Offline Fundraising Priorities Online

An article in the May 2 issue of The Chronicle of Higher Education, “Colleges Step Up Fund-Raising Efforts to Support Student Aid,” focuses on scholarship fundraising initiatives at six institutions.

Three-Franklin & Marshall College, St. Olaf College, and Loyola University Chicago-are in the planning stages for campaigns that will have significant student aid components.

The article cites another trio-University of Michigan at Ann Arbor, Purdue University, and Grinnell College-as schools that have significant endowments, but still “have pumped up their fund raising for student aid.”

The article made me wonder: How would this acknowledged fundraising priority be presented on the schools’ development websites? Would the sites reflect the institutional commitment to raising private support for scholarships? Here’s what I found.

The site that best “talked the talk” is University of Michigan at Ann Arbor. On the development homepage and throughout that site, Michigan staffers have added numerous references to two scholarship-related endeavors: the President’s Donor Challenge and M-PACT, a program to increase financial aid for in-state undergraduate students. On the giving site, “Need-Based Support for Undergraduates” is the second fund listed and two scholarship funds are available in the separate Schools and College Funds list. Michigan did such a good job of including the scholarship priorities throughout its development site, I wondered if the presidential challenge had made its way to the president’s website. Alas, I wasn’t able to find a link or mention there.

Notes on the other schools’ sites:

Franklin & Marshall College

Scholarships are mentioned on the annual fund page and donors may earmark “Scholarships and Financial Aid” for any online gift made to the Franklin & Marshall Fund.

Grinnell College

The Grinnell site focuses primarily on annual gifts to the Pioneer Fund. That page promotes class gifts and “Grinnell’s current green decisions,” but oddly does not include any mention of scholarships. The FAQ for the fund does explain that the fund helps pay for financial aid. The giving form accepts Pioneer Fund gifts, as well as “special” gifts, where the donor could write in a scholarship designation.

Loyola University Chicago

“Students and Faculty” is one of nine “Giving Opportunities” on the development homepage. On the actual “Giving Opportunities” page, it’s the first priority mentioned. Once you’ve landed on the giving form, the “Magis Scholarship Program’ is the seventh designation option in the drop-down box, while “Student Scholarships” is the 19th.

Purdue University

From the University Development homepage, scholarships are included in the “Where Your Gift is Needed” page. That includes a link to a 20 meg (20 meg!) case statement for “Student Scholarships and Fellowships” that’s from the comprehensive campaign that wrapped in mid 2007. The old campaign site did feature the “President’s Scholarship Campaign,” although the content on that page is quite lean now. On the giving form, scholarships designations are available as the 19th, 20th, and 21st options on the drop-down menu. The Chronicle article mentions a $300 million campaign for student aid that was announced in April, but information about that hadn’t made its way to Purdue’s development site.

St. Olaf College

On the “Giving to St. Olaf” homepage, “Endowed funds and scholarships” is the 26th link in the navigation bar. Also, the annual giving page explains that 22 cents of every dollar donated to the Annual Fund go toward financial aid and scholarships. The gift form doesn’t specifically mention scholarships, but they do provide an “other” field for gift designations.

The takeaway here? If you’re in the quiet or even active phase of raising funds for specific initiatives, especially something as broadly reaching as student scholarships, make sure your site is telling the stories of how private support for that endeavor would make a difference on campus. Even if you’re not ready to share specifics about the campaign’s aspirations, your site should pave the way for upcoming solicitations by making the case for how that support would change lives.

Here, Michigan’s done a good job of integrating that kind of message throughout its development site. Theirs is a site to watch and emulate.

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How Donors Use the Internet

Wondering how donors use websites when they give? Here are some key references that provide insights into their thinking and behavior:

“Every nonprofit must learn to regard the Internet as its most powerful direct marketing medium. Why? Because the Internet allows an organization to engage in a kind of dialog marketing that creates opportunities to develop conversations with prospects and donors. Engaging in conversations with people, over time, gives nonprofits the ability to make more and better friends, turn those friends into donors, and grow those donors into loyal donors.”—“Nonprofit Websites: Cutting Through the Emaze,” Grizzard Communications Group, Inc., 2001 (emphasis added)

That early prognostication might have seemed a bit grandiose in 2001. The Internet? A nonprofit’s most powerful direct marketing medium? Back in 2001, the power of the web to engage donors hadn’t been proven nor experienced.

Research conducted during the intervening years, though, has validated that assessment.

Consider the following collection of research findings, all of which point to the power of engaging donors and would-be donors online.

2003:

58 percent of Internet users have engaged with nonprofits online. Three-quarters of those visiting charity-oriented sites take action.

39 percent – Donated offline 37 percent – Signed a petition online 37 percent – Referred friend 23 percent – Signed a petition offline 20 percent – Donated online—“Toward E-engagement: Non-profits and Individuals Engaging Online,” Network for Good, The Bridgespan Group, and GuideStar

2004:

Online givers are better givers than regular givers. Median lifetime giving for online givers is 50 percent higher than regular givers.—“Getting to Know Your Online Donors Can Pay Off,” Peter B. Wylie

2005:

More than 75 percent of donors who go online before making a donation noted that their web visit had some impact on their decision whether or not to give, whether online or offline. More than 25 percent said the impact was significant.—Kintera/Luth Nonprofit Trend Report

2006:

Many fundraisers [from the 60 participating colleges and universities] cited ePhilanthropy as a factor causing higher revenue per donor. Average online gifts tend to be higher than those given in the mail or on the phone, and the economics of email and widespread web access facilitated more communication and cultivation with donors.—“Index of University Fundraising Performance,” Target Analysis Group

Treat your online donors as your most valuable members. Your online donors, if they follow the pattern we see in the data, probably already make larger and more frequent contributions than your mail/phone donors, and they hold the most promise in terms of loyalty and retention.—“Keep Your Postage Meter: The Status of Online Giving in America,” Craver, Matthews, Smith & Co. and The Prime Group

2007:

There is an untapped pool of donors who are influenced by a charity’s online presence, and charities could benefit by proactively reaching out to them.—American Express Charitable Gift Survey

2008:

The wired wealthy represent the future of middle and major donor giving. These donors, most of whom are in their early 50s, are comfortable online. Clearly there is a major shift from the mail to the web, and any major gifts program that fails to account for this transition has quite a bit of catching up to do.—“The Wired Wealthy: Using the Internet to Connect with Your Middle and Major Donors,” Convio, Sea Change Strategies, and Edge Research

The Digital Future Report found that the Internet is perceived by users to be a more important source of information for them—this over all other principal media, including television, radio, newspapers, and books. —“2008 Digital Future Project,” USC Center for the Digital Future

The takeaways from these research findings?

• The Internet has become a top source for information, and that extends to donors seeking information about nonprofits.
  
• Online gifts aren’t the best way to judge a website. After donors visit your site, they’re more likely to make an offline donation or contact a development officer than an online gift.
  
• The act of having made a gift online will help identify a donor as a future major gift prospect.
  
• Donors’ use of the Internet to make philanthropic decisions is significant and will continue to grow.
  

Request a copy of mStoner’s white paper, “Developing an Internet Strategy for Your Capital Campaign,” by contacting .(JavaScript must be enabled to view this email address).

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Designating Donations

Every funding campaign for undesignated dollars seeks to explain (preferably with emotion, creativity, and a sense of urgency) to would-be donors what their gifts would help accomplish.

Nonprofits like Heifer International have built very successful online and offline giving programs around the idea of allowing donors to “purchase” items, like a cow, sheep, or llama. Those donations actually are just unrestricted gifts. The animal designation is a tool to help would-be donors make philanthropic decisions, along with better understanding the organization’s mission.

The Heifer fine print explains that the gift designation is merely symbolic:

Gifts made through this catalog represent a gift to the entire mission. To help the most number of families move toward self-reliance, Heifer does not use its limited resources to track gift animals from donation to distribution. We use your gifts where they can do the most good by pooling them with the gifts of others to help transform entire communities. And, because you are helping Heifer fight hunger and poverty, your gift is tax deductible.

Now the premise of donor designations has been embraced by the Hillary Clinton campaign. The campaign’s newest fundraising adventure, called MyPA, allows donors to select how their contributions will be spent for the upcoming Pennsylvania primary, with options for television airtime, online ads, radio airtime, signs, vans, or door hangers. As I pen this, you’re out of luck if you’re a van fan: that category, which had a $25,000 goal, is “sold out.”

I learned of this new tactic in an email from the campaign:

We need yard signs to show our campaign’s strength. We need vans to get Pennsylvania voters to the polls on April 22. We need ads on the air and online to compete against the Obama campaign. And starting today, you can decide just how your contributions will help us win Pennsylvania. MyPA, our new online effort dedicated to winning the Pennsylvania primary on April 22, allows you to designate exactly where you want your money to go.

Most college or university sites provide “by the numbers” type of information to explain how unrestricted dollars are spent. Here are examples from Dartmouth, Macalester, and Stanford. Oberlin does a great job of illustrating gifts in action and how your gift helps students.

While many colleges and universities allow donors to give to many different funds online via shopping carts or gift browsers-University of Washington, UC Berkeley, Ohio State, and the University of Iowa are all examples that come to mind-I’ve not seen any create a seemingly artificial designation interface like these for what I assume are indeed unrestricted gifts.

I’d guess that such designations could create problems with donor intent. Are you aware of schools that employ similar interfaces as Heifer International and HillaryClinton.com to jumpstart their unrestricted donations?

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Wired, Wealthy, and Visiting Your Website

A major new study on online fundraising came out last week, focusing on the opportunity to engage major donors online.

Titled “The Wired Wealthy: Using the Internet to Connect with Your Middle and Major Donors,” the report seeks to answer the following question:

What role, if any, can the Internet play in cultivating, securing, and stewarding major donors?

The study-conducted by Convio, Sea Change Strategies, and Edge Research and focusing on wired donors who make four-figure or higher gifts to one or more charities-concludes that most non-profits “are not making the best possible use of their Web and email efforts to connect with this critically important audience.”

The report offers statistics about the Wired Wealthy’s:

• Giving patterns—80 percent had made a gift online in the last two years.
  
• Use of a charity’s website before making a first-time gift—66 percent visit the site.
  
• Internet usage—averaging 18 hours online each week.
  
• Web habits—a significant majority bank, pay bills, and read news online.
  
• Online content consumption—more than half use YouTube, and a quarter at least occasionally read blogs.
  
• Email preferences—they believe they receive too much from non-profits, but are receptive to e-solicitations.
  

The study’s recommendations for non-profit professionals?

1. Don’t panic … but don’t assume doing nothing is an option.
   
2. Segment your list.
   
3. Power to the people—make donor control your new mantra.
   
4. Let the message drive the technology and not the reverse.
   
5. Pay special attention to video.
   
6. Make listening an every day tactic.
   

There’s lots more (actually, 70 pages more) on Convio’s website.

The Chronicle of Philanthropy includes two articles about the study-Online Giving Appeals to the Wealthy, Study Finds and Let Donors Control How Much E-Mail They Receive, Report Urges-in its April 4 edition.

And on a related topic (note, shameless self-promotion to follow) ...

When this research report was released last week, we were finalizing a new mStoner whitepaper, “Developing an Internet Strategy for Your Capital Campaign.”

Because this research was topical to our own paper and provided some really good data about online content consumption by larger donors, I spent some time reviewing the study’s data and conclusions. Our whitepaper, which will be posted on mStoner.com later this week, includes several references to the “Wired Wealthy” findings.

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Shout Outs: Fundraising E-newsletters

As I promised in last week’s post, Making the Case for E-Newsletters, here are a few higher-ed fundraising e-newsletters I’ve enjoyed and admired:

Donor Link, an e-newsletter for donors to Oklahoma State University Foundation

Just heard about this one, a new quarterly e-publication from Oklahoma State that’s beautiful and well conceived. Very stylized, the first issue shares the stories of a presidential scholar and donor, as well as a financial column written by a professor. The most compelling content is "Abby’s Blog: A Day in the Life of a current OSU Scholar." Well written, with regular posts and lots of photos, the blog is a keeper. The remaining e-newsletter content includes a gift announcement, a contest for tickets to the Big 12 basketball tournament, and mention of an art exhibit at OSU Foundation Gallery. The email that was forwarded to me mentions that this publication was created entirely in-house.

I-Club E-News, an e-newsletter for contributors to and friends of Intercollegiate Athletics at the University of Iowa

Admittedly, I’m a little biased since I helped create this one. In its first year (2005), we received donations totaling $129,032 from people clicking on links in this e-newsletter. After 15 issues, it’s still going strong, growing I-Club memberships and connecting Hawkeye fans with outreach events, personalities, and funding priorities.

The Campaign for Maryland Brief, the e-newsletter for the “Great Expectations” campaign

It’s easy to sign up for this one, with a link on the campaign homepage, as well as forward-to-a-friend functionality. Good content, lots of photos, and they’ve taken the time to add many links to related content.

Campaign UW Newsletter, the e-newsletter for the “Creating Futures” campaign

UW did a great job of incorporating newsletter content throughout their campaign site, a relatively easy way to keep the site fresh. I’m a big fan of "Bill’s Corner," the conversational column from Campaign Chair Bill Gates Sr. If you’d prefer the printed version, they offer a link to the PDF version. UW also encourages people to order a copy or submit comments.

Campaign Update, the e-newsletter for the “There’s only one. Caltech” campaign

Content from this publication is posted in both HTML and PDF formats, plus links to newsletter stories are sprinkled throughout the site, providing updates on specific campaign initiatives. Two things I’d change: (1) Provide a more compelling presentation than a simple text-based table of contents, and (2) Take the time to embed links to related content throughout the stories.

And lastly, a nod to all the planned giving newsletters.

The two leading providers of syndicated planned giving web sites, Stelter and Crescendo Interactive, both provide partnering schools with content for either weekly or monthly planned giving e-newsletters. Schools have the opportunity to customize the content; I think it’s well worth the time when communicators take the time to personalize the message. You can find samples of their e-newsletters on those two sites, or you can find branded versions with a Google search (try “planned giving enewsletter university“ as your search term).

A while back, I signed up for the weekly "Gift Legacy" e-newsletter from Iowa State, which is powered by Crescendo. This week, they had a really nice issue, the first screen of which featured entirely ISU-specific content—an introduction about their "With Pride and Purpose" campaign and links to donor stories, the campaign video, and a "Meet the Staff" page.

At Iowa, we developed a more personalized and less frequently distributed publication. Gift Planning at Iowa was sent five times a year to an audience of more than 25,000 appropriately aged donors and alumni. Each issue focused on a particular giving method—for example, charitable gift annuities, gifts from retirement accounts, charitable bequests, and gifts of real estate. We created original content, and then supplemented that with syndicated articles from our Stelter site. In our experience, the e-publication was an effective tool to plant seeds about estate gifts; inform donors of new legislation affecting planned gifts; steward and recognize donors; and generate leads.

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Danger in “Blogging for the Hearts of Donors”?

A new study by the Center for Marketing Research at the University of Massachusetts, Dartmouth, reports that non-profits are “outpacing the business world in their use of social media.”

Three-quarters of charities participating in the research report that they’re employing social media in their marketing portfolios, and nearly half say that those endeavors are “very important” to fundraising efforts.

Despite being titled, “Blogging for the Hearts of Donors,” the report says video tops the list of social media offered on charity websites:

• Online video—41 percent


• Blogging—34 percent


• Social networking—34 percent


• Podcasting—33 percent


• Message boards—26 percent


• Wikis—13 percent


• None—25 percent

It’s significant to note that the 76 participating charities all appear on Forbes Magazine’s “200 Largest Charities” list, which excludes academic institutions. If higher-ed fundraisers were added to the report’s data, I’d wager that the adoption rates mostly would go down. Other than video and with a few exceptions, we’re just not there yet.

I reviewed this report a day after receiving Jacob Nielsen’s Alertbox, “Web 2.0 Can Be Dangerous.” It’s a good read and a reminder not to get distracted by “flavor-of-the-day” interactive offerings and allow your focus to drift away from proven online communication techniques.

Nielsen states that’s what important here is opportunity cost.

In other words, what content didn’t you post because you invested an inordinate amount of time to develop a Flickr site to complement your online press room? Or did the great Flickr tools enable you to post a larger number of photos/captions than your old, more time-consuming methods? It makes perfect sense to build your college’s presence on Flickr if that technology helped you work smarter while also engaging online visitors in a new way.

Higher-ed web shops are understaffed. That’s why, if you did a survey of the top 200 or even 20 college and university online giving sites, you wouldn’t the preponderance of blogs, videos, or podcasts mentioned above—communication tools our non-profit brethren cite as being integral in their efforts to “increase awareness of their missions and to help connect with their constituencies.”

Absolutely, we’ve got to dip our toes-and sometimes splash-into the 2.0 waters, just like our non-profit colleagues. But as Nielsen reminds us, it can’t happen at the expense of core content and business processes: “Before throwing spending money at ‘2.0’ features, make sure that you have all the ‘1.0’ requirements working to perfection.”

Note: A related study by the same researchers, titled “The Game Has Changed: College Admissions Outpace Corporations in Embracing Social Media,” shows that college admissions sites also lead corporate America in the adoption of social media.

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A December “Top Ten” List for Online Giving Sites

New research about online giving sounds a lot like common sense:

• Ask and you shall receive: One in five online donors said their primary motivation to make an online gift because they were asked or they easily found online giving options.


• Tell them about it: When asked why they didn’t give online, nearly one-third of donors said it was because they were unaware of online contribution opportunities. Another 25 percent cited security concerns.

Earth shattering? No. Likely you’re adding that to the “yep, I already know that” file. But don’t. Instead consider this research report, conducted by American Express and the Center on Philanthropy at Indiana University, a call to action.

Now is the time to streamline your development site for year-end givers and to make sure that year-end communications mention online giving, preferably rather prominently.

Why now?

For many sites, 20 to 25 percent of their total annual online donations arrive in the month of December. And this year, Cyber Monday sales were up 21 percent from 2006. If retail trends continue to cross over to the non-profit world, 2007 will be another banner year for year-end giving.

December is the perfect time to make tweaks to your site and communications to help both the first-time visitor and the nick-of-time donor looking to make a gift before the tax year ends.

How? What action items should be on your to-do list? Here are a few (well, more than a few) ideas about how to get started.

“Top Ten” ways to optimize and promote your giving site at year end

Cross-marketing:
1. Mention the URL for your online giving site-preferably in multiple locations-in all solicitations, direct mail or e-mail. Tell them the site is easy and safe to use.
2. Create an email version of your year-end direct mail piece. Send it in the last two weeks of the year. (If your email file has a preponderance of work email addresses, be careful of sending after Friday, December 21, or you’ll be flooded with out-of-office messages and many recipients won’t open your email until 2008.)
3. Add a year-end giving message to your regular e-communications, like monthly collegiate or all-university e-newsletters.

Tweak your website:
4. Add more links to the giving site on your homepage and your top entry pages—yes, they’re there already, but add more. If you have a text link, add an image. If your standing link is an image, then add a text link. Encourage colleges, departments, and programs to do the same.
5. Post a page that provides with details about year-end giving, including deadlines for stock gifts, holiday hours for your advancement staff, etc. Even better, turn it into a press release that’s distributed via your university’s news service and expand its reach.
6. Post a news item on your homepage or other top entry pages aimed at first-time visitors. Explain how your site works and that it’s safe and secure.

Low- or no-tech:
7. Encourage your fundraisers to add a link to your giving site in their signature file.
8. The telephones of your entire advancement staff will be ringing with questions about year-end gifts. Make it easy for them to explain how to make gifts online by providing a “cheat sheet” with answers to FAQs, for example, your URL, what designation options are available, what credit cards are accepted.
9. Update the voicemail message for your general advancement telephone number to include a mention that year-end gifts can be made 24/7 on the your website.
10. Check your general advancement e-mailbox more regularly (every hour?) and especially during the weekend of December 29 and 30. Take time to answer questions and direct people to the appropriate webpage, or refer them directly to a development staffer. Anecdotal evidence proves that those emailers often are great prospects, and a prompt e-response can translate into significant dollars.

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In the News: Fundraising 2.0

The old adage goes that fundraising is all about relationships. Fast forward to today’s eWorld, where building relationships through online interactions is the cornerstone of the Web 2.0 phenomenon.

If you connect those dots, you’d think that development shops would be embracing YouTube, blogs, Facebook, MySpace, flickr, and whatnot … or, if not diving in, at least dipping their toes into those waters.

Not so much. At least not yet. However, three articles published this week focus on how that situation is changing, spotlighting charities that are adding interactive content to their websites and communications strategies.

The stories highlight the glory and pitfalls of incorporating rich media into your site and encouraging a chorus of voices to talk about your organization and what it aspires to accomplish. Below are links, along with a selected quote from the articles.

Online Video and YouTube
“Telling Moving Stories: Charities turn to online video to connect with supporters“
The Chronicle of Philanthropy
(Note: A Chronicle account is required to access the full article)

“It takes a free YouTube account, a $120 camera, and a good idea. With those things, you can put together a good campaign and you can mobilize other people to do the campaign for you. If nonprofits think of ways they can reach out to supporters and donors and citizens, YouTube is a far more easy method than we’ve ever had before.”
—Steve Grove, YouTube’s head of news and politics

Blogs
“In the Fund-Raising Game, Blogs Cut Both Ways”
The New York Times

“I think good blogs, written by honest people with insider access, empower donors to learn more about the groups they’re considering.”
—Trent Stamp, president of Charity Navigator

Facebook
“My Network, My Cause”
The New York Times

“We want to help charities raise money. But at this point we’re focusing on making people realize the power of the tool.”
—Sean Parker, developer of the Causes on Facebook Project

Find something to take home and try? Or at least brainstorm and discuss? Next time I’ll share examples from higher-ed development and campaign sites that are doing just that.

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Smart and Sustainable Campaigning

We just finished working with a client to launch a campaign site, timed to go live directly after the big public announcement of the comprehensive campaign, the largest in the college’s history.

What a pleasure to partner with the school’s communications and development professionals to create a web presence that works hand in hand with every other communications effort planned for the campaign, while also functioning as a relevant and useful stand-alone information source.

We developed a monthly schedule–which runs through December 2009 and even peers into early the early months of 2010 after the campaign’s conclusion–that guarantees two to five fresh pieces of content for the site each month. Those are in addition to the regular news flow of press releases, gift announcements, construction photos, and other content in the communications pipeline.

What’s some of the content included in their scheduled update roster?

• Profiles of students and faculty benefiting from private support


• Spotlights on featured campaign priorities


• Fundraising progress


• Updates from the campaign chair


• Information about upcoming campaign outreach events


• Reports and photos from same events

To quote the mStoner tagline, it’s a smart and sustainable site that acknowledges the college’s limited human resources and the strategy preferences of its fundraisers.

The campus team has quite a few items on its to-do list that will be added to the site in the coming months, content that was outside the scope of the mStoner work. I look forward to watching the site evolve, and I hope that they’ll also explore some of the “blue sky” ideas that we discussed, but which were tabled for the site’s launch. Those will be especially applicable in 2009, when they transition from major gifts fundraising to “all hands on deck.”

I’ll share some of those visions in upcoming posts to this blog. Check back here for content ideas that leverage new web tools, keep users coming back to the site, and – most importantly – help reconnect alumni and friends to the college, its students, and its aspirations, encouraging progression on the friendraising-to-fundraising continuum.

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Update from Virginia Tech

News related to my entry from yesterday, Fundraising After a Campus Tragedy: Opportune or Opportunism?

An article in today’s Chronicle of Higher Education (Funds Sprout to Help Victims’ Families) reports that a total of $1 million has been raised for the Hokie Spirit Memorial Fund.

Of that, $800,000 comes from 8,000 separate online donations. Think about that: 8,000 individuals who believed in the memorial fund’s purpose, to “aid in the healing process,” and who took action. And that’s in addition to the 35,000 messages of condolence posted on the memorial site provided by the University.

By quickly providing those online resources, VT gave alumni, friends, and complete strangers a tangible way to show their support and solidarity. What a great example.

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