How does your nonprofit know when to use peer-to-peer fundraising or crowdfunding?
Join Georgia Wright-Simmons (Senior Business Development Associate, Launcht) and Dan Fonseca (Inbound Marketing Coordinator, FirstGiving) as they explore the differences and similarities between peer-to-peer fundraising and crowd-funding for nonprofits.
Georgia and Dan will cover:
-When each fundraising strategy makes sense to implement
-The differences between peer-to-peer fundraising and crowdfunding
-General guidelines in application
-Case studies examples
How to Inspire Action and Social Change through Video Storytelling
How a nonprofit can survive and thrive in the world of crowd collaboration
1. How a Nonprofit can Survive
and Thrive in the World of Crowd
Collaboration
February, 20, 2014
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2. Presenters
Dan Fonseca
Georgia Wright-Simmons
• Senior Business Development
Associate at Launcht
• Marathon runner (Boston 2014)
• Originally from Iowa
• Inbound Marketing
Coordinator at FirstGiving
• Musician
• Thinks trail mix is tasty
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3. ―What we face now is a pace of change that is unprecedented.
Major innovations that used to change our lifestyles maybe once or twice
in a generation, we’re seeing that now almost on an annual basis.
So what needs to be top of mind for all [non-profits], no matter how
established their brand is, is to stay relevant among our [donors].
We have to think about how the lives of our end users are
changing, whether that end user is a consumer, a patient, a doctor or
anyone else. And to remain relevant we need to be
new ecosystem.”
— Kim Kadlec
Worldwide Vice President, Global Marketing Group
Johnson & Johnson
Quoted in ZMOT
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part of their
5. Why Multichannel Matters:
People Give in Many Different Ways
Give Online
Checkout Donations
52
53
51
47
Give in Response to Direct Mail
40
42
52
44
40
27
22
10
Generation
Generation
Y
X
Boomers
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Matures
All stats from Blackbaud report unless otherwise noted
6. Misconceptions
• Generation Y is NOT selfish and should not be
discounted
• Using crowdfunding technology is not a niche
restricted to ―hipsters‖ and ―artists‖
• Online fundraising is NOT the end of
traditional fundraising
• Online fundraising is NOT a panacea
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7. ONLINE FUNDRAISING
Percent Increase from 2011 to
2012
Percent of Total
Donations
Percent Increase from 2011 to 2012
7%
10.7%
Online Giving
Overall Giving
1.7%
93%
Online
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Other Sources
*Other sources include major
gifts, annual
fund, checks, telephone, direct
mail, and event
8. Benefits of Online Fundraising
• Online fundraising improves your transparency, showcasing the
depth and breadth of what you do
• Online fundraising gives donors a sense of agency—they have the
power to choose where their money goes
• People feel a stronger connection to the projects they fund than to
organizations in general
• Crowdfunding and Peer-to-peer fundraising create avenues for peer
endorsement, which builds trust with new donors
• The Cloud creates endless opportunities for donor entry
• Fundraisers build engagement beyond donating
• Online fundraising is very cost-effective for your organization
• It is easily quantifiable and trackable
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11. Crowdfunding Opportunities
• Connect members of an
existing community
• Umbrella organization
giving small associated
nonprofits access to a
larger donor pool
Benefits:
• Surface new
projects, connecting
money with ideas beyond
email lists
• Putting small nonprofits
on a big platform
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12. Crowdfunding Opportunities
• Breaking annual fund into
more concrete and
interactive projects
Benefits:
• Connect young and new
donors with projects they
identify with in a very
concrete way
• Significantly increase clickthrough on email outreach:
UVMStart had a 14% clickthrough on email outreach
about their crowdfunding
platform
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13. Crowdfunding Opportunities
• Initiative-based fundraising
• Based around specific
fundraising efforts, with the
goal of increasing
transparency
Benefits:
• Connecting donors with
impact rather than with
mission
• Giving donors a sense of
control over where their
dollars go
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14. Crowdfunding Opportunities
• Brands crowdsource
where their philanthropy
dollars go
Benefits:
• Philanthropy dollars do
double duty, marketing
the company and creating
positive associations
• Brings attention to
brand’s connections with
non-profits
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15. Three Steps to Getting Setup
1. Choose which strategy makes the most sense
for your organization and initiatives
2. Structure your site and populate it with content
3. Reach out to top supporters—ask them to
create campaigns on your site or be your
champions: the first to donate and share
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18. 4 problems personal peer-to-peer
fundraising page solve for your
nonprofit
1.
2.
3.
4.
Lack of engagement on a supporter’s behalf
Lack of exposure to new networks
Not meeting fundraising goals
Poor job marketing the brand
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20. Steps for Getting Started
A nonprofit ready to take advantage of peer-topeer fundraising will have the following:
1. A strong supporter base
2. A peer-to-peer fundraising worthy event
•
•
Traditional endurance events
“Thons” – Bowl-a-thon, dance-a-thons, etc.
3. Information to arm the fundraiser with
•
Logos, email templates, best practices, mission
updates, etc.
4. The right peer-to-peer fundraising platform
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21. Crowdfunding / Peer-to-Peer?
Making a Decision
Crowdfunding:
Peer-to-Peer:
• Cause and Project Based
• Event Based
• Bring in new donors
• Increase engagement of top
supporters
• Provide depth and
breadth
• Focused on a single cause
• You control your message
• Supporters share your message
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22. PLANNING FOR
SUCCESS
What was once a message is now a conversation
between funders and the organizations they support
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23. Equal Thought, Not After Thought:
Creating a Holistic Strategy
• Integrate with your current marketing plan
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24. Equal Thought, Not After Thought:
Creating a Holistic Strategy
Crowdfunding ≈ 1-3 months of preparation
Identify top
supporters
Choose a
worthy event
and build a
platform
Equip your
campaigns
with useful
materials
Help Initial
campaigns
plan outreach
Reach out to
donors
before
launch
Peer-to-peer fundraising ≈ 2-4 months of preparation
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Go Live
25. Equal Thought, Not After Thought:
Creating a Holistic Strategy
Be Dynamic:
Perfect is the Enemy of Good
Collect
Data
Start with
an ―MVP‖
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Iterate
based on
Data
26. Equal Thought, Not After Thought:
Creating a Holistic Strategy
• Follow Up
Thank you!
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27. Online fundraising has the potential
to turn small victories into big
wins
―The average donor gives $50 while the average
fundraiser raises about $500‖
Donor
$
Network
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28. Wrapping it all up!
• Multichannel approach is key
• Crowdfunding is great for project based initiatives
• Peer-to-peer fundraising works well with event
based initiatives
• Planning is key. Budget 1-2 months for
crowdfunding campaigns and 3-4 months for
peer-to-peer campaigns
• Keep them engaged. Thank them and keep in
touch.
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30. Be a part of our communities
Facebook: facebook.com/firstgiving
Twitter: @firstgiving
Blog: info.firstgiving.com/blog
Facebook: facebook.com/launcht
Twitter: @launcht
Blog: launcht.com/blog
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31. Interested in learning more?
FirstGiving
Contact our Online Fundraising Consultants
• Email: sales@firstgiving.com
• Telephone: 617 542 0010 x 4
Launcht
Contact our team for more information
• Email: hereforyou@launcht.com
• Telephone: 617 765 2000
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32. Thank you!
• Georgia Wright-Simmons
– Senior Business Development Associate
– Launcht
– georgia@launcht.com
• Dan Fonseca
– Inbound Marketing Coordinator
– FirstGiving
– dan.fonseca@firstgiving.com
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Notes de l'éditeur
Facing these facts, it’s scary to launch a new huge online fundraising event or initiative with very little precedence to base operations off of, and with online fundraising still only taking up 7% of all donations, why bother?Because it’s essential.Read quoteOnline fundraising is still a small piece of the pie, but it is essential to get in the game now and be creative so that you can keep being relevant as opposed to having to catch up later and reestablish your brand
The answer is to engage in multi-channel fundraisingMulti-channel is the new normal—while older generations still respond best to direct mail, Gen X and Y (31% of total giving in 2012) largely give via mobile or internet and share through social media (marketing– combines giving and marketing and gives donors a sense of control over their giving dollars
Why Multi-Channel is key. Different generations respond to different approaches What does it mean? Meeting people where they areCloud collaboration, big scary term, basically all it means is engaging people online
Misconception 1: Generation Y is selfish and doesn’t want to give Reality: Gen Y is particularly concerned with finding meaning in their lives—members of the millennial generation are more likely than any other generation to cite the “desire to make the world a better place to live” as a key motivator for their philanthropic givingMisconception 2: This is the end of traditional fundraising Reality: don’t get rid of direct mail or Donate Now– never good to have all your eggs in one basket, and while we need to get people where they are, a diverse offering will benefit you on many levels (direct mail marketing for online fundraising, online fundraising building brand awareness so that people will pay more attention to direct mail); As an example—the University of Arizona recently launched a crowdfunding site and in an interview said that 90% of donations made on the site were from first-time donors. Now what does that say? They’ve attracted a ton of new donors through this medium! But it also isn’t attracting many repeat donors. It’s a great tool, but it is another tool in your tool kit; it does not create an entirely new toolkit for youPanacea—putting something up online will be our salvation! We can put it up and forget about it and we’ll start making money Reality: online fundraising is just like all other fundraising—it takes preparation and ongoing work to make it a useful toolFinal misconception: online fundraising is still a niche that not many people know about Reality: Crowdfunding has gone way beyond Kickstarter and Peer-to-peer is fairly well established
Online Giving is still a small piece of the fundraising pie– only 7% of total giving, but it’s also the fastest growing sector, increasing 10-fold more than overall giving between 2011 and 2012While it’s a small part of the total, it’s adding to the bottom of your pyramid, you’re building out your $5,000 gifts of 2025—it’s small now, but essential to your future development
Transparency: We are in the Age of Information and donor expectations have changed. People want a greater level of transparency and want to feel involved in the process: 57% of Gen Y and 49% of Gen X donors said they wanted to be able to see the impact of their donation—online gives you multiple channels to do this (easy reporting)Internet giving allows donors to feel like they have more agency—they get to be a pert of the process (psych study showing that when you get people to do favors for you they like you more “Ben Franklin Effect”) blurs the line between who is leading whom—donors see it as making the process more democratic, and they can vote with their dollars and their reputation (they share your causes w/ their network)The cloud provides many entry points—sharing via social media has a very low barrier for engagement and can bring in new donors—great way to gain new donors and build legitimacy through word of mouthBuilds engagement beyond donating– besides the obvious social media sharing engagement, p2p creates a way for donors to become more invested in a particular nonprofit by creating a campaign on their behalf ““You don’t want to tell donors why they should give. You want them to tell you why they should give.”— Kimberly Kubik, Director of Institutional Advancement, Shady Hill School (Blackbaud); Online also allows you to keep donors abreast of what’s happening w/ the initiative during and after the fundraising round—provides year-round points of contact and creates transparency that will encourage donors to give again in the future (cultivating major donors)Ease of use; 90%+ of people are already online—all they have to do is put in their credit car information (no stamps, trips to the post office, can do it immediately) provides instant gratification to donorLow capital requirements: don’t need a developer to get up and running—these are out of the box solutionsP2P can turn a just-out-of-college kid into a major donor if they know how to leverage their social network and bring in progressively larger donations from their friends/ family (power of the crowd)Your funders want greater transparency Internet giving fosters a sense of donor agencyThe Cloud creates endless opportunities for donor entry Fundraisers build engagement beyond donatingIt’s easy—for you and your supportersIt’s cost-effectiveAnd it provides exponential benefits
Many non-profits know they need to expand their online presence, but they don’t know what to do beyond the core site and “Donate Now” button; we’re not calling for the death of the Donate Now button, but I am here today to show you two simple, effective ways to get something more innovative going
Increasing your baseImproving your online presenceShowcasing specific initiatives Engaging Gen YAttracting first time donors2 Approaches: Initiative-based fundraising Peer-to-PeerArizona U statistic 90% new donors
Jkick is using their site to connect members of a pre-existing community and allowing them to discover interesting, relevant projects in their area; they use the site to provide a service to their members, created a mini crowdrise for their community
Pace Universities (Universities using crowdfunding to make donating more attractive to younger donors); they use their site to encourage new and existing donors to donate directly to themCore difference between this and the Jkick model: here, all of the money goes through the school, whereas with Jkick, the money goes to the project owners
FHSSA runs a crowdfunding platform to show off various initiatives it’s running at any given time so that people feel more motivated to give by virtue of the fact that they feel they have power over where their money goes
Pepsi Refresh e.g.Talk about traditional ideas of marketing but success storiesGive up control, but get interesting market feedback and all press is good pressIn development of Pepsi-Refresh type initiatives; great way to make your CSR (corporate social responsibility) dollars do double doody
Create IconsChoose your goal: where do you want to end up, and work back from thereSource the softwareCreate your Crowd Mobilize!
Building legitimacyEvent-basedTurn donors into ambassadorsExpand your donor list – 55% of those who contribute to a peer-to-peer fundraising campaign are new donors
If this wasn’t already clear—your online fundraising is part of a bigger marketing/ fundraising plan and in an ideal state will create synergy with that plan. You use traditional marketing to promote your online fundraiser, and the online fundraiser will build brand recognition (and funds) to encourage people to fund you independently through other channels in the future
Preparation—Just because it’s online doesn’t mean it’s free and easy. Prepare for your success just as you would with any other fundraiserNote the arrows pointing out. Work does not stop when you Go Live—then you need to reach out beyond your core supporters and help get the actual funds
MVP—maybe most of you recognize this as “Most Valuable Player” and in many ways this mentality will be most valuable to you, but in this case it refers to the “minimum viable product,” or the simplest solution you can create and still have it fulfill you needs. We have a lot of people who come to us with a lot of so-called requirements that are based on their intuition, and we always tell them that a huge upside of the internet is that it is dynamic—start small, start with something simple and test it to get feedback from the people you’re targeting, and then build out from there. You always have the ability to change elements, and change them quickly, if you discover something isn’t working for you
Finally, follow up. This is a great opportunity to work on stewardship. You have brought in new donors, now keep them engaged. First, say Thank you. Little gestures make a big difference. From there, keep them updated on what’s happening with the campaign they donated to so that they continue to feel informed, involved, and invested
Final thoughts: the upside here is huge, and getting started is easy. Don’t be intimidated by the options. Start with a single focus and build out slowly and before you know it you’ll have your own unique online presence and a constantly expanding list of new donors and contacts