IN THIS CHAPTER

Increasing value with online and social giving

Spreading the message and convincing decision-makers

Charitable giving overall is steady, but online giving is soaring. According to Blackbaud (www.blackbaud.com), U.S. nonprofit organizations received more than $18.2 billion in total donations in 2015, an increase of nearly 2 percent over the previous year. The portion of online donations topped more than $2.2 billion, for an increase of 9 percent.

The organization also found that online donations accounted for 7 percent of all giving for nonprofit organizations in 2015. Smaller nonprofit organizations saw the most growth in online donations, compared to large organizations. Even more encouraging is that new forms of online giving, such as crowdfunding, peer-to-peer online giving, and social (media) giving are fueling more opportunities for giving for organizations of all sizes. And when it comes to how people want to give online, you cannot ignore the importance of mobile devices, where 14 percent of donations originate. This means that your website, along with all your online communications and campaigns (such as e-mail) must be viewed just as easily from a smartphone or tablet as on a desktop computer.

One of the most successful and widespread (coordinated) online donation efforts originated on Twitter and has since become an annual social giving campaign for thousands of nonprofits. Using the #GivingTuesday hashtag, the campaign now stretches across almost all social media channels, encouraging people to make an online donation to their favorite charitable organization. In 2015, more than 700,000 donors contributed nearly $117 million in online contributions. That’s a 52 percent increase from the previous year! You may be surprised to learn who is behind this generosity. Interestingly, two-thirds of #GivingTuesday donors were women, one in three donors were over the age of 56, and the median gift was $107. Does this sound like a donor demographic that your nonprofit might target? The point is that the people who participate in #GivingTuesday are not that different from donors offline. In fact, many nonprofits were able to use awareness with #GivingTuesday to garner offline donations, too, raising an average of $1,500. Twenty-five percent of participating nonprofits raised more than $5,700 offline. With donations made through social media continuing to rise, and overall online giving exceeding expectations — and even helping prompt more offline giving — one question remains: What are you waiting for?

Now is the time to bring your organization online, expand its web and social media presence — and its capability to capture the spirit of online giving. If you’re unsure about how to accomplish these goals, we’re here to help. In this chapter, we explain why online giving is appropriate for your cause and how to get everyone else in your organization on board.

Determining How Your Organization Can Benefit

Online giving, or e-philanthropy, refers to the concept of charitable organizations raising money from online donations. An evolving concept since it first came in vogue in 2000, online giving is no longer simply a means of asking for money over the Internet. Online donations are now a proven source for increasing fundraising dollars and expanding an organization’s active donor base, beyond one-time giving events. One continued trend is event-prompted giving, where donations skyrocket following natural disasters in locations across the globe. Whether the catastrophe is an earthquake, a tsunami, or a tornado, the Internet has not only allowed organizations such as the Red Cross to collect much-needed donations but also served as a way to spread awareness and increase the generosity of giving offline, from clothing donations to blood drives.

A second trend is peer-to-peer online campaigns with viral (or quickly spreading) tendencies that build momentum through social media. Not only do these campaigns prompt one-time donations, but also they build widespread awareness of the cause. For example, the ALS Foundation was the beneficiary of one of the biggest viral giving campaigns that made a splash across the United States in 2014. Known as the “Ice Bucket Challenge,” the campaign prompted people to challenge friends to dump a bucket of ice water on themselves and make a donation to the ALS Foundation. The friend in turn had to create a video of it, challenge a new friend, and share it on social media, such as Facebook and Twitter. In 30 days, the ALS Foundation raised more than $115 million, and people who had never heard of Lou Gehrig’s disease were now knowledgeable about the fatal muscular degenerative illness. Whether prompted by friends, the result of a disaster, or the result of a well-planned campaign, online donations have had a powerful effect and are now accepted as a mainstream fundraising method.

For those reasons, online giving is now a recognized strategic tool that you can — and should — use for your nonprofit. This method of marketing touches all outreach initiatives and specifically encompasses these six areas in an organization:

• Awareness building: An effective online presence targets your internal (or existing) membership base and your external (or potential) audience. You can increase awareness for a specific campaign, event, or for your overall mission.
• Donor development: You’re using the Internet to not only target one-time contributors but also build long-term donor relationships.
• Membership retention: The combination of targeted e-mail communications, a useful website, and active social media accounts is a proven means of generating membership renewals for your nonprofit.
• Volunteer and client recruitment: Your organization thrives on financial contributions and the support of volunteers. Fortunately, your site can serve as a recruitment tool for both entities. Additionally, if your nonprofit is service based (such as debt-management or tax-preparation assistance for senior citizens), an online strategy can help you reach the audience most in need of your services.
• Board outreach: Although your board members are technically part of your volunteer base, you should consider board outreach and development to be a distinctive area in your organization. A fully integrated and well-maintained Internet initiative is an increasingly important method for keeping your board committed to your cause.
• Grassroots activism: The Internet is increasingly used as a way to elicit action at the basic level. From online petitions to e-mail campaigns, response rates are rising among the masses, and the effort is paying off.

These are the key areas in which online initiatives should be regularly infiltrating your organization. Consider how each segment provides additional benefits to your cause, and then take a closer look at what your organization gains when it actively solicits online donors.

Savvy e-philanthropists have three characteristics in common:

• Generosity: Current research indicates that online donors are twice as likely to give to your cause, and they typically give twice as often as offline contributors.
• Curiosity: Online donors seek out information; they’re eager to learn about your organization and its activities. Most important, these Net donors turn to the Internet for facts, figures, and general information before making their final giving decisions. In return, a donor who makes an informed decision takes the first step in forming a lasting bond with your organization versus a one-time random act of giving.
• Loyalty: The members of your nonprofit with whom you stay in touch over the Internet and social media are highly likely to not only stick around but also make more (and larger) donations over time. Therefore, if you’re fostering the relationship, chances are good that your multiyear renewal rates will increase.

Convincing Your Board of Directors

After you’re committed to using an online strategy to grow your donor base, the next step is convincing the rest of your organization that it’s the right thing to do.

Persuading your board that online giving is a timely solution is easier than you think. You might just have to spend a little more time moving progressive ideas through the approval process. Consider the usual reasons that board members tend to reject or stall a new idea:

• They’re fearful of the unknown — especially where technology is concerned.
• They’ve determined that it is too complicated, difficult, or time consuming to implement, and hiring an expert is cost-prohibitive.
• They’re convinced that the costs outweigh the benefits.
• They’ve decided that someone else has a more compelling argument against it.

If you understand these four points, you can arm yourself with the power of persuasion. People engage in many spirited debates over the proposal of innovative concepts, yet plenty of fantastic ideas are eventually rolled into action because someone embraced a plan of persuasion and stuck with it.

Not every board fights the incorporation of an extensive Internet strategy. Heck, people might even line up to take turns making this idea a reality. You may be one of the lucky ones with a board member who knows that

• Donating online is more widely accepted by donors.
• Growing the next generation of donors, especially Millennials, requires an active online presence.
• Security measures have made online giving a safer way to donate.
• Average per donor contributions could rise.

However, if your board tends to scrutinize a plan before rubber-stamping it, you might find the information in this section especially helpful.