Online Fundraising

1. Online Fundraising Case StudyJoanna Sharpe, COM 597

2. Online Philanthropy • History and Trends • Industry Research, Tools • Websites and Design Usability • Key Findings for Best Practices • Conclusions, Questions

3. Online Fundraising Trends • History on the Web Emerged in the early 1990’s, growth began in 1995 with online donor giving options provided on websites and via workplace giving campaigns. • Who are the donors 50 million Americans over 18 with online access. • Early Adoption Rates Slow to adopt online giving, most social activists/donors have never visited the website of a charity and only 3.5 million say they have given online.

4. Advocacy and Online Philanthropy Who are the Donors? Nearly 50 million Americans over 18 have Internet access and currently either give their time and/or money to such causes as poverty, housing, human rights, civil liberties, international relief, or the environment.

5. Online Fundraising Trends • Online philanthropy represents a tiny fraction of overall charitable giving in the United States at 0.14 percent of the estimated $241 billion given yearly to charities. • Potential for growth is huge over the next ten years. Industry analysts predict that as much as $1 of every $4 contributed to nonprofits will be donated on the Web by the end of the decade.*

6. Offline and Online: Direct Mail Donors, the Potential Universe of Online Donors Direct Mail Donors, 64 percent were aged 60 or older 85 percent of socially engaged Internet users are under the age of 60; Average age of this latter group of potential online donors is 42

7. Traditional Direct Mail: Approximately eight percent (8%), or 12 million individuals. Willing to Donate:Eight percent (8%), orabout 16 million adults, are willing to make a donation to a charity or public interest group over the Internet. Eight Percent on Both Sides

8. Donor Giving Trends: Traditional Methods Persist Right Now Donor giving: • Seven percent say they have made an online contribution. • Eighty percent say they contributed donations using traditional means.

9. Slow Adoption – Not Too Engaged, Yet Twenty two percent say they have sent an email to a charitable organization or special interest group. Only seven percent report having made a donation online.

10. Trend Setters Represent theUntapped Online Donor Potential • 7.5 million Americans – so-called “Progressive Pace-Setters” – that has already begun to embrace advocacy and charitable giving online. • Another 7.3 million – dubbed “Thresholders” – who appear to be on the verge of following suit.

11. Privacy and Security Issues CMS industry study showed donor concerns about privacy and credit card security are significant • Seventy one percent said they were “very” or “extremely” concerned about the security of their personal information online. • Nearly ninety percent said they would never give their credit card information out to a charity or public interest group.

12. Online Fundraising: Where Websites offering tech tools to give online Non-profit Organizations United Way, American Red Cross, ACLU, NPR and PBS on the affiliate level; arts organizations, health association advocacy, university funding, and more…. Political Campaign Support Over the past three months, Howard Dean raised 17 million online by sending people e-mail evites to attend nationwide events.

13. Pledge Technology Tools Convio, Kintera, and web service companies Convio Founded in 1999, clients include ASPCA, Georgetown University, Mothers Against Drunk Driving, and Democratic presidential candidate Howard Dean. Kintera Founded in 1999, the company markets software and services to help nonprofit organizations raise money, putting together Web sites and providing hosting services.

14. Public Radio and ePhilanthropy Public Radio stations were the pioneers in online fundraising • Since 1995, many NPR stations offered online pledging and had successfully promoted it as part of their larger campaigns, including on-air, direct mail, and telemarketing. • Online donors pledged an average of $75 per person, much higher than the average radio pledge outside the online environment.

15. Message Strategy, Pledge Pitch is Tired In March, 2001, PBS conducted a planning meeting to examine pledge trends, they identified that the pitch is tired and people tune it out like a bad commercial.

16. It’s only human nature! Public TV's pledge audiences pay as little attention to the routine pitch as airline passengers give to explanations about “low and tight” seatbelts. The human nervous system is built to detect novelty or what is new in a scene or situation—not what remains the same.

17. Human Connections with Institutions: Creating Social Capital Public television and radio have evolved in a unique way in America Public broadcasting performs important social functions through its programming in a society rich in all forms of capital (fiscal, intellectual, human and social). Some people love public broadcasting programming, and this, in turn, generates social capital between the institution and the viewer that, they hope, results in fiscal capital—memberships.

18. Case Study: Usability Critique • NPR, National Public Radio’s local affiliate KUOW, 94.9 FM, Seattle @UW http://www.kuow.org/ • United Way of King County http://www.uwkc.org/

19. NPR, KUOW Website Usability • Well organized, user centered design with a simple information layout (except for text and tabs, confusing.) • Large visual “Pledge Now” button presents clear navigation rules to cue the site visitor with two key words to indicate direction. [Aesthetic, minimalist design provides a short labeled message presenting clear cue.] • Relevant content just one to two steps, or clicks, away from the main homepage. [Forrester Research Study] • Some text lines up with tabs, appearing to be a link.

20. Message Connects with the Audience and a Call to Action An interface is human if it is responsive to human needs and considerate of human frailties. -Jeff Raskin, The Human Interface, 2000 Easy navigation and relevant message placement equals good user centered design: Top redundant channel sidebar has a Support KUOW link with info about the station’s funding needs and sources.

21. United Way of King County: eWay eWay is an online pledging system that automates a company's United Way workplace campaign • Pro: It's a user-friendly application that allows employees to support the community by making their annual United Way contribution within a secure, Internet-based giving environment. eWay can be set up for local and national campaigns. • Cons: Limited product use, it is only used for United Way workplace campaigns and assisting state supported public universities. Database usability is poor, extra cost. http://national.unitedway.org/eway/

22. eWay: Design and Usability Issues Usability Issue:Current product design is cumbersome user interface for the donor to locate an agency and make a contribution. United Way is working on developing a better user experience through a more strategic design. http://www.unitedwaysatx.org/Pages/Eway%20Demo.html http://www.uwkc.org/

23. Early Adoption, Survey Feedback United Way of San Antonio and Bexar County • Early Adoption: experienced 94.7 percent growth rate over the past year, 2002 – 2003, with donor giving up from 1.9 to 5.6 million dollars. • Donor Survey Feedback: Donors say they like the privacy of online giving more than the traditional paper process.

24. Survey Feedback, UWKC Industry Survey Results Companies Gates Foundation, The Seattle Times, Alaska Airlines, Western Wireless, and Auburn School District Positive feedback regarding ease of use; evenly split between positive comments about privacy and concerns about privacy of their info; and high overall satisfaction. Negative feedback regarding what United Way does (message confusion); and ease of use issues selecting an agency to donate via online database needs information.

25. Online Pledge Processes: Key Findings, Best Practices Industry research from television, radio, and fundraising leadership identify best practices Connect with the audience! Explain: How To Give Why To Give Benefits Institutional Message Call To Action (repeat as necessary) “And always say thank you!”

26. Conclusions Building strong relationships is integral to donor participation, paying attention to and meeting their needs is critically important. Don’t put them asleep via the repetitive pledge pitch. Provide strategic messaging that connects the donor with all relevant information and a substantial reason why the organization needs their financial support and/or volunteer time. Provide an easy to use online pledge process for adoption. New donors tend to be young and have shown to be slow to adopt online giving now, but virtual pledging will become the standard process for twenty five percent of donors by the end of this decade. Nonprofit organizations need to be ready, right now. Providing high quality products, services, and real world results applies to the nonprofit organization world –just as much….

27. Questions?