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Passion, persistence, and partnership: the secrets of earning more online: 2nd edition
- 14 September 2011
- With the rise of social media, the smartphone, the development of apps and the importance of Twitter, much has changed since our 2008 report about online fundraising. So we've teamed up with nfpSynergy again and now have new research, new case studies and new ideas.
- Read the summary report below, or download PDF versions.
- Download a copy of the executive summary (PDF)
- Download a copy of the full report (PDF)
- What's new?
- In the three years since our first edition - an age in the digital world - much has changed in the way that people and charities are using the internet. In 2008, for instance, the smartphone was the preserve of a small minority. Now nearly half of all mobiles are smartphones, bringing greater functionality and easier access to the internet. Already 40% of smartphone owners use mobile internet each month, and within a few years it is predicted that half of all internet views will be via a mobile handset.
- At the same time, use of social media has become more widespread, with social networking now accounting for 1 in 8 of all UK internet visits. According to Hitwise, social networking has become the single biggest activity online in the UK, overtaking their Entertainment category in early 2011.
- Online communication is becoming more immediate, more personal, more local, and available 24/7. Charities are seizing the opportunity to reach out to their supporters, rather than waiting for visitors to arrive at charity websites. 71% of the charities in our sample use Facebook, with 62% using Twitter and 50% using YouTube. They can now engage far more frequently with their friends and followers, often in real time. They have also learned to approach their online supporters in a holistic way, raising awareness of their work, maintaining their brands, and delivering advice, rather than simply asking for money or selling items.
- Online fundraising is now generating a similar return on investment to other forms of income generation. Charities raise £170k per staff member in their online fundraising team, ranking between donor recruitment (£137k) and major gifts (£210k). Our sampling shows that larger charities are able to generate further economies of scale, using the strength of their brands to drive fundraising efficiencies.
- In our last report, we found that around 2% of donations came from online sources.
In our new survey the total is 3.6%: an 85% increase in three years. This suggests
charities are showing the hallmarks of success we identified: passion, persistence,
and building partnerships. We hope this updated report will be a practical and
valuable source of ideas for income generation in the digital world. - Six secrets to earning money online
- Secret 1: Think about your 'engagement funnel'
- Once upon a time in the world of charities, life was simple. There were donors and everyone else. The donors were the ones who gave money, and were recorded on the charity's database. But the online world has made this border not so much permeable as shot full of holes. Now charities might imagine their (potential) supporters more like the layers of an onion, or as drops of rain landing on an enormous funnel.
- At the outer edge of the funnel, people may begin to engage because their online friends 'like' a charity's Facebook page or retweet their message about a charity event. They may move on to visit a friend's fundraising page, or even send a text message to support a campaign. Often this seems like Brownian motion: random movement that doesn't lead inexorably in the same direction. However, an 'engagement funnel' continually draws people in to get more involved, and can ultimately help them move from being a mildly interested spectator to an active supporter. The boundaries between donors and non-donors are bridged by a thousand seamless stages. As a result, it's becoming harder and harder to plan the communications that an organisation should send to a 'supporter'. This is not only because the definition of a supporter is much less clear, but also because many of these 'supporters' are not on the database at all – how and when they engage is up to them – not the charity. The charities need to make sure their 'engagement funnel' is effectively directed, and will appeal to the people it needs to attract.
- "For me the real benefit of social media is that you can reach beyond your traditional
supporters and spread your message much more broadly. People notice something on
Facebook, like it, and we can see from the comments that they never knew about us before
but are motivated to find out more."
- Steve Taylor, League Against Cruel Sports - Secret 2: Help charity advocates do the asking for you
- The best internet engagement and fundraising often takes place when the charity hands over the reins of control to the people who support it and lets them do the asking. Individual supporters' emotional affinity with the charity can draw in their friends where "official" communication might be ignored. Event fundraising on the internet is such a success because individuals – rather than the charities – ask their friends to support them. Whilst this makes it more difficult for organisations to control their messages (never mind ensuring that they conform to brand guidelines), the upside is clear – charities can reach far greater audiences, far more effectively, through personal contacts.
- "Charities need to use the web as an interactive tool to target people and their interests and
empower them to support the charity and make an impact on fundraising. It's ultimately about enabling supporters to become superheroes for the cause."
- Tom Latchford, Raising IT - Secret 3: Destroy the silos, and respond rapidly and coherently
- In order to achieve success online, different departments within a charity must work together to create an integrated and seamless engagement funnel. In practical terms this means that the topics an organisation talks about should be consistently rolled out, at the same time, by all departments.
- Meanwhile, people expect charities to be able to engage with them, and respond to their concerns, ever more rapidly. For many people, the tone and speed with which charities respond online is a key litmus test of their competence and trustworthiness. If charities want to be seen as relevant and attractive by prospective supporters, they will sometimes need to drop everything and respond to issues, and questions, in real time.
- "The truth is, people have always been having these conversations about your organisation, but now you actually have a chance to respond to concerns and open up dialogue."
- Amy Sample-Ward, NTEN - Secret 4: 'Every little helps' in raising more online
- Micro-donations are the new black for many fundraisers, and small asks can act as a simple step near the edge of the engagement funnel. Shoppers on eBay have given almost £5 million via eBay Checkout, usually £1 at a time. Organisations such as the Pennies Foundation, Everyclick and Easyfundraising are perfecting the way to get shoppers to give small amounts with the minimum of effort. Wherever internet surfers go and whatever they do to spend money, charities can be there gently suggesting that they might spare a few pence for a good cause.
- Secret 5: The smartphone is a supertanker
- The rise of the smartphone is radically changing people's online activities. Whereas people used to go online only once or twice a day, they can now do so throughout the day, wherever they are. They might hear about a charity in the news, ask them a question on Twitter, visit its website and make a donation, all while waiting for the bus.
- It's for this reason we are so excited by the potential of text donations, because they can be personal, immediate, and make it so easy for people to respond. As smartphone functionality and adoption grows (payment by mobile is skyrocketing), its importance in providing an integrated and compelling experience to potential supporters will only increase.
- Secret 6: Don't forget the fundamentals, and leave room for the future
- As the recent nfpSynergy report 'Gimme Gimme Gimme' sets out, there are a number of rules on which all good fundraising is based. One inviolable rule is that in good fundraising there is good asking. People will rarely give just because there is need alone. Most giving is done because people react to something: a letter, an email, a phone call, a text message, or a chat with a friend. A key part of the 'asking' is that people are persuaded. That's why direct mail has a letter and a leaflet and not just a donation form. It's why street fundraisers have a script and know their stuff. Yet visit even the biggest charities' websites and often the need to persuade is forgotten.
- The good news is that when people work out how to translate powerful real world fundraising into powerful virtual fundraising – for instance through a compelling viral campaign – it works. Perhaps the real challenge is to work out what that translation looks like. Indeed it is a fair bet that many of the best techniques for digital media fundraising are yet to come.
"Besides the new funds raised through our eBay auction, the profile of the charity has been raised immeasurably through eBay for Charity. We're still riding the wave!" — Claire Newman, Development Office, Books Abroad