Friday
Apr182014

New Study: How Much Money Do Peer-to-Peer Fundraisiers Raise For Charity?

Loyalty, donation levels, and fundraising performances is just some of the data unveiled in Blackbaud's 2013 Peer-to-Peer Fundraising study. The study looked at peer-to-peer giving across 39 organizations over the last 3 years (from 2011 to 2013). Combined, these organizations hosted more than 44,000 events and raised more than $1 billion online.

The study looks at trends across four event types — Cycle, Endurance, 5K and Walks — and looks at different types of participants — participating donors (those who participate and donate, but don’t fundraise), fundraising self-donors (makes a donation AND fundraises) and non-self-donors (fundraises but does not make a donation). 

The goal of the study was to understand the value of true fundraisers. This begs the question, who is really raising money? And just how much are these individuals raising?

Key Findings From The Study:

  • Endurance events generated the most revenue from fundraising efforts at 94%, while 5K events generated the least, 33%. The endurance event stats are not suprising. In the book Social Change Anytime Everywhere, that I co-wrote with Amy Sample Ward of NTEN, we disucss the pyschology of fundraising. The more you ask people to suffer, the more money you will raise for charity events. This is one reason that endurance events like the Boston Marathon raise over $10M a year for charities.
  • Cycle events got the most participants in online fundraising at 70.57%.
  • The percentage of people raising money has remained flat across all 4 event types the last three years, but donors gave more each year.
  • The average online gift for Endurance events was the highest at $80.05, while the lowest was 5K events at $54.96. Cycle events saw the biggest percentage jump year over year in average gift size at 9%. The average Cycle gift is now $73.42.
  • Returning participants significantly outperformed new participants across all events when it came to fundraising. For example, the average amount raised by a returning participant for Endurance events is $1,150.22 — for a new participant, it’s $694.18.

It's important to note that returning participants raised more money than new participants (more than double), this is because returning constituents have been moved up the ladder of engagement and are even more committied to raising money for charity. They are also more exprienced in peer-to-peer fundraising and understand what brings in more money from donors.  

Email's Impact On Peer-to-Peer Fundraising

  • While there’s been an overall decline in email activity, we don't recommend closing the door on email. Email marketing is still a very effective fundraising tool for participants. Across all events types, participants who send email messages raise more than their peers who do not send email messages. Why the decline in email acitivity? There are more channels at fundraisers disposal so they are using multiple channels to reach their donors. Some people may find it easier to focus their fundraising pitches on social media and tag people directly. Their hope is that this public pressure will "inspire" people donate money. Does it work? Sometimes. My advice. Ask people on both channels.
  • Good and great fundraisers are email senders. On average, across all 4 event types, 68% of great fundraisers send emails.

This steady growth of peer-to-peer fundraising is a good sign for nonprofits, and Blackbaud asks you to consider a few insights to really evaluate the giving within your own organization.

  • How much are your event gift amounts compared to your org's general gift?
  • Does your average gift amount change by the participation type or the participant's connection to your nonprofit? What's your average self-donation?

What events have been the most successful in raising money for your org?

Wednesday
Apr092014

Are Email and Click-through Rates Heading South?

It's no secret that the nonprofit community has seen a steady decline in email open rates, click-through rates, and email page completion rates, which was also confirmed by the 2014 eNonprofit Benchmarks Study. The report, which analyzed data from 53 nonprofits, over 2.1 billion email messages, 5.6 million donations, and 7.5 million online actions shed light on valuable information for nonprofits and their messaging. This information will be a great place to begin evaluating your own online progress. For example:

  • Fundraising messaging response rates were down 11% from 2012 levels to 0.07%.
  • Advocacy messaging declined 25% to 2.0%.

Don't panic though, there are a few bright spots in the midst of all this decline: email lists, online giving, and website traffic are still growing.

  • Email lists are up 14% over 2012 levels.
  • Online giving among study participants increased 14% since 2012.
  • Monthly giving revenue grew 25% in 2013, and accounted for 16% of total online giving.
  • Monthly website traffic for study participants grew by 16% in 2013.
  • On average, 0.69% of website visitors made a gift, bringing the average value of a visit to $0.60.
  • Visitors who made it to a nonprofit website’s primary donation page converted at a rate of 15%.

Check out the email list growth over the last few years of different sized nonprofits (orange: 2011, yellow: 2012, and blue: 2013) -

This is great news for your organization. Even though fundraising message responses are down, online giving is up, so there's a lot of hope and real value in the investments you're making online.

Speaking of online, what about social media? What's going on there?

  • Social media audiences continue to grow at a much faster rate than email or website traffic.
  • Nonprofits who participated in the study grew their number of Facebook fans by 37%, and Twitter followers by 46%.

Despite the surplus in social media growth,  email continues to dwarf social media. Email surpasses social media channels both in audience numbers and in revenue acquisition.

Where did you see the most decline and the most positive growth in 2013?

Sunday
Apr062014

5 Analytic Tools to Track Your Organization's Metrics

If your organization is struggling to find the right analytic tools to track your website traffic, social media presence, and how your reports, campaigns, or infographics perform across the web, check out this list of 5 helpful analytic tools. It won't fulfill all of your data analysis needs, but if you use some of these tools together, they will provide a decent baseline.

1. Google Analytics Report with Visually

Looking for a report that combines your Google Analytics stats in a visual format? This is a great tool, especially if you need to produce reports weekly and present them to senior leadership. https://create.visual.ly/graphic/google-analytics/

2. Simply Measured

This tool monitors your organization’s social media presence and gives you the ability to produce reports that can be exported to Excel, Powerpoint, and HTML. http://simplymeasured.com/

3. Link Tally

Do you have a big report or infographic that was recently released and are looking to track how much it was shared on social media? Check out Link Tally. Just enter the URL and it will count up how many times it was shared across the social sharing sites: Facebook, Twitter, Google Plus, and LinkedIn. Here's an example of the data Link Tally compiled for an infographic around voter supression my firm Rad Campaign designed and researched for Craig Newmark of craigslist and craigconnects. http://linktally.com/

4. Keyhole

Use this tool to track hashtags and data associated with them such as impressions, which users on Twitter had the most retweets, what domains mentioned the hashtag, etc. In the example below I searched for the hashtag #fundraising. http://keyhole.co/

 5. SocialMention

Looking for an alternative to Google Alerts? Check out SocialMention, which searches the web to identify mentions of a topic, hashtag or person. It also tracks sentiment, but since it’s based on an algorithm rather than an actual real person, take that data with a grain of salt. Case in point. As millions of viewers await the Game of Thrones Season 4 premiere, SocialMention says that the majority of the sentiment is neutral. There is very little positive sentiment. #OhReally http://www.socialmention.com/

 

Thursday
Mar272014

New Report Shows Largest Increase in Charitable Giving Since the Recession

Should nonprofits be less panicked now that the latest report by Blackbaud report shows that charitiable giving is finally up for nonprofit sector since the recession? While this trend is good news for the sector, don't throw a big bash to celebrate this milestone just yet. As Amy Sample Ward and I discuss in our book Social Change Anytime Everywhere there are over 1.6 million organizations in the United States. This means that there are hundreds or even thousands of organizations working on similar issues with similar names and missions competing for donor dollars. It's time for nonprofits to start diversifying their revenue streams all year round.

As Steve MacLaughlin puts it:

“Nonprofits have many opportunities to diversify their giving throughout the year so they aren’t so dependent on year-end fundraising. As evidenced by giving days like #GivingTuesday and end-of-fiscal year campaigns in June, nonprofits have the opportunity to drive donor behavior by shifting their fundraising strategies.”

#GivingTuesday saw an immense growth in 2013, as evidenced by Craig Newmark's recent infographic, Cracking the Crowdfunding Code. Check out these key findings from the 2013 Charitable Giving Report:

  • Online giving (13.5%) grew more than overall giving (4.9%).
  • Small orgs saw the greatest increase in online giving.
  • Faith-based organizations experienced the most online giving of all the sectors.
  • It's ideal for your nonprofit to implement a monthly giving program.

2013 Charitable Giving Report by Blackbaud

 

Monday
Mar242014

Infographic: Cracking the Crowdfunding Code for Your Nonprofit

Crowdfunding has really taken off in the past couple of years. Crowdfunding alone raised an estimated $5.1B worldwide in 2013. Individuals and organizations are using crowdfunding methods and platforms to raise money for their causes, and it's working. Craig Newmark, of craigconnects, comissioned my web agency Rad Campaign to research the effects of crowdfunding, and we took the fascinating results and created an infographic.

Over the course of our research, we spoke with prominent crowdfunding platforms such as Causes, Causevox, FirstGiving, StayClassy, Razoo, and others to find out just how much money crowdfunding campaigns raise on average for organizations? What best practices should nonprofits live by when crowdfunding? And how much money is the average crowdfunding donation?

Here are a few key findings that you should know about:

  • The average donation to a crowdfunding campaign is $88
  • On average, more than 28% of crowdfunding donors will donate again.
  • Fundraisers who receive their 1st donation during the first 3 days of the campaign are more likely to hit their goal than those who don't.

 

Have you been doing crowdfunding right? Is there anything new you discovered in this infographic that you'll begin implementing?

Monday
Mar172014

Are You Engaging Donors Effectively?

Is your nonprofit effectively engaging donors? Are you moving donors up the ladder of engagement? And, if you were surveyed on your donor engagement, would your org fall under the good, the bad, or the ugly?

DonorDigital donated to 16 major US nonprofits to learn about their integrated fundraising practices. For 6 months in 2013, after making an online contribution, they tracked all interactions with these organizations through direct mail, online, and by phone. Their goal was to observe how some of America’s most notable charities are integrating their donor communications across multiple channels.

DonorDigital tracked the following:

  • How long did it take to receive a direct mail acknowledgement or a welcome package for the online gift?
  • How quickly and how frequently were subsequent direct mail appeals received?
  • How many email communications were received from the organization, and how many were appeals for financial support?
  • How many communications were received that were purely cultivation or informational messages?
  • Which organizations followed up about joining their monthly giving program? If they did, which channels did they use to reach out about it?
  • Were appeals or campaigns integrated across multiple channels?

Here's a sneak peek into what was discovered during this undercover donor testing:

Thank You Emails

  • All 16 of the organizations sent an email thank you within one day of the online donation. Email acknowledgement is usually automated after an online donation is processed.
  • 8 of the organizations sent direct mail acknowledgements and 8 did not.

You should always thank your donors across channels. You may think this is a given but you would be surpised as to how many nonprofits still forget to do this very basic step. People are giving their hard earned money to your organization because they believe in your cause, and they should be appropriately acknowledged. If you show your appreciation, they'll be more likelly to give again. And don't just rely on automated emails. Make an effort to thank donors via direct mail, social media, and/or by phone. Make them special and valued. Remember fundraising is about building a relationship with people.

Monthly Giving

  • 3 organizations made monthly giving asks via email only.
  • 4 organizations made no monthly giving asks in any channel.
  • Only 1 organization integrated their monthly giving invitation through mail and email.

One time gifts are nice, but monthy donations are even better. A one time donation of $100 is a great start, and much appreciated, but think what a monthly donation of a mere $20 will do for your organization. In just one year, that $20 monthly donation turns into $240, more than doubling your one time donation of $100. And over 10 years that is $2,400. It never hurts to ask, people want to help however they can.

Second Gifts

  • All 16 of the organizations asked for an additional gift via email.
  • 5 asked for a 2nd gift in their 2nd email communication.
  • 13 of the organizations asked for a 2nd gift in the mail within the next 6 months, and 3 did not.
  • The organization that had the longest time between initial gift to the 2nd gift ask in the mail took 162 days—more than 5 months! Yikes!

If someone has given to your organization once, it's because they genuinely want to support you, and it's likely they'll give again. They won't give again, though, if you don't ask. If you integrate asks across channels, you'll have a better chance at reaching more donors. However, that does not mean that all of your communications with your supporters should be monetary asks. It's important that your donors know what you're doing, not just when you need money.

With all of the noise and competing organization out there, you really have to stand out, and it's important that you do this by appreciating each donor. You need to be thanking your donors across channels, asking them to give monthly, and involving them in your most important work. To read more about the study, and to discern what exactly the good, the bad, and the ugly are, check out DonorDigital's study here.

And I'd love to hear what's been working for you. How are you engaging your donors across multiple channels?

Tuesday
Mar112014

Best #14NTC Panels and Parties to Check Out

Every year I look forward to one very special conference - the NTC conference organized by the awesome NTEN team. This years 14NTC conference is packed with incredible parties (including an 80s dance party that I'm co-hosting with Salsa), and the Care2 Impact Prize that recognizes individuals in the nonprofit sector who have made an outstanding impact on the field of online advocacy, online fundraising or both. Then there is the fantastic sessions discussing the best tools nonprofits should use to build websites and online campaigns focused on engagement and raising lots of money.

Here's a list of some of my favorite sessions and parties that will be happening during 14NTC. Feel free to leave your favorites in the comments below.

14NTC Sessions  

50 Shades of Social Media: Navigating Policies, Laws, and Ethics
Thursday, March 12th, 10:30 AM

This highly interactive session, will discuss real-world situations, explore using ethical frameworks to resolve social media conundrums, and integrating ethical considerations into your social media policies, training, and practices.

Small Nonprofits, Big Data: Leveraging Data to Optimize Your Digital, Media and Communications Activities
Thursday, March 14, 1:30PM

‘Big data’ has become a catch phrase. But in practical terms, how can small nonprofit organizations harness data and use it effectively? This session will describe sometimes painful, but often rewarding process to do a better job of collecting, analyzing and acting on data, for use in both strategic planning and evaluation.

Disrupting the Nonprofit Sector
Friday, March 13th, 10:30 AM

In the last 10 years, the nonprofit sector has grown more than 60% in the US to an estimated 1.5 million organizations. This translates into thousands of organizations with similar names and missions competing for advocacy, donor, and foundation support. See the problem? If we are going to truly solve the world’s toughest social problems and obtain the necessary resources to do it right, we need to examine how the nonprofit sector can evolve to create more innovative and efficient organizations. This involves disrupting the nonprofit sector as we know it today.

Start at the Start: Using Storyboards, Wireframes, and Mood Boards
Friday, March 13, 1:30PM

If you’re embarking on a website redesign for your nonprofit, this session will be useful as panelists will show you want kind of a creative design you will need to capture your vision and goals for the new website. Expect a lively discussion on how to use storyboards to plan animated functionality, how to use wireframes to create mobile-friendly designs, and how to use mood boards to help determine color, texture, and the overall look and feel of your online communications.

Community Engagement Reinvented: Online Fundraising and Engagement Strategies for the Modern Nonprofit
Saturday, March 15 10:30AM

The way organizations fundraise and engage their supporters has changed, and failure to adapt will have long-term consequences for the success of the mission. This sessions will explore strategies that successful, cutting-edge, organizations are using to engage supporters more powerfully and efficiently than ever before, and generating the revenue today that will sustain their work long into the future.

Shelving Legacy, Sparking Innovation. Building Effective Technology for Philanthropy.
Saturday, March 15th, 10:30AM

This session offers leaders, managers and program officers engaged in philanthropic initiatives a rare chance to hear and discuss building innovation and effective technology into philanthropy with other colleagues, facilitated by a experienced panel from the philanthropy, nonprofit, and technology sectors.

Social Media Superpower: Tapping Creativity to Mobilize your Community
Saturday, March 15 1:30 PM

Do you want to learn how organizations are leveraging their creative superpowers to win on social media? What separates the heroes from the zeroes and how can organizations cultivate their own social media superpowers? This is the session that has the answers to all of your questions.

 

14NTC Parties

NTC Beer: Wednesday, March 12th 7PM to 9PM

Celebrate the 6th annual #ntcbeer, the pre-conference party known for good refreshments and better conversation. Catch up with nptech friends old and new over a few brews or whatever. 

Where: The Black Squirrel, 2427 18th Street NW

 

501 Tech Club Happy Hour, Thursday, March 13 5PM to 7PM

This happy hour is an opportunity for 501 Tech Club organizers—you know who you are—to get together and swap ideas, stories about your local meetups, and jokes.

Where: Marriott Hotel Bar near hotel lobby

80s Dance Party: Friday, Friday, March 14 7PM to 10PM
Remember the days of synthpop, hair metal bands, and leg warmers? Salsa and Rad Campaign are bringing it back for one helluva of an 80's dance party! Join nonprofits and do-gooders for the best 14NTC progressive party. Dance the night away to 80's music by DJ Tea Jay, complimentary food, and drinks. Did we mention fun? How could it not be at a place called Club Heaven and Hell? It’s just a short walk from the NTC conference. Happy Hours and dancing start here!

Where: Heaven and Hell: (2327 18th St, NW)

 

What sessions and parties are you look looking forward to attending?