Fundraising Day NY: Online research
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Dennis McCarthy of Convio and Katya Andresen of Network for Good presented new research and what it means to fundraisers
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Fundraising Day NY: Online research
- 1. Profiting from the Latest Research in Online Fundraising Who is online and what works …and what doesn’t!
- 2. Introductions… Katya is COO of Network for Good, which processes donations for 40,000 charities annually. She has authored and co-authored several books on nonprofit fundraising and marketing, blogs at nonprofitmarketingblog.com and teaches at American University. Dennis has spent over 25 years working at organizations like Epsilon and Share Group, serving non profits of all shapes and sizes. At Convio, he works from their DC office and is responsible for strategy, analytics, UX/IA and their partner program.
- 3. Feel free to… Ask a question at any point in our presentation Ask one question at a time so everyone has a chance. If you’d like a debate we can do that afterwards. Katya and Dennis will stay after to answer any questions… now let’s begin.
- 4. New Research: We’re Wired for Altruism
- 8. Photo: By Darren Whiteside
- 9. Finding #1: Giving is emotional.
- 10. The more emotional, the more money
- 11. Finding #2: Giving is personal.
- 13. Photo Credit: YouGetThePicture, Flickr
- 16. 3. Giving makes people happy.
- 17. Recurring giving makes people VERY happy.
- 18. Most fundraisers probably don’t think of themselves in the business of selling happiness to donors, but that is ... their job.”M.A. Strahilevitz
- 19. 4. Giving is social.
- 20. The last person gave…
- 21. Not so fast… $2.9 million $5 million $100 million All my money
- 22. The Takeaways Technology depends more on human bonds than wires. If you want to succeed: Use technology to increase emotion Go for a one: one, human scale Leverage friends to friends Be tangible in your ask Push recurring giving Leverage social norms
- 23. So That’s Where Donors Are Mentally Where are they doing their giving? What does that mean for online fundraising? What does this mean for your organization?
- 25. How different ages interact differently than other age cohorts.
- 27. b. ≤1945 79% Give 30.8M donors $1066 yr/avg 6.3 charities Size of each pie is significant – represents total population of each b. 1946-1964 67% Give 52.2M donors $901 yr/avg 5.2 charities Total Annual Giving b. 1965-1980 58% Give 35.9M donors $796 yr/avg 4.2 charities b. 1981-1991 56% Give 28.5M donors $341 yr/avg 3.6 charities % Giving USA Generational Giving Study 2010
- 28. Changing Constituent Landscape Matures Boomers Gen X POPULATION POPULATION 78M 62M POPULATION 39M $$$$$ $$$$$ ANNUAL GIVING $$$$$$ DONATED BY CHECK BY MAIL PRIMARY CHANNELS REGULARLY ON FACEBOOK
- 29. Increasingly Multichannel Behavior % say appropriate solicitation channel Mail Email Social Media Phone Text
- 30. Word of Mouth is Critical “Peer to peer solicitation is the most acceptable form of solicitation”
- 31. New Donor Challenge Source: Target Analytics donorCentrics™ Index of National Fundraising Performance | Fourth Quarter 2010
- 32. New Donor Renewal Rate Donor Value Over 12 Months Lifetime Donor Value Lifetime Donor Value $694 +121% 50.9% +48% 34.4% +95% $314 $187 $96 Integrated Marketing Integrated Marketing Integrated Marketing Direct Mail Direct Mail Direct Mail Source: Company whitepaper entitled “Integrating Online Marketing (eCRM) with Direct Mail Fundraising” 1 Traditional defined as offline use. 2 Internet Enabled defined as both offline and eCRM use. Channel Integration Value
- 33. Where does social media stand with acquisition?
- 34. What about fundraising with social media…
- 35. Social Media & Online Giving . Charity Websites: Where two-thirds of giving occurs Giving Portals: Donors can search for and support any charity registered with the IRS (NetworkforGood.org, GuideStar.org, CharityNavigator.org). Social Giving: Donors can give to many charities and/or fundraise with friends & family (includes Causes on Facebook, Change.org, YourCause.com)
- 36. Less Personal = Lower Donations Strong Relationship, Highest Value On pages that are branded to the charity (and look like the rest of the charity’s website), donors started higher and gave 38% more over time than on generic pages (which also require login and a multi-page checkout process). A Little Personality Goes a Long Way Repeat giving by donors acquired through generic giving pages is 66.7% lower than for donors who gave through charity-branded pages.
- 37. Social Media & Fundraising According to a recent February 2011 Idealware survey: 40% reported success in converting fans to donors or even volunteers 66% of respondents from advocacy organizations saw an increase in people taking some noticeable form of action 29% saw an increase in donations from fundraising with Facebook
- 39. 86% of donors visit the website before making a gift offline
- 40. Only 8% are inspired by websites aloneWhat they want: 75% want to control frequency and content Donors want to receive tax receipts, renewal notices and financial progress updates Major Donors Multichannel Too Source: Wired Wealthy, Convio, Sea Change Strategies and Edge Research, 2008
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- 46. When Social Works Donor is the center of the campaign Fundraiser has a personal story Fundraiser has tools to reach their circles of influence The cause becomes a community Urgency Technology serves as an embrace
Editor's Notes
- KATYA:I’ll talk about the latest neuroscience and mirror neurons that show humans are empathetic – and inherently generous.
- KATYA: People are generous and there are many ways to help so why is our job so hard??
- KATYA:Because our online outreach is often not reflective of what science now tells us motivates giving
- KATYA: Classic – how moved do you feel?
- KATYA: Stare into those eyes – now how?
- KATYA: Best predictor is the emotions of the GIVER – more about ourselves than anyone ever imaginedYou have to awaken the heart to arouse the mind.Emotion MUST lead reason
- KATYA -thons, personal fundraising – when the fundraiser feels pain, people give more – again, all about personal emotions
- KATYA: Sea monkey story as illustration of singularity effect and importance of tangibility
- If you think about it, this is good news for online outreach – built for personalization and 1:1 human scale
- Giving makes people happy.Happy people give more.That makes them happier.Which makes them give more.
- KATYA: Study of business school students – prefer to give a sum of money in many increments to maximize feel-good effect. Does this make Canadians happier than American?
- Social norms influences
- The latest research shows all giving, including online giving, works best when youapply what I just discussed in these ways
- Dennis….
- Do you know who your supporters and constituents are? How do you know? What do you know? Is it compiled or self reported….
- Demographics & technology explain a lot. We polled GenX & GenY donors and found they give via direct mail at half the rate of their predecessors, and direct mail isn’t typical of how they heard about their now favorite charity. They have expectations driven from the 24/7 news cycle and Web2.0 participatory communications. And, like their predecessors, they are naming peer-to-peer solicitations as the most appropriate type, and are expecting nonprofits to empower them with the technology to make a difference via voluntary support. They see no difference if Bank of America or Pottery Barn can do this why can you not? They do not want an inferior relationship with you. They want multi channel and integrated communications. SO WHAT? I’ve brought you a copy of this report & will leave it with you. It’s great reference material to give to a board member when you want to give them an idea of the need to have integrated constituent engagement, since the future is profoundly multi-channel. It can help them keep their eyes on the road ahead while driving your org forward, instead of steadily looking in the rear-view mirror of just what’s comfortable and familiar behind them. CHERYL – do we have this??
- Look at Matures and see there’s some engagement with Social…why….cause their friends and communities are there..
- All generations much more guarded with direct communications if no relationship in place, gets worse as gets older. Mass media the one accepted channel (74% appropriate). Big theme heard in focus groups is Control -- skepticism about getting manipulated. Feel like traditional solicitation channels – phone and mail – are manipulative. They want to feel like they made the choice/they are in control. Giving after hearing a mass media story, and/or being solicited by a friend makes them feel like they made a choice.Q22 :Below are a variety of different ways that a charity may approach you and ask for a monetary donation. For each, please indicate how appropriate that approach is.Bold numbering in the table on the right indicates significance at the 95% confidence level
- WOM is seen as the most effective solicitation channel for Gen Y, X, and Boomers. What is WOM, Friend tell a Friend, Social Media, Peer Fundraising For Matures, direct mail is just as effective Younger generations are more open to other forms of solicitation: email (just as effective as dm with Y), social media, phone (though note that they are less likely to have a landline, and we heard in the focus group not as familiar with telemarketing) Mobile solicitation is still its infancy (more on this in a few minutes), but has more acceptance among younger audiences. Though was reading a report in Mashable that less than 25% read their mail on their phone but that this was an 80% increase.All generations much more guarded with direct communications if no relationship in place, gets worse as gets older. Mass media the one accepted channel (74% appropriate). Big theme heard in focus groups is Control -- skepticism about getting manipulated. Feel like traditional solicitation channels – phone and mail – are manipulative. They want to feel like they made the choice/they are in control. Giving after hearing a mass media story, and/or being solicited by a friend makes them feel like they made a choice.
- With over 35 million donors to 79 organizations tracked in the index here (which are gifts primarily through direct mail, but include phone & online gifts, too), the data suggest that big shifts are underway, shifts that aren’t just about the economy.SO WHAT? It’s almost like a silent Y2K-type challenge is underway - with no forcing deadline, but clear steady decline & broad & lasting implications. Notice that the new donors (the donors for tomorrow) show the most acute drop-off. Cumulatively, over the past five years, overall index revenue has declined. From the twelve months ending Q42005 to the twelve months ending Q4 2010, index revenue declined a cumulative median 3.1%. This is an effective annual decline of 0.6% per year (see Fig. 5).Over the most recent three years, which includes the worst quarters of the recent recession, overall index revenue has declinedsubstantially. From the twelve months ending Q4 2007, when the recession began, to the twelve months ending Q42010, index revenue declined a median 3.2%, for an effective annual rate of decline of 1.1% per year. Real index revenue has declined by 13.0% over the past five years and by 6.9% over the past three years when revenue dollar amounts are adjusted for inflation1.
- Look at the retention rate! Whats your New Donor conversion strategy and is it multi channel, this says it should be! Are you using email, telemarketing and/or direct mail to move response rate? Where does monthly giving fit in here for you? Just finished a study that showed that people who merely filled out a form asking for an e-newletter improved LTV by over 20%!
- According to my friend Steve McLaughlin, this is his graphic, really not a fundraising tool.
- Katya: Optional NFG data – social giving is only around 10% of giving through our portal, gifts tend to be smaller. Caveat – this is giving through NFG so doesn’t capture gifts that may have been made elsewhere.
- It speaks to authentic! Tangible….Optional NFG data – not sure this fits here but it shows how just a little bit of personalization/branding makes a big difference in conversion and giving over time
- Dennis, not sure you want this or not but here’s a case study if we want one. If we don’t we can kill the next few slies.What’s it like to be a 9-year-old soccer superstar one day and a boy with Ewing’s sarcoma—a rare bone cancer—the next? Paddy O’Brien’s poem Needles tells some of the story young cancer patients at UCSF Benioff Children’s Hospital know by heart. But needles are only part of Paddy’s story. There’s also the so-bad-you-cry pain in his left leg, and the deep fatigue that turned out to be a cancer early warning sign. There are blood tests and biopsies and five-day hospital stays every two weeks for chemo. There’s his mom, Alma, asleep by his hospital bedside every single night, and his dad, Mark, holding the hand of a son in post-chemo slumber. There’s his brother, Barry, bringing Paddy his favorite blanket and bearing the anger when Paddy, home from chemo, found Barry playing video games, living a normal life. NEEDLESNeedles, my worst enemy. Here’s the good part of needles: Sometimes they are sharp and slide right through your skin like a knife through butter. So, if you think this is bad, wait to hear what’s next. I’m a cancer patient at UCSF and when I’m not there I have to get a shot to keep my immune system working. The bad shots are like having liquid nitrogen going into my leg through a syringe. One of these needles is as thick as a toothpick which goes into my port; it doesn’t hurt at all. That big needle helps chemo, saline, pain and nausea meds flow through my body. After all of this, needles are curing me of cancer. Needles, they turn out to be my best friend.Paddy O'Brien There are the moms of friends and friends of Mom’s who sat with Paddy while his parents worked to maintain the insurance that made treatment possible. There are the little kids still fighting cancer at UCSF, who look up to Paddy, and the caregivers inspired by his never-fail positive attitude. There’s the year off school (the good part!) and the months of not knowing if Paddy would lose his leg. There’s Paddy’s hair, which turned pitch-black and fell out (he saved it). There’s the radiation therapy that left Paddy’s leg raw, and red as a stop sign. And there are the cookies—baked by Paddy’s family and friends in pre-chemo marathons, enough to feed 10 hospital shifts. Here’s the best part so far: In spring, birds built nests from strands of Paddy’s lost hair, released in the garden last winter. Paddy’s grades have improved so much, he’s made the Principal’s List—remarkable in a year when cancer treatments came before classes. And tests show Paddy to be cancer-free. As for the future, Paddy’s mom thinks his talents might some day take him into a career in communications, or even fundraising. Paddy knows a good cause when he sees one, she says—and he has a story to tell.We give to people like Paddy. We give when we’re moved by the person in need or by how we are asked.THE STORY AND THE STORY TELLER ARE EVERYTHING. SOCIAL MEDIA IS A GREAT PLACE FOR BOTH.
- Goal? 100K from 1000 people. More than 50 teams signed up for the seven-week contest, which encouraged individuals to contribute via social networking tools, such as Facebook and Twitter, through a collaboration with Causes.com. Teams competed for prizes throughout the contest. The grand prizes were naming rights to two prominent spaces at UCSF Benioff Children’s Hospital, currently under construction in Mission Bay. Number of donations was the key – not dollars.
- The social media gaming company generated more than $800,000 in donations from 162,544 donors, thanks to a candy cane integration launched in its popular FarmVille game earlier this month. When players purchased seeds for the red and white peppermint sticks, they received a teddy bear to place on their farm with 100 percent of proceeds going to the UCSF Benioff Children’s Hospital.
- At Christmas 2008, I was diagnosed with Ewing Sarcoma bone cancer. It was not the best Christmas present for a 10 year old boy! Although since then I have been blessed with many silver linings in life. I am a former cancer patient at UCSF Children's hospital. I am now in remission. I want to encourage every one to support the new children's hospital. These are the leaders in our medical community. They saved my life! And they are the nicest nurses, doctors , admin staff,researchers, student docs, janitors, food runners and food service staff. (Please forgive me if I left you out , there were so many great and friendly people at UCSF) Everyone I met made me feel like they genuinely cared about me, they knew my name and liked my cookies I baked for them every week. All I can say is, if you ever walk a day in my shoes you will be glad the UCSF has a new state of the art hospital to care for your child. Please support them.
- KATYA: My list of when social campaigns work based on our experience and that of our partner!
- Tried to turn this into takeaways – needs work I think…You Tube LPS and blogs, www.path.com...the possible successor to FB!!What’s UGC and crowdsourcing…