Nonprofits and Social Media: Marketing in 2014

Nonprofits & Technology:Fundraising in the Digital Age

Robert EvansFounder & Managing Director

The EHL Consulting Group, Inc. www.ehlconsulting.com

The EHL Consulting Group, Inc.

• More than 20 years of experience in… – Fundraising & Campaign Management– Strategic Planning– Leadership Development– Nonprofit Business Planning – Creating Innovative Campaigns– Donor Research & Stewardship

• We have worked with 400+ nonprofits.

Total Giving: 1972-2012(in billions of dollars)

How America Gives: 2012 Totals$316.23 billion by source of contributions

Total Giving = $316.23 billion

Giving by Individuals: 1972-2012(in billions of dollars)

Individual Giving as Percentage of DPI

Trends in the New Economy: Evolving Expectations for Nonprofits

• Increased competition for charitable dollars• Donors want to be personally engaged with their

philanthropy and see outcomes leading to impact• Funders/donors seek involvement, information &

innovation• Trends such as crowd-funding and micro-giving

encourage low-involvement giving• Nonprofits must find ways to turn one-time givers into

multi-year donors and lifetime givers• Total giving is up, but donor retention is down

Technology & Nonprofits: A Perfect Match?

• Clear and effective communication• Visibility and staying current• Brand messaging• To be effective, social media must be consistent

with other communications

Nonprofits generally lag behind when it comes to adapting to new technology.

Online Giving: Facts and Figures• In 2013 online giving accounted for only 6.4% of all charitable giving

• Online gifts tend to be smaller but larger gifts are starting to pop-up:– In 2012, six organizations reported receiving gifts of at least $100,000.– In the same year, the University of Texas M.D. Anderson Cancer Center reported a

million dollar online gift– The Environmental Defense Fund reports that its first-time online donors make gifts that

are roughly twice as large as those who give for the first time through direct-mail solicitations

• Education Institutions have the largest online average gift size – leading the way with an average of $629 which shows real potential for significant online gifts

• Online average gift size has seasonality – every single nonprofit sector sees fluctuations throughout the year which reinforces the need to change your online ask amounts throughout the year– The online average gift size more than doubles in the month of December

Financial Transparency: Let Your Website Be Your Guide

• When asked, donors all too frequently express concern that the nonprofit is not financially transparent – even when financial documents are made available

• Nonprofits are very slow to use their website to foster financial transparency

• Be proactive: add key financial information to your website for donor review– File your form 990 on your website– Include a brief summary of your annual budget

Key Questions to Ask Before Using Online Fundraising

• What is the primary goal? Secondary goal?• What is success and how will you measure it?• Who will be creating and managing the content?• Who is your “cheerleader” for this program?

Crowd Funding:Costs & Benefits

• Examples: Kickstarter, IndieGoGo, CrowdTilt, Go Fund Me

• Best used by nonprofits with strong social media following

• Is the donor receiving benefits or perks?• How can nonprofits retain these low-

level donors?

Why Do Nonprofits Use Social Media?

• Social media can be used to:– Promote your cause, mission & vision– Recruit volunteers– Create “buzz” for a special event– Sell tickets for special events– Support your other communications– Raise money for specific projects

• Social media policy– What is appropriate?– Picking the right channels

Social Media: Know Your Audience

Nonprofits on Facebook: Messaging & Visibility

• Best used for broadcasting and feedback, not fundraising, with some exceptions:

- Seattle Children’s Hospital has created personal Facebook pages for current and former patients where they can raise money for the hospital

• Donors now see the Facebook page as a “second website”

• No Facebook page = damaged credibility

Nonprofits Using Facebook Well: Cover Photo Example

Nonprofits Using Facebook : Images or Words – Choose Wisely

• Graphics make more of a visual impact for the user with greater potential for going viral

• Text based posts may reach a wider audience based on Facebook algorithms

Picture Sharing:An Image Is Worth a Thousand Words

• Best used for publicity, reputation building & volunteer engagement

• Examples: Flickr, Facebook Albums, Instagram• “Photo Booths” = New Sponsorship

Opportunity• Getting Permission to Use Photos

Ticketing Sites:The Next Era of Event Fundraising

• Costs: free events vs. paid• Benefit? Information and access! • Examples: TicketLeap, EventBrite, MeetUp• Do donors know where the money goes?• Ticketing sites take a percentage of each ticket sale or a

flat-fee per ticket, plus processing costs

Required Reading

• The Chronicle of Philanthropy: Philanthropy.com

• The Giving Institute: GivingUSAReports.org

• EHL Consulting Group E-Newsletter: www.ehlconsulting.com/newsletter

Final Thoughts

Engaging with stakeholders online is increasingly important for nonprofits, but should be

approached thoughtfully and strategically.

For More Information:

Website: www.ehlconsulting.com

Bob’s email: [email protected]

Facebook: www.facebook.com/ehlconsulting

Twitter: @EHLConsultGrp