Online Fundraising:

1
Online Fundraising Overview, Trends and
Challenges San Francisco Regional
Conference July 25, 2002
2
Online Fundraising Overview

• About eGrants
• The Nonprofit Market Giving
• Orgs Online
• Giving Whos Doing What
• Trends
• Challenges
• Resources

3
eGrants Mission Vision

• Provide simple, affordable, integrated online
  services for small to medium sized nonprofit
  organizations
• Provide training and support to give nonprofits
  the know-how to use these services effectively

4
About eGrants

• Were a Nonprofit handle charitable solicitor
  state registration
• Part of the Tides Family
• Processed 4.3 million in donations
• Serve 800 organizations
• Partnerships with Working Assets (GiveForChange),
  TechRocks, Donordigital

5
eGrants Core Services

• DonateNow! donation processing service
• GiveForChange.com
• Training program
• Coming Soon
• EmailNow email ASP service, integrated with
  donation processing
• Integration with ebase
• Consulting services

6
The Nonprofit Marketplace

• Nonprofits spend about 700 billion annually,
  which represents 8 of the GDP
• Nonprofits employ almost 11 million people, or 7
  of the workforce
• There are 868,000 501c3 orgs, but only 290,000
  with budgets greater than 25,000/year

7
Giving
8
What can orgs do online?

• Marketing
• Education
• Outreach
• Branding
• Service delivery

• Sales
• Advocacy
• Collaboration
• Fundraising

9
Online Giving

• Internet giving represents less than 1/3 of 1 of
  overall individual giving -- or, roughly 33 cents
  per 100 donated last year
• 500 million?
• However, exclude donations to religion, education
  and health organizations, individual
  contributions may total 40 - 50 billion
• Online for this segment may be more like 1
  1.25

10
Impact of 9/11

• 10 of 9/11 donations were made online
• 200 million
• 4 million new online donors
• Average online donation 103, vs. 93 offline
  for telethon - 150 online vs. 100 offline

11
Whos using the Internet successfully?

• Big brands disaster (American Red Cross)
• Big brands animals (World Wildlife Fund)
• Small brands passionate users (Surfrider
  Foundation, Grist Magazine)
• Matching campaigns cross marketing
  (GiveForChange)
• Advocacy groups

12
Web Donor Demographics and Habits

• 70 under 45
• 36 have broadband access at home
• (50 of repeat online donors)
• 56 have been online more than 5 years
• (73 at least 4 years)
• 80 go online every day
• 56 bank and/or pay bills online
• (67 of repeat donors)
• Source Craver, Mathews, Smith and Company Client
  survey of 733 Web donors, 10/01

13
Other interesting figures.

• 26 say they would have considered making a
  monthly pledge
• 61 say they had given online before
• 33 gave online to 9/11 relief
• 70 have taken online action
• Source Craver, Mathews, Smith and Company Client
  survey of 733 Web donors, 10/01

14
Web Givers Are Hunters, Not Browsers
(percentages)
Source Craver, Mathews, Smith and Company
15
Web Donors Came to Give
Thinking about the time you donated, did you
specifically go to donate, or for another reason?
Source Craver, Mathews, Smith and Company
16
The Direct Mail Connection
Acquisition matchbacks show 20-50 of online
donors had received postal mail prior to making
their gift.
Source Craver, Mathews, Smith and Company
17
Trends

• Online space has favored large orgs, national
  brands
• Higher average online gift - e.g., eGrants
  average donation is 125 vs. 25 for direct mail
• Online giving is closely tied to other marketing,
  fundraising and communications
• The givers of tomorrow are online today

18
Challenges

• Help small to medium sized orgs get in the game
• Capital money, technology, time, human
  resources
• Training and support
• Integration of online and offline systems
• Email fatigue
• Spam, list rentals?
• ASP vs. client

19
Resources

• Presentations from ePhilanthropy Conference,
  March 2002
• www.independentsector.org/e_philanthropy/schedule.
  html
• Chronicle of Philanthropy study, June 2002
• www.philanthropy.com
• Resources for nonprofits
• www.egrants.org/resources/