ONLINE GIVING:

MAKE IT WORK FOR YOU

By Brad Carter

ONLINE GIVING GUIDE CONTENTS

Online giving today

The key to online fundraising

The art of the email “thank you”

What donors want on your website

Optimize your site for giving

Choosing an online giving service

Online Giving Study highlights

Social Media fundraising

About Inspire Action

Online Giving

Online philanthropy is quickly and steadily growing. It is an easy and convenient way for donors to contribute and connect with their favorite charities and make a difference in their communities. Blackbaud reported online giving at 7.6% of all charitable giving in 2010. That’s around $5.6 billion. And it’s growing.

“Year-over-year online fundraising grew 34.5% in 2010”

- 2010 Online Giving Report, Blackbaud –

One Tool in the Box

Online giving should be only one part of a multi-faceted approach. Effective marketing and fundraising over the next ten years will require an integration of silos and channels for giving and generationally-tailored marketing.

Online strategies for nonprofits are essential to future success in reaching donors and telling your story. Online giving spans many options as well— from your website, to giving portals, to social media.

Online and offline fundraising are no different: the key is building relationships. This guide explores some ideas, tips and tools for maximizing online fundraising, but the foundation remains the same: Relationships Matter

THE ART OF THE ONLINE THANK YOU

Are email receipts legal and acceptable?

Yes, but don’t take my word for it. Ask your legal advisor.

Is it okay to send a thank you email instead of a letter in the mail?

Yes. Donors who give online are more likely to be comfortable with emails. You need to discover the communication preferences of your donors.

Do not underestimate the power and importance of the handwritten note. The immediacy of email offers value, and the personal touch of a note does as well.

Until you know your donor’s communication preferences, you should send a thank you email...and a letter. Trust me, it’s okay to say “thanks” more than once.

A GREAT THANK YOU EMAIL IS...

Prompt

Ideally, donors should be acknowledged within 48 hours. This is true for all gifts (even offline donations). When using email to thank, promptness is even more important. Make it a goal to send emails within 24 hours.

Real

All thank you emails should include be personalized to the individual donor. Do not send a form email to a group of donors—not even bcc. When read, the donor should know it is just to her because her specific gift and relationship— as well as your gratitude— is evident throughout.

Creative

Email provides a great opportunity for creativity.

Here are some easy ideas:

- Include a link to a hidden thank you page on your website with recent pictures and news. Take the opportunity to detail how gifts make a difference to others.

- Create a simple thank you video and post it online. It doesn’t need to be professional. It can include staff, clients and others saying "thank you" in personal ways. Have fun with it and keep it under a minute.

- Simply attach a picture that personifies your cause in your thank you email.

WHAT ARE DONORS LOOKING FOR ON YOUR WEBSITE?

Up-to-date Content

First of all, donors need to find you online. Build a website. (If you are not ready for this yet, an intentional Facebook page can work well for starters).

But most importantly, keep it up-to-date. Content is king online. Put online updates on your regular to-do list.

Organizational Information

Answer: What do you do? How well are you doing it?

Additionally, the age of transparency is here. Your website should include your Form 990, IRS determination letter, and financial reviews/audits. They should be easy to find.

Emotional Connection

Facts are important and statistics can be good (if brought to a personal level). But donors give because of emotion. So you need stories and pictures. Short videos can be great storytellers. Emotion is the driving force connecting donors to your organization.

OPTIMIZE YOUR SITE FOR ONLINE GIVING

Large, donate button ‘above the fold’

The call to action should stand out and be on the top part of every page. The button should go to an online donation page that includes your organization's mailing address should the donor wish to mail a check.

Simple, one page donation form

Don’t lose the donor with a long or confusing donation page. Test the layout and questions to see how it effects giving. There is no best practice for how many questions, columns, or fields. Some research suggests having seals (such as those awarded by the Better Business Bureau and Charity Navigator) above the fold to increase a donor's likelihood to follow through with giving.

Thank you and Confirmation Page

Most systems include confirmation and also send an email receipt and thank you immediately after the donation. Even if it is customized for your organization, your donors know this is automatically generated. So, don't fool yourself into thinking you don't need to send a personalized thank you. Your system should notify you immediately when a donation is made.

CHOOSING AN ONLINE GIVING SYSTEM

There are many options for nonprofits to use for online giving. Each with its pros and cons. Some organizations have database systems (DonorPerfect, eTapestry, etc.) that have add-ons for online donations. Many small and medium nonprofits choose “free” resources such as PayPal, Network for Good or JustGive. Here are some things to consider along the way...

Choose a service that makes it easy for you and makes you look good.

- Some services process donations and take care of the legal stuff including receipting. You get to focus on engagement.

- Most have user-friendly donor tracking so you know who, what, when and how much—instantly.

- Some do set-up fees. Others do processing fees. A few are free.

- Many are easy to set-up while others require more expertise.

- Some offer branded pages that integrate with your website.

- Payouts come immediately, weekly, monthly or quarterly.

Research options to find your best match

The Grinspoon Institute provides short reviews of online giving tools:

http://www.gijp.org/knowledge-center/technology/technology-tools-for-fundraising/online-giving.aspx

Their comparison chart makes it a bit easier to digest:

http://www.gijp.org/uploadDocs/3/ComparisonofFundraising.pdf

HIGHLIGHTS FROM THE ONLINE GIVING STUDY

http://www.onlinegivingstudy.org

Network for Good and TrueSense Marketing researched all the users of Network for Good’s systems seeking helpful information for online giving. Here’s some highlights...

“Personality matters. The loyalty factor for donors acquired through generic giving pages is 66.7% lower than for donors who give via charity-branded giving pages.”

- You should determine whether paying for branding is worth it for you or not.

“Analysis of cumulative online giving (i.e., giving added up over time) via different pages powered by Network for Good shows that donors who gave via charity websites started at the highest level and gave the most over time. Those who used giving portals started lower and gave less over time. Those who used social giving opportunities gave the least initially and added little afterward.”

- The study notes that portals are convenient for donors and often bring new donors. The study’s format also puts some portals, such as our Abilene Gives, into the charity website category because it links donors directly to the organization.

“Recurring giving is a major driver of giving over time and should be strongly encouraged in the giving experience.”

- Consider services that allow donors to set-up automatically recurring gifts.

SOCIAL MEDIA FUNDRAISING

Relationships become even more important when using social networking sites for fundraising.

On Ramps for New Donors

Giving portals and social networking sites often surface donors for your organization you would not otherwise have found. Take advantage of this and begin building meaningful relationships with donors who give through these channels. This does not mean simply add them to your mailing list.

Social Media is about People

Much like the fundraising of the past, peer influence triumphs on social networking sites. Empower your supporters to raise funds, to be creative and to take initiative for your cause.

Social Media Campaigns can be Effective

Social media works well when integrated with your various fundraising channels. However, fundraising campaigns built entirely (or primarily) on social networking sites can be compelling, effective, and inexpensive. But remember, it still requires time and work…“social media is a contact sport.”

INSPIRE ACTION

Inspire Action helps you succeed with your mission!

We can also help implement the tasks in this guide:

- Evaluate and develop your website

- Choose and implement online donation services

- Create and establish a professional email newsletter

- Implement a personalized social media plan

- Develop a relationship-centered donor engagement process

- Create short and engaging online videos

Inspire Action works to empower communities for impact through engagement, learning opportunities, member benefits and services.

Learn more at http://www.inspireaction.org, 325-513-2907, brad@inspireaction.org

© 2011 Brad Carter