As a leader or employee of a non-profit organization, marketing, fundraising,
and accumulating donors is at the apex of importance. You constantly
strive to think of new and unique ways to reach people with the message
of your cause, you ponder how to motivate donors to give and you spend
hours creating campaigns scouring each word to devise the most impactful
statements. However, the message of philanthropy and individual needs
is spreading and anonymous donors are making a difference in many lives.
I’ve been reading a lot of articles lately about why people give and
the answers are not surprising: tax refunds, setting an example for
their children, and moral obligations are all on the list, but the
biggest factor is just plain human decency — it’s the right thing to do
and it warms the heart.
There is an article on the Yahoo! Finance
page in which reporter Margery A. Beck conveys a story that is both
heartfelt and pleasantly surprising. “At Kmart stores across the
country, Santa seems to be getting some help: Anonymous donors are
paying off strangers’ layaway accounts, buying the Christmas gifts other
families couldn’t afford, especially toys and children’s clothes set
aside by impoverished parents,” writes Beck. And this isn’t just a
onetime occurrence; Nebraska, Michigan, Iowa, Indiana and Montana have
also seen several of these instances.
Beck also comments that, “Kmart representatives say they did nothing
to instigate the secret Santas or spread word of the generosity. But
it’s happening as the company struggles to compete with chains such as
Wal-Mart and Target.
“Kmart may be the focus of layaway generosity, Salima Yala, Kmart’s
division vice president for layaway said, because it is one of the few
large discount stores that has offered layaway year-round for about four
decades. Under the program, customers can make purchases but let the
store hold onto their merchandise as they pay it off slowly over several
weeks.”
Fancy campaigns. No catch phrases. No expensive marketing executives
analyzing the psyches of their donors and the triggers for giving. Just
plain, old fashioned helping-your-brother-in-need grassroots movement.
Kind of warms your heart, doesn’t it?
Showing posts with label giving. Show all posts
Showing posts with label giving. Show all posts
Tuesday, July 31, 2012
What Does 2012 Hold for Non-Profits?
With 2011 coming to a close, one can’t help but reflect on the
challenges and successes of days past and wonder what lies ahead in the
upcoming year. Will the economy take an upturn with the pending
presidential election and the optimism that it brings? Will the job
market strengthen therefore providing more expendable income for donors
to give?
What new technological advancements will be made to make life easier and people more connected. Well, I can’t tell you any of those answers. (Sorry, my crystal ball is in the shop.) However, there is a recent study that has some substantial information that can help non-profits plan for the New Year.
The 2011 Social Good Survey by Fenton and GlobeScan was published in the Sacramento Bee and the results are as follows:
“Giving to nonprofits is stalled: Seventy-two percent of U.K. respondents and 65% of U.S. respondents say they expect their giving to remain the same in 2012. A notable minority say their giving will decrease (16% U.K. and 17% U.S.).
“Nonprofits are perceived to be most effective as change makers: Forty-one percent of U.K. respondents and 55% of U.S. respondents say they believe nonprofits and charities are highly effective at bringing about positive social change.
“Nonprofits and charities can earn greater support by getting personal: People say an organization’s commitment to a cause they feel strongly about (54% U.K.; 44% U.S.) is the most important factor for their decision to give.
“Confusion surrounding nonprofit spending and management: Respondents who report knowing more about how nonprofits are managed are also more positive about their support, but less than half say they believe nonprofits/charities do a good job spending funds and managing operations.
“Social media is most important for staying current on nonprofit activities and taking action: The majority of responses underscore the value of social media to keep them up to date and provide opportunities for engagement. While social media may not be the most effective tool to reach new audiences, it is an effective for engaging existing supporters.
“Traditional media is still important for breaking through: News stories and television commercials rank higher than social media as persuasion tools to bring new people into an effort.”
I think there is a lot of useful information that can be gleaned from these new findings. Knowing that giving is stabilized can help create a workable budget. Connecting to donors on an emotional level creates more dedicated partners. Letting supporters know where your money is going builds a bridge of trust.
Finally, social media is here to stay and is the best way to keep your donors informed and engaged. So ring in the New Year! We’re ready to face the future!
Create and promote a successful non-profit fundraising campaign today with Fundly!
What new technological advancements will be made to make life easier and people more connected. Well, I can’t tell you any of those answers. (Sorry, my crystal ball is in the shop.) However, there is a recent study that has some substantial information that can help non-profits plan for the New Year.
The 2011 Social Good Survey by Fenton and GlobeScan was published in the Sacramento Bee and the results are as follows:
“Giving to nonprofits is stalled: Seventy-two percent of U.K. respondents and 65% of U.S. respondents say they expect their giving to remain the same in 2012. A notable minority say their giving will decrease (16% U.K. and 17% U.S.).
“Nonprofits are perceived to be most effective as change makers: Forty-one percent of U.K. respondents and 55% of U.S. respondents say they believe nonprofits and charities are highly effective at bringing about positive social change.
“Nonprofits and charities can earn greater support by getting personal: People say an organization’s commitment to a cause they feel strongly about (54% U.K.; 44% U.S.) is the most important factor for their decision to give.
“Confusion surrounding nonprofit spending and management: Respondents who report knowing more about how nonprofits are managed are also more positive about their support, but less than half say they believe nonprofits/charities do a good job spending funds and managing operations.
“Social media is most important for staying current on nonprofit activities and taking action: The majority of responses underscore the value of social media to keep them up to date and provide opportunities for engagement. While social media may not be the most effective tool to reach new audiences, it is an effective for engaging existing supporters.
“Traditional media is still important for breaking through: News stories and television commercials rank higher than social media as persuasion tools to bring new people into an effort.”
I think there is a lot of useful information that can be gleaned from these new findings. Knowing that giving is stabilized can help create a workable budget. Connecting to donors on an emotional level creates more dedicated partners. Letting supporters know where your money is going builds a bridge of trust.
Finally, social media is here to stay and is the best way to keep your donors informed and engaged. So ring in the New Year! We’re ready to face the future!
Create and promote a successful non-profit fundraising campaign today with Fundly!
Holiday Giving Looks Promising
The holidays are busy for everyone, but I think
non-profits are somewhere at the top of that list. The holidays tend to
be the time when financial donations increase, outreach programs are set
on the calendar, volunteers are knocking at the door and direct mail
campaigns are flooding donor mail boxes. It seems a great time to catch
up on a depleting budget when many people are feeling the generosity of
the season. Even with a sagging economy, it is projected that donations
will be going strong from Thanksgiving to Christmas.
Many Americans are cutting back on gift giving and party plans, but their generosity has been impacted by the high unemployment rate. “Despite the difficult economy Americans want to give to help others in need,” said Red Cross President and CEO Gail J. McGovern. “With so many people out of work, they want to give something that means something.”
There are some interesting results that also came from this survey of 1,020 adults:
- 79% agreed that they would rather have a charitable gift given in their honor than receive a gift they wouldn’t use. (What does this mean for the “As Seen on TV” market?!)
- 7 out of 10 people say they plan to give about the same or more this holiday season as they did last year.
- 4 in 5 people said helping someone less fortunate is an important part of their holiday traditions
- 68% of people agreed that because of the economy, it’s important to give to charity
- While about 40% will spend less on entertaining, travel and decorations, only 30% will spend less on gifts and 26% will spend less on charitable donations.
- Here are the gender differences in giving: “Seventy percent of women said helping out the less fortunate gets them get through the holidays, while only 61 percent of men agreed. But, men hardly turn into the Grinch when it comes to opening up their wallets. One-third of men plan to donate more than $100, while one-fifth of women said they’ll offer up that much.”
Start up your own or join and support a fundraising campaign to benefit a charity that is close to you this holiday season and make giving fun on Fundly!
Wednesday, May 23, 2012
Are You Making it Too Hard for Donors to Give?
When donors are ready to give you have to make the
opportunity available, easy and show your gratitude. If a site is too
difficult to find, if the donation box is not easily located, or if
error messages pop up on the screen, it’s more than likely that your
donor will give up trying to contribute to your cause. Is your website
engaging and user friendly?
Bertie Bosrédon, assistant director of services (information and multimedia) atBreast Cancer Care (one of the charities involved in the study) and in the foreword to report speculates that “Most charities are taking donations through their website, but the journey is neither engaging, nor inspirational; the experience still feels too similar to buying travel insurance.”
So how should non-profit websites turn away from this formal approach to receiving donations and apply a more personal and heartfelt process to ensure donors follow through on their intentions to give?
First of all, Bosrédon suggests that these websites need to be more engaging. Present your needs as urgent and necessary. Secondly, “make [sure] the next steps are clear, promotes regular giving and provides alternative ways to donate.” Next, support your donors by using a progress indicator and streamline the procedure. Ensure that your logo is on each page to garner your donor’s trust that your site is secure and legitimate. Finally, reward your users with a thank you message when they’re done. You may even want to list donors who have given to your cause on your website.
Online fundraising is the most effective and easiest way to promote donor relations, communication and giving. While many agencies try to use this web tool to their advantage, they are not tapping into the potential results that could be achieved.
At Fundly, we have created a variety of tools to help charities and political candidates connect with their supporters to reach their fundraising goals through engaging and easy to use applications. We would love to partner with you to make your non-profit mission a success!
Top 3 Ways to Keep the Holiday Momentum Going
The holidays seem to be a sort of jackpot for
non-profits: send out an appeal and the response cards or online
donations pour in like a blinking and bell-ringing slot machine. Okay,
so it’s not that easy, but it is hard to argue against donors being more
generous during the holidays and that donations are at their peak for
the year.
Here are some ways to keep that holiday momentum going:
2) Organize documentation of your events –While volunteers and donors who participated in your events are fresh in your mind, write captions for your photos and list groups and major individuals who joined in your outreach programs. This will help you for your December 2012 campaigns and you won’t be trying to scramble to find out names and remember what happened a year earlier. This is also helpful when you send out requests for more volunteers or donations; these pictures will be great reminders of the fun they had and they will be more eager to sign up again (and tell their friends!)
3) Get as much donor info as you can – I should have mentioned this earlier, but it still can be helpful for future events: get your donor information while they are active and eager to participate. Obviously their name, address, phone numbers and e-mail address is all important, but how can they specifically help your organization? Do they want to help your clients one on one? Are they interested in office work? Would they like invitations to future banquets and special events? Do they have a distinct expertise or professional skill they can donate? Find out their interests and when the need arises, you know exactly who to call.
Although the garland may be taken down, the Christmas tree needles are brittle and the gifts are now in piles to be put away, I believe the spirit of generosity still lingers. Using social media to stay in contact with your donors can play an important role is keeping them active in your organization and Fundly can help you create the perfect strategies for continuous fundraising and improving donor engagement.
5 Ways to Lose Your Donors
In a previous post I quickly referenced why some women stop giving to
a charity that they’ve been fairly dedicated to. For some reason this
topic keeps rattling in my brain and I can’t help but write about it.
Here are my TOP 5 ways to lose your donors:
Too many solicitations – It comes in ebbs and waves, but many times just when I’m ready sit down and enjoy a nice quiet meal, the phone rings. I let the answering machine get it and the next night, it rings again but I am still too hungry to get it. Finally, on the third night I answer it, annoyed and frustrated that someone would ask me for money when I am relaxing and at dinner time, and I respond to the solicitation with a firm “Sorry, but please take me off your list.” Whether it’s about my cable service or if my alma mater needs money for a scholarship fund, their timing is bad and I’m not giving a credit card number. I also gave to a certain charity about a month ago and since then, they have sent me the same packet of Christmas cards three times. Um, thanks, but no thanks.
Not valuing volunteers – Volunteers can be an important part of any organization; they can save you money on a salary, they can spread your message to their friends and they even slip in a check or two into your bank account. However, how you treat them and their services can make all the difference. If you ask a volunteer to help, make them wait around and then never use the project they completed, they’ll probably move on to somewhere where they feel needed.
How does your clientele represent you to donors? – Now you can’t please everyone all the time, but what does your clientele say about you? If they are soliciting funds, are they polite and respectful? Do they have raving reports about how you’ve helped them? If they come into one on one contact with your supporters, what would they say? If you produce a product or service, how is the quality?
Cash the check – I sent a monthly check to one organization, but they never seemed to deposit it in a timely manner. After one check was held on to for six months, I stopped giving. If they could wait that long to deposit my money, I guess they didn’t need it that bad.
Ease of giving – Many people choose to give online, so do you offer this option on your website? Is your site easy to navigate, quick to load and simple to use? I’ve shopped online countless times but when I get to the check out portion, if the payment doesn’t work right I click out of that page. I don’t have the time or patience to deal with faulty sites. If they won’t take my money someone else will. At least with this point, Fundly can help you make online giving quick, easy and profitable.
In many cases, it can take a ton of effort to gain a donor, so you certainly don’t want to lose them. Hopefully these tips help you maintain giving partners for many years of success in fundraising.
Here are my TOP 5 ways to lose your donors:
Too many solicitations – It comes in ebbs and waves, but many times just when I’m ready sit down and enjoy a nice quiet meal, the phone rings. I let the answering machine get it and the next night, it rings again but I am still too hungry to get it. Finally, on the third night I answer it, annoyed and frustrated that someone would ask me for money when I am relaxing and at dinner time, and I respond to the solicitation with a firm “Sorry, but please take me off your list.” Whether it’s about my cable service or if my alma mater needs money for a scholarship fund, their timing is bad and I’m not giving a credit card number. I also gave to a certain charity about a month ago and since then, they have sent me the same packet of Christmas cards three times. Um, thanks, but no thanks.
Not valuing volunteers – Volunteers can be an important part of any organization; they can save you money on a salary, they can spread your message to their friends and they even slip in a check or two into your bank account. However, how you treat them and their services can make all the difference. If you ask a volunteer to help, make them wait around and then never use the project they completed, they’ll probably move on to somewhere where they feel needed.
How does your clientele represent you to donors? – Now you can’t please everyone all the time, but what does your clientele say about you? If they are soliciting funds, are they polite and respectful? Do they have raving reports about how you’ve helped them? If they come into one on one contact with your supporters, what would they say? If you produce a product or service, how is the quality?
Cash the check – I sent a monthly check to one organization, but they never seemed to deposit it in a timely manner. After one check was held on to for six months, I stopped giving. If they could wait that long to deposit my money, I guess they didn’t need it that bad.
Ease of giving – Many people choose to give online, so do you offer this option on your website? Is your site easy to navigate, quick to load and simple to use? I’ve shopped online countless times but when I get to the check out portion, if the payment doesn’t work right I click out of that page. I don’t have the time or patience to deal with faulty sites. If they won’t take my money someone else will. At least with this point, Fundly can help you make online giving quick, easy and profitable.
In many cases, it can take a ton of effort to gain a donor, so you certainly don’t want to lose them. Hopefully these tips help you maintain giving partners for many years of success in fundraising.
Giving Increases Despite Financial Setbacks
There’s something about Christmas that warms the heart and touches
the soul. Whether it be the traditions that we continue to honor year
after year or the spirit of giving that swirls around us like a crisp
winter breeze, there’s just something that unites us and transforms the
mundane into the spectacular.
From the twinkling lights draped on the Christmas tree, to the eyes of a child that sparkle with anticipation on Christmas morning, the season is aglow with generosity and brotherhood. With the warmth of the season, many charities and non-profits are feeling the prosperity of the holidays and the sacrificial giving of thoughtful donors.
At this time of year, it’s interesting to note that the less fortunate are on giving lists right next to beloved family members. It’s well known and accepted that Christmas is the season when charities reap the largest amounts of donations and this is the month when these organizations play catch up for the shortcomings of the 11 not as prosperous months. The American Red Cross confirms these notions with the following facts:
I can’t help but ponder what has made donors more aware of the plight of those in need: is it celebrities highlighting causes that fuel their passions, television commercials that bring the harsh realities of life into the living rooms of the common man, or social media which keeps donors abreast of the victories and fundraising challenges their organization is facing?
Regardless of the cause, it seems like many in our nation are becoming more compassionate, and that is always a good thing for the non-profit industry (regardless of the time of year.)
From the twinkling lights draped on the Christmas tree, to the eyes of a child that sparkle with anticipation on Christmas morning, the season is aglow with generosity and brotherhood. With the warmth of the season, many charities and non-profits are feeling the prosperity of the holidays and the sacrificial giving of thoughtful donors.
At this time of year, it’s interesting to note that the less fortunate are on giving lists right next to beloved family members. It’s well known and accepted that Christmas is the season when charities reap the largest amounts of donations and this is the month when these organizations play catch up for the shortcomings of the 11 not as prosperous months. The American Red Cross confirms these notions with the following facts:
- 80 percent of respondents felt their finances are either the same or worse than they were last year.
- Sixty-eight percent of Americans believe that because of the economy, it’s important to give something to charity a 10 percentage point increase over the 58 percent who felt that way last year.
- More than half (55 percent) say they feel bad about spending money on gifts people might not use.
- 79 percent agreed that they would rather have charitable donation in their honor than get a gift they wouldn’t use.
I can’t help but ponder what has made donors more aware of the plight of those in need: is it celebrities highlighting causes that fuel their passions, television commercials that bring the harsh realities of life into the living rooms of the common man, or social media which keeps donors abreast of the victories and fundraising challenges their organization is facing?
Regardless of the cause, it seems like many in our nation are becoming more compassionate, and that is always a good thing for the non-profit industry (regardless of the time of year.)
Thursday, May 17, 2012
What Motivates People to Give to Charity?
There are a few basic reasons why people are motivated to donate to
charities: a moral obligation, it’s good for the self-esteem, it
provides a decent tax right off, and/or helping others is part of a
holiday tradition. We all have certain triggers that attach our hearts
to our wallets and that’s what makes the holidays one of the busiest
times of year for non-profits. Sentimentality, generosity and family
traditions are as much a part of the season as decorated trees, sappy
movies and too sweet cookies with a side of cold milk.
Knowing what motivates your donors to give is one of the biggest marketing challenges for non-profit organizations. It’s not that we want to manipulate our donors to pry open their wallets, but we do want to plant the reality of the urgency of the needs that burden our clientele. In a world filled with countless people needing assistance, many of our donors are bombarded with mail boxes flooded with letters petitioning for a monthly gift, Facebook posts stating the latest project that needs to be completed or TV commercials displaying heart breaking pictures with a melodic soundtrack playing in the background. Standing out and tapping into what motivates your donors is key to successful fundraising.
On StarTribune.com, writer Jean Hopfensperger interviewed several people to determine what motivates their giving in the holiday season. Hopfensperger mentions that in Minnesota, 60% of non-profit donations come between the Thanksgiving holiday and January. “Apart from feeling that warm glow of giving, people donate for more specific reasons. A 2009 survey by the Center on Philanthropy at Indiana University showed the top three reasons people donate are to help disadvantaged folks meet their basic needs, to make the world a better place and to make their community a better place. Also near the top of the list was the personal conviction that people with more should help those with less,” explains Hopfensperger.
Tim Seiler, director of the fundraising school at the philanthropy center, commented “Tax breaks may not motivate the gift, but they may motivate the size of the gift… Likewise, improving social status is a motivator for some, such as having a chance to hobnob with the rich and famous at charity galas. But, again, it is not in the top tier of reasons.”
Fundraising experts say that giving has increased over the holiday seasons because of low-cost technological ways to reach out to donors via Facebook, Twitter and e-mail. This is also the easiest way for donors to make a pledge to their favorite charity.
Knowing what motivates your donors to give is one of the biggest marketing challenges for non-profit organizations. It’s not that we want to manipulate our donors to pry open their wallets, but we do want to plant the reality of the urgency of the needs that burden our clientele. In a world filled with countless people needing assistance, many of our donors are bombarded with mail boxes flooded with letters petitioning for a monthly gift, Facebook posts stating the latest project that needs to be completed or TV commercials displaying heart breaking pictures with a melodic soundtrack playing in the background. Standing out and tapping into what motivates your donors is key to successful fundraising.
On StarTribune.com, writer Jean Hopfensperger interviewed several people to determine what motivates their giving in the holiday season. Hopfensperger mentions that in Minnesota, 60% of non-profit donations come between the Thanksgiving holiday and January. “Apart from feeling that warm glow of giving, people donate for more specific reasons. A 2009 survey by the Center on Philanthropy at Indiana University showed the top three reasons people donate are to help disadvantaged folks meet their basic needs, to make the world a better place and to make their community a better place. Also near the top of the list was the personal conviction that people with more should help those with less,” explains Hopfensperger.
Tim Seiler, director of the fundraising school at the philanthropy center, commented “Tax breaks may not motivate the gift, but they may motivate the size of the gift… Likewise, improving social status is a motivator for some, such as having a chance to hobnob with the rich and famous at charity galas. But, again, it is not in the top tier of reasons.”
Fundraising experts say that giving has increased over the holiday seasons because of low-cost technological ways to reach out to donors via Facebook, Twitter and e-mail. This is also the easiest way for donors to make a pledge to their favorite charity.
Wednesday, May 9, 2012
63 Percent of Charities Predict an Increase in Giving in 2011, says Report
Giving to most charity fundraising
campaigns stayed the same or increased last year, according to a new
survey released by the Nonprofit Research Collaborative, a coalition of
six organizations that study or represent non-profits and fundraisers on
Tuesday. However non-profit officials and charities said that gifts
did not increase as much as they had hoped, given the economic recovery.
The study asked about two key measures of fundraising—the percentage of organizations reaching their fundraising goals and the percentage of charities raising more funds in one year compared to the previous year. In the NRC survey about 2010, just 52 percent of organizations reported reaching their fundraising goals that year. In a survey conducted by the Association of Fundraising Professionals (AFP, a member of the NRC) about 2009, 53 percent of charities reported meeting their yearly fundraising goals that year.
63 percent of the more than 1,800 organizations studied said they expect private donations to rise in 2011. Nearly two-thirds said they do not plan any increases in the number of fundraising staff members this year.
The study pointed out that the fundraising situation for these causes was more stable in 2010 than in 2009, when many of the charities were reeling in the wake of the 2008 recession. While only 11 percent reported that they had raised about the same amount of money in 2009 as they did back in 2008, 24 percent said they had raised as much money in 2010 as in the previous year.
The percentage of charities that said their donations declined fell from 46 percent at the end of 2009 to 33 percent at the end of 2010.
“While many organizations stopped the bleeding, giving simply didn’t rebound like we thought it might, especially given the economic growth we saw in the last quarter of the year,” said Paulette Maehara, president of the Association of Fundraising Professionals, one of six organizations that make up the research collaborative. “Despite the unexpectedly flat fundraising results that charities reported, the survey showed that success was more likely when organizations invested resources in fundraising staff and infrastructure, including volunteer management.”
Spending More Pays Off?
According to the survey, three-quarters of the organizations that increased their spending on fundraising activities saw collections rise. Almost half of the organizations that increased their spending on fundraising by 15 percent or more saw contributions increase by 15 percent or more.
This does not point out if there was even a return on their investment. So, you increased the spending on advertising (those dollars donated to your organization for ‘projects’ most likely) and you saw an equal increase in contributions?
Let’s say organization X spent $15,000 on advertisements and increased their contributions 15%, which was up from $10,000, that is only $1,500 and a loss of $13,500 that could be used to feed multiple families in poverty, rescue animals, provide clean water to villages in Africa, etc. This type of scenario would not be productive and an utter waste of resources.
The survey also showed that online giving produced the most growth out of all types of solicitations charities use. Of course, it should. Fundraising online is much more easier, requires less time, and is overall much more productive for organizations. It’s easier to track the results of fundraising campaigns and see what works, what doesn’t, and allows you to measure very accurate results.
Online giving rose for 58 percent of organizations that use the Internet to seek donations by running online fundraising campaigns.
Net proceeds from special events rose for half the organizations that use that approach; efforts to seek big gifts also rose for half of the groups.
Less than half the groups that sought foundation grants, sent direct-response appeals such as mail and e-mail messages, or solicited gifts from board members or corporate contributions saw increases in those categories.
The study did not point out how much of an increase those organizations realized, nor is it completely accurate in its findings. While only aggregating data from several resources, which accounted for ONLY 1800 organizations, there are still more than 1.5 million other registered 501 c3 non-profit organizations that data was not gathered from.
The large organizations that are all most likely surveyed account for incredibly high amounts of overhead and are notorious for being inefficient with their fundraising and giving. Many of which are not effectively fundraising online to be more productive with time, capital, and return on fundraising efforts.
The way people give to causes is changing. More and more people would like to see transparency with the non-profits and charities they give to. Instead of giving $100 and having no idea where it goes, yet most likely 99% to salaries and other expenses, while 1% gets distributed to actual causes, donors would like to see that if I give $100, there will be tangible evidence that my contribution was used for this project, and this was the result, etc.
There is a shift in the way people give and will continue to gain momentum over the coming years, as online fundraising campaigns by causes, big and small continues to grow. More donors will donate to smaller, flexible, and more efficient causes, opposed to the very big ones that have proven to be not as effective, when measured pound for pound to the smaller ones.
For example, if a smaller non-profit is fundraising to raise money online for a project to build a school and fresh water system that will allow a community of 1,000 people in Kenya to be self-sufficient for $40,000, and will take 90 days to complete, would you donate to them, if they have proven results with other projects, good donor feedback, and pictures and videos to back it up?
Or, would you donate your $100 to the American Red Cross for example, as they do not point out where and how exactly the money will be spent for a cause such as the Japan Earthquake Relief Efforts? Most likely it will go to salaries, events, and other expenses, as maybe $1 or so gets passed on those in need.
The times and way people are giving is changing, while the Internet and cause transparency will be major fuel for this momentum in the coming years. For donors that are debating on what cause to give to, it is highly suggested to do some research on the organization and understand the percentage of donations that go to what part of the organization, project, etc. This will help you decipher what cause is more effective in helping those that need it, and essentially what cause(s) you will be more likely to support.
The study asked about two key measures of fundraising—the percentage of organizations reaching their fundraising goals and the percentage of charities raising more funds in one year compared to the previous year. In the NRC survey about 2010, just 52 percent of organizations reported reaching their fundraising goals that year. In a survey conducted by the Association of Fundraising Professionals (AFP, a member of the NRC) about 2009, 53 percent of charities reported meeting their yearly fundraising goals that year.
63 percent of the more than 1,800 organizations studied said they expect private donations to rise in 2011. Nearly two-thirds said they do not plan any increases in the number of fundraising staff members this year.
The study pointed out that the fundraising situation for these causes was more stable in 2010 than in 2009, when many of the charities were reeling in the wake of the 2008 recession. While only 11 percent reported that they had raised about the same amount of money in 2009 as they did back in 2008, 24 percent said they had raised as much money in 2010 as in the previous year.
The percentage of charities that said their donations declined fell from 46 percent at the end of 2009 to 33 percent at the end of 2010.
“While many organizations stopped the bleeding, giving simply didn’t rebound like we thought it might, especially given the economic growth we saw in the last quarter of the year,” said Paulette Maehara, president of the Association of Fundraising Professionals, one of six organizations that make up the research collaborative. “Despite the unexpectedly flat fundraising results that charities reported, the survey showed that success was more likely when organizations invested resources in fundraising staff and infrastructure, including volunteer management.”
Spending More Pays Off?
According to the survey, three-quarters of the organizations that increased their spending on fundraising activities saw collections rise. Almost half of the organizations that increased their spending on fundraising by 15 percent or more saw contributions increase by 15 percent or more.
This does not point out if there was even a return on their investment. So, you increased the spending on advertising (those dollars donated to your organization for ‘projects’ most likely) and you saw an equal increase in contributions?
Let’s say organization X spent $15,000 on advertisements and increased their contributions 15%, which was up from $10,000, that is only $1,500 and a loss of $13,500 that could be used to feed multiple families in poverty, rescue animals, provide clean water to villages in Africa, etc. This type of scenario would not be productive and an utter waste of resources.
The survey also showed that online giving produced the most growth out of all types of solicitations charities use. Of course, it should. Fundraising online is much more easier, requires less time, and is overall much more productive for organizations. It’s easier to track the results of fundraising campaigns and see what works, what doesn’t, and allows you to measure very accurate results.
Online giving rose for 58 percent of organizations that use the Internet to seek donations by running online fundraising campaigns.
Net proceeds from special events rose for half the organizations that use that approach; efforts to seek big gifts also rose for half of the groups.
Less than half the groups that sought foundation grants, sent direct-response appeals such as mail and e-mail messages, or solicited gifts from board members or corporate contributions saw increases in those categories.
The study did not point out how much of an increase those organizations realized, nor is it completely accurate in its findings. While only aggregating data from several resources, which accounted for ONLY 1800 organizations, there are still more than 1.5 million other registered 501 c3 non-profit organizations that data was not gathered from.
The large organizations that are all most likely surveyed account for incredibly high amounts of overhead and are notorious for being inefficient with their fundraising and giving. Many of which are not effectively fundraising online to be more productive with time, capital, and return on fundraising efforts.
The way people give to causes is changing. More and more people would like to see transparency with the non-profits and charities they give to. Instead of giving $100 and having no idea where it goes, yet most likely 99% to salaries and other expenses, while 1% gets distributed to actual causes, donors would like to see that if I give $100, there will be tangible evidence that my contribution was used for this project, and this was the result, etc.
There is a shift in the way people give and will continue to gain momentum over the coming years, as online fundraising campaigns by causes, big and small continues to grow. More donors will donate to smaller, flexible, and more efficient causes, opposed to the very big ones that have proven to be not as effective, when measured pound for pound to the smaller ones.
For example, if a smaller non-profit is fundraising to raise money online for a project to build a school and fresh water system that will allow a community of 1,000 people in Kenya to be self-sufficient for $40,000, and will take 90 days to complete, would you donate to them, if they have proven results with other projects, good donor feedback, and pictures and videos to back it up?
Or, would you donate your $100 to the American Red Cross for example, as they do not point out where and how exactly the money will be spent for a cause such as the Japan Earthquake Relief Efforts? Most likely it will go to salaries, events, and other expenses, as maybe $1 or so gets passed on those in need.
The times and way people are giving is changing, while the Internet and cause transparency will be major fuel for this momentum in the coming years. For donors that are debating on what cause to give to, it is highly suggested to do some research on the organization and understand the percentage of donations that go to what part of the organization, project, etc. This will help you decipher what cause is more effective in helping those that need it, and essentially what cause(s) you will be more likely to support.
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