Giving Back – How the Internet is Changing the Way Non-Profits Raise Money

Did you know there are roughly 1.5 MILLION non-profits in the USA?

While some larger non-profits are household names and have sophisticated marketing effort and reach, there is also a long list of non-profits who operate virtually unknown to the larger public. More than 50% of the non-profits in the US operate on less than $100,000 annually. Regardless of the size, charitable donations are essential for projects and operational funding. According to GivingUSA, roughly 72% of the 300-400 billion dollars donated comes from individuals.

For non-profits large and small, technology has changed the game. Consider these stats and examples:

• Everyone is familiar with the ALS ice bucket challenge, but it’s fair to say that many people were considerably less aware of ALS until the ice bucket challenge. For ALS (Amyotrophic Lateral Sclerosis), it was a huge win. According to an August 2014 press release published by The ALS Association, in an annual comparison of July 29 to August 27, the ALS foundation received $94.3 million in comparison to $2.7 million in 2013. This kind of an increase can completely transform an organization. Regardless of the actual dollars raised, the awareness alone is likely to boost the ALS cause for years to come.
• Following the 2010 devastation in Haiti, the American Red Cross implemented a text-to-donate campaign across their social media outlets, resulting in an incredible $5 million in donations made across one week.
• Sometimes the donating model is brand new; consider for example, a new-stock photography web site whose proceeds from the image cost are directly funneled to a foundation that helps finance therapy for cancer patients.
• Even more accessible to everyone is Crowdrise; a company that specializes in helping people – anyone anywhere – launch an online fundraising campaign, and the emphasis is on fun. Crowdrise launched a campaign to “slash David Axelrod’s ‘stache” to support Cure Epilepsy, which raised more than $1 million.
• 62% of Generation Y would be comfortable donating using their cell phones.
• In its third year since inception by 92nd Street Y and the United Nations Foundation, #GivingTuesday – the day following Black Monday – sustained a 63% increase in donations since last year, bringing the total for the daylong event to $45.7 million. Also notable, Black Friday sales were estimated to be down 11% in 2014. What could this mean? Americans may be taking the concept “it is better to give than to receive” to heart.

These examples illustrate a larger trend. According to a report by Atlas of Giving published in November 2014, it was projected that Americans’ total annual charitable contributions would exceed $450 billion dollars – a 9% increase over 2013.

Technology makes it easier and faster to find out about, evaluate and support organizations.

So, how do you benefit and adapt to these new models of giving?

Here are a few non-profit online fundraising tips from your friends at Media Genesis:

• Benchmark successful campaigns in organizations lateral to you – they don’t have to provide the same service – instead look for those who cater to a similar audience.
• Track your reach in each major channel. From traditional marketing (mailers, events) to emails and social media outlets. Have planned goals for increased reach. Building up your digital reach is fundamental to future fundraising. For many organizations it may already be around 7-10% of their total revenue. It is expected to rise significantly in the years to come.
• Test your web site from the perspective of a user; how hard is it to donate? How many clicks? Can you quickly get financial information? Is there a call to action? Here is a video that explains how you can evaluate your site and see how well your web site attracts, converts and retains advocates and donors: https://www.youtube.com/watch?v=65uqJt3jm9I
• Keep your web site fresh! Here are some good web site tips for non-profits from our president: https://www.youtube.com/watch?v=6iHq1crTOzI and this video discusses different types of web sites for non-profits: https://www.youtube.com/watch?v=V4nXXlHTcC0
• Review online fundraising platforms; here is a good article listing the top few: http://mashable.com/2011/03/14/social-good-fundraising-tools/
• Get rated on web sites such as GreatNonProfits.org by soliciting donors and partners. Here is an example for a great nonprofit we support: http://greatnonprofits.org/org/beyond-basics
• Lastly – Experiment! While some of this new technology can be frustrating at times, it is very forgiving and changing, so you can learn along the way. It’s likely that some of the best campaigns of 2014 were happy accidents, and you too could create such a happy accident leading to a large windfall of donations and exposure!

If you’re a non-profit knowing you are 1 of approximately 1.5M in the US you need to stand out. Remember to better explain the significance of your cause, better market your need, and better engage your current and prospective donors. We wish you all the best in 2015!