The Long Snail: Why the Nonprofit Sector Needs to Get Moving Online Arts Reach Marketing and Development Conference October 7 th, 2008 Stacie Mann, Director of Marketing Network for Good www.networkforgood.org
Agenda: What I Will Cover Generally, Internet Technology for Nonprofits Trends and Tools Specifically Basic Internet Tech for Nonprofits Web 1.0 & Online Fundraising The Long Tail meets the Nonprofit Sector The Long Snail? Online Donor Trends The Young and the Generous Web 2.0 for Nonprofits How Kevin Bacon Flipped the Funnel for Wired Fundraisers
Why do you care? tmdspflg, Flickr
Inspiration + Know how +Tools = Change the World
5 Ways Every Nonprofit Should Use Internet Technology 1. Search Marketing/ Online Advertising 2. Website Design/Web Marketing 3. Email Marketing 4. Online Donations 5. Social Networking/Web 2.0
J Gilbert, Flickr
Julian Bleeker, Flickr
bramstercate, Flickr
The Long Snail? Similar to itune s effect on music access, online giving benefits the Long Tail More money goes to the 750,000 small-to-mid sized organizations Because any nonprofit of any size can do it Because it s drastically less expensive and more efficient than conventional fundraising Trend #1 Democratization of philanthropy free shelf space Trend # 2 Nonprofit Outsourcing ASPs, SaaS, On Demand Technology
Trend #3 Big Numbers; Growing Fast $7-10 billion 75% 24% Total Online Donations (1999 2006) e-philanthropy $5,000 $4,000 (in millions) $3,000 $2,000 $1,000 $0 1999 2000 2001 2002 2003 2004 2005 2006 Source: Estimates from e-philanthropyfoundation.org and enonprofit Benchmarks Study from Advocacy Institute. * Preliminary estimate based on enonprofit Benchmarks Study from Advocacy Institute.
Who Is Giving Online?* Online givers are young (38-39 years old) They are generous -- ($163) Men and women give online in equal numbers Virtually all (96%) have given to charity before, but 38% haven t given online before Online giving is tracking to the trends of online shopping and banking Trend #4 Donor Demographics Changing *Network for Good Study, The Young and Generous
When Are They Giving Online?* During business hours, during the week During disasters and holiday Source of Donations: September 11 Tsunami Katrina Offline 80% Online 20% Offline 67% Online 33% Offline 50% Online 50% Like Retail, 40% of online giving happens during December *Network for Good Study, The Young and Generous
Why Are They Giving Online?* It s easier than writing a check It s a fast way to provide disaster relief It can be anonymous They like recurring donations *Network for Good Study, The Young and Generous
Online Fundraising in a Web 2.0 World a.k.a. the Kevin Bacon School of Online Fundraising
What is Web 2.0? Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet a more mature, distinctive medium characterized by user participation, openness, and network effects. Tim O Reilly, Fall 2006
What s Web 2.0 Social networking sites like AIM Pages, Facebook, Friendster, My Space, LinkedIn, Plaxo, Hi5, Match.com Activist networking like Care2, Change.org Blogs Instant messaging Widgets and Gadgets Tagging (keywords, descriptive info that organizes info and helps you find urls) Photo sharing (Flickr) APIs/web services RSS (real simple syndication) Mashups.
M A S H U P
Person-to-Person Fundraising The process of gathering money and other gifts in kind, by empowering individuals to solicit from and communicate with prospective donors of their own choosing through the use of Web 2.0 (i.e., blogs, widgets, images, video, face-to-face interactions and other social media). Synonyms: group fundraising, personal fundraising, viral fundraising, grassroots fundraising, peer-to-peer fundraising. Source: Peter Deitz, Social Actions, Founder
Growth of Online Giving e-philanthropy (in millions) $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $0 1999 2000 2001 2002 2003 2004 2005 2006
Flip the Funnel
Case Study: 6º Experiment 1. Cult of celebrity 2. User-generated 3. Online giving 4. Social networking $4,000 e-philanthropy $3,000 (in millions) $2,000 $1,000 $0 1999 2000 2001 2002 2003 2004 2005*
What Kevin Bacon taught me about you
Fundraising Widgets A person-to-person fundraising widget is an online tool that permits a portion of one webpage to appear on other webpages. These multiple appearances look exactly the same and can be updated from a single source.
Meet The Wired Fundraiser Word of mouth maven Emotional connection, passionate Active connecters, sphere of influence Could be new to fundraising or dabblers Tech savvy Young 20-40yrs
Ali s Story
Robin s Story Raised $18,000 online in 2 months and a $10,000 matching grant She attracted nationwide attention for her efforts CNN Heroes series, a story on the E! network and local coverage Her local MS chapter gained 1,000 new donors, $28,000, and unprecedented visibility
Trend #5 -- We are not the best messengers 76% of givers are motivated by friends and family, says Cone It s okay to relinquish control of the message Donors are experts at knowing how to speak about your cause to their friends and family Tools out there to do that for free!
Wall Street Journal Gets It!
Why P2P Widgets work How to make it work: Popular Easy Rewarding Fun Cultivate Tangible Why it works: Conversation Authentic Story Translates into Action
Source: Peter Deitz, Social Actions, Founder Nonprofits should avoid working exclusively within a single social network or application.
Causes on Facebook Third-party application developed on Facebook s open platform by Project Agape, launched in May 2007 Allows American and Canadian 501(c)(3)s and political campaigns to recruit supporters and fundraise directly on Facebook Raised $2.5MM for 20,000 charities in first year of operation 12MM total installs, 83K daily active users (1%)
Tools to find supporters and monitor them
Tech Trend Summary Trend #1 Democratization of philanthropy; free shelf space Trend # 2 Nonprofit Outsourcing ASPs, SaaS, On Demand Technology Trend #3 Big Numbers; Growing Fast Trend #4 Donor Demographics Changing Trend #5 Time to let go of the message; change the messenger
Who s Next? How Network for Good has evolved to help the sector evolve: Giving portal at www.networkforgood.org On any US nonprofit s website (or even to nonprofits without websites) through our DonateNow services Widgets enable anyone to fundraise anywhere on line Web services enabling partners to fundraise anywhere online - Oprah s Big Give, Causes on Facebook, Change.org, Capital One Scholarships Foundations help their nonprofits with capacity building grants to leverage internet technology GoodCards enabling the gift of giving Clients and Partners:
If the long snail can do it so can you and your friends.
The Long Tail by Chris Anderson Robin Hood Marketing by Katya Andresen Flip the Funnel by Seth Godin Made to Stick by Chip and Dan Heath
Is it just people under 40??* Online donors tend to be spread relatively evenly through all age groups. In this research study, a median 13% of the online donors were 65 or older. ** 2006 donorcentrics Internet Giving Benchmarking Analysis
Is it just people under 40??* Donor Opportunity Age Measure Onlin e Offlin e Median* 38 61 Under 40 21% 6% 60 and Up 23% 58% In the under 30 age group, online donors outnumber offline 5 to 1 In the 65 + age group, offline donors outnumber online 3.6 to 1 * The Young and the Generaous, Network for Good, 2006. 2006 donorcentrics Internet Giving Benchmarking Analysis, Target Analysis Group, 2007.