Nonprofit Bridge

Even though I almost exclusively donate online, many nonprofits I support regularly send direct mail, most which I quickly dispose of after a quick scan.  However, this recent message caught my attention: “If you could make just one gift…,we promise that we will never ask you for another donation again.”  On the response form, there is clearly a checkbox: ‘Please do not ask me for another donation.”

This is an interesting alternative to the ‘unsubscribe from all’ option that normally appears on the bottom of email newsletters.  Make just one donation, and you’ll never hear from us again.  While this has some attraction, I can’t imagine why any nonprofit would want to encourage its constituents to request no further communications.  In fact, this is just the opposite strategy of developing long term relationships with our supporters.

While I support this organization’s mission, I haven’t previously donated but signed up for their email list.  Whether or not I donate eventually, this strategy seems backward.  For an example of what I think works better, see this page from ThePort which encourages supporters to ‘connect with us in the ways that fit you best.’  Rather than discouraging further contact, it encourages constituents to choose their preferred channel(s).  So I can choose to get online communications only and not the lengthy direct mail pieces which worked better with my parents/grandparents.

Yesterday I attended a workshop which reviewed the results of the Next Generation of American Giving, sponsored by Convio, Edge Research and Sea Change Strategies.  This is a fascinating topic, especially if your nonprofit still focuses only on older donors, which was the focus of an earlier study on the Wired Wealthy.

Different generations respond differently to fundraising appeals.  Generation Y (born 1981-1991) tend to be more ‘random’ in giving, like social media and mobile and respond well to peer to peer asks (not directly from the nonprofit).  Generation X  (1965 – 1980) also participate in peer to peer giving and also participate in professional networks such as LinkedIn.  The boomer generation (1946-1964) reads enewsletters, likes to volunteer and is the target of much traditional direct mail.  Finally matures (born 1945 or earlier) are wealthier, most likely to contribute by check and are more fixed in their choice of charities.

Most donation forms don’t ask for birth date / age range because potential donors are likely to find this invasive.  So many organizations that take the time to segment their constituents derive this information in other ways, such as noting which channels they choose to communicate with.  But in an increasingly multi-channel world, this may not always be accurate.

Some additional points from the report:

• marketing programs should be optimized beyond “matures’
• boomers are the next logical target, but don’t ignore generations X and Y
• consider the economic value of gens X and Y which have a ‘lifetime of giving’ ahead of them
• no generation is as loyal as matures
• no channel will dominate in the future as direct mail has in the past
• (no surprise) the Internet is the core channel for younger donors
• let supporters choose which channel to use to interact with your organization
• mobile giving is where online giving was in 1999

How can we adjust our outreach efforts?

1. Online Feeder Acquisition – similar to when you ask for email address in a direct mail piece, use online as a list acquisition channel by asking for physical address – but you’ll have to provide some value in return
2. Multichannel Campaign – compose an integrated fundraising calendar, respect previous giving behaviors such as not asking a $100 donor for a $25 gift or vice versa
3. Segmentation – Adjust your call to action based on who you are communicating with (don’t send the same message to everyone)
4. New Approach to Donor Management – Must be able to see all ways a constituent has interacted with organization – much easier if you can use one main database.

My take – if your organization is still structured in traditional ways, you won’t be able to fully take advantage of these opportunities.  Direct mail doesn’t compete with online, they work together.  And as this report suggests, if you’re only targeting the matures and boomers, you’re missing the chance to develop a long term relationship with the younger Generation Y and X constituents, many which may start by supporting your organization in other ways than by large financial contributions.

Attended another enlightening NYC 501 Tech Club meeting last night, featuring mobile text messaging.  Speakers included Katrin Verclas of MobileActive, Jed Alpert of MobileCommons and DoSomething‘s George Weiner.

First, we were treated to a summary of 10 take-aways from South by Southwest for Nonprofits by Matt Koltermann of Cross-Cultural Solutions, an international volunteerism organization which I served as Director of IT and Internet Strategy from 2000-2003.  Matt’s comments echoed many thoughts I shared in this blog, such as the importance of cross-channel brand / message consistency and how segmentation of constituents allows your organization to utilize a targeted communicated strategy (i.e. don’t send everything to everyone).

Katrin reviewed the recent 2010 Nonprofit Text Messaging Benchmarks report and explained the importance of not only sharing stories, but looking at real data.    Clearly mobile outreach isn’t right for all organizations – it’s still a bit challenging to setup, is subject to strict rules on how it can be done, and donations are limited to either $5 or $10.  And in response to my question, mobile strategy isn’t only for nonprofits that are advocacy focused, but for any nonprofit that has a ‘forward thinking’ communications department.  At least until it becomes more widespread, mobile is still a great way to get someone’s attention quickly for a pressing issue;  emails often don’t get read and are buried in a flood of other messages.

Jed emphasized that mobile doesn’t supplant other types of messaging, but is best implemented as part of an integrated communications campaign , not as a standalone strategy (hmmm – seems like I’ve said this before).  He also added that supporters that receive a text message after email are 77% more likely to donate.  Interestingly, it was also pointed out that since many of us use mobile phones to check Facebook and Twitter, a nonprofit doesn’t necessarily have to do SMS messaging to reach constituents by phone – even if you don’t have their mobile number.

George provided a different perspective for his organization, which is clearly targeted towards encouraging young people to volunteer.  While this is a noble objective, it was a bit worrisome when an audience member’s question was responded by ‘you’re not in our target audience.’  (She pointed out that she had nieces and nephews that were in their target audience.)  While it’s true that you can’t build a web site that will appeal to all constituents, this might be taking things a bit too far.

Thanks to event organizers Charles Lenchner, Thomas Negron and Farra Trompeter.  If you’re coming to Atlanta next month for the Nonprofit Technology Conference, be sure to join the NYC 501 Tech group for a get together on April 8.

Blackbaud’s Steve MacLaughlin kicked off a Lessons Learned from Haiti webinar series today with an overall review of how many nonprofits responded to the recent earthquake in Haiti.  Some memorable takeaways:

1. After a disaster happens, there is a limited window to reach and engage supporters.   It’s critical to act quickly.
2. If you wait for an emergency situation to happen, it’s too late.  Be prepared with email templates, photographs and develop processes so you can quickly update web page / donation form content (this is not often the norm at many nonprofit organizations).
3. Emergency situations can impact any nonprofit, not just those that traditionally respond to disasters, such as the American Red Cross and Doctors Without Borders.
4. Online, social media and mobile are first response channels of choice in responding to a disaster.
5. Reliable people, processes and technology are critical
6. Follow-up!  Reaching out to constituents doesn’t end after you’ve sent an email appeal immediately after the disaster occurs.
7. Accountability is important;  make sure donors are told how their funds have been used.
8. Plan in advance – make sure your web site / donation forms can handle temporary spikes in traffic.

Upcoming sessions in this series will focus on mobile giving as well as mobilizing your supporters using social media.  Register now for these free events.  Nonprofits play a critical role in disaster recovery efforts.  As Steve reminded us today, don’t wait for the next emergency to prepare your organization to respond.

If you haven’t yet completed the 2010 Nonprofit Social Networking Survey, please do so now.  This initiative is co-sponsored by Common Knowledge, Nten and The Port, and results will be announced at next month’s Nonprofit Technology Conference in Atlanta, GA.  All survey participants will be entered in a drawing for an Amazon Kindle (don’t forget to include your email address at end) and will receive a copy of the report.

Can’t wait?  Below are recent reports on social media usage in nonprofit organizations:

• M&R Strategic Services - Nonprofit Social Media Benchmarks Study
• Idealware – Using Social Media to Meet Nonprofit Goals
• Blackbaud / Charity Dynamics – Successful Event Fundraising with Social Media
• Website Magazine (not nonprofit specific) – Social Media Survey

This week’s meeting focused on reviewing nonprofit web sites which were recently redesigned.  Since many of us consult mostly with co-workers when developing a new site, I always find it very informative to hear from colleagues at other organizations .  (We also do a lot of this at the Not-For-Profit Webmaster Round Table, which will meet next on March 19.) Please visit sites which we reviewed (some still being redesigned) and give feedback to the organizations on what you like or don’t like:

• MS Foundation for Women
• New York Public Library
• Children’s Health Fund
• ACLU
• YAI

Other topics we discussed:

1. Should navigation links be removed from a donation form to not ‘distract’ the donor from completing the process?  Many attendees said yes.
2. Nonprofits that sent multiple appeals near year-end 2009 reported excellent results, demonstrating the benefit of taking advantage of the tax deduction by 12/31
3. Only a few are implementing Convio’s Common Ground, which provides an integrated donor database – may discuss further at a later meeting
4. Drupal is in use by more of us, but link with Convio is not yet available.  (open source CiviCRM does connect well with Drupal)
5. We agreed that implementing a welcome series for new supporters was worthwhile, but few are using yet – too much time to setup?
6. Video – YAI has done well with its YouTube channel;  TubeMogul was also mentioned as way to upload to multiple video sites.
7. Some reports of recent delays in sending emails through Facebook Causes, resulting in a holiday message that reached constituents late
8. Per ACLU, activists that have taken at least two actions are very likely to become donors (may incorporate into welcome series)
9. Some sites are moving away from Flash to Javascript for home page – better viewed on mobile phones
10. Challenges in working with Facebook, which ‘changes every day’

Thanks to the YAI Network for hosting meeting, YAI’s Dario Mallerman for moderating discussion and Convio’s Stephanie McKnight for coordinating.  More details are also in Convio’s Community site (login required).   Despite the beginning of a two day rain/snow storm in NYC, about 50 Convio users attended!

In addition to spending many hours online, I still do read books.  Recently I finished Wendy Smith’s Give a Little – How Small Donations Are Changing the World.  If you ever think that only large contributions make a difference, this book will change your mind, showing how small gifts make up the bulk of many nonprofits’ revenues.  In addition, I was introduced to many wonderful nonprofits that I wasn’t already familiar with – a complete list is available here.  My favorite quote – “giving changes you as well as the world.”

Your small gift can also help these very worthwhile causes:

• Idealist is asking for help so it can continue to be a resource for the nonprofit community
• Nten’s Holly Ross asks that you celebrate her upcoming birthday by helping a nonprofit colleague to attend the upcoming Nonprofit Technology Conference
• Support Idealware’s mission of providing objective software reviews for nonprofits by purchasing its new Field Guide to Software for Nonprofits

If you missed the recent PBS Frontline presentation of Digital Nation, you can watch it (and comment) online.   It is very thought provoking, and may provide a reminder that multitasking is not always the best way to get things done.  Also see this report from Pew Internet on Social Media and Young Adults.

Wondering about whether mobile fundraising will become a major fundraising channel as it has been for Haiti?  See MobileActive’s Definitive Guide to Mobile Fundraising as well as Beth Kanter’s summary of some recent viewpoints.

When you present, do you get frustrated with attendees who seem to be paying more attention to their phones / computers than to your presentation?  In her presentation this week on the Trainer’s Social Media Tool Box, Beth Kanter explained how to use social media to enhance your sessions by encouraging sharing of information.   A new book, the Back Channel, details this phenomenon in more detail.  (If you’re still waiting until the end of your talk to take questions, you definitely need to see Beth’s notes.)

Jeff Brooks also spoke on a Network for Good call on what not to do in online fundraising – slides are available here.  (Hint – if your figures are not growing, you’re missing something.)

Do you maintain a database for advocacy that’s separate from your main donor database?  Care2′s webinar on Connecting Advocacy to Fundraising showed how activists can also be top fundraisers, if you take the time to cultivate them.   Activists also consistently open emails more frequently than other supporters.

If you need help in selecting tools for your organization (who doesn’t?), take a look at Idealware’s just released Field Guide to Software for Nonprofits.  Laura Quinn’s organization has always provided great information through her web site, blog and enewsletter.  I helped with some edits for this book – it is definitely worth getting.

Now that there’s so many ways to communicate with constituents, are you taking the time to make sure your messaging is consistent and on brand across channels?  See notes from Kivi Leroux Miller’s talk this week on Integrating Your Website, Email Newsletter and Social Media Sites.  Also see Blackbaud’s tips on Multi-Channel Engagement.

Like most nonprofits, Idealist has having some challenging times and has asked for our help.  Ami Dar’s work has long benefited the nonprofit community.  Please help.

Finally, are you helping your constituents to run their own fundraising events, or do you only help with events run by your organization?  If so, you’re missing a huge opportunity. Read Independent Fundraising Events Bring Big Returns, which links to a recent white paper by Blackbaud and Event 360; you can also register for a webinar on Feb. 3 to learn more.

Depending on how you interpret the 2009 statistics, online giving is the greatest thing since sliced bread or is over-hyped and still represents a small piece of overall donations.  Today’s Agitator.net post challenges us to think beyond the numbers.  Some major points:

• Are new online donors simply moving over from other channels, or are they really ‘new’?
• What’s getting in the way of some nonprofits that are not seeing increases in online giving?
• If your organization has experienced a jump in online donations, do you understand why?
• Are you taking advantage of integrated strategies to coordinate your online and offline appeals?
• Can new online donors be ultimately upgraded to higher levels of engagement – as you would normally want for offline supporters?
• If some donors are contributing because their friends or family asked, can you expect them to have a relationship with your nonprofit directly to encourage future support?
• Are you doing enough testing of online messaging, as carefully as you would do for offline?

Online fundraising isn’t a magic bullet, as those who simply add a donation button to their web site without any further effort soon learn.  Similarly, if you send out regular email marketing messages but don’t analyze who’s opening and actually reading them (and who unsubscribe), you’re missing the boat.  Regardless of your 2009 online numbers, you can probably do better in 2010 by taking the time to answer some of these questions.

For more online fundraising tips, download this new Online Fundraiser’s Checklist, review 25 Tips for Better Fundraising Copy and note the recent boom in mobile fundraising (hint – this channel won’t only be effective after earthquakes).  More people are online, but fewer are using the traditional desktop of laptop computer.  Apple’s new tablet is coming soon to add yet another option.

This week’s disaster in Haiti has again highlighted online fundraising, as well as an expanded role for text messaging to raise money.  Apparently giving through your mobile phone is now a viable option and doesn’t always involve large fees to carriers – see post from Tech Soup, interview with Katya Andresen and CARE2′s advice that it’s Time to Get Mobile.  How sad it is that logistics have made it difficult to get the help to those in need quickly (hopefully this will change shortly).   Whatever channel you prefer, please give to the charity of your choice.

Hopefully, it won’t only be disasters that sends donors online.  Network for Good offers 5 Trends That Will Affect Online Fundraising in 2010.

But please don’t throw out the old tools when implementing the new.  Direct mail still has its place but this doesn’t mean that we shouldn’t try some new approaches.  As Steve MacLaughlin writes, Direct Mail is Not Dead, but single channel communication is.

Thanks to Katya and Jocelyn Harmon for this week’s session on how to thank donors.   It’s amazing to me that some nonprofits still don’t always acknowledge gifts, other than a generic auto reply (and sometimes not even that).   And don’t only communicate with your constituents when you’re asking for money – this is a year-round dialogue.