ONLINE TOOLS AND PRACTICES FOR GRASSROOTS FUNDRAISING

David DombroskyCenter for Arts Management and Technology

daviddom@cmu.edu August 2010

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Online Donations: The BasicsBe sure to provide your website’s visitors with the ability to donate

Online Donations: The BasicsTo maximize the potential for online donations, you need an online payment processing service.

• Network for Good’s DonateNow

• Google Checkout• Paypal Donations

Three Low Cost Options

Affinity Resources, LLC maintains a chart on their website comparing various online donation processing services and tools.

Online Donations: The BasicsThe four most important factors to consider when evaluating potential donation processing services:

1. Costs – initial setup fees, monthly service fees, transaction processing fees

2. Methods of funds transfer – do the funds come directly to your organization from the donor, or do they come from the processing service?

3. Access to and privacy of donation data

4. Integration with your website

Micro-DonationsA micro-donation is a small gift usually given through electronic media.

• Point-and-click web based interfaces, e-mail, and SMS txt messaging are the most popular and effective platforms.

• Micro-donation campaigns have not been proven effective for annual giving platforms, large gifts or operating funds.

• They have been proven effective in supporting specific projects, programs, campaigns, and Individuals.

Micro-Donations5 big tips to help organizations set up a successful micro-donation campaigns:

• Make it easy to give money and sign up online• Reward people who have just signed up with useful follow

up contact and content• Communicate how much donations matter (even the very

small ones)• Create online participation opportunities• Give people a sense of what’s going on backstage – and in

your back offices

Text or SMS Donations

How it looks to the mobile user: How the funds are distributed:

SMS (Short Message Service) or text donations allow individuals to give micro-donations to an organization via their cell phone or mobile device.

There are a number of service providers who act as intermediaries between nonprofit organizations and wireless service companies .

Text or SMS Donations

• CauseCast• Connect2Give• g8wave Inc.• Give by Cell• Give on the Go, LLC

The Mobile Giving Foundation serves as a link between nonprofits, the wireless industry and the 280 million wireless users in the US. They bill for the donation through their platform and carrier connectivity, help NPOs market their campaigns, collect funds generated through mobile giving campaigns from the carriers and then distribute the collected funds directly to the recipient charity. The MGF is also responsible for issuing the donor receipt. They currently work with the following service providers:

• iLoop Mobile, Inc.• Mobile Cause• Mobile Commons• Mpower Giving• Russ Reid, Inc.

Crowdfunding SitesCrowdfunding websites are a simple way for artists and small organizations to solicit and accept donations online. With Kickstarter, one of the more popular crowdfunding sites, you set a fundraising goal and have three months to achieve it. • If you reach your goal within three months, you keep the cash. • If you don’t, the funds are returned to your backers. • You design a menu of rewards to motivate backers to give. • And, you keep 100% of ownership over your project — an important consideration for artists dealing with copyright and distribution issues.

Crowdfunding Sites

Crowdfunding Sites

Crowdfunding Sites

• Projects on IndieGoGo can be based anywhere in the world.

• Not curated, so projects cover a broad spectrum.

• Not an “all-or-nothing” enterprise. You can keep any funds you raise along the way.

• Has a fiscal sponsorship program through Fractured Atlas

Facebook - CausesWhile anyone can create a “cause” on Facebook, becoming a nonprofit partner organization will allow you to build and customize your profile, increase your organization's rankings in search results, and track causes that benefit your organization.

Causes Nonprofit Partner Application

Facebook - Advertising

Allows you to target your ads by various criteria. You can either pay for impressions or pay for clicks.

Facebook - Advertising

Facebook - Advertising

Facebook - Advertising

Culturally Specific Social Networks