Show Me the Money!Online Fundraising for Nonprofits

Jocelyn Harmon, Director of Development and Marketing, NPower Greater DC Region, jocelyn@npowergdcr.org

Agenda

What is online fundraisingWhy online fundraising?Who should do it?How?The NEW ToolsPros & ConsExamples5 things to remember

What is online fundraising?

Any digital communication designed to generate a response, such as a donation.

Why online fundraising?

1. It’s cheap

2. It’s efficient

3. It can be extremely effective

4. It can help you reach new and younger donors

5. It can enable your best supporters to fundraise for you!

6. It can be measured

Who should do it?

The Stats

• 71% of American adults are online.

• 68% of men and 66% of women are online

• 56% of Hispanics living in the U.S. and 60% of African Americans use the Internet, compared with 71% of whites.

• 91% send or read e-mail

• 57% of online adults have used the internet to watch or download video

Source: Pew Internet & American Life Project

The Stats

• Online giving has grown from $250 million in 2000 to more than $4.5 billion in 2005. This represents only 2 – 3% of the $200 billion in individual giving in the U.S. but it is growing rapidly.

Source: e-Philanthropy Foundation

• Online giving is particularly cost-effective for charities. While it can $1,25 to raise a dollar from a new donor through direct mail, the costs per dollar of raising money online can be as little as $.05

Sources: Fund-Raising Cost Effectiveness, James/Greenfield

The Stats

• Online givers are young (median age 38) vs. 60+ for offline donors.

• Online donors are generous. Average gift = $163.

• The #1 reason that donors give online is that it is easier

than writing a check.

Source: Network for Good

But How?

Strategy first.

Tactics second.

Stop shouting!

Flip the Funnel

Give the folks that LOVE you the tools to fundraise on your behalf.

The New Fundraising (& Marketing & Media) Technologies

Blogs

Charity widgets

Social networking sites

Video

P.S. Don’t forget about e-mail!

Blogs

Charity Widgets

Social Networks

Video

NPower Greater DC Region Video

The Back End

You’ll still need the back end, i.e. a way

to track and communicate with donors and collect the cash!

Nothing is Perfect

NOT!

• You can lose control of the message.

• Just like offline fundraising, online fundraising won’t work unless you ARE or KNOW folks that are WIRED.

• Some audiences may not be ripe, yet!

A Great Example

Another Great Example

Summary

1. The Internet is leveling the playing field for nonprofits.

2. Use the new tools to help your supporters, help you!

3. Online fundraising should be just one part of an integrated

strategy.

4. The blog is not the dog.

5. Have fun!