BoundariesRaised $94,000 from 4,115 donorsReceived matching grant of $50,00040 volunteers

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What Can I Expect?

Most campaigns don’t work this wayNetwork for Good: 20 people raised 30% of funds

Dol

lars

Rai

sed

People0

$0

1000

$50k

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An Interlude on ViralityThis is Viral:

The average new member recruits > 1 additional member

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An Interlude on ViralityThis is NOT Viral:

Exponential increase vs. Exponential decay

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Keys to a Successful Campaign

1. The Messenger

2. Compelling story

3. Photo or video

4. Catalyzing event

5. Specific ask

6. Blog support

7. Passion

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Do Organizations Have a Role?

Is extra-organizational fundraising superior?

Driven by compelling examples of money raised

But, these are (1) hard to replicate en mass, and (2) oftentimes helped by the organization

Nonprofit

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Presidential Campaigns

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What Can Organizations Do?

(1) Ask people to fundraise for youAdd a “fundraise now” button on your website

Create a fun/compelling campaign

(2) Communicate with and thank fundraisersSend personal thank-you notes

Give public recognition

Create a newsletter just for fundraisers

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The Future of Peer-to-Peer Fundraising

Will this be transformative or marginal?

Needs to be deeply integrated into nonprofit strategy

What will it take? Improved tools or improved practices?

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The Past vs. The Future

Vs.

Networked ModelCurrent Model

Nonprofit

Nonprofit

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Questions?ben@change.org