Remember the fun of hide and seek…ready or not here I come? Well, like the game, online charitable giving is coming…"ready or not."
Ready for some astounding figures? Fidelity Charity Gift Fund and United Way raised $314 million and $257.4 million respectively in 2007 through their online efforts. While online giving rarely has climbed above five percent of all gifts received, it is something many non-profit organizations are pursuing with vigor. In 2007, eight charities raised $25 million or more online. Ted Hart (CEO of Hart Philanthropic Services) has tracked online giving since 2001. He reports that on-line giving reached $10.44 billion in 2007, a 52 percent increase over the previous year. Compared to all giving in that year, $10.44 billion is small potatoes, but the continued and expected giving growth, through this medium, is a trend that deserves watching.
As further evidence of the need to follow this trend:
The University of Indiana Foundation projected it would raise $900,000 via its online efforts. This was a whopping 150 percent increase over the $356,079 they raised online in 2007.
The Wise Giving Alliance found that their survey’s youngest respondents, those between 18 and 29, are the most open to the idea of giving online. This bodes well for having online giving as an option.
The ePhilanthropy Foundation found the average age of donors who currently give online is between 35 and 40. This bodes well as an existing target market as foundations woo and cultivate this particular generation’s support.
The future of online giving suggests the need to plan for the time when those between the ages of 18 and 29, that have grown up with computer and web access most of their lives, begin to dominate the giving landscape. While this eventuality is at least 20 to 25 years away, wise foundations should now be planning how to best court this market, and in the meantime, begin to garner resources from other tech savvy donors.
Through online fundraising leaders of non-profit organizations have a new venue for reaching out to potential support.
Tips for Online Fundraising
Joanne Fritz, nonprofit columnist on about.com offers these 10 tips for online fundraising:
1. Get legal with your online fundraising.
2. Market your online fundraising program.
3. Explore all of your options for online fundraising.
4. Make sure your website invites online donations.
5. Observe proper online etiquette in your online fundraising.
6. Provide lots of ways for people to donate—not just online.
7. Make sure that your website donation button is big and above the fold.
8. Provide the opportunity for non-monetary contributions, such as volunteer time.
9. Show real donors and specify how donations will help.
10. Try segmenting your online fundraising audience.
Read Joanne Fritz’s full article, “Online Fundraising: A Start-up Guide.” http://nonprofit.about.com/od/onlinefundraising/tp/onlinefundraisinghub.htm
Showing posts with label Giving. Show all posts
Showing posts with label Giving. Show all posts
Thursday, January 7, 2010
Veldon Law: Giving in Challenging Times
Though there has been an increase in the “Dow,” there are many that continue to portray economic doom and gloom. With the needs of non-profits as great as or even greater than ever before due to the economic and employment crisis, what is the board and leadership to think and do when they receive requests for philanthropic support?
Many in leadership are rightfully torn between recognizing and giving to the need, the internal difficulty of just having laid-off staff, having fewer dollars for operations and thus having less, if anything to give. These are real dilemmas and give leadership pause as to whether or not to move forward with giving during a time when they have concerns about the current and future economic climate and for some, survival.
Research on giving provides some interesting perspectives and hope to requesting organizations, if the current situation mirrors the past. Two separate studies by the Center on Philanthropy at Indiana University have recently been conducted: 1) giving during and following a crisis; and 2) giving during economic recessions. These studies provide information on the percentage of change in the stock market and on philanthropy in the United States. Findings include the following:
Article by Ray Clements, CG’s CEO and Managing Member, on economic crises, community colleges, and donor reactions.
Article by the Sharpe Group on giving during the great depression, fundraising in the current environment, and giving during economic downturns.
Article by Effective Philanthropy indicating that in a time of economic crisis and political change, isolation is not an option.
A variety of studies on The Foundation Center’s website on foundation giving in times of economic stress.
Article by the Association of Fundraising Professionals on facing the economy with a sharp focus and solid strategy.
Article by Kathryn Masterson published in The Chronicle of Higher Education (September 26, 2008): “Fund Raisers Keep a Close Eye on Financial Markets’ Movement.”
Article by David Shieh published in The Chronicle of Higher Education, (January 9, 2009): “Despite Downturn, Some Colleges Continue to Receive Major Gifts.”
Organizational leadership has numerous issues to consider as they “invest” shrinking philanthropic dollars. Many are now focused on the ROI of the gift. Wise requesting organizations must illustrate, in very concrete terms, the benefit the gift will provide to the organization, to the organization’s customer and/or market base, and/or how the gift assists the organization in branding itself with its client and market base.
Best Practices Tips:
Many in leadership are rightfully torn between recognizing and giving to the need, the internal difficulty of just having laid-off staff, having fewer dollars for operations and thus having less, if anything to give. These are real dilemmas and give leadership pause as to whether or not to move forward with giving during a time when they have concerns about the current and future economic climate and for some, survival.
Research on giving provides some interesting perspectives and hope to requesting organizations, if the current situation mirrors the past. Two separate studies by the Center on Philanthropy at Indiana University have recently been conducted: 1) giving during and following a crisis; and 2) giving during economic recessions. These studies provide information on the percentage of change in the stock market and on philanthropy in the United States. Findings include the following:
- With 4 exceptions, there was a conspicuous drop in the stock market within 30 days after a crisis.
- With 3 exceptions, the market recovered (within 1% or more) within 1 year.
- Despite crises, giving in each of the past 54 years has increased every year except 1.
- Each year, Americans have given more than the year before.
- Rates of market growth have varied.
- With 3 exceptions, giving in the calendar year after the crisis grew at a faster rate than it had during the calendar year before the event.
- Despite crises over the last 40 years, giving has grown at an average annual rate of 8.4% in current dollars.
- During past recessions, giving has grown at a rate of 6.2% in current dollars.
Article by Ray Clements, CG’s CEO and Managing Member, on economic crises, community colleges, and donor reactions.
Article by the Sharpe Group on giving during the great depression, fundraising in the current environment, and giving during economic downturns.
Article by Effective Philanthropy indicating that in a time of economic crisis and political change, isolation is not an option.
A variety of studies on The Foundation Center’s website on foundation giving in times of economic stress.
Article by the Association of Fundraising Professionals on facing the economy with a sharp focus and solid strategy.
Article by Kathryn Masterson published in The Chronicle of Higher Education (September 26, 2008): “Fund Raisers Keep a Close Eye on Financial Markets’ Movement.”
Article by David Shieh published in The Chronicle of Higher Education, (January 9, 2009): “Despite Downturn, Some Colleges Continue to Receive Major Gifts.”
Organizational leadership has numerous issues to consider as they “invest” shrinking philanthropic dollars. Many are now focused on the ROI of the gift. Wise requesting organizations must illustrate, in very concrete terms, the benefit the gift will provide to the organization, to the organization’s customer and/or market base, and/or how the gift assists the organization in branding itself with its client and market base.
Best Practices Tips:
- Organizational leaders should question and learn the results of the requesting organization’s feasibility study.
- Organizational leaders should learn who the requesting organization’s potential donors are and what they say about the proposed project.
- Organizational leaders should learn who will lead the requesting organization's potential campaign project.
- Organizational leaders should question other potential donor’s interest and thoughts on the project.
- Before making a giving decision, organizational leaders ought to consider the following key questions: a) Is our organization’s mission and giving objectives in alignment with the requesting organization? b) Can the requesting organization complete their proposed project successfully – can they get the fiscal support, right leadership, volunteers, complete the project under the projected timeline, etc.? c) Does the requesting organization really need our assistance? d) Is the “internal climate” right to provide the gift? e) Is the “external climate” right to provide the gift? f) How will the gift impact our organization’s operation, survival, success? g) What is the ROI for our organization; customer, market base? h) How does the gift brand our organization to our market base? i) Does the gift set a precedent we wish to avoid?
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