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Techniques and Tools for Online Fundraising

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					Techniques and Tools
for Online Fundraising

Community Clinics Initiative
     May 21, 2003



Presented by:
Michael Stein, Groundspring.org
mstein@groundspring.org
    What we’ll cover today


    1.   Online fundraising overview
    2.   Case studies
    3.   Techniques for online fundraising
    4.   Vendors and tools
    5.   About Groundspring


2
    Who’s using the Internet
    successfully?

     Big brands + disaster (American Red Cross)
     Big brands + animals (World Wildlife Fund)
     Small brands + passionate users (Surfrider
     Foundation)
     Big bucks
     Smart bucks
     Just plain smart
     Advocacy groups                       Slide courtesy of
                                                 Madeline Stanionis
3
    Online Giving Trends

     Stats say about 1% to 3% of individual giving
     last year was online
     Online space has favored large orgs, national
     brands, but . . .
     Higher average online gifts
     Online giving is one track that’s growing
     Online giving is closely tied to other
     marketing, fundraising and communications –
     integration is the key
4
    Latest study on online
    engagement*




5    * Courtesy: NetworkForGood, The Bridgespan Group, Guidestar
    40% who visit an org’s site take
    action




6
    Online giving small, but engages
    younger demographic




7
    Online giving may be small, but has
    its advantages . . .

                                                     Direct Mail     Email
        Production Costs                             $16,000
        Delivery Costs                               $50,000         $3,750
        Up-front Creative Costs                      $20,000         $1,000
        Total Cost of Campaign                       $86,000         $4,750
        Response Rates                               2%              8%
        (Acquisition & Conversion)
        Cost / Conversion                            $43             $0.60
        Execution Time                               Three months    Three days
        Response Time                                Three weeks     Real-time
        Personalization                              Limited         One-to-One
        Targeting                                    Limited         Sophisticated
        Feedback                                     Limited         Direct

8      * Slide courtesy of GetActive software
       * All costs based on a mailing to 100,000 members
       Sources: Jupiter E-Mail Marketing (April 2000); GA Analysis
    5 Case Studies

     Commercial Alert
     Massachusetts Society for the Prevention of
     Cruelty to Animals (MSPCA)
     Grist
     Earthjustice
     MoveOn.org



9
     Case Study: Commercial Alert

       Staff of 4, annual budget < $250,000
       Good media & organizing
       First direct mail -- Spring 2002
       Used Groundspring.org (eGrants.org)
       Email addresses: 3,000
       134 donations = $5,408; average $40
       5% of total fundraising campaign
       Lesson learned: good tie-in between mail and online
      fundraising



10
     Case study: MSPCA

      E-mail addresses
       –   Fall 2000: 300
       –   Dec. 2001: 5,000
       –   Jan. 2003: 15,000
      Online revenue
       –   FY 01: $18,000, 215 donors ($83 average gift)
       –   FY 02: $32,000, 690 donors ($46 average gift)
       –   FY 03: $60,000 (projected)
      Highlights
                                                  Slide courtesy of
       –   Summer campaign: $6,000                Madeline Stanionis
14     –   Winter series (Dec 02): $14,000
     Case study: Grist

      E-newsletter, Web site for Earth Day Network
      50,000 e-subscribers
      Never asked for money before
      1,900 gifts, total US$75,000, avg. $40
      E-newsletters’ appeals: about 3x/year


                                          Slide courtesy of
                                          Madeline Stanionis
17
     Case study: Earthjustice
      E-mail addresses
      –   Jan. 2001: 4,000
      –   March 2002: 28,000
      –   Jan. 2003: 40,000
      Online revenue
      –   FY 01: $14,000, FY 02: $57,000
      –   FY 03: $104,000
      Highlights
      –   Summer e-appeal (July): $26,000   Slide courtesy of
                                            Madeline Stanionis
20    –   Winter series (Dec 02): $50,000
     Lessons from MoveOn.org

      Keep it simple
      –   It’s about the message
      –   Short and clear – one thought per email
      –   Link to more info
      Speak in a personal voice
      Use word of mouth, viral marketing
      Invite to take actions – online & offline
      Tap into hot issues

25
     Techniques for Online Fundraising

     1.   Create and maintain an effective Web site
     2.   Drive Web traffic to your site
     3.   Use email for proactive communications
     4.   Get a Web strategist (not just a Webmaster)
     5.   Test, try, risk: be persistent!
     6.   Make an investment in the longer-term


26
     Techniques for Online Fundraising

       Create and maintain an effective Web site
         Current and useful information
         Explain how donors can help (give, volunteer…)
         Make the ask!
         Make giving easy on your site (DonateNow button)




27
     Techniques for Online Fundraising

       Drive Web traffic to your site
         Get stakeholders to your site
         Get past donors to your site
         Get registered with search engines
         Get linked to local news and content portals




28
     Techniques for Online Fundraising

     •   Use email for proactive communications
           Stay in regular contact
           Collect email from donors, stakeholders
           Get people to opt-in
           Keep people informed about news and events
           Make the case for financial support
           Make seasonal ASKS
           Use HTML-email instead of plain text email

29
30
     Email Messaging
      Create an email bulletin or email newsletter:

       –   Brand it

       –   Assemble content

       –   Send out regularly & according to need




31
     HTML vs Plain text

      Plain text e-newsletter
       –   5088 randomly selected recipients
       –   530 unique click-thrus (10.4%)
       –   1 recipient sent a tell-a-friend e-mail
      HTML e-newsletter
       –   12066 randomly selected recipients
       –   1759 unique click-thrus (14.6%)
       –   38 recipients sent "tell-a-friend" e-mails
                                                        Slide courtesy of
                                                        Madeline Stanionis
32
     Techniques for Online Fundraising

     •   Get a Web strategist (not just a Webmaster)
           Create a team of staff/board
           Plan your approach, make goals
           Make a budget
           Create a seasonal campaign
           Integrate your offline and online fundraising




33
     Techniques for Online Fundraising

       Test, try, risk: be persistent!
         Online fundraising requires testing and trying
         Test seasonal fundraising appeals
         Review metrics to analyze results
         Stakeholders can give you feedback
         Stakeholders respond to creativity (Grist)




34
     Techniques for Online Fundraising

       Make an investment in the longer-term
         Results may not be immediate
         Internet use still has a long way to go
         Higher bandwidth connections are still growing
         Use of mobile devices (PDAs, cellphones)




35
     Vendors & tools

      List management tools
      Online donation tools
      Integrated suite tools
      Other ASPs
      Best practices



36
     Email system: what you want

      Easy subscribe, unsubscribe
      Automatic removal of unsubs, bounces
      Subscription confirmation optional
      Easy to understand
      Ability to segment list
      Trackable URLs
      Ability to set “From” and reply addresses
      HTML sniffer                           Slide courtesy of
                                                  Madeline Stanionis
37
     Rags to riches email systems

      (Not systems: Your own Outlook, Eudora, etc.)
      Free: Topica.com, YahooGroups.com
      Inexpensive: Groundspring.org, Sparklist.com,
      Topica’s E-mail Publisher, Cooler E-Mail,
      Roving, etc.
      More features, more money: GetActive,
      Convio, Kintera, LocalVoice, eTapestry,
      Blackbaud, SocialEcology, etc.

38
     Donation system: what you want

      Complete merchant banking & credit card
      processing
      Ability to customize the donation page with
      look of your web site
      Ability to issue on-screen & email receipt
      Ability to handle premiums
      Ability to handle recurring donations
      Download your data 24/7
      Customer support & ease of setup
39    A trusted vendor
     Rags to riches donation systems

      Free: NetworkforGood.org

      Affordable: CharityWeb.net, Contribute.com,
      Donate.net, Entango.com, Groundspring.org
      (formerly eGrants.org), etc.

      More features, more money: Blackbaud,
      Convio, eTapestry, GetActive, Groupstone,
      Kintera, LocalVoice, Social Ecology, Virtual
      Sprockets, etc.
40
     Integrated online systems

       Web site content management
       Email messaging
       Credit card processing
       Donor database, giving history
       E-commerce
       Events registration & mgmt
       Advocacy campaigns

41
                                           The eNonprofit: a Guide
     Thriving as a Dot Org                 to ASPs, Internet
                                           service and online
                                           software


          All About ASPs                   By Michael Stein
                                           and John Kenyon

                               Published by
                               CompassPoint Nonprofit
            presented by Michael Stein
                               Services
              4th Annual Silicon Valley Conference
                   on Nonprofits & Technology
                      San Jose, California January 2002
                          May 9, 2002


                                           www.compasspoint.org
                                           /enonprofit


42
     About Groundspring.org

             Internet Tools for Nonprofits
       DonateNow: Credit Card Processing
       EmailNow: Email Messaging
       Training Program, Free Resources
       We’re a Nonprofit, Part of the Tides Family
       Processed $5.2 million in donations
       750 customers use our tools
       Just acquired ebase, will integrate online tools with
       offline database to build eCRM solution
       Customized Service at Low Cost
44
     Why DonateNow?


      • Secure, customized donation page with your logo
        and language
      • Real-time donation processing & monthly
        distribution of your funds
      • 24-hour access to donor information
      • 24-hour control of donation page
      • State registration, merchant banking, credit card
        processing

45
     DonateNow Pricing:
     Low Risk, Low Cost

      One-time setup fee
      $129 (standard page) OR $199 (custom page)
      Percentage of donations
      3% of donations
      Monthly fee
      $14.95 (org budget under $250,000)
      $24.95 (org budget over $250,000)

46
     EmailNow


     Email messaging service
     Send out eNewsletters
     Make fundraising appeals
     Communicate with supporters
     Affordable monthly fee, no ads

47
     Why EmailNow?


     • Safely store and manage email addresses
     • Send broadcast emails in plain text or HTML
     • Easy opt-in subscription and opt-out unsubscribe
       tools
     • Nonprofits have access to Web-based account
       management page
     • Complete delivery statistics for an email campaign
     • Easy import and export of email lists
48
     EmailNow Pricing:
     Low Risk, Low Cost

     One-Time Setup Fee of $49, plus Monthly Charges:

      Email Sent Per Month Monthly Charges
      0 – 10,000           $19.95 per month

      10,000 – 100,000     $19.95 per month
                           + $1 per thousand emails sent, above 10,000

      101,000 – 250,000    $109.95 per month
                           + $0.75 per thousand emails sent, above
                           100,000
      250,000 – 500,000    $222.45 per month
                           + $0.50 per thousand emails sent, above
                           250,000
49
     Training + LearningWare

       Upcoming all-day training workshops in Los
     Angeles (May 29), Atlanta (June 10), San
     Francisco (June 18). More in planning in
     Portland, Seattle, NYC, DC, Boston, Phoenix,
     N.Carolina

      Internet Techniques Series: free,
     downloadable Internet strategy documents


50
     More info




       www.groundspring.org


51

				
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