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How to Build Relationships & Achieve
Fundraising Success in a Web 2.0 World

           Technology in the Arts 2008
              Annual Conference
           www.technologyinthearts.org
               October 10, 2008

                  Jono Smith
               Network for Good
           www.networkforgood.org/npo
About Network for Good

• Network for Good is a 501(c)3 nonprofit,
  founded in 2001 by AOL, Yahoo! & Cisco
• Our mission is to make it easier for nonprofits to
  raise money online, and for people to give online
• Network for Good has processed over $200
  million in donations for over 30,000 nonprofits.
• We manage all of the online fundraising on
  Facebook and MySpace
Agenda: What I Will Cover

• The “Web 1.0” Stuff
   – Basic Internet Marketing Strategy for Nonprofits

• The “Web 2.0” World
   – What is it?
   – What can I achieve?
   – Selecting and implementing the right strategy & tools

• The Case Studies
   – The Nonprofit Marketing Blog
   – How TNC engaged a new audience on Flickr
   – How Kevin Bacon Flipped the Funnel for Nonprofits
   – What’s the deal with Causes on Facebook?
Reality Check




           Social networks are
           not a silver bullet for
            online fundraising.
First things first
•       Who has a website?
    –     Can you collect email addresses on your website?
    –     Can you accept online donations on your website?
•       How does your website engage your audience?
    –     Do you use website design strategically?
    –     Do you provide relevant content?
    –     Do you tell your story through pictures, videos, or podcasts?
    –     Do you have a blog?
•       How do people find your website?
    –     Do you use email marketing to drive traffic back to your website?
    –     Can people find your website in search engines?
    –     Do your publish your URL on every communication,
          both online and offline?
Why Online Giving is the Great Equalizer

• At Network for Good, 50% the donations
  go to 1% of charities (excluding crisis
  giving)
• The rest – 25,000 nonprofits – are spread
  out along the long tail
• Small to medium-sized nonprofits account
  for 70% of giving via Network for Good
The Long Tail of Online Fundraising

• Because any nonprofit of any size can do it




• Because it’s drastically less expensive and more
  efficient than conventional fundraising
Who Is Giving Online?*

• Online givers are young (38-39 years old)
• They are generous -- ($163)
• Men and women give online in equal
  numbers
• Virtually all (96%) have given to charity
  before, but 38% haven’t given online
  before
*Network for Good Study, “The Young and Generous”
Online Fundraising in a Web 2.0 World
Definition


        Web 2.0 is about people using
      technologies to get the things they
      need from each other, rather than
        from traditional institutions like
          corporations (or nonprofits!)

Adapted from Groundswell by Charlene Li & Josh Bernoff
The 3-step approach to Web 2.0

   People
   • Focus on where people are

   Objectives
   • Decide what you want to accomplish (hint:
     community first, fundraising second)

   Strategy, Tactics, & Technology
   • Avoid “random acts of marketing.”
   • Don’t be just another fool with a tool
Adapted from Groundswell by Charlene Li & Josh Bernoff
Strategic Goals for Web 2.0

1.   Find people who are passionate about your cause (Google
     Alerts, Technorati)
2.   Grow people’s awareness & familiarity with your cause, and
     own the search engines! (Google AdWords, Blogging)
3.   Amplify word-of-mouth & grow your email list (Flickr &
     YouTube)
4.   Plug your supporters into fundraising widgets
     (SixDegrees.org)
5.   Go where people are & tap into user participation
     (Facebook)
6.   Inspire people to visit your website and engage with you
Tools to find supporters and monitor them
To blog?

                            1. Are you listening to your online
                               community?
                            2. Do you have something unique
                               to say?
                            3. Are you willing and able to say
                               it?
                            4. Are you willing to be challenged
                               and criticized?
                            5. Are you willing and able to
                               dedicate the resources to
                               succeed?

Source: Matt Dickman, Techno//Marketer blog: http://technomarketer.typepad.com/
Where is your traffic coming from?
Tools to engage a new or existing audience



   Online photo management & sharing
      application—has two main goals:

1. We want to help people make their
   content available to the people who
   matter to them.
2. We want to enable new ways of
   organizing photos and video.
The Nature Conservancy Flickr Campaign

   • Launched an annual digital photography contest on Flickr
   • Promised winners of contest placement for their photos in the
     annual member calendar and nature.org web site
   • Ran integrated campaign with e-mail cultivations, search
     engine ads and social networks to draw in both members and
     new leads
   • Allowed entrants to participate solely on Flickr, but also by
     sending photos directly (w/ opt-out registration for our list)
   • TNC picked the finalists, but let the public vote on the winners
   • Never asked for money, only for engagement

Source: Jonathon D. Colman: Associate Director, Digital Marketing at The Nature Conservancy
Outcomes

   • Over 8,500 members of TNC’s photo group on Flickr who
     have shared nearly 94,000 photos (~11 photos per member)
   • One of the largest nonprofit groups on Flickr to date
   • Great, positive feedback from members and new prospects
   • Coverage for (and many links to) our photo contest in
     numerous photography and nature picture blogs, discussion
     boards
   • Over 10% click-through rate on ads promoting the contest
   • Over 7,200 new e-members registered
   • Over 5,000 votes for 2006 contest; over 17,000 votes for 2007

Source: Jonathon D. Colman: Associate Director, Digital Marketing at The Nature Conservancy
Why did this work?

   TNC framed their call-to-action to answer
   3 questions:

1. Why me? The pictures helped the
   audience relate to the cause.
2. Why now? The contest created urgency
3. What for? People were rewarded for
   participating.
Strategy: Person-to-Person Fundraising

          The process of gathering money and other gifts in kind,
                    by empowering individuals to solicit from and
               communicate with prospective donors of their own
                 choosing through the use of Web 2.0 (i.e., blogs,
             widgets, images, video, face-to-face interactions and
                                               other social media).


                  Synonyms: group fundraising, personal fundraising, viral
                  fundraising, grassroots fundraising, peer-to-peer fundraising.


Source: Peter Deitz, Social Actions, Founder
Fundraising Widgets

A person-to-person
fundraising widget is an
online tool that permits a
portion of one webpage to
appear on other webpages.
These multiple appearances
look exactly the same and
can be updated from a
single source.
Meet the Wired Fundraiser

• A wired fundraiser is a word-of-
  mouth maven who is highly
  effective at fundraising for a cause
  in an ever-widening personal
  sphere of influence online. They
  are naturals at connecting to
  others.
• They are very good at what they
  do for a simple reason: people are
  most likely to give when someone
  they know asks them (2006 Cone
  Nonprofit Research).
Personal Motivation: Robin Maxwell

“I’m a runner and a tri-athlete, and the
   mother of two small children, and girl scout
   leader. I went from being totally normal
   and healthy to facing a life of paralysis and
   future disability, and those were really,
   really dark days, those first two weeks.”
--Robin, MS Society Blue Ridge Chapter
Robin’s Story
Causes on Facebook


The 30+ audience is the fastest
growing segment of Facebook.
Causes on Facebook

The Causes
application for
Facebook adds the
ability to solicit and
make donations
from within
Facebook.
Causes on Facebook

• Allows American and
  Canadian 501(c)(3)s to
  recruit supporters and
  fundraise directly on
  Facebook
• Raised $3.2MM for
  25,000 charities since
  June 2007
• 13MM total installs, 5MM
  monthly active users
Facebook Cause: Love Without Boundaries

•   Has raised over $150,000 from
    4,115 donors.
•   A small nonprofit with just 3%
    overhead and an all-volunteer
    staff, Love Without Boundaries
    seeks to give medical care to
    orphans in China in hopes of
    readying them for adoption.
•   Their staff, who are older, non-
    traditional Facebook users, were
    able to spread the cause through
    their social network, bringing in
    thousands of Facebook users
    who had never before heard of
    their small nonprofit.
Love Without Boundaries



“…every bit of the fundraising was done by
    people like me, recruiting friends and
  sending emails. The old model--wooing
   big donors--requires considerable time
  and expense, albeit with bigger payoffs.”
Lessons Learned

1. Focus on audience values not your own
2. Choose the right messenger
  – Think like the Marine Corps: the few, the
    proud
3. Have faith in your audience
4. Provide a sense of urgency
5. Plug your wired fundraisers into great
   tools & resources
6. Trust leads to results
Facebook Resources

For tips and resources, visit:
• http://www.fundraising123.org/social-networking


Including:
• Starting a Cause on Facebook
• Everything You Need to Know About
  Using Facebook as a Nonprofit Marketing
  Tool
Measurement Ingredients
      Engagement & Reach                                              Earned Media
                                                                      •Offline media mentions
     •Page Impressions, Visits, Unique Visitors
                                                                      •Online media mentions
     •Time Spent, Pages per visitor
     •Emails opened, click-throughs
     •Videos viewed, audio plays
                                                                      Search Visibility
                                                                      •Higher search results

     Word of Mouth                                                    •Greater search results “share”
                                                                      •3rd party results
     •Number of Mentions, Posts, Comments
     •Recommendations                                                 Research
     •Mentions-per-user
     •Send This To A Friend                                           •Customer/stakeholder feedback
     •Inbound links                                                   •Product sampling




Source: Qui Diaz, Livingston Communications: www.livingstonbuzz.com
4 Rules for Fundraising & Marketing in a Web 2.0 World


• Don’t let your online presence be just a “brochure”
  website
• Go to where people are, using the infinite variety of
  the Internet
• Flip the funnel: Tap into user participation (person-
  to-person fundraising, wired fundraisers, social
  media)
• Don’t get carried away by the hype; you still need all
  the offline stuff
Closing Thought…




           Inspiration + Know
             how + Tools =
           Change the World
Contact

• Jono Smith, Director of Marketing
  Network for Good
  240.482.3211
  jono.smith@networkforgood.org

• Website: www.networkforgood.org/npo
• Learning Center: www.fundraising123.org
• LinkedIn: www.linkedin.com/in/jonosmith
References


•   Beth Kanter’s Blog: beth.typepad.com

•   Nonprofit Marketing Blog: www.nonprofitmarketingblog.com

•   The Nature Conservancy: www.nature.org

•   Peter Dietz/Social Actions: blog.socialactions.com

•   The Buzz Bin: www.livingstonbuzz.com/blog
How to Build Relationship and Achieve Fundraising Success in a Web 2.0 World

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How to Build Relationship and Achieve Fundraising Success in a Web 2.0 World

  • 1. How to Build Relationships & Achieve Fundraising Success in a Web 2.0 World Technology in the Arts 2008 Annual Conference www.technologyinthearts.org October 10, 2008 Jono Smith Network for Good www.networkforgood.org/npo
  • 2. About Network for Good • Network for Good is a 501(c)3 nonprofit, founded in 2001 by AOL, Yahoo! & Cisco • Our mission is to make it easier for nonprofits to raise money online, and for people to give online • Network for Good has processed over $200 million in donations for over 30,000 nonprofits. • We manage all of the online fundraising on Facebook and MySpace
  • 3. Agenda: What I Will Cover • The “Web 1.0” Stuff – Basic Internet Marketing Strategy for Nonprofits • The “Web 2.0” World – What is it? – What can I achieve? – Selecting and implementing the right strategy & tools • The Case Studies – The Nonprofit Marketing Blog – How TNC engaged a new audience on Flickr – How Kevin Bacon Flipped the Funnel for Nonprofits – What’s the deal with Causes on Facebook?
  • 4. Reality Check Social networks are not a silver bullet for online fundraising.
  • 5. First things first • Who has a website? – Can you collect email addresses on your website? – Can you accept online donations on your website? • How does your website engage your audience? – Do you use website design strategically? – Do you provide relevant content? – Do you tell your story through pictures, videos, or podcasts? – Do you have a blog? • How do people find your website? – Do you use email marketing to drive traffic back to your website? – Can people find your website in search engines? – Do your publish your URL on every communication, both online and offline?
  • 6. Why Online Giving is the Great Equalizer • At Network for Good, 50% the donations go to 1% of charities (excluding crisis giving) • The rest – 25,000 nonprofits – are spread out along the long tail • Small to medium-sized nonprofits account for 70% of giving via Network for Good
  • 7. The Long Tail of Online Fundraising • Because any nonprofit of any size can do it • Because it’s drastically less expensive and more efficient than conventional fundraising
  • 8. Who Is Giving Online?* • Online givers are young (38-39 years old) • They are generous -- ($163) • Men and women give online in equal numbers • Virtually all (96%) have given to charity before, but 38% haven’t given online before *Network for Good Study, “The Young and Generous”
  • 9. Online Fundraising in a Web 2.0 World
  • 10. Definition Web 2.0 is about people using technologies to get the things they need from each other, rather than from traditional institutions like corporations (or nonprofits!) Adapted from Groundswell by Charlene Li & Josh Bernoff
  • 11.
  • 12. The 3-step approach to Web 2.0 People • Focus on where people are Objectives • Decide what you want to accomplish (hint: community first, fundraising second) Strategy, Tactics, & Technology • Avoid “random acts of marketing.” • Don’t be just another fool with a tool Adapted from Groundswell by Charlene Li & Josh Bernoff
  • 13. Strategic Goals for Web 2.0 1. Find people who are passionate about your cause (Google Alerts, Technorati) 2. Grow people’s awareness & familiarity with your cause, and own the search engines! (Google AdWords, Blogging) 3. Amplify word-of-mouth & grow your email list (Flickr & YouTube) 4. Plug your supporters into fundraising widgets (SixDegrees.org) 5. Go where people are & tap into user participation (Facebook) 6. Inspire people to visit your website and engage with you
  • 14. Tools to find supporters and monitor them
  • 15. To blog? 1. Are you listening to your online community? 2. Do you have something unique to say? 3. Are you willing and able to say it? 4. Are you willing to be challenged and criticized? 5. Are you willing and able to dedicate the resources to succeed? Source: Matt Dickman, Techno//Marketer blog: http://technomarketer.typepad.com/
  • 16.
  • 17.
  • 18. Where is your traffic coming from?
  • 19. Tools to engage a new or existing audience Online photo management & sharing application—has two main goals: 1. We want to help people make their content available to the people who matter to them. 2. We want to enable new ways of organizing photos and video.
  • 20. The Nature Conservancy Flickr Campaign • Launched an annual digital photography contest on Flickr • Promised winners of contest placement for their photos in the annual member calendar and nature.org web site • Ran integrated campaign with e-mail cultivations, search engine ads and social networks to draw in both members and new leads • Allowed entrants to participate solely on Flickr, but also by sending photos directly (w/ opt-out registration for our list) • TNC picked the finalists, but let the public vote on the winners • Never asked for money, only for engagement Source: Jonathon D. Colman: Associate Director, Digital Marketing at The Nature Conservancy
  • 21.
  • 22.
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  • 24.
  • 25. Outcomes • Over 8,500 members of TNC’s photo group on Flickr who have shared nearly 94,000 photos (~11 photos per member) • One of the largest nonprofit groups on Flickr to date • Great, positive feedback from members and new prospects • Coverage for (and many links to) our photo contest in numerous photography and nature picture blogs, discussion boards • Over 10% click-through rate on ads promoting the contest • Over 7,200 new e-members registered • Over 5,000 votes for 2006 contest; over 17,000 votes for 2007 Source: Jonathon D. Colman: Associate Director, Digital Marketing at The Nature Conservancy
  • 26. Why did this work? TNC framed their call-to-action to answer 3 questions: 1. Why me? The pictures helped the audience relate to the cause. 2. Why now? The contest created urgency 3. What for? People were rewarded for participating.
  • 27. Strategy: Person-to-Person Fundraising The process of gathering money and other gifts in kind, by empowering individuals to solicit from and communicate with prospective donors of their own choosing through the use of Web 2.0 (i.e., blogs, widgets, images, video, face-to-face interactions and other social media). Synonyms: group fundraising, personal fundraising, viral fundraising, grassroots fundraising, peer-to-peer fundraising. Source: Peter Deitz, Social Actions, Founder
  • 28. Fundraising Widgets A person-to-person fundraising widget is an online tool that permits a portion of one webpage to appear on other webpages. These multiple appearances look exactly the same and can be updated from a single source.
  • 29.
  • 30. Meet the Wired Fundraiser • A wired fundraiser is a word-of- mouth maven who is highly effective at fundraising for a cause in an ever-widening personal sphere of influence online. They are naturals at connecting to others. • They are very good at what they do for a simple reason: people are most likely to give when someone they know asks them (2006 Cone Nonprofit Research).
  • 31. Personal Motivation: Robin Maxwell “I’m a runner and a tri-athlete, and the mother of two small children, and girl scout leader. I went from being totally normal and healthy to facing a life of paralysis and future disability, and those were really, really dark days, those first two weeks.” --Robin, MS Society Blue Ridge Chapter
  • 33. Causes on Facebook The 30+ audience is the fastest growing segment of Facebook.
  • 34. Causes on Facebook The Causes application for Facebook adds the ability to solicit and make donations from within Facebook.
  • 35. Causes on Facebook • Allows American and Canadian 501(c)(3)s to recruit supporters and fundraise directly on Facebook • Raised $3.2MM for 25,000 charities since June 2007 • 13MM total installs, 5MM monthly active users
  • 36. Facebook Cause: Love Without Boundaries • Has raised over $150,000 from 4,115 donors. • A small nonprofit with just 3% overhead and an all-volunteer staff, Love Without Boundaries seeks to give medical care to orphans in China in hopes of readying them for adoption. • Their staff, who are older, non- traditional Facebook users, were able to spread the cause through their social network, bringing in thousands of Facebook users who had never before heard of their small nonprofit.
  • 37. Love Without Boundaries “…every bit of the fundraising was done by people like me, recruiting friends and sending emails. The old model--wooing big donors--requires considerable time and expense, albeit with bigger payoffs.”
  • 38. Lessons Learned 1. Focus on audience values not your own 2. Choose the right messenger – Think like the Marine Corps: the few, the proud 3. Have faith in your audience 4. Provide a sense of urgency 5. Plug your wired fundraisers into great tools & resources 6. Trust leads to results
  • 39. Facebook Resources For tips and resources, visit: • http://www.fundraising123.org/social-networking Including: • Starting a Cause on Facebook • Everything You Need to Know About Using Facebook as a Nonprofit Marketing Tool
  • 40. Measurement Ingredients Engagement & Reach Earned Media •Offline media mentions •Page Impressions, Visits, Unique Visitors •Online media mentions •Time Spent, Pages per visitor •Emails opened, click-throughs •Videos viewed, audio plays Search Visibility •Higher search results Word of Mouth •Greater search results “share” •3rd party results •Number of Mentions, Posts, Comments •Recommendations Research •Mentions-per-user •Send This To A Friend •Customer/stakeholder feedback •Inbound links •Product sampling Source: Qui Diaz, Livingston Communications: www.livingstonbuzz.com
  • 41. 4 Rules for Fundraising & Marketing in a Web 2.0 World • Don’t let your online presence be just a “brochure” website • Go to where people are, using the infinite variety of the Internet • Flip the funnel: Tap into user participation (person- to-person fundraising, wired fundraisers, social media) • Don’t get carried away by the hype; you still need all the offline stuff
  • 42. Closing Thought… Inspiration + Know how + Tools = Change the World
  • 43. Contact • Jono Smith, Director of Marketing Network for Good 240.482.3211 jono.smith@networkforgood.org • Website: www.networkforgood.org/npo • Learning Center: www.fundraising123.org • LinkedIn: www.linkedin.com/in/jonosmith
  • 44. References • Beth Kanter’s Blog: beth.typepad.com • Nonprofit Marketing Blog: www.nonprofitmarketingblog.com • The Nature Conservancy: www.nature.org • Peter Dietz/Social Actions: blog.socialactions.com • The Buzz Bin: www.livingstonbuzz.com/blog