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Online Fundraising: Overview, Trends and Challenges

Online Fundraising: Overview, Trends and Challenges San Francisco Regional Conference July 25, 2002. Online Fundraising Overview. About eGrants The Nonprofit Market & Giving Orgs Online Giving – Who’s Doing What Trends Challenges Resources. eGrants Mission & Vision .

jameson-castaneda
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Online Fundraising: Overview, Trends and Challenges

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  1. Online Fundraising: Overview, Trends and Challenges San Francisco Regional Conference July 25, 2002

  2. Online Fundraising Overview • About eGrants • The Nonprofit Market & Giving • Orgs Online • Giving – Who’s Doing What • Trends • Challenges • Resources

  3. eGrants Mission & Vision Provide simple, affordable, integrated online services for small to medium sized nonprofit organizations Provide training and support to give nonprofits the know-how to use these services effectively

  4. About eGrants • We’re a Nonprofit – handle charitable solicitor state registration • Part of the Tides Family • Processed $4.3 million in donations • Serve 800 organizations • Partnerships with Working Assets (GiveForChange), TechRocks, Donordigital

  5. eGrants Core Services • DonateNow! donation processing service • GiveForChange.com • Training program Coming Soon: • EmailNow – email ASP service, integrated with donation processing • Integration with ebase • Consulting services

  6. The Nonprofit Marketplace • Nonprofits spend about $700 billion annually, which represents 8% of the GDP • Nonprofits employ almost 11 million people, or 7% of the workforce • There are 868,000 501c3 orgs, but only 290,000 with budgets greater than $25,000/year

  7. Giving

  8. Marketing Education Outreach Branding Service delivery Sales Advocacy Collaboration Fundraising What can orgs do online?

  9. Online Giving • Internet giving represents less than 1/3 of 1% of overall individual giving -- or, roughly 33 cents per $100 donated last year $500 million? • However, exclude donations to religion, education and health organizations, individual contributions may total $40 - 50 billion Online % for this segment may be more like 1 – 1.25%

  10. Impact of 9/11 • 10% of 9/11 donations were made online • $200 million • 4 million new online donors • Average online donation $103, vs. $93 offline; for telethon - $150 online vs. $100 offline

  11. Who’s using the Internet successfully? • Big brands + disaster (American Red Cross) • Big brands + animals (World Wildlife Fund) • Small brands + passionate users (Surfrider Foundation, Grist Magazine) • Matching campaigns + cross marketing (GiveForChange) • Advocacy groups

  12. Web Donor Demographics and Habits • 70% under 45 • 36% have broadband access at home (~50% of repeat online donors) • 56% have been online more than 5 years (73% at least 4 years) • 80% go online every day • 56% bank and/or pay bills online (67% of repeat donors) Source: Craver, Mathews, Smith and Company Client survey of 733 Web donors, 10/01

  13. Other interesting figures…. • 26% say they would have considered making a monthly pledge • 61% say they had given online before • 33% gave online to 9/11 relief • 70% have taken online action Source: Craver, Mathews, Smith and Company Client survey of 733 Web donors, 10/01

  14. Web Givers Are Hunters, Not Browsers (percentages) Source: Craver, Mathews, Smith and Company

  15. Web Donors Came to Give Thinking about the time you donated, did you specifically go to donate, or for another reason? Source: Craver, Mathews, Smith and Company

  16. The Direct Mail Connection Acquisition matchbacks show 20-50% of online donors had received postal mail prior to making their gift. Source: Craver, Mathews, Smith and Company

  17. Trends • Online space has favored large orgs, national brands • Higher average online gift - e.g., eGrants average donation is $125 vs. ~$25 for direct mail • Online giving is closely tied to other marketing, fundraising and communications • The givers of tomorrow are online today

  18. Challenges • Help small to medium sized orgs get in the game • Capital – money, technology, time, human resources • Training and support • Integration of online and offline systems • Email fatigue • Spam, list rentals? • ASP vs. client

  19. Resources • Presentations from ePhilanthropy Conference, March 2002: www.independentsector.org/e_philanthropy/schedule.html • Chronicle of Philanthropy study, June 2002: www.philanthropy.com • Resources for nonprofits: www.egrants.org/resources/

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