How, what, where, and what's next in online giving
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The document provides an overview of online fundraising platforms and trends in online giving. It discusses how online giving has grown across different channels in recent years. Peer-to-peer fundraising and disaster relief fundraising through online platforms are also increasing. The presentation covers how payment processing works for donations through different models, and how platforms interface with nonprofits and donors while protecting donor privacy. Emerging trends in online and mobile giving are discussed, such as the growth of mobile options and personalized local giving experiences. The future of online fundraising is predicted to see continued growth in online and mobile donations.
How, what, where, and what's next in online giving
- 1. Online Giving: How, What, Where, And What’s Next April 26, 2011 Karsten Robbins, CEO, FirstGiving Presented for NASCO
- 2. Today’s webinar • Defining “online fundraising platform” vs. other types of fundraising • The state of online giving • Overall trends • Peer to peer fundraising • Social media fundraising • Disaster relief fundraising • How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
- 3. About the presenter Karsten Robbins CEO FirstGiving karsten@firstgiving.com
- 5. Defining Online Fundraising Platform Ø Defining “online fundraising platform” vs. other types of fundraising • The state of online giving • How payment processing works • Interfacing with nonprofits • Interfacing with donors • Donor privacy • The future of online fundraising: some thoughts
- 6. Online fundraising platforms “A platform is a conduit for managing people with charitable intent to be able to fundraise for causes/ charities they care about.”
- 7. These are all online fundraising platforms
- 8. Fundraising platforms Must enable donations and process payments Two models Internal payment Integrate 3rd party payment processing capacity processing
- 9. Some differences Professional Payment Online fundraiser processor platform or solicitor Allow individuals to no no yes raise money themselves? Allow nonprofits to no yes yes raise money themselves? Process donations may collect, yes sometimes to nonprofits never processes Enable fundraising no no yes campaigns online
- 10. The State of Online Giving • Defining “online fundraising platform” vs. other types of fundraising Ø The state of online giving • Overall trends • Peer to peer events • Social media fundraising • Disaster relief fundraising • How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
- 11. Online giving up across channels *social giving includes p2p Source: Network for Good Online Giving Index 2011: http://www.onlinegivingstudy.org/quarterlyindex
- 12. Where donors donate Source: Network for Good Online Giving Index 2011: http://www.onlinegivingstudy.org/quarterlyindex
- 13. Trends in online giving by size of nonprofit and sector Source: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
- 14. Largest percent growth Source: Blackbaud 2011 Online Giving Report: https://www.blackbaud.com/onlinefundraising
- 15. Social media fundraising is still a very small amount Source: 2012 Nonprofit Social Network Benchmark Report: www.netwitsthinktank.com/blackbaud/2012-nonprofit-social-networking-benchmark-report-infographic
- 16. How funds are generally raised through Facebook The most common fundraising tactic on Facebook is an ask for an individual gift. Note: 54% of respondents said they were not fundraising on Facebook Source: 2012 Nonprofit Social Network Benchmark Report: http://nonprofitsocialnetworksurvey.com/
- 17. Peer-to-peer fundraising events Source: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.com/P2PBenchmarkReport.html
- 18. Peer-to-peer fundraising trends Source: Convio’s Peer-to-Peer Event Fundraising Benchmark Study: http://resources.convio.com/P2PBenchmarkReport.html
- 19. Online giving after a disaster is on the rise Average donation Haiti Japan FirstGiving $82.52 $76.62 $52.44 Haiti Japan FirstGiving Source: FirstGiving
- 20. Online giving after a disaster is on the rise Total $ raised # Average # of # % nonpro donation donors fundraising grassroots fits pages fundraisers Haiti $464.321.99 87 $76.62 6,060 1,044 60% Japan $973,328.16 32 $82.52 11,793 802 94% Source: FirstGiving
- 21. How Payment Processing Works • Defining “online fundraising platform” vs. other types of fundraising • The state of online giving Ø How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
- 22. Three models of donation payment processing Third Party Payment Providers • Paypal NPO gets own • Google Checkout merchant account and • Amazon Payments Gateway Donor-centric: 501(c)3 donation provider • Razoo • Network for Good • FirstGiving • Just Give • GlobalGiving
- 23. Donor-centric disbursement Donation to 501(c)3 Donation Goes charity from a Verified to Nonprofit web app • Guidestar via Provider • Crowdrise • IRS Master file • Receipt is sent to • Causes Donor • Firstgiving • Nonprofit gets • Network for good report • Razoo
- 24. Types of fees nonprofits could be charged (some combination of those listed) • Onboarding fees • Annual fees • Fixed % transaction processing • Variable % transaction processing • Flat amount per donation • Payment for additional management services • Hourly customer service fees
- 25. FG fees
- 26. Fee comparisons
- 27. Today’s webinar • Defining “online fundraising platform” vs. other types of fundraising • The state of online giving • How payment processing works Ø Interfacing with nonprofits • Interfacing with donors • Donor privacy • The future of online fundraising: some thoughts
- 28. Nonprofits must satisfy these requirements for FirstGiving to work with them • Viable: In good standing with the IRS database • FG runs the revocation list quarterly against the IRS database • FG checks if they’re on GuideStar • Contact information from the IRS: • EIN number • Registered address • DBA • Contact info
- 29. Nonprofit descriptions on the website Either self-entered or pulled from the IRS database
- 31. How fundraising dollars are dispensed to nonprofits • First payment is via a check to their IRS-registered address. • No one can sign up and input a bogus address. • NPO may choose to receive checks via electronic funds transfer to bank of record after the first payment has been received (procedural process as a check on this). • Can choose to receive checks by mail.
- 32. Interfacing with Donors and Donor Privacy • Defining “online fundraising platform” vs. other types of fundraising • The state of online giving • How payment processing works • Interfacing with nonprofits Ø Interfacing with donors and donor privacy • The future of online fundraising: some thoughts
- 33. Donor information required • Name (with option to be anonymous to the fundraiser) • Billing address and information • E-commerce information required to process a payment • Spelled out in Terms and Conditions Donor information often requested by the nonprofit • Allows additional nonprofit-related questions • T-shirt size • Name “in memory of” if relevant • Address • Telephone
- 34. How fees are presented to the donor • At donor checkout (option to “pay the fee”) • On website
- 35. What we share about donors • The information required by law to identify the donor is given to the bank (since FG processes donations) • Donors can make anonymous donations, too. • If not an anonymous donation, we provide information to the NPO about who made the purchase: name, address, billing address, gender • We do not share the donor list with anyone, ever. Explicit in Terms & Conditions. • Other platforms may do things differently.
- 36. The Future of Online Fundraising • Defining “online fundraising platform” vs. other types of fundraising • The state of online giving • How payment processing works • Interfacing with nonprofits • Interfacing with donors and donor privacy Ø The future of online fundraising: some thoughts
- 37. The Future of Online Fundraising http://www.flickr.com/photos/redsun81/6651955017/sizes/m/in/photostream/
- 38. The (very near) future of online giving Accelerated growth in on-site giving Accelerated growth in peer to peer giving Explosion of APIs powering other sites Growth of mobile giving options (including donation portals) Personalized, geo-local online giving experiences Project-based donations, not only to nonprofits
- 39. Facebook Credits Facebook credits: • 30% of any transaction goes to Facebook • Most commonly used to buy games • Has the potential to be used for donations • Now a subsidiary of Facebook payments subsidiary • Potential for online giving (not used much) • Partnered with Stand Up for Cancer in 2010 For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-payments/?source=facebook
- 40. Facebook Zynga virtual goods for charity For more on Facebook Payments: http://venturebeat.com/2011/03/21/facebook-payments/?source=facebook
- 41. Online gaming for good UK only
- 42. Other virtual goods for charity Buy virtual texting icons for charity, coming soon
- 43. Mobile giving 2011 survey on mobile giving of 2,003 teens and adults: • 50% were aware of mobile giving • 6% of those surveyed had performed a donation via their mobile phone at some point. • 60% of respondents aged 18-34 were aware of mobile giving • 12 %had made a text-to-give donation
- 44. Mobile giving 2012 Pew Internet Real Time Giving report key findings: • The ability to send small donations using mobile phones facilitates “impulse giving” in response to moving images or events. • A majority of the Haiti text donors in our sample have contributed to more recent disaster recovery efforts using their phones • Different ways they are willing to donate include: text messaging (favored by 25% of these Haiti text donors) and online web forms (favored by 24%) are most preferred, followed closely by mail (favored by 22%) and in-person donations (favored by 19%) http://pewinternet.org/Reports/2012/MobileGiving/Key-Findings.aspx
- 45. Adjusted for inflation, Americans are still giving 3% of their income year over year …but the internet and real-time crisis response is apparent http://www.101fundraising.org/2012/04/fundraising-into-the-future-and-beyond/
- 46. More fundraising on niche donation portals
- 47. The bleeding edge: using social media for fundraising
- 48. Connect with FirstGiving! Website: http://www.firstgiving.com Facebook: facebook.com/firstgiving Twitter: twitter.com/firstgiving Blog: http://blog.firstgiving.com Karsten Robbins: karsten@firstgiving.com
- 49. Extra Extra! How fundraisers interface with a fundraising platform
- 50. Extra Extra! What fundraisers need to do What a fundraiser will typically need to do: • Register on the site and create a log-in • Search for a 501(c)3 beneficiary on the site (pre-vetted by either the IRS master file and/or GuideStar) • Select the 501(c)3 beneficiary • Create a fundraising page on the site • Ask for donations from friends and family (and even strangers) online • View donations through the back-end account management tool