Online Fundraising 101

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@nonprofit_rd www.NonprofitRD.com/fb

www.NonprofitRD.com/IN

Richard Dietzrichard@NonprofitRD.com

2 of 49Online Fundraising 101www.NonprofitRD.com

Richard DietzRichard has spent the last 20 years working both in and with a wide variety of nonprofit, political, and government organizations, as well as technology companies focused on the nonprofit sector, including Sage Nonprofit, Convio and KIMBIA.

Richard holds a M.S.W. from the University of California at Berkeley as well as a B.A. in Political Science from UCLA.

Nonprofit R+D is dedicated to helping emerging and growing nonprofits fully utilize technology and the web to support their missions through training, best practices, and support.

Our definition of success is simple – we teach you how to use technology to effectively further your organization’s mission and then you do it. We want to work ourselves out of a job!

Think of it as the “teach a man to fish” model applied to technology use by nonprofit organizations.

www.NonprofitRD.com

Agenda

1. Overview of Online Fundraising

2. Strong Foundation

3. Fundraising Campaigns

4. Email Marketing

(Text Heavy Slides)

Our Goals Today

•Get you thinking about some new ways to improve your online fundraising efforts.

•Get you to take action and test out some new ideas ASAP• No campaign is ever perfect or “ready”• Only way to improve is to get something out there and test• Pick one or two ideas and add them to your campaigns.

• A survey course

Soap Box

Don’t Panic

There is help out there

Google is your friend

What you talkin’ about Willis?

SaaS, CRM, CMS

ROI, API, SEO

wysiwyg

Open-Source

Fundraising Platform

Blah, Blah, Blah

Experts have all the answers…No, not really

There are “best practices,” but you must test in your organization

Testing is the key, • Much easier to do online• If it works, do more. • If not, try something else.

“I already know this…”

We all have enough information right now to raise more money online.

The key is what have you DONE with the information.

Just take one or two things from the presentation today and

Take Action

Off Soap Box

1. Overview of Online Fundraising

What is Online Fundraising?Online Fundraising is NOT a Donate Button

We see Online Fundraising as: a coordinated, multi-faceted process of soliciting donations using online tools, including but not limited to websites, email, Search Engine Optimization (SEO), video, social media, etc.

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www.NonprofitRD.comOnline Fundraising 101

Why Online Fundraising?•Online giving is the fastest growing channel and is growing fastest for small organizations• Double digit growth year over year since 2009 (13-75%)•87% of orgs had at least one online gift of $1,000+•65% said they will make an online gift this year

» Young donors (86%), 35 – 64 (68%), Over 65 (53%)

•Direct mail donors – 29% made their gift online•93% of Millennials gave to nonprofits in 2010

– 21% gave $1,000 or more•26% who gave via mail said they were going to give LESS this way in 2011

www.cygresearch.com/download www.onlinegivingstudy.orgwww.millennialdonors.com blackbaud.com/2011OnlineGivingReport

2. Strong Foundation

Shiny ObjectsThere are many, many ways to raise money online

Much of the press focuses on “sexy” ways to do it:• Social media, online video, text-to-give, Etc.

Shiny Object Syndrome

Most organizations still raise more money from the basics

It may not be as cool or exciting initially• But you will raise more money in the long run

Maslow’s Hierarchy of Needs

http://en.wikipedia.org/wiki/Maslows_hierarchy_of_needs

Online Hierarchy of Needs

Strong FoundationClean, attractive website

Prominent donate button

Simple and easy donation process– Where’s the checkout?

Capture Emails / Email Marketing

Fundraising campaigns

Higher Level Strategies

Once you have a strong base, you can focus on the more advanced strategies

• Peer to Peer Fundraising• Online Video• Social Media• Emerging technologies

A strong base lets you fully leverage these strategies.• Would you be ready if something went viral?

Event FundraisingThe 890% Difference

• Event fundraising vs. Online donation forms• Not just online vs. direct mail

• Another way to engage and stand out• In-person meets increase sense of community and connection

• Great way to get businesses on board• More likely to “sponsor” events (Win – Win)

• Tie events into other campaigns and the story

* Thank you Jamy Squillace – Sage North America Sage Fundraising Online

FoundationalTools

Tools: The Foundational FourYou only need four tools to run a solid online fundraising campaign:

• Place to make your case – website

• Way to take money – donation form

• Way to connect with potential donors – Email marketing

• Way to track results – online analytics

Start where you are!

Website – Place to make your case

Remember the Fundamentals• Online Hierarchy of Needs

Clean, Attractive, Easy to Navigate

Use Photos and Stories• People connect with people• Online video is great – when you

are ready

Donation Form – Take money

Simple Donation Process• Easy to find donate button• Too many clicks and they are gone• Where’s the checkout? (Shopping cart abandonment.)

Short, Easy to Fill Out Form• Don’t ask too many questions

Make Them Feel Safe• Privacy Policy and security logos

Email – Connect with donors

Email is still the most effective driver for most orgs• Social media and Facebook may be hot, but email works

Easy way to stay in touch• Remember the 7 Touches

Need to use an email service provider• Outlook and bcc does not cut it anymore

Analytics – Track Results

How do you know if it’s working or not?• You need to track results or you’re flying blind

Start simple and add more as you learn• Don’t get overwhelmed with data

Testing is crucial. Analytics are the tools that allow efficient and effective testing.

• You can’t test without data

3. Fundraising Campaigns

Fundraising Campaigns

THE key to online fundraising.. Or any fundraising for that matter

Fundraising Campaigns are the framework• You could run a successful campaign with just this info • The other Strategies and Tactics can then be added to this

framework

Definition: Fundraising CampaignMost definitions something like:“a campaign to raise money for some cause”

Our definition:“A coordinated series of actions that utilize

• a specific goal• a clear call to action• a sense of urgency (Timeline), • a compelling story, and• part of a larger supporter cultivation system

Our DefinitionCoordinated series of actions

• Not a donate button or a single email• Multi-appeal (7 Touches)

Specific Goal• Focus should be on a specific program or need• Monetary goal should be relevant to the need

• Not just a number, but what that number will mean

Clear call to action• What do you want them to do?• Tied to the specific goal

Our DefinitionSense of urgency (Timeline)

• Don’t let them put it off until later• Ex: If we don’t raise the money by Aug. 1st, then we can’t launch this

school year

Compelling Story (Storytelling)• Stories increase emotion and donations• Tie the story into all communications

Part of larger supporter cultivation system• The donation is only a small part of the Fundraising Campaign• Continuous follow up and engagement – Long term benefits

Storytelling

Inspire supporters with passion• Get a nonprofit person talking about success• Always write your own content• You know your org the best and the passion will come out

– Especially with stories

Create emails and campaigns with “stories” in mind• Individual stories• Across emails.. The Cliffhanger• Multichannel

Why Fundraising Campaigns

Campaigns are compelling.. Donation pages are not

People give to People (animals too)• Individual stories are more effective• Late night infomercials• Childhood Hunger vs. four-year old Marie

http://www.austinfoodbank.org/hunger-is-unacceptable/

Why Fundraising Campaigns

Emotion >> Rationality• Buy based on emotion / Rationalize it later with facts

A Reason Why• Xerox study, Langer, Blank, and Chanowitz (1972) • Cut in line to make copies• 60% ---> 93% using only “because”

What donors want to hear about:• Organizational Impact (80%)• Success Stories (74%)• More details about the organization (71%)• Info on financial accountability (43%)

Community Philanthropy 2.0 survey

Campaign Overview

•Remember this is just a suggested outline. Your organization may be able to do this more quickly or you may have to involve more people in the process and it could take longer.

•The important thing to take away is the order of the steps and the actions themselves.

Timeline Tasks

Days 1-10 Brainstorm, research, and schedule your campaign

Days 11-25 Design, write and prepare communications

Days 25-30 Finalize all communications and test the campaign

Day 31 Launch Campaign

Fundraising Campaign Planning

• Appeal 1 – Campaign Kickoff• Sets up campaign and tone

• eCard - Reminder / Update / Acknowledgement• Gentle reminder about the campaign / Stay “ Top of Mind“• Can also update them about a success or progress

• Appeal 2 – Follow up / Last Chance• Sense of urgency / time is running out

Fundraising Campaign Cycle

Traffic(Email, DM,

Social Media)

Landing Page(Website)

Action(Donate, signup, etc.)

Thanks / Follow Up

Donor Engagement

(Feed the Funnel)

4. Email Marketing

Email is Still #1Many new “tools” in the press

Email still takes the prize

Email Marketing

Email is still the most effective method• 69% prefer electronic over print communication

• Cygnus Donor Survey

Email fits perfectly into • Fundraising Campaigns• Follow Up strategies

Relatively inexpensive

Start capturing emails now!

Email Best PracticesMonthly newsletters no longer work• Too much content, lost in the inbox• Need shorter, engaging content• Tell stories over multiple emails

Relevant and enticing subject lines• Literacy eNews – January 2011, OR 5 tips to create a life long reader

Easy to digest

Single Call to Action in every email

Frequency

Don’t fear the unsubscribe• Probably not going to be supporters anyways• May not happen anyways – • Case study – High vs. Low Frequency Emails

• 23% more money• 31% less unsubscribes

More frequent “asks”• Not always for money – build a relationship• Other small favors and actions

Follow Up / Thank You

Easiest way to build follow up – saying “Thank You”

The Power of Thank You• Most folks don’t get thanked enough• Makes both sides feel good (Maslow)• Remember the emotional connection

Say “Thanks” right away (auto-generated email)• Additional calls-to-action• What can they do from here?• Interest and support are high right now

Thank You Strategies

Thank them throughout the year• Great reason to email

Thank you updates• Highlight individual / Success stories if possible• Let them know it could not have happened without them• Still work to do – soft ask• Call to Action… always.

Make them part of the fundraising campaign

Thank You Example

Generic:

Thank you for your generous donation of $xx to support XYZ Nonprofit.

We greatly appreciate your support of our organization and our mission.

Personal:

Thanks to you, Marie and her family will have something to eat every night this year.

Your gift of $xx has helped Marie, and many more children like her, focus on learning instead of hunger while in school.

We look forward to sharing more of the successes you have helped to build in our newsletter.

Action StepsCommit to doing Online Fundraising

Identify and set up a fundraising campaignEmail > Landing page > Donation Form > Follow up

Select a few strategies or ideas and test

Take action, collect results, evaluate results

Take another action

New Online Course

Just Launched!

Online Fundraising Bootcampwww.NonprofitRD.com/OFB

Pg.15 of Program

Q & ADownload the Slides:

www.NonprofitRD.com/blog

Contact Info:Richard Dietz

Richard@NonprofitRD.com

@nonprofit_rd www.NonprofitRD.com/fb

www.NonprofitRD.com/IN

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