filter by tag: fundraising

March 5, 2010 at 2:15 PM by Knowledge Leadership

Donations for relief efforts in Chile pale in comparison to those for Haiti. The Chronicle of Philanthropy reports in an interview that a mere $250,000 raised by Americans three days following the Chile disaster, which starkly contrasts the nearly $97 million raised three days following the Haiti earthquake. Despite experiencing a stronger earthquake, Chile’s existing building codes and infrastructure better prepared it to cope with damages. However, several other factors may have influenced the difference in donations:


Consumers Are Tapped Out – Many Americans responded to the Haiti crisis by taking part in the widespread text-to-give campaigns promoted by major relief organizations, through which the American Red Cross alone raised $32 million. Mobile giving was a fast and easy way to respond to the crisis, but some may simply be overwhelmed by donating to the second major disaster in a two-month period. In addition, there has seemingly been more media attention for the Haiti disaster, which continues to capture headlines amidst the Chile crisis.  

Call To Action Was Less Urgent – The Chile government’s call for aid didn’t take place for several days after the disaster which influences donor urgency. According to The 2010 Cone Text-to-Give Trend Tracker, more than one fifth (22%) of respondents indicated they would donate to causes via text message only when the need was urgent.

Haiti Activated Grassroots – In Haiti, the need for donations was immediate and urgent. Individuals were activated to help not only through popular donation campaigns by organizations such as the American Red Cross and Yele Haiti, but also through their own grassroots efforts that utilized events and social media. The Wall Street Journal this week highlighted some of the more extraordinary methods for individual fundraising, such as a skydiving nun and pajama-clad office workers.

Celebrity Involvement – The star power that surrounded Haiti undoubtedly drew additional attention to relief efforts. Whether sports stars making a statement on the courts or a star-studded telethon, celebrities came together for the cause and inspired other Americans to do the same.

None of these factors are the responsibility of any one stakeholder. Governments, relief organizations, businesses, influencers and consumers need to work collaboratively toward a common solution for maximum impact, and we saw this collaboration in top form following the earthquake in Haiti. The sobering reality of the back-to-back earthquakes of 2010, however, made it clear that no two disasters, or their resulting relief efforts, are the same. What will you and your organization proactively prepare to do when another disaster strikes?


Tags: crisis donation currentevents cause fundraising global newmedia

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February 12, 2010 at 11:46 AM by Knowledge Leadership

Americans were quick to react to the Haiti disaster last month, donating millions of dollars in a matter of hours. A driving factor in the lightning-fast fundraising was the ease of donating through the Web and mobile devices.

 

 

The results were so impressive – the American Red Cross raised more than $32 million alone through its mobile text-to-give effort – that Cone wanted to explore how, and why, many Americans engaged in text-to-donate campaigns. We fielded a brief, two-question online survey with Invoke Solutions to explore the trend, and the results revealed 13 percent of respondents donated via text message following the earthquake. Although this number may seem low given the massive support for relief organizations, it represents well over a 100 percent jump from Cone’s 2009 Consumer New Media Study conducted just last fall. In that survey, six percent of American adults said they had donated to any cause via mobile phone over a 12-month period.

Most of the 13 percent who texted a donation to Haiti indicated they did so because it was the fastest and easiest way to respond to the urgent need (8%). But the survey also indicated that the success of text-to-give efforts for Haiti may be more than just a flash in the pan. Nearly a quarter of respondents (23%) said if they donate once through a text message, they are more likely to donate again.

 

Mobile donations are clearly building traction with American donors, but what does this mean for future fundraising efforts? Nonprofits looking to engage supporters through this channel should note the other survey findings:

• 27% of Americans are more likely to donate via text message if there is a credible endorser (person, company, nonprofit)
  
• 27% would be more likely to text a donation if a company/organization “matched” their gift
  
• 22% would use text messaging to donate to causes only when there is an urgent need
  
• 19% would rather text a donation to a cause or nonprofit organization than through other means (e.g., write a check or donate online)
  
• 18% are now more likely to text a donation to their favorite nonprofit organization if it is an available option

We may have reached the tipping point for mobile donations after the earthquake in Haiti. It will be interesting to watch if and how nonprofits adapt this technology to their own causes through urgent, yet strategic appeals.

About the 2010 Cone Text-to-Give Trend Tracker:
The research presents the findings of an online survey conducted in February 2010 by Invoke Solutions among a demographically representative U.S. sample of 1,183 adults. The margin of error associated with this sample of this size is ±3%.

Tags: donation currentevents newmedia nonprofitcausebranding fundraising

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January 15, 2010 at 12:02 PM by Knowledge Leadership

All eyes are on Haiti this week, and before anything, we must say that the thoughts and prayers of the entire Cone family go out to the people of Haiti. As nonprofit organizations and government agencies quickly deploy their emergency resources to come to Haiti’s aid in the aftermath of this tragedy, American citizens are just as quickly responding through their own channels – digitally.

 

 

With laptops and smartphones at their fingertips, donors are setting records with lightning-fast fundraising tools. Convio, a company that provides donation software to charities, processed more than $20 million as of January 13th – more than it did on December 31st, which is typically the biggest fundraising day of the year. And it wasn’t just online donation that was successful, text-to-donate campaigns saw big numbers too. The American Red Cross has raised $8 million to-date through its mobile campaign, and Yéle Haiti, the nonprofit of musician and Haiti-native Wyclef Jean, has raised more than $750,000 through a similar mobile effort.

Cone’s research on cause and new media this fall found that Americans are using such tools for awareness, but not necessarily translating this into donations. This situation debunks the myth that they won’t donate – for now we know when the need is urgent and the request is easy, citizens will respond through every tool at their disposal. One lesson to emerge from this devastating tragedy is that having new media communications and fundraising capabilities in place before the need is urgent will help mobilize your cause when the situation is dire. And despite the urgency of a message, those that are clear, concise and show ongoing results are lessons all organizations can heed when developing new media communications in support of their causes.

To see Cone’s list of guidelines and resources for companies responding to natural disasters such as the earthquake in Haiti, please click here.

Tags: crisis currentevents donation charity fundraising newmedia cause

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November 6, 2009 at 11:26 AM by Knowledge Leadership

Temperatures are dropping and the holiday season is approaching, causing an outbreak of the “warm and fuzzies.” Yes, the giving season is upon us, and this year is already proving to be the most digitally driven to-date. Nearly every holiday cause campaign underway has an online component, thanks, in part, to growing consumer comfort interacting with brands via new media – up 32 percent from 2008.

Despite all the glittery online promotions, it’s important to recognize consumers are still hesitant to donate online. The 2009 Cone Consumer New Media Study showed some American new media users are concerned whether their donations will have an impact and others would rather donate offline. But that’s not to say online donations cannot be powerful. A leading holiday fundraiser and one of Cone’s Nonprofit Power Brands, the Salvation Army overcame the odds when, in 2008, online fundraising for its iconic Red Kettle campaign contributed an additional $10 million to annual revenues. However, the nonprofit was savvy enough to use new media fundraising as a complement to its offline efforts, ensuring donor comfort and convenience whatever the medium.

To help build confidence and trust among your online supporters this holiday season, keep in mind some best practices for new media fundraising:

• Demonstrate tangible impact: illustrate for consumers how their donation is being put to work by showcasing goals achieved in real-time
• Tap emotion: demonstrate why your cause is important to donors through emotionally compelling storytelling
• Provide value to contributors: don’t leave your donors hanging once they open their wallets – make them feel special by providing a badge of honor to display on their social networks or offer additional opportunities to support the cause
• Make it social: incorporate tools that make your campaign easy to share and pass along

The Big Warm Up installation, Boston

 

Doing its part to warm communities, Land’s End recently launched the Big Warm Up to encourage winter coat donations to the country’s homeless. The campaign embodies many of the best practices, having a robust online campaign that marries with its offline efforts - and, it just happens to be installed right outside our office windows.

 

Tags: fundraising newmedia causebranding donation campaigns nonprofitpowerbrand100 research top10

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May 15, 2009 at 2:23 PM by Knowledge Leadership

Want to really engage consumers in your cause efforts? Then give them a voice. Target, well-regarded for its philanthropic commitments, relinquished some control this week as it launched “Bullseye Gives,” a campaign allowing consumers to decide how to give away Target’s money. The company will divide a $3 million donation among its 10 charity partners, determined by consumer votes on the Target Facebook page.

 

 

Consumer-centric philanthropy campaigns like this are not new, but they are clearly resonating. In the past year, American Express, Western Union* and Trip Advisor have all launched similar consumer-driven online contests, powerful because they offer unique benefits to all parties.

 

First, online contests’ user-friendly, low- to no-cost tools provide companies a channel to connect with consumers on a more personal level than traditional checkbook philanthropy (in turn, perhaps breeding greater trust, engagement and loyalty). It allows consumers to select a cause of importance to them, which, according to Cone’s research, is the leading factor (84%) they say will influence their support of a company’s social efforts. And, as The New York Times says, such campaigns are “adding yet another weapon to charities’ fund-raising arsenal” while also building awareness. Most importantly, it helps level the playing field for both consumers and nonprofits who all have an equal voice in influencing the outcome. Bullseye.

 

 

For much more news on this topic, please see our weekly newsletter. Subscribe to Cone's newsletter here.

 

*Cone Client

Tags: campaigns fundraising engagement causebranding newmedia philanthropy marketing donation

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April 8, 2009 at 3:15 PM by Anne

As we seek to develop new marketing communications solutions for nonprofits in today’s climate, fundraising will take a front seat across the board. Carefully consider the following tips to help boost your nonprofit’s recession resilience in 2009.

 

1. Focus on individual giving: The largest portion of overall fundraising during recessions (80%) comes from individual givers, according to COP. So nurture your loyal donors and make sure they know just how important they are to you.
   
   
2. Curtail or re-purpose large galas or costly events: Consider creating lower-tier ticket opportunities for existing galas; swapping costly events for smaller, mission-aligned gatherings; or seeking donations “in lieu of event” for a targeted list of urgent, micro-philanthropy needs.
   
   
3. Avoid spending too much time and energy on engaging new corporate support: Five percent of fundraising comes from corporate support, which on average declines 1.5 percent in times of economic recession, according to COP. So, focus on servicing, communicating with and adding value for existing corporate supporters to maintain or grow current funding rather than seeking out new partners who may not be able to fund new beneficiaries.
   
   
4. Cut back, but do not eliminate, direct mail: Direct response fundraising makes up close to 60 percent of giving, according to the Direct Marketing Association, and COP reports that 62 percent of organizations surveyed reported gains over time using direct mail. To lower costs, consider paring down your contact list to active donors and continue to contact them. Bolster e-fundraising: For cost-effective communication vehicles, you can’t beat the Web. Consider transitioning important acquisition strategies to less costly e-fundraising techniques versus direct mail, moving select fundraising transactions online or creating “pledging” opportunities for individuals to give over time.
   
   
5. Create turnkey fundraisers: Inspire your donors to co-create fundraisers with you to reduce costs or create simple offline or online auctions. Also, try to seek gifts in-kind to bolster net proceeds.

 

Anne Erhard, Vice President 

Tags: fundraising economy nonprofitcausebranding nonprofit

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March 20, 2009 at 11:33 AM by Knowledge Leadership

The Salvation Army’s annual holiday fundraising drive, with its iconic red kettles, hand bells, and volunteers in Santa suits collecting change, seemed to defy the odds this holiday. Despite a retail season with lighter foot traffic and pockets with fewer coins to spare, the Salvation Army reported record fundraising in 2008, bringing in $130 million.  That’s 10 percent higher than 2007, which represents the largest one-year jump in revenue growth in more than a decade. With the economy on the brink of a meltdown, how did the Salvation Army achieve record-breaking fundraising?

 

It innovated. The Salvation Army stretched pocket-change fundraising to new heights, elevating its strategy to a multi-channel, highly engaging program.

 

First, it recognized the power of younger donors and sought them out where they were already plugged in- online via social networks and through their mobile devices. The 2008 program included the ability to donate online, to spread the word via social networking sites and to download an iPhone application specifically developed for the campaign. Other high-tech advancements in the signature red kettle collections included regional testing of “cashless kettles,” which accepted credit or debit cards and “mobile giving,” which allowed consumers to text donations from their cell phones.

 

 

The Salvation Army leveraged these online capabilities and went viral by providing turn-key online fundraising toolkits and incentivizing consumer participation. The Online Red Kettle Campaign provided tools such as email templates and widgets and featured the top fundraisers on its Web site. Internet giving alone brought in $10 million in 2008.

 

At the same time, the organization stayed true to more traditional means of fundraising and awareness by engaging the teen-idol band the Jonas Brothers, leveraging several corporate partnerships including Wal-Mart and Target and never forgeting its volunteer base of 25,000 on-site bellringers.

 

Research shows that consumers are generally giving the same this year but to fewer organizations.  By mixing traditional fundraising tactics with new digital approaches, the Salvation Army was able to tap those with money to give and came out of the season further ahead than ever before.

 

For more fundraising tips beyond the holiday season to use throughout 2009, read our latest article, Fundraising Remedies for the New Economy.

Tags: newmedia charity economy research fundraising campaigns

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