Chapter 2
IN THIS CHAPTER
Evaluating your site structure to decide which elements are plausible
Researching technology resources
Selling to the highest bidder as the ultimate e-fundraising tool
Adding easy fixes to increase online donations
The Internet has provided a platform for a wide variety of organizations, causes, and trends. Since the early dotcom days, entrepreneurs and companies have blazed a trail of innovation, pioneering sites such as eBay, Amazon, Travelocity, Facebook, and Twitter as well as smaller companies that have developed exciting and useful applications delivered online. At the same time, however, plenty of organizations have worked to simply keep up with current online technologies and trends, and others have, sadly, lagged well behind the rest. The laggards continue to resist current online solutions and resources — and it shows!
Unfortunately, this description also fits many of your nonprofit peers right now. An organization’s online presence may suffer for many reasons. As with many important goals for a nonprofit, the lack of money and resources (staff) dictate when and how things get accomplished — even important things, such as the creation of a professional website. The good news is that you’re committed to change. You’re ready to bring your site into the next decade and fully embrace the opportunity of online fundraising. In this chapter, we arm you with information about your options and their costs so that you can make an informed decision and start raising funds and recruiting resources.
You probably have a basic website, with pages that explain your organization’s mission, highlight a few of your annual fundraising events (along with some fuzzy photos), and list the names of your board of directors and officers. Then again, you might have developed a more detailed site structure and haven’t yet implemented any type of online fundraising tools to go along with it.
Regardless, the first step in this process of adding money generators is to conduct a detailed analysis of all aspects of your technology, support resources, and site framework. Your primary objective is to realize current capabilities and address possible limitations.
For this purpose, we recommend taking an inventory. Break down your situational analysis into the eight function areas shown in Figure 2-1.
Begin your technology analysis by taking a closer look at the power of your in-house computer connection. Are you still using dial-up to log on to the Internet? (We certainly hope that’s not the case!) Or are you using a faster connection from a broadband-enabled service (typically, either DSL or cable)? Jot down the status of your current connection speed. If you’re on a slower connection, note whether you can upgrade your connection.
When it comes to hardware and software, a couple of main theories exist:
Both concepts are valid, and the one that you need to take into consideration depends on where you buy your hardware and software. Some vendors give discounts when you bundle printers, LCD screens, software, and other items with your basic purchase. Other vendors sell only bare-bones systems for extremely low prices, but these systems typically cannot be customized and are sold as is. Shop around with your list of requirements (divided into items you must have and the ones you can do without) and then do business with the vendor who can give you the best deal.
You need to identify the physical location of your site’s server for your technology analysis. If your server is in-house, it's located on the physical premises you maintain. Otherwise, it must be hosted off-site (a cloud-based option), through a vendor, which is typically the case.
Now comes the tricky part. How much do you know about that server? For example, can you identify its operating system and whether it’s Windows or Linux based? What you do or don’t know about the server can hinder, or slow, the addition of fundraising elements to your site. Several small-business owners sign hosting contracts only to learn later that their company servers didn’t support the specific language used to develop their websites.
Your answers to the following basic questions about your server can affect whether you can add future fundraising solutions to your site:
If you represent a nonprofit organization, you probably already accept donations. The issue for your technology analysis is how you accept them. If you accept only checks and cash, you should also have a merchant account with your bank or some other means of accepting credit card transactions. You might already accept debit and charge cards too, even if it’s only offline. Well, your analysis is the place to spell it all out and put your cards (so to speak) on the table. Include a thorough description of the types of payments you accept, how they’re collected and processed, and which company or bank processes them.
Use this part of your analysis to start conducting some research. For instance, maybe you have a merchant account but don't process payments online. Check with your merchant provider and your bank to explore what you have to do to collect payments through your website. If you’re uncertain about which questions to ask or what your options are, check out the ins and outs of payment processing in Book 4, Chapter 4.
The module-tracking portion of your technology analysis is, more than any other part, a straightforward inventory. You need to know what types of applications and capabilities your site already has and whether to use these features.
In addition to considering the use of shopping carts, databases, and online form pages, think in broader terms to answer these types of questions:
Try to compile a thorough list of all back-end applications. Note whether you use each particular feature, detail how you use it, and identify the name of the vendor you obtained it from (if applicable).
Although we’re specifically discussing the addition of online fundraising applications, a company might want to sell you, or encourage you to use, other services or features that are compatible with (or accessories to) the fundraising feature. Knowing what you already have helps prevent duplication and added costs. In addition, a vendor for one of your current applications might also offer fundraising applications. By checking with those providers first, you might be able to use those tools and receive a guarantee that they’re compatible with some of your existing applications.
Mapping your site structure is extremely easy. In fact, if you have a current site map of your website, this section of your technology analysis is partially complete.
Review your existing website page by page and create a site map of your pages, as shown in Figure 2-2. The map, similar in structure to an outline, uses hierarchical ranking to show how the site flows, or how subpages are linked to primary pages. Unless your site has hundreds of pages, this task isn’t difficult.
As you begin selecting online fundraising tools, use these pages to begin reconstructing your site to accommodate and promote the placement of those tools. Rather than completely reworking your site structure, you have to only identify the places where a visitor to your site is most likely to see and participate in the fundraising effort.
Your staff members and volunteers are an important resource for your analysis. Not all organizations have a technical-support person on staff, so here’s your chance to thoroughly analyze the strengths and weaknesses of your support base. Start this section of your analysis by making a list of your staff members and regular office volunteers. List each person’s skills and educational background as they apply to technology. Although identifying people with highly technical skills, such as programming, web development, or IT maintenance is important, you should also reveal skill sets that are useful in today’s online environment. Look for staff and volunteers who understand and regularly use social networking sites or excel in graphic design, writing, and marketing. All these components will help support your online fundraising efforts.
The final piece of your analysis is probably the easiest to create. Identify your current budget for technology and website development. If you already have a line item in your annual report for this element, make a note of the number. Don’t stop there, though: Detail whether this money is truly available for use. Is it already spent or earmarked for another project? Are there any restrictions on how the money can be spent? Be realistic about how much money is available or when it might be available.
If you don’t have money already designated for technology upgrades in your budget, try to calculate a workable amount. Rather than use an actual dollar amount, assign a range. If you’re broke, call it like you see it: Give it a low-end designation and assign it a range from zero to a few hundred dollars. A good midrange amount is usually from $1,500 to $5,000. Consider the high end to be anything over $5,000 and realistically capping out around $10,000. Depending on the size of your organization, your numbers might be bumped up by several thousand dollars, especially if you are a larger, national nonprofit with more intricate site requirements. You get the idea.
One reason that we prefer to assign a range for a budget analysis is that it makes a discussion with other people more palatable. If board members and other decision-makers know that you’re looking in the low-end range of the scale, you’re not immediately pinned down to a specific dollar amount. Likewise, when you’re requesting price quotes from vendors, you feel less pressure to have to name the exact high-end dollar amount you can spend. Identifying a range that’s budgeted for the project usually feels more comfortable.
For individuals and businesses, online auctions continue to be a popular way to make money. (And as eBay has proven, there’s no sign of these online auctions slowing down!) As an active part of the nonprofit sector, you probably know that onsite auctions have long been a staple of charity fundraising. Silent auctions are especially popular as stand-alone affairs or as add-ons to dinner galas and other live events. Thanks to the power of the Internet, the buck (literally) no longer stops there.
Your organization can increase the reach and earnings potential of your typical event-specific auction by putting it online. As with other fundraising tools, online auctions come in all shapes and sizes, so you can find the perfect fit for your organization. If you want to know more about eBay, turn to Book 8, Chapter 4.
From one point of view, a third-party auction — the “effortless” auction — is by far the easiest type for your organization to participate in. All you have to do is have your organization selected as a recipient charity. The auction itself is promoted and managed entirely from another company’s website. These companies continually auction off items and then ration the proceeds to their approved nonprofits. Two examples are BiddingForGood and eBay.
The philanthropic auction service BiddingForGood is essentially an online community working for nonprofits. It promotes an ongoing auction of items that include furniture, clothing, collectibles, event tickets, and even celebrity items, which are sold from its website at www.biddingforgood.com
. After the auction for each item ends, the proceeds go to the charity that provided the item or that was selected to receive the proceeds from the item. The site can host an entire auction for one charity or raise money from single auction items and donations. So far, the site has helped raise more than $340 million for schools, communities, and national charitable organizations.
eBay for Charity (previously its Giving Works program) is open to any approved charitable organization. The program works with over 30,000 nonprofit organizations and raises millions of dollars every year from eBay auction items with 100% of the funds delivered to the nonprofit. To date, the program has generated over $610 million for charities globally (with $91 million raised in 2014 alone!). It teamed up with PayPal Giving — an independent 501(c)(3) — to handle auction-management services and screen and approve nonprofits that wish to participate. You must register and apply through PayPal Giving to be recognized as a legitimate charity. PayPal Giving reviews your mission statement and confirms your filing status with the U.S. Internal Revenue Service as part of the approval process. After you’re in the system, eBay sellers can choose to donate anywhere from 10 to 100 percent of an item’s winning bid to the charity of their choice. When a seller agrees to donate even a portion of the auction item’s proceeds to your organization, a special ribbon icon is placed next to the item so that bidders know that the auction is part of a fundraiser or charitable donation.
As a bonus, any seller can choose to donate to your cause by selecting it from a list of certified charitable organizations and then designating it as a donation item after listing it on eBay.
You don’t have to depend on the generosity of strangers. You can encourage your own members and longtime supporters to auction items on eBay and then donate the proceeds to your organization. Or you can become a direct seller and hold your own auction and list items for auction on your organization’s eBay page.
When an item is auctioned for an approved nonprofit, eBay issues a credit for any listing fees and final value fees when the total donation is between 10 and 100 percent of the winning bid. A nominal administration charge and a credit card processing fee may also apply. Although this simple process is a favorable alternative to managing your own online auction, you have to consider a few other pros and cons:
In the direct-selling form of the online auction process, you are the seller and the recipient. (One example is offered through the eBay for Charity program.) You auction off your own items, such as excess inventory or old office equipment. On eBay for Charity, eBay provides the auction structure and reporting features, and you handle the rest.
Of course, you can take the direct path and fully manage your own online auction. You still need the support of a vendor, though, at least for the back-end technology. In exchange for your use of the technology and other accompanying services, you can expect to pay a setup fee, a one-time usage fee, and a percentage of sales from each auction item.
Another growing trend is having an auction-management site oversee and promote auctions for multiple nonprofits. Specifically, these auctions let people bid on access to celebrities or other high-value, luxury auction items. CharityBuzz (www.charitybuzz.com
) is one of these sites. The benefit of working with CharityBuzz, or a site like this one, is that it can promote your unique auction items to a wider audience, one that is prepared and able to pay top dollar for a special item, such as dinner with a celebrity. The downside of this type of service is that you often have to be a larger national nonprofit to participate, or you have to come up with a star-studded auction item! CharityBuzz helps your organization brainstorm unique auction items and make them a reality, taking 20 percent of the auction total (with funds delivered in 30 days of the auction). Realize that working with this high-profile type of auction does take a serious commitment, but the payoff is potentially significant.
Of course, luxury auctions aren’t for everyone. In fact, you may prefer to manage your auctions in-house. Fortunately, lots of other companies offer online auctionware and compatible services. The following companies can get you started:
www.auctionanything.com
www.auctria.com
www.benefitevents.com
www.dojiggy.com
www.wildapricot.com/fundraising-software
Online fundraising doesn’t have to have the same grand scope, or large scale, of an auction. But as anyone who has pulled off this type of event can tell you, online fundraising still requires lots of work.
Just as some sites manage auctions on behalf of different charities, other organizations solicit online donations for charities. Adding your nonprofit’s name to the list takes only a few minutes.
Online giving sites, or charity portals, typically work with thousands of types of charities. The portal actively solicits online donors, and then individuals choose which charities receive the donations. In some case, these sites also distribute their databases of nonprofits to larger entities, in an effort to increase giving potential.
A few of the largest and most widely recognized charity portals are
www.canadahelps.org
www.justgive.org
www.networkforgood.org
You pay no registration fee when you sign up with any of these three sites. However, they all deduct a small percentage of each donation (usually 3 percent) to cover their credit card processing fees. As for online reporting features and the transfer of donated funds to your organization, these items vary with each organization. You can check the FAQ section of each site to find more information on each organization’s specific policies.
Adding your nonprofit’s name to each site’s list of charities takes only a few minutes. When you’re confirmed as a recognized charitable organization (typically within 48 hours), you’re automatically listed on the site. You can also place on your website a link that directs your members to the charity portal. Then, when visitors to your site want to make a donation, they just click the appropriate link.
To be able to participate in any of these three charity portals, you first must register with GuideStar (www.guidestar.org
), which is part of Philanthropic Research, Inc., a widely recognized nonprofit. Charity portals use GuideStar to certify nonprofits in good standing.
Registering with GuideStar, or claiming your nonprofit’s profile, is a two-part process: You set up an account and list your organization in the GuideStar system. When you’re ready to get started, follow these steps to set up your account:
www.guidestar.org
.At the top left of the site's home page, click the Create Account link.
You see an online form on a new page that requests basic information to set up an account. You will be asked to select your type of organization and your role. (This is where you can indicate that you work for, or with, a nonprofit.) Upon completion, an account is instantly created for you, and you return to the home page and are already logged into your new account.
While logged into your account, click the My Account link that appears in the drop-down box under your name at top of the home page.
You will see a new page with several links and options, including a link to nonprofit profiles. You first need to request permission to update the report for your organization.
Click the Manage Nonprofits Profiles link on your account page.
A form appears, requesting the organization’s Employer Identification Number (EIN).
Enter the EIN and then click the Request Permission button.
Permission is typically granted within 24 to 48 hours. Once approved, you proceed with the GuideStar Exchange registration.
On the screen for requesting permission, you can click a link to learn the process for creating and updating nonprofit profiles. If you miss the link, don’t worry. It’s the same information that you can find on the public part of GuideStar’s website here: https://learn.guidestar.org/update-nonprofit-report
.
After completing the registration, you’re an official bronze member with access to basic benefits. By completing more in-depth information about your organization, you become a silver or gold member, with access to additional benefits.
More than a dozen reputable sites provide you with the ability to accept online donations on your website without opening a merchant account for credit and debit cards. These sites work by providing you with a Donate Now button to place on your website. Visitors to your site click the button to contribute to your cause. The processing sites take care of the rest of the process on your behalf, by transferring donations into your account (in some cases, by mailing monthly or quarterly checks). Usually, these sites offer a range of online fundraising tools, and some sites make it easy to integrate a Donate Now button with your donor-management software for long-term tracking and nurturing.
Typically, the only fee for this service is a small percentage (usually no more than 6 percent), deducted from the donation total, to cover the processing fees charged by the credit card companies. Some sites may track these as two separate fees.
The types of additional fees charged by some Donate Now button services can include
Shop and compare services. Some fees might include services that you don’t need, so you’re better off selecting another, lower-cost provider. Here’s a sampling of the Donate Now button service providers you can explore:
www.facebook.com/business/help/694386777360892
): This social media site has begun rolling out a Donate Now button for nonprofits to use on their Facebook page so followers can make donations directly from the pagewww.blackbaud.com
): Designs software for nonprofit organizations and offers a range of services to help you increase giving amounts and manage donorswww.donate.ly
): Provides online donation forms and buttons, including those optimized for mobile deviceswww.networkforgood.org
): One of the pioneer sites for digital giving, it offers donation pages to help you maximize online donationsA growing component of online fundraising is mobile giving, or the ability to make donations through smartphones or tablets. The use of mobile devices, particularly smartphones, continues to explode, do it's not surprising that mobile donations are rising, too. Mobile giving is now a necessary part of any nonprofit’s fundraising strategy.
Mobile donations are effective, in part, because they are a convenient way to give. You don’t have to write a check, mail an envelope, or attend a live event to make a donation. Mobile giving is as easy as tapping a few buttons! The ease of donating with a mobile device also encourages impulse giving, or that spur-of-the-moment decision to financially support a cause, even for an unfamiliar charitable organization. Mobile giving has also been an effective way to engage first-time donors and a younger generation of donors. Research shows that adults 18–34 years old are more likely to make a financial donation to a nonprofit if they can do so through a smartphone or even social media. Perhaps one reason why younger donors like mobile giving is because it often makes use of small or micro donations, in amounts as little as 50¢ or $1 and usually no more than $10 or $20. Mobile giving is a wonderful way to share your organization’s cause with a new audience and help reach a broader base of potential donors.
How does mobile giving work? One method is the use of text messaging to send instant donations via wireless providers (such as AT&T and Verizon). This technique is popular following natural disasters, such as hurricanes and floods that strike communities. With this method, donors simply enter a designated code and text it to a special number to instantly donate a small, preset amount (usually $10) to the charitable organization. The donation is charged to the caller’s smartphone bill. For example, you can make a $10 donation to the American Red Cross Disaster Relief Fund by using your mobile phone to text REDCROSS to 90999. The Red Cross promotes this mobile donation code on its website, as shown in Figure 2-3.
You may think this strategy works only for larger nonprofit organizations or is too difficult to set up or manage. However, local nonprofits as well as schools and churches can easily use text donations. Several online organizations make it easy to set up text-to-give campaigns. In addition to texting, plenty of mobile apps and websites encourage mobile giving. Some sites handle everything, including promotion. The nonprofit simply applies to get added to a list of qualifying charitable organizations. In other cases, your organization uses an app as an add-on to your website or live event; the app offers your existing donor base a more convenient way to give.
Check out some of these great mobile-giving tools, apps and websites:
www.checkinforgood.com
): Local businesses make donations to a specific charitable organization each time a patron uses his or her mobile phone and social media to check in at that business. Checking in is a way to broadcast through social media that you are visiting a business, such as a restaurant. Nonprofits partner with local businesses, through Check-in for Good, to receive donations. Check-in for Good helps verify and track visits, and provides tools to both businesses and nonprofits to promote and manage mobile fundraising campaigns.www.instead.com
): This app is added to a donor’s phone to enable micro donations of $3 to $5 to registered nonprofits. The app encourages a donor to give $3 to a charity instead of buying a cup of coffee that day. To be included in the list of charitable organizations promoted through Instead, nonprofits must contact the organization via e-mail or Twitter. (See the website for contact information.)www.mgive.com
): This service offers a range of fundraising and awareness building tools by using mobile technology. Its text-based giving solution is simple to set up and use. Services are available to IRS-approved 501(c)(3) organizations.https://onetoday.google.com
): Using an app, Google sends messages to potential donors every day prompting them to make a small donation (usually less than $10) to one of the featured charitable organizations. The app makes giving suggestions based on the donor’s interests, which helps increase the likelihood of a donation. Nonprofits register for free but must be an IRS-approved 501(c)(3).www.simplegive.com
): Designed for churches and other nonprofits, this service helps increase fundraising and tithing through one-time and recurring mobile donations. Free and paid versions are available, but there are no setup fees or contracts.www.zipgive.com
): This full-service platform helps nonprofits raise money through text donations, mobile web forms, and recurring monthly mobile giving, and includes campaign- and donor-management tools. Fees start at $49.95 per year, plus a one-time setup fee.18.224.246.203