Online fundraising and Regular Giving increases: findings by M+R Benchmarks Report

It’s refreshing to see some solid benchmarking on the trends in the NFP sector.

In this 10th edition M+R Benchmarks has created some highly useful data on trends in online fundraising. It involved 105 participants in eight sectors.

Interestingly, it shows a decline in response rates to emails; revenue growth increased by growth in email lists.

The report shows an increased trend in monthly giving which is very positive as this is a great way to provide sustainable revenue for organisations.

You can read the whole report here and I’ve quoted some highlights below.  By the way, the report includes some useful and illuminating graphs particularly about which sectors are growing and which are declining.

  1. “13% of online gifts came from mobile devices

  2. For every 1,000 email subscribers, nonprofits have 355 Facebook fans, 132; Twitter followers, and 19 Instagram followers. In 2006, those numbers were basically zero, zero, and zero: Facebook was limited to .edu email addresses, Twitter was just about to launch, and Instagram’s founders were still in college.

  3. Nonprofits invested $0.04 in digital advertising for every $1 of online revenue. This might not seem like much, but considering that overall online revenue grew by 19% in the last year, digital advertising is an increasingly important market for acquisition, conversion, and retention.

  4. The volume has been turned way up: the average nonprofit in our study sent the average subscriber on its list 49 email messages in 2015.

  5. Monthly giving accounts for 17% of all online revenue – monthly giving is growing quite a bit faster than one-time revenue. In the first Benchmarks Study, only about half of the participants had a recurring giving program at all.”

 

‘Chairity’ starts at home…

Each year the sudden festooning of lampposts with Christmas decorations, mince pies in the supermarket and Christmas carols at my local cafe take me by surprise! “It’s Christmas!”, they yell! “Already?” I want to yell back!

This year is no exception .. perhaps because while I was visiting Sydney I was amazed to see – before Halloween was even over  –  some bright spark had already installed a 6.5 tonne Swarovski crystal-decorated tree in the Queen Victoria Buildings ! Now I think that’s really a bit early! It was very beautiful though.

It may sound it, but I’m not a cynic and I actually really like celebrating the end of the year, cooking Christmas cake, eating Christmas cake…

This prompted me to consider the various fundraising appeals and campaigns that are attempting to encourage us each to think about someone or something that needs the gift even more.

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Here are a few that caught my attention:

Chairity begins at home

Habitus Living – this glorious, glossy, envy-inspiring design magazine features the ‘Chairity Project‘ which, while not strictly for Christmas is happening around this time.

Chairity-Project-2015_Tracey-Deep_4-915x587Each beautifully designed chair will be auctioned off for chairity… sorry, charity… a great idea and a wonderful way to combine art, creativity and heartfelt innovation.  For more info visit Cult Design.

Very Berry Christmas!

jessicaIf you’ve already started shopping and perhaps like me you have a ‘gift drawer’ where you put things you’ve taken a fancy to but you’re not sure who they’re for (ok, that might just be me), how about buying a toy for a boy or girl you’ll probably never meet.    Berry Street is a wonderful children’s organisation which since 1877 has focused on the rights of children to have a safe and happy home. With their Christmas appeal, you can buy a gift on line, make a donation or get gift tags for your own choice of gift.  They only accept new toys and really need gifts for children aged 11-16+

Raining Cats and Dogs!

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If you have a cat, budgie, fish or a dog, give them an extra squeeze of affection (maybe not the fish) this festive season when so many cats and dogs are abandoned. Hard to believe I know but some owners find the cost of kennels or catteries to onerous and just leave their pets to fend for themselves.  And definitely please DO NOT give pets as gifts – these are often the unfortunate creatures that end up at lost dogs and cat shelters when their new owners find they cannot look after them. Consider this story in the Daily Telegraph last year but this sad story is the same every year.   If you’d like to support your favourite animal shelter, they often need blankets and financial donations are usually well received. Lort Smith had a great event ‘Pause for a cause‘ to raise money for the hospital, walking around Melbourne’s ‘Tan’ at the Botanical Gardens with over 100 dogs! What a great sight that would have been! Woof!

Cockatoos need you too!

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Let’s not forget our feathered friends this Christmas.  As a bird-lover I’m biased but it is easy to forget that we have so many beautiful native birds on the edge of extinction.  Visit BirdLife.org.au and see what you can do to help. You can become a BirdLife member for just $1.50 a week! Seems a small amount to help save beautiful birds like our waders, or the amazing Red Tailed Black Cockatoos.  What’s your favourite bird? Perhaps make a donation instead of a bought present for a friend.  I know they’d love it 🙂 (And keep your cat in at night, also a good gift to our feathered friends!)

Someone to watch over you

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Finally, this time of year can bring up a range of different and conflicting emotions. If you need someone to talk to, consider the Samaritans.  They have a help line for anyone needing a bit of support. Reach out if you need to. Or consider Lifeline who are there to help with many difficult situations.

Wishing you and your loved ones a safe and happy Festive Season. And if you think it’s too early to be saying this, blame Swarovski! 🙂

 

We went dry in July and helped raise over $4m – with @Dryjuly

dry july

@DryJuly, which raises money for adults living with cancer by supporting organisations involved with cancer research, equipment and treatment, raised over $4m this year through its online and social media marketing. See their beneficiaries here.

It’s a very cool annual campaign with very low effort on the part of the participants and I suggest it has the benefit of growing involvement year on year.

The campaign asks its participants to give up drinking alcohol for a month.  They can just stop there if they like – a great way to have a healthy month.  Most people however would make a donation to get involved and then perhaps raise money from their friends, family and colleagues.

It has a positive benefit for the participants who have an AFM – an alcohol free month – who basically could donate what they would have spent on alcohol during July to the Dry July campaign.

It would be interesting to see how many participants a) join again after the first year – ie their retention rate and then b) whether they raise or donate more money in subsequent years.  I’d like to know what their retention rates are given it is hard for many charities to attract regular donors via online channels.

It may also be a good way to involve men in fundraising – notoriously difficult.  Movember is another annual campaign (the participation requirement I like less as it involves my husband growing even more facial hair!) But I’m sure its successful in this time of trending beards!  This was a fantastic idea started in  2003 by Adam Garone (who sports a most impressive mo’) and the other three co-founders inspired 30 guys to grow a moustache or beard and fundraise for men’s health during the month of November. Now, 10 years later, the campaign runs in 21 countries and in 2012, over a million ‘Mo Bros’ and ‘Mo Sistas’ took part.  Some very hairy people out there! Barbers everywhere rejoice!

I love these innovative, fun and joyful ideas.  They focus very much on the user, the customer, the donor and do not rely on doleful images and sad stories.  Certainly, there is a need for that type of marketing (and many will tell you how well these elements help) but I do love the fun and happiness created by campaigns such as Movember and DryJuly.

Giving up the grog for July made me reflect on my own drinking habits – and that is a good thing. Perhaps its having a similar effect on others – another interesting piece of analysis to consider.

I encourage all of us in the fundraising and NFP sector to look for joyful ways to engage with our ‘customers’ and stakeholders – make them the hero, give them ways to engage that THEY like and watch how they get involved and even show off their participation.  Well done to DryJuly.  Great result.

10 Tips to great relationships

10 ways to prepare for partnering

Thinking about entering the corporate partnership space or improving your results in this area? Pamela Sutton-Legaud suggests some things you should have in place before going to market.

The following are ten tips you may like to consider, which will save you and your potential sponsor time, money and energy. It’s better to proactively determine these points rather than to be unprepared when a potential partnership opportunity arises.

1. Allocate responsibility for partnerships. Allocate a team or team member who has, as part of their job description and key performance indicators, the responsibility to deal with and negotiate corporate partnerships. This is particularly important in organisations that have a range of entry points, to ensure all potential partners are consistently appraised and receive the appropriate level of benefits to reflect the level of partnership.

2. Define organisational values for partnerships. Assist your staff by working with your board or executive team to create a corporate sponsorship policy which details what sort of industries conflict with or enhance your core values. Using an obvious example, if your organisation aims to assist people struggling with addiction, be explicit whether you will accept funds from tobacco companies, alcohol companies or gaming companies.

3. Create a selection criteria framework for sponsor partnerships. In support of your policy, it helps to create a sponsorship framework which outlines how you will select or accept new partners, how to acknowledge donors/sponsors and what you can give back in terms of value for their sponsorship dollars. Consider if you receive $5,000 or $500,000 gift – what could you offer to a sponsor at various levels of support? While each sponsor has different needs and requirements, you can develop some basic guidelines to get the conversation started. Defining this early – and the benefits that do/don’t come with each – can save a lot of headaches down the line.

4. Prepare a partnership benefits overview. Prepare a short guideline document to provide to any sponsor who should approach you which provides an overview of how you work, what you can offer, and why you’d be a great partner, as well as any selection criteria that you would apply to any sponsorship application. It allows you to respond to any requests quickly and professionally. It also allows a potential sponsor to self determine how good a fit they are with you, your stakeholders or audience.

5. Evaluate prospective partners’ organisational fit. Consider which types of organization are ‘natural’ and ‘unnatural’ partners for your cause. At Zoos Victoria, we are a natural fit with organisations that wish to engage with a large family audience, as almost two million people visit our zoos annually. So, fast moving consumer goods organisations or those focused on a consumer audience are a good ‘natural’ fit. As such, when Zoos Victoria entered into a partnership with ANZ bank, this was a very natural fit for both parties as our audiences and values were well matched.

6. Look for a values match. It’s important to be explicit about your own organisation’s values and review how they align with a prospective partner. Zoos Victoria takes a G-rated approach to our family audience so we want to collaborate with organisations with similar values. We are also a nonprofit conservation organisation, so we want to work with organisations that are likeminded and consider the impact of their actions and those of their customers on the environment. We’re here to protect and defend endangered species and we want to work with those organizations that actively support this goal.

7. Consider the value/effort of possible partnership. Nonprofits are time poor and relationships are time intensive, so it makes sense to evaluate the effort to reward ratio of a prospective partnership. Zoos Victoria uses a simple but powerful decision making framework which offers a simple way to assess a potential partnership activity. We look for partnerships and activities that sit in that top left hand corner – the ‘sweet-spot’ of low-medium effort for high value. This works in everyone’s favour.

8. Aim for multi-year partnerships. Wherever possible, look for multi-year partnerships to make the most of the work that goes into a partnership agreement on both sides. Negotiating multi-year partnerships allows time for the relationship to form and grow, while assuring partnership goals are met along the way. Good results come from time and reasonable levels of effort.

9. Record each partner’s goals. Create clear goals and don’t be afraid to clarify all the key outcomes of the partnership in a written sponsorship agreement. It is much easier to clarify your partnership benefits and commitments at the beginning of the relationship, than half way through.

10. Implement a regular review process. With clearly written up goals in place, you should regularly review the partnership’s progress against expectations to evaluate whether it’s meeting each partner’s expectations and take steps to improve on the relationship where possible. With this approach you can create enjoyable, mutually-beneficial relationships that continue for many years through open communication.

Pamela Sutton-Legaud
Pamela Sutton-Legaud is the Executive Director of the Zoos Victoria Foundation and leads the strategic direction for institutional and individual giving for Werribee Open Range Zoo, Healesville Sanctuary and Melbourne Zoo which celebrates its 150th anniversary in October 2012.

1st Published in Fundraising & Philanthropy Magazine 2012

Trading Places

A few times I’ve been asked by people wanting to change career direction whether they should take a job in the not for profit sector. I thought you might be interested in a few (there are lots more) things you’ll encounter if you make that choice. Love to hear your comments.

  1. It will mean working with lots of inspirational women! What is it about the NFP sector that attracts women? Cynically I could argue that they’ll put up with the lower pay scales more readily than men! However, they also work very hard and put the cause right out in front as a beacon of hope and energy. I love the women working in our sector, they are so inspirational! Some of the women board directors I’ve met are absolutely driven and fantastic mentors.Image
  2. It won’t be easy! A few hopeful but misguided souls consider a move to a nonprofit organisation will mean that life won’t be as stressful or busy as working for a commercial business. (I recall the job candidates who when asked why they’re considering a job in the NFP world answer “I’m looking to slow down a bit!” Not likely!) It might actually be a bit more stressful! You may have fewer resources including staff and money and you may be working on issues that create emotional stresses – like considering the needs of children living in poverty or those dealing with cancer or depression.
  3. It will be more rewarding! Almost certainly if you choose an organisation that follows a cause not led by the balance sheet, you will find it rewarding. How much more rewarding depends on how much you put into it and how much the cause matters to you.Image
  4. It will mean coming face to face with your own values! What matters to you? What gets you up in the morning? What drives you and makes you angry/motivated and ready to take on the world? Find the organisation that meets your values and you’ll have found your cause.
  5. It will mean asking others for money! If you are unsure if you are ready to ask others to financially support your cause, you may not want to work in the sector. Government funding is always limited and donor funding is often fickle so no matter what your role from scientist to receptionist, you will one day be asked to help out with fundraising. It’s not hard but it can appear to be confrontational. You’ll learn that by encouraging others to give, it’s a great way of connecting them with their values. A worthy cause indeed.