Nonprofit Bridge

Care2’s Frogloop surveyed some of our brightest stars to summarize the Best Nonprofit Strategies for 2010.   Network for Good’s  Katya Andresen and Blackbaud’s Steve MacLaughlin provide some early statistics on 2009 online giving.   Convio, which offers a a 2010 Resolutions Guide to help plan online initiatives, recently asked nonprofits what they most want to focus on in the New Year:

1. Reconnect with donors by giving new options of engagement
2. Increase fundraising for participant-led events
3. Use social media to reach the next generation of supporters
4. Improve multichannel engagement/integration
5. Evaluate website’s effectiveness

Some of my thoughts:

1. Despite the recession, online giving continued to be a strong fundraising source.  If you already accept online donations and regularly communicate with your constituents, congratulations.  But if you haven’t worked to optimize your forms and don’t analyze how well your email marketing is working, you’re probably leaving money on the table.
2. Don’t obsess about the ‘best’ tools to use for online fundraising.  It’s more important that you select a vendor / product that will likely be around for awhile (ask colleagues at other nonprofits for recommendations) and that you consider how it will connect to your other systems.
3. Social networking is not a fad.  Yes, it’s still better to make sure your web site, database and email marketing strategies are in place first, but don’t overlook tools such as Facebook and Twitter.  Remember that conversations about your cause and organization are going on all the time;  make sure you’re a part of them.
4. Fundraising is everyone’s responsibility, not just the development department.  Ideally, marketing/communication and fundraising/development strategies should be planned together since one supports the other.
5. Still think that your constituents won’t respond to online fundraising initiatives?  Think again;  use all available channels and let your supporter decide which to use – direct mail recipients often choose to respond online.

Just getting started online?  Here’s a helpful online fundraising primer.

Most nonprofits get the bulk of their donations during December.  So what can we do to get the word out this month?

Heavyweight Salvation Army has stepped up its digital marketing efforts, switching its radio budget to online communications.  There is now an online version of the red kettle, which have already appeared at many locations I pass daily.  They’ve also embraced newer tools, such as an Iphone application and have established a strong presence on Facebook and Twitter.   After long relying on direct mail for new donor acquisition, Salvation Army is now focusing on online community building and on attracting younger donors through online strategies.

Convio estimates that more than 111 million constituents will donate over $4 billion online this holiday season.   At last month’s Convio Summit and Blackbaud Conference (oddly held during the same week in different parts of the country), the theme was the same – web giving continues to increase, even while overall donations have dropped a bit during the recession.  In his overview of online fundraising, Steve MacLaughlin suggested that we segment our audiences by generation – and communicate with them differently.  He also suggested we build relationships with constituents by asking for small actions first before asking for financial help.

How do you keep up with the many communication channels now available, e.g. email, RSS, Facebook, Twitter etc.   In her recent presentation at the Blackbaud event, Nten’s Holly Ross suggested we use filters to find what’s most relevant and not try to “keep up with everything.”  The volume of information available through social media can be overwhelming, but we have to find a way to keep abreast of conversations that are already taking place about our organizations and our causes.   Looking for a tool to integrate email with social media?  Take a look at Threadsy.

What’s the fundraising outlook for 2010?  According to Mal Warwick Associates, we should try to get donors to give more frequently, even if they can’t make the large contributions they’ve given us in the past.   In addition, we should continue to use a multichannel approach because “the number of donors who choose to respond by writing a check will only continue to dwindle.”

Wishing everyone a prosperous end of year fundraising season.

The NYC 501 Tech Club returned this week with a new format – presentation + networking.  Big Duck’s Farra Trompeter moderated a discussion on multi-channel fundraising – a topic I often discuss, joined by Simon Moloney of Npower NY and Rebecca Willett of Planned Parenthood.   Also this week, Convio held its annual Summit in Austin, TX.

For those in the NYC audience who don’t yet integrate multiple channels in fundraising efforts, Farra asked that we strive to break down silos within our organizations because “donors see us as one nonprofit.’  So there shouldn’t be a competition between money raised by direct mail versus email marketing or other online fundraising tools.  Multichannel appeals are most effective, especially this time of year (make sure you plan to email your donors on Dec. 30 / 31).  Farra also asked the attendees who we blend personal and organizational priorities in social networking content;  this may be addressed further in a future meeting.  (My take – a personal touch breathes life into a blog posting or tweet, as long as the focus isn’t removed from the nonprofit’s mission.)

Rebecca reviewed Planned Parenthood’s multi-channel strategy which she described as a ‘collaborative effort of the national office and affiliates.’  In response to my question on what content to put on each channel, Rebecca suggested first finding out which audience(s) are on each channel, then asking ‘what are they looking for’?  Planned Parenthood has some interesting enhancements planned, such as a 24×7 chat / text hotline, as well as a mobile phone application.

Slides from the NYC 501 Tech Club gathering on Multi-Channel Fundraising are available on SlideShare.  (Thanks Farra)

While I missed seeing other Convio users at the Summit, I was pleased to see Convio’s Nonprofit Live TV – an attempt to bring the event to me.  Congratulations to those nonprofits that were honored for innovation in in Online Marketing, Fundraising, Advocacy and Email Marketing.

Online tools make it easy for us to keep in touch with colleagues and friends, but it’s still nice to connect in person.  At the 501 Tech Club gathering, I met someone from Catholic Medical Mission Board, an organization I worked at while I was in college – long before I joined the nonprofit community full time.  Although many people I worked with have moved on, it was still nice to make a new connection.  Thanks to Nten and to organizers Charles Charles Lenchner and Thomas Negron for getting our group back in gear.

Addendum 11/24/09 – Here is Farra’s write-up of the 501 Tech Club event.

As we enter the most important part of the year for fundraising, Convio’s Blake Groves and Marc Cannon provided many useful pointers at this week’s NYC Convio User Group meeting, held at YAI in New York City.  Most of these ideas don’t require that you use Convio, nor do they need a large capital inflow.  But they do require a willingness to do things a bit differently than you may have in the past.  For example:

1. When you provide downloadable content on your web site, do you first ask for name and email address so you can build your list?
2. Have you explored ‘chaperoned’ email, where a partner organization provides your messaging to its own constituents?
3. Do you use petitions to ask constituents to take a stand on issues other than advocacy (also so you can build your list)?
4. Have you included surveys in enewsletters as a way of getting data to segment your audiences?
5. Do you plan a campaign approach / series of messages for year-end fundraising, filtering out those who have already donated?
6. Are you absolutely certain that you will have a final email appeal ready to be sent on December 31st, when many constituents are most likely to give?
7. Have you implemented a welcome series for new subscribers to your elist?
8. Do you encourage constituents to ask others to get involved with your organization (personal appeals are always more effective than when they come from the nonprofit)
9. Have you clearly identified who your audiences are – and developed separate ways to communicate with each?
10. Finally, have you tried A/B testing on your donation form, email messages, landing pages to determine what works best with your constituents?

Marc asked the group what mostly stops us from fully utilizing these approaches.  The responses (not surprising): limited resources, changing/competing priorities and lack of support from senior management.  Perhaps by using a prototype approach, how can you optimize fundraising and outreach efforts at your organization?

Convio’s report The Secret of Online Success: Why Structure Matters examines how nonprofits staff for ephilanthropy.  Major themes:

1. Nonprofit organizations are resource constrained – no kidding :>).  “Insufficient staff resources” (mentioned by 90% of 60 nonprofits surveyed) is the major barrier to succeeding online, followed by “budget constraints” (64%) and “senior management not understanding the value of online marketing” (48%).  But having the right people is more important than simply having more staff.   Especially if a nonprofit only has a few people devoted to online efforts, it’s unlikely they’ll have the many skills (see below) required to manage ephilanthropy.
2. Organizational structure matters – will make a big difference on how well online strategy is implemented.  Usual options are: centralized (20% of nonprofits surveyed – all online staff in one department), decentralized (39% – spread across organization – this is model at my organization) and hybrid (41% – somewhere in middle).  While there is no one “best” model, my take is that there has to be multi-department involvement, due to the many types of expertise required for ephilanthropy implementation: strategy, web administration, creative, campaign/project management, analysis and usability.  (Usability is the skill that’s often overlooked but which can have a major impact on how effective a web site is.)
3. Not having a (Internet marketing) plan is planning to fail – Yes, but to be most effective, the online ‘plan’ needs to be integrated with offline campaigns to derive the full benefits of a multichannel strategy.
4. Structure impacts performance – A centralized group may perform best in maximizing online revenue, but a hybrid group may do better in building an email file.  I’m not sure structure matters as much as the level of collaboration that exists within an organization.  Some nonprofits have too many silos where staff prefer to work within their own department and actually avoid contact with other areas.

Convio’s report suggests we take the time to think out what type of structure makes sense in our organizations, and what types of skills may need to be brought in from outside.   It’s also valuable to think about career paths, especially where there isn’t a centralized department (traditional promotion paths may not make sense).  Sometimes in a decentralized setup, online goals may actually conflict with those of the department you’re in.   While we often fear internal reorganizations, in this case in may make sense to consider whether changes are needed so that staff can effectively work together to achieve online goals.

Convio also provides a summary of this report and will offer a webinar to discuss it later this month (I don’t see it on their web site yet but received an email invitation – please contact me if you can’t find it.)

Currently I spend a few days each week generating reports for transmission of information between my organization’s online and offline systems.  Matt McCabe of Orange Leap hosted a NTen webinar this week, Meaningful Reporting: A Holistic Approach to Reporting Across Multiple Systems which highlighted this issue.  While there are no easy solutions, there are some options to consider:

1. Select vendors and products which connect well with other systems.  Salesforce is an example of a company which has many ways to link its CRM to other software.
2. Before implementing a new product, figure out how you will synchronize its data with your existing systems.  If you need to spend considerable time running reports and exporting / importing data, you’ll have little time to focus on developing the synchronization.
3. Consider how much information you really need to have in multiple systems.  Some products will allow you to transfer basic contact information, but may not  be able to handle synchronization of event data or custom fields.
4. Unless you have a lot of money to spend, it won’t be possible to have a ‘real time’ synch;  decide how often it is practical to have your systems connect with each other.
5. Make the synchronization run automated, preferably during off hours.  The more manual work you need to do, the more chance there is for error.  (But make sure you look at the error log to determine what didn’t work.)
6. Confirm that you’re including all activity.  Donations and event registrations may not be available in the same report;  you may need to find a ‘transaction report’ that includes all activity (then confirm this by sampling different types of transactions)
7. Stick to a schedule – and let your staff know when synchronization is taking place.  (My most common question from staff is why a particular transaction doesn’t appear in another system, and when they can expect it to show.)
8. If you encourage constituents to fundraise for your organization using a tool like Convio’sTeamRaiser or Blackbaud / Kintera’s Thon, you’ll need to find a way for offline donations to appear quickly on constituents’ personal web sites when developing your synchronization schedule.

In his presentation, Matt described the steps of data extraction, consolidation, reconciliation between systems and presentation, suggesting that you compute the staff hours spent in completing these tasks – and making management aware of the actual price in making integrated information available.  His overall recommendations included:

• develop standards, e.g. how does your organization define ‘online giving’?  Become familar with APIs (application program interface) and Active Messaging Protocols (XMLs)
• seek platform independent tools, e.g. using OLAP data storage and a data warehouse
• empower end users to generate their own reports

The benefit: more time to devote to mission, faster more informed decisions and higher morale, and an increase in staff morale, as they’re freed from tedious reporting tasks.

How are you dealing with this issue?

Due to the financial challenges that many of our nonprofit organizations are facing this year, many of us (incuding myself) may not be able to attend the annual Nonprofit Technology Conference in April.  To respond, Nten Executive Director has setup a scholarship fund to help send nonprofit staff who otherwise wouldn’t be able to participate.  This event is always wonderful and provides an opportunity to meet and exchange ideas with colleagues from across the US and beyond.   There are two days left for Holly to reach he goal of $10,000, of which Convio has agreed to match.  I’ve already donated – can you help?

This week I attended my first Convio Summit in Austin, Texas.  Probably the most valuable part was the first day, where I joined many other national accounts for an unusual opportunity to work directly with Convio’s senior management in critiquing the product and discussing future plans.  I was most gratified to hear about the firm’s commitment to improving product usability, both on the back and front end.  Since I train and support staff nationwide for my nonprofit organization, I often get questions about what modules to use for what and why the screens are sometimes difficult to understand.  A good definition for usability was provided by Jim Killion of is7: “make it easier for people to do what you want them to do.”

More highlights:

Convio’s new Common Ground is designed to ease the pain of integration by providing a platform that will support both online and offline transactions.  Although a new offering, Common Ground uses the well established SalesForce platform and is built to interface well with Convio’s online product.  However, the availability of this product does not mean that Convio will stop building integrations for other fundraising software solutions.  I also spoke with Convio’s data integration director – connecting with other systems is clearly something that Convio has devoted substantial resources to.

I also spoke at length with Convio’s new Director of Client Support, who plans major changes in how calls are tracked and handled as well as eliminating the current need for multiple login into multiple systems.

Multichannel fundraising / marketing was a major theme. CARE and Defenders of Wildlife (which won an award for their use of integrated strategies) both spoke about how they’ve seen optimal results from campaigns that span offline and online channels.  While changing your organization to operate across channels may not be easy to implement, the payout clearly seems worth the effort.

Several speakers agreed that social media may not currently result in a large fundraising impact, but that it’s still important to participate because it’s where constituents are spending time and finding a sense of community and like-mindedness.  Beth Kanter is the expert on this topic, leading Nten’s WeAreMedia.

A fascinating session on how to structure your organization for online success reviewed results from a recent survey responded to by over 60 nonprofit organizations to date.  Not surprisingly, ‘insufficient staff’ and ‘budget constraints’ were viewed as the largest barriers, followed by ’senior management doesn’t understand value of integrated / online marketing.’  Organization structure for online strategy was mixed: 20% centralized, 39% decentralized and 41% hybrid (combination of both).  However, Marketing & Communications was named as the department which most often handles this function, followed by Development and Information Technology (agreeing with what I’ve said previously in this blog).

Many nonprofits were recognized for their innovative use of online strategies.  Particularly noteworthy was the Trisomy 18 Foundation which received an award for best overall use of Convio.

Convio’s Misty McLaughlin discussed building a ‘top notch user experience,’ offering Three Things You Can Do Today:

For several months, I’ve been managing an implementation to Convio at my current organization first for TeamRaiser and then for other events, donation forms, and email marketing.  To support our nationwide chapter structure, we’ve also decided to use Convio’s MultiCenter, which will allow each chapter to view and communicate with its own constituents.  Next week I’ll be speaking about this project at the Convio Summit, joining representatives from other nonprofit organizations and vendors.

How can your organization successfully manage a transition to a new online vendor?  See my previous post on Tips for Working With an Online Vendor.

For more on my presentation, view the event schedule – my session is From Concept to Finish Line — Getting Results with TeamRaiser™ on Tue, Nov. 18 at 2 PM CST.

This recent OnPhilanthropy article suggests that Web 2.0 technologies are now in use by all ages of Internet users, not just the young.  More ‘traditional’ email appeals aren’t having the same impact, with open rates dropping to 14% in the latest Convio Online Marketing Nonprofit Benchmarking Index Study.  Facebook Causes and YouTube’s nonprofit channel have started to play a large role in online fundraising and constituent engagement.  Yet Harry Lynch of SankyNet says the email is not dead yet in this AFP article, Isn’t Email Just Like Regular Direct Mail—But on Steroids.

Nten’s WeTheMedia Project offers an interesting challenge this month to Create the Ultimate Nonprofit Social Media Toolbox, categorizing web 2.0 tools by:

• listening - monitoring conversations, using RSS readers and social bookmarking
• participating - commenting on conversations
• sharing your story - using blogs / podcasts and sharing photos / videos
• spreading awareness, generating buzz - accessing ‘crowd sourced’ news and content, using micro media to broadcast content to targeted communities, and using a ‘life stream’
• social networking for action and fundraising - using social networks and fundraising widgets / applications.

My take: when even the value of email communications is being questioned, it’s time to sit up and pay attention to the many new ways a nonprofit can develop ongoing relationships with its constituents.

Addendum 10-15-08
Social networking expert Beth Kanter offers How Much Time Does It Take to Do Social Media, – apparently enough to fill a full time position.