A new study has found that fundraisers and volunteer coordinators should alter their appeal depending on the public/private nature of the “ask.” Public appeals are more successful when the focus is on the benefit to others. Conversely, private appeals should focus on the benefit to the donor.
Read the Executive Summary here.
Recovering from a few weeks of travel and speaking engagements, I look back on the messages I delivered to nonprofit audiences. My supposition was that the majority of us is bombarded with technology and information. Websites, Google, Bing, Ning, Facebook, MySpace, Blogs, Twitter and so on batter and overwhelm us all. We do not know what to do first or next to increase online fundraising.
My advice is to simplify. Don’t try to do too much; a trap of the mediocre majority. Instead, pick one online fundraising goal, like setting up a blog site or developing a community of friends on Facebook. Focus and do it very well. When successful, add one additional goal. Time lines be damned.
Even more emphasis must be focused on simplifying nonprofit websites! Data from a recent nonprofit website usability study show:
In general, I see way to many sites that the homepage is overloaded with information. It’s easy to be verbose; it’s very difficult to be brief. But remember, brevity delivers clarity of message.
1. Mission: Tell them your mission in five words with a picture.
57% of sites tested did not state the mission.
2. Donations: How will my donation of time or money be used? Tell them where the money goes!
Build a homepage restricted to three elements: A picture and five words describing your mission, bullet points of how the money will be used and a big, simple donation button.
This example is from Yéle Haiti.
Now, go do it.
The June The NonProfit
Times article, 2008: Giving
Dropped $6.4 Billion; Largest Decline On Record, reports that overall
giving decreased in 2008. That is no surprise. But it did not drop by much,
only 2%.
Now let us compare that figure with the losses in the financial sector. In 2008, the US S&P 500 lost 38.6%. The big story here is that donors lost a large chunk of their savings, yet they continue to give at almost the same levels they have in the past. Sure donations amounts may be smaller, but at the end of the day people are still donating.
If we look at Click
& Pledge’s statistics for 2008, we find that the average donation
amount is down, but we also see an increase in the number of donors using our
system. In 2008 there was a 30% jump in the number of individual donors. And these
trends are continuing in 2009.
What trends are you seeing? Share your experience with us.
Have I gotten your attention? I bet so.
In “Raising Money as if You Were Barack
Obama” Dr. Kamran Razvan, CEO of Click and Pledge, and Scott Cottington of Cottington Associates will
share the secrets that allowed Barack Obama to
raise half a billion dollars online. This session will be
presented at Politics Magazine’s Conference “The Art
of Political Campaigning” this Friday, June 12, 12:30pm. This session explains
how to easily obtain the technology and expertise to inexpensively, effectively
and securely raise money on your website.
Topics include donations, FEC reporting, banking options, recurring
payments, what it should cost, security, design, databases and more.
Times are certainly changing in the nonprofit sector. One change is the notion that a nonprofit has to do everything in-house. Build a website, send out a newsletter, manage social networking – are these really projects a nonprofit should manage in-house? Can a volunteer or an already over-worked staff member handle all the projects efficiently? Will the quality of the product be the same? What are the real costs of committing staff time? Are projects like these better suited for a professional? More and more I see nonprofits choosing to have professionals manage marketing projects so the nonprofit can stay focused on its core mission.
Today the hot project on most nonprofit “to do” lists is social networking. All nonprofits have a community, but the challenge is to engage and grow it. Social networking tools like Facebook, MySpace, Twitter, Flickr and branding/fundraising sites such as Café Press are all the rage. If you are still wondering about the importance of social networking, then read Shirin’s blog entry Be my friend!
I mention this because an interesting study has just come out on the trends of social networking in the nonprofit sector. See the press release: http://news.prnewswire.com/ViewContent.aspx?ACCT=109&STORY=/www/story/04-28-2009/0005014488&EDATE=
The study found
If you consider the cost of dedicating 25% of full time staff person or hiring staff to handle social networking, this could be a huge expense. Nonprofits need to make their marketing/fundraising decisions by considering their potential Return on Investment (ROI). If you have the ability to outsource this project to a professional at a fraction of the cost, isn’t that a better business decision?
Another issue, do organizations need to increase their overhead expenses by adding staff? In tough economic times supporters are increasingly scrutinizing the organizations they contribute to. A primary concern for donors is the overhead expenses of an organization. Donors give their money to organizations that keep their overhead low and show big results from their services.
So if you need assistance with community building (websites, social networking, newsletters), visit our Community Builder webpage. We just released a solution tailored for you. And the best part is you can scratch that project off your “to do” list without breaking the bank.
Should nonprofit organizations register as fundraisers in every state just because they have a donation button on their website? Should nonprofits go to the time and expense of registering in all 50 states? Clearly, the answer is no. Nine states require no registration. The remaining states are subject to interpretation and your intention. Unfortunately, a small group of vendors and other professionals in the nonprofit sector purport this notion.
We often hear this question about state registration, so we offer the following information. According to our research, organizations that “actively solicit” donations in a state are required to be registered in the state. The key words here are “actively solicit”.
Publishing a website with the ability to accept online donations is not active solicitation. Neither is having a published phone number. After all, what is the difference between having a phone number and a web site? They both allow donors to donate to the organization. One is through a web site and the other is by phoning in the donation.
Let’s go over some examples:
Mary’s uncle has passed away in Texas. Mary lives in Virginia and would like to donate $30 to a Texas SPCA in memory of her uncle. Mary calls the SPCA and donates the money to the SPCA over the phone? Should the SPCA decline the donation because Mary lives in Virginia and the SPCA is not registered in Virginia?
Not according to the Virginia Department of Agriculture and Consumer Services which oversees the Charitable Solicitations in the State of Virginia.
According to the Division of Consumer Protection, the Texas SPCA should accept the donation from the Virginia resident and is not required to register in Virginia. Why? The Texas SPCA did not actively solicit the donation from the Virginia resident.
When should the Texas SPCA register in Virginia? Prior to the organization’s initiation of an active campaign of soliciting donations in Virginia. Had the SPCA sent a letter asking Mary for a donation in memory of her uncle, then it is required to register. Otherwise, a passive donation by a Virginia resident to a Texas charity does not automatically trigger a registration requirement.
Taking this one step further, requiring organizations with online donations to register in every state is like asking any organization that has a web site to also register with the European Union. If EU citizens have access your website, then perhaps the organization should be registered in the EU too.
This example demonstrates the absurdity of this registration requirement, as it is being circulated among nonprofits without proper education or justification.
Rules and regulations for registering charities with states are administered by the National Association of State Charity Officials (http://www.NASCOnet.org).
Most states follow the NASCO’s Charleston Principles for registration guidelines. Details may be found on the National Association of State Charity Officials (http://www.NASCOnet.org).
The following are excerpts from the Charleston Principles:
"An entity that is not domiciled within a state must register in accordance with the law of that state if:
a. Its non-Internet activities alone would be sufficient to require registration;
b.
(1) The entity solicits contributions through an interactive Web site; and
(2) Either the entity:
i. Specifically targets persons physically located in the state for solicitation, or
ii. Receives contributions from the state on a repeated and ongoing basis or a substantial basis through its Website.; or
c. (1) The entity solicits contributions through a site that is not interactive, but either specifically invites further offline activity to complete a contribution, or establishes other contacts with that state, such as sending e-mail messages or other communications that promote the Web site; and
(2) The entity satisfies Principle III(B)(1)(b)(2).
In the following case, I spoke with the Virginia Department of Agriculture and Consumer Services and discussed Click & Pledge and its clients. I used Kansas Public Radio as an example:
Should the Public Radio Station be registered in the State of Virginia since their donation page lists Virginia in the pull down menu?
The answer was a definite NO. Having the State listed in the form is not indicative of solicitation. Here is an example: Why should someone travelling through Kansas that enjoys the music by KPR, not be able to donate money during or after driving through the state?
One last example involves a requirement mandated by the Federal Election Commission that any donor to a federal political campaign must be an American Citizen. Based on this requirement, a few of our clients, despite our counsel, asked that all foreign countries be removed from their donor forms. The result is that many U.S. citizens on military bases around the world and living abroad are unable to donate. These patrons should have been enabled to donate easily online. Unfortunately, we are forced to refer them to the campaign for advice.
At Click & Pledge we have always advised our clients to research these matters and don’t accept the “common wisdom” as the answer. The issue is simple and the answer is logical. An organization should simply know when it is soliciting and when it is not.
Our product has the capability to limit the states and countries that an organization can accept donations from. Should organizations start using it? Perhaps not, given the Charleston Principle. We just ask that you are aware of the features that are available and use them wisely.
For a review of how restricting countries or states may be accomplished please visit the online manual at:
We like to hear your comments on this issue.
It is not hard to imagine why friends are more likely to
help friends than strangers. Friendship
is about trust and trust goes a long way in any relationship. I always find it interesting when
organizations ask us how can they raise more money but not how can they find
more friends. If friends are more likely
to help friends, why should the question not be more about finding friends than
raising money? Why are the questions not
about the people but about their wallet?
In one of Jim’s latest blogs [Donor Econometrics: Time –vs- Money?] he referred to a study that has addressed the effect of volunteering on future contributions. In this context volunteering in an organization and being a friend of an organization are not much different. So in this hard economic times, perhaps we should try to find more friends and increase the brand awareness among the constituency than to ask for direct contribution.
At Click & Pledge we are close to releasing the Trio Community. The Trio Community offers a family of managed tools and expertise that will help your organization find new friends and stay present in the minds of your existing friends.
Stay tuned for announcements!
Shirin Zohdi
Director of Social Media
“Get Jazzed for New Orleans” – Join us at the AFP International Conference on Fundraising
And we are jazzed…to exhibit at the Association of Fundraising Professionals (AFP) International Conference later this month. If you plan to attend be sure to visit Jim Barney and myself at the Conference Marketplace from Sunday, March 29 through Tuesday, March 31. We have added so many free features like eTickets and name badges, customizable pages, unlimited donation and payment pages, integration with Constant Contact and Salesforce.com (just to name a few) that we invite you to stop by to learn how to get the greatest value from Click & Pledge’s products.
Our booth will be located directly across from AFP Central. To find out booth visit the Exhibitor Directory site and search for Click & Pledge.
The Exhibit area is open:
SUNDAY, March 29
Noon - 4:30 p.m.
MONDAY, March 30
8:45 a.m. - 4:00 p.m.
TUESDAY, March 31
8:45 a.m. - 1:30 p.m.
We’ll see you there!
It was a perfect spring day in Washington DC as I walked across the Mall. Then I heard one mythical donor say to another, “Annie, I would have donated to that nonprofit you mentioned, but it was too confusing.” Believe this.
You must make donating to your cause “impulse-easy” and
simple. One of the most effective ways is through design.
Simple, elegant web page design connotes confidence and promotes
understanding.
Patrons decide to support your cause, or not, based on the character and make-up of your organization and the end results of your efforts. Presenting your ideas clearly online and encouraging donations/volunteering with simple forms delivers positive results. There is an avalanche of competition for charitable dollars, so do not confuse or frustrate your patrons with poor form design.
Journalist Dan Rather once said that Americans will put up with anything as long as it doesn’t block traffic. Bad web page design blocks traffic to receiving donations online. It pays to make all of your presentations project good taste. Poor design suggests a poor organization.
There a very few organizations which do not benefit from being given a first class ticket through life.
Ever wonder about the decision to ask supporters to donate their time vs. donating their money? If you are a fundraising professional, a worthy question to consider. For example, should you ask donors for time and then money; or just time or just money? It’s termed the “Time-Ask Effect”.
Primarily the question is:
“How much time would they like to donate” -vs- “How much money would they like to donate”, and how much they ultimately do donate to a charity. Well, professors Wendy Liu of UCLA and Jennifer Aaker of Cal Berkeley studied these concepts in remarkable depth.* They conducted various experiments and explored many theories on the topic. Moreover, the professors studied the psychological well-being of the donors after giving time or money or both. So what are the findings? To oversimplify, it’s a good outcome if you first ask individuals to donate their time. This leads to a “significant increase in actual amounts of contribution” of time and money.
Folks that donate time generally get comfortable and confident about an organization and its cause. After donating time, they gain a sense of well-being and feel good about themselves. Naturally, they progress to feeling good about donating money because they are familiar with where and how the money will be used.
Some political grassroots orgs ask donors to substitute their time to make a few phone contacts in lieu of donating money. It’s clear where they place value and it shows in the huge money rakes they receive.
These new donor econometrics clearly say build a solid volunteer program and the money will follow.
*Journal of Consumer Research, May 2008: “The Happiness of Giving: The Time-Ask Effect”
