How Do You Replace the Kettle with the Wireless Credit Card Machine? The True Case Study of The Salvation Army in California and Other New Technology Success Stories Dr. Noble and Dr. Johnston
Your therapy outline What makes your anxious about new fundraising technology? A 6 point plan to overcome your anxiety One big case study to make you feel more comfortable
Who are our patients today? What kind of organization are from? Do you have an online fundraising program? How many have received an email solicitation?
Please sit down and tell me What makes your anxious about online fundraising?
Reliability There s a computer in the way of you and your donor! Leave money on the table Hidden costs Distance from donor Fraud Dependency Another ball in the air? Very public surprises!
Image Association
Top Resistance Factors Other 15% Still Evolving 24% Unreliable Too Difficult 13% 15% No Technical Personnel 78% Heavy Maintenance Too Expensive 59% 63% Unproven Value 43% No Strategy 70% Source: Marts & Lundy, Inc. March 2002 survey of CASE's "Constituents in an e-world" conference participants
Draft Do you suffer Internet panic attacks?
The panic test Please answer the following questions: 1. Does thinking about starting an Internet fundraising investment trigger a heart palpitation? Yes No 2. Do you constantly put off your new technology fundraising until next year? Yes No
The panic test 3. Do you have a seizure when you see how successful other nonprofits have been in on line fundraising? Yes No Do you begin trembling when you think about the amount of money you need to invest to begin online fundraising? 3. Yes No
The panic test Let s look at your score: Score 1Yes: You ll be OK with a little help Score 2-3 Yes: You may need more help after today Score 4 Yes. Take one pill immediately, sit back and we ll see how you feel at the end of this session!
The panic test At the end of the session, we ll take this test again and see if we ve reduced your level of panic with new technology and online fundraising
Think anything is possible
A Sri Lanka Red Cross example Flooding in the country 500 emails Institutions, individuals, corporations $1,000 dollar/$500 dollar donations People called to make a gift At the same time, TV ads were reinforcing the need and many email recipients would have looked at those ads (integration) How much did they make?
Anything is possible
Anything is possible You can donate 1.5 Egyptian pounds simply by calling 1-4-6-8 from your mobile, or 09-009-555 from any land line. 15,000-person direct e-mail list
Anything is possible They ve raised $100,000,000 USD from Egyptian citizens for the new hospital
Do you have high-tech anxiety?: a plan to overcome it Overcoming High-Tech Anxiety, Beverley Goldberg This is a six step plan, but I m only going to talk about the first two steps Reaching Acceptance Reaching Understanding Dr. Noble and Dr. Johnston want you to reach a point where you can say, Yes, the Internet and other new technologies are here to stay! But how do you reach acceptance? By looking outside yourself, your organization and see what s going on
An Astrological Mystery There are more people who use the internet under one astrologic symbol what is it? And what does it mean?
Demographics International NGO Online Donor Profile Age: 2002 18-29 7.3% 30-39 17.2% 40-49 20.9% 50-59 33.3% 60-69 13.6% 70-79 5.5% 80 or older 2.2%
Demographics Online Donor Profile Estimated household income: Under $20,000 2.7% $20-$29,999 4.0% $30-$39,999 8.9% $40-$49,999 7.1% $50-$74,999 18.7% $75-$99,999 16.0% Over $100,000 42.7%
Demographics Online Donor Profile Age: 1998 2000 2002 <35 65% 21% 30% 36-45 21% 43% 36% 46-54 14% 29% 26% 55+ 0% 7% 8%
A 2002 study of online giving for an a human rights organization 54.8% had NOT given to the charity previously (the global average is approximately 50%) New technology makes the pie bigger
A September 2003 survey of online donors from over 500 nonprofit organizations
Gender
Age of donor
How many charities have you given to online in the last year?
How long have you been donating online?
OK let s accept that Online giving is increasingly spread throughout different age sub sets It is growing as a source of income Many are affluent Donors are starting to give to more than one charity online but the loyalties are not as multiplied online as offline. They choose monthly giving more than single giving in comparison to other methods of giving They are more trusting of charities online than other institutions online e.g. giving email, opening attachments, etc.
Understanding that integration is vital to success Integration Take out a piece of paper Write down the 10 to 15 most important activities for your year times you meet the public/ask for money/get media attention
Understanding that integration is vital to success Face to Face Synergy of methods has lowered the breakeven point Street only would have a breakeven of 9 months alone W ith the extra m oney from the event, the breakeven is 7 months Face to Face and online event together 1 2 3 4 5 6 7 Net Revenue Face to Face Alone 1 2 3 4 5 6 7 8 9 Net Revenue
Understand that the rules of fundraising still apply with new technologies the case of Daily Bread Food Bank in Toronto
Daily Bread Food Bank
Understand that the rules of fundraising still apply with new technologies $500,000 raised in 3 ½ years online Over 2,000 past online donors What is the renewal rate for these donors?
The rules of acquisition: the online case of Amnesty Spain Collected emails through viral marketing campaign: approximately 300,000 Warm lists acquired virtually for free You have much more affiliated lists with alumni! They then wanted to test the efficacy of converting those warm emails into REAL DONORS They sent out approximately 240,000 emails in a test: half text only email/half HTML email
The results: 1) 1,022 monthly donors, giving an annualized income over 130,000 Euros 2) 688 single donors giving an average gift of 50 Euros 3) HTML had a 50% better response than the text only email An ROI of 15:1
Well darn, that worked well! Let s do it again Collected 220,000 more warm emails and sent out an HTML version of the same email from two month prior. The results: 1) 1,478 monthly donors, giving an annualized income over 160,000 Euros 2) 977 single donors giving an average gift of 44 Euros An ROI of 25:1
Understand new technologies Wireless PDA Data Input CC/Interac Processing Signature collection Email response Trent University made $60,000 from one machine on one day Let s pass around a few machines
Understand new technologies
Understand you need imagination
Understand that ephilanthropy needs to be holistic
Understanding & Accepting... Online fundraising is a constantly evolving and growing discipline that we cannot afford to ignore That the Internet should be incorporated into viable/realistic/successful development plans just like Planned Giving, Major Gifts, and Direct Mail
People are using the Internet for more than??? National Online Charitable Giving 140000000 120000000 100000000 Online Dollars 80000000 60000000 40000000 20000000 0 2002 2003 Year Amount Donated Online Source: The Chronicle of Philanthropy - June 12, 2003 - Marni D. Larose and Nicole Wallace
What worked for us so far? Email / Newsletters Online Giving Campaigns
Why Use Broadcast Email? The Gilbert Email Manifesto: E-mail is more important than a web site E-mail combines personal communication, immediacy, rapid response, and scale. People treat e-mail messages as To Do items. Resources spent on e-mail strategies are more valuable than the same resources spent on the web.
The Salvation Army Golden State Division All recipients are donors, supporters, volunteers or subscribers from our site Received an opt-in invitation Always give opt-out option Respect your donor s privacy
Treat it like any other publication or appeal Develop a publication/appeal schedule Mail regularly... but not too often Be prepared to deal with responses Set realistic goals
The Salvation Army Golden State Division Send in HTML, Text and AOL formats. Always solicit a gift Give both online and offline contact information.
Be relevant, informative, engaging, and brief What s in it for the reader? Consider summary format vs. complete text. If I'd had more time I would have written a shorter letter. Mark Twain
The Salvation Army Golden State Division
Make it easy to... Give! Subscribe Unsubscribe Learn more Reach a human
Plan for integration with: Other publications and campaigns Your web site Special events Satellite or supporting websites Constituent database(s).
The Salvation Army Golden State Division
The Salvation Army Golden State Division
Set your message apart Personalization (Dear <name>, thank you for your gift of <gift>). Multiple formats (HTML, Text, AOL, MIME). Preview (and signoff?) before sending. Automated signups, unsubscribe, bounce handling. Tracking Results (opens, bounces, clicks, ). Automated follow-ups, triggers. List segmentation, database integration.
In a perfect world. Sender Subject line Frequency Message Segmentation Format
What worked for us so far? Online Giving Campaigns have proven to be a cost effective way to market the overall brand of The Salvation Army. Take familiar offline event and bring it online We saw a marked increase in traffic to the site, visit length, number of donors and overall online giving.
Why Create Online Giving Programs? Increase overall awareness Reach new donors Fuel & pre-stock distribution centers Increased confidence of online shopping crosses over to charities
The Salvation Army Angel Giving Tree Online
The Salvation Army Angel Giving Tree Online
The Salvation Army Angel Giving Tree Online
$400,000.00 $350,000.00 $300,000.00 $250,000.00 $200,000.00 $150,000.00 $100,000.00 $50,000.00 $0.00 Solving the Mystery How Much? 03-Dec 06-Dec 09-Dec 12-Dec 15-Dec 18-Dec 21-Dec 24-Dec 27-Dec 30-Dec DATE 03-Nov 06-Nov 09-N ov 12-Nov 15-Nov 18-N ov 21-Nov 24-Nov 27-N ov 30-Nov Date 2003 2002 Total
1000 900 800 700 600 500 400 300 200 100 0 Solving the Mystery- How Many? 15-Nov 22-Nov 29-Nov 06-Dec 13-Dec 20-Dec 27-Dec Date 2003 2002 08-Nov 01-Nov Number of donations
Online Initiatives -The Salvation Army- $1,800,000.00 $1,600,000.00 $1,400,000.00 $1,569,430 $1,200,000.00 $1,000,000.00 $800,000.00 $1,101,444 ** $922,920 $600,000.00 $400,000.00 $200,000.00 $266,238 $0.00 Nov/Dec 2000 Nov/Dec 2001 Nov/Dec 2002 Nov/Dec 2003
Angel Giving Tree Growth
Goals of www.angelgivingtree.org Low-cost prospecting Supply Toy & Joy shops with toys Website offered pre-selected list of toys Toys were shipped directly to distribution centers in their local communities for distribution Donors could also give cash to support local Christmas programs.
Achievements of www.angelgivingtree.org 1800 Salvation Army distribution centers nationwide Incorporated rural units for the 1 st time 1 st national online initiative (gifts in-kind) Average gift: $77 for toy/$117 cash Increased overall holiday online giving by 59%
What calms my anxiety. The Internet is an increasingly viable addition to traditional communication, information and commerce mediums. Online initiatives cross IT, Marketing, and Development departments and have no geographic boundaries. The Internet is about reaching people and not geographic borders. It is a multidimensional tool that will continue to strengthen our brand, create awareness of our programs & services and overall giving. These initiatives are not singular functions of any of these departments, rather collaborations of our internal teams.
The panic test Please answer the following questions: 1. Does thinking about starting an Internet fundraising investment trigger a heart palpitation? Yes No 2. Do you constantly put off your new technology fundraising until next year? Yes No
The panic test 3. Do you have a seizure when you see how successful other nonprofits have been in on line fundraising? Yes No Do you begin trembling when you think about the amount of money you need to invest to begin online fundraising? 3. Yes No
The panic test Let s look at your score: Score 1Yes: You ll be OK with a little help Score 2-3 Yes: You may need more help after today Score 4 Yes. Take one pill immediately, sit back and we ll see how you feel at the end of this session!
Thank You for listening! Visit the password area www.hjcnewmedia.com Username = onlinemoney Password = lotsofit