Work Smarter, Not Harder With Online Fundraising

Nonprofit Web Fundraising Should Focus on Donor Relationships

Sep 14, 2009

Web Fundraising Leverages Technology, CJLUC

Tips from online donor communications expert Hillary New Sinclair of Papilia show how technology can advance fundraising even in a challenging economy.

“Let's face it: it's a tough economy, businesses are strapped, unemployment is high and overall Americans are saving for the first time in years. Nonprofits have to tighten their belts, be smarter about their operations and be more aggressive about generating interest and raising donations,” says Hillary New Sinclair, a vice president with the San Francisco-based agency Papilia.

Shift Focus of Online Fundraising

“Too many nonprofits only ask people for money, and the donors or prospective donors tire quickly and move onto another organization,” says Sinclair. But “when organizations successfully develop relationships,” things start falling into place:

"Prospects become donors,
Donors become repeat donors,
Repeat donors become advocates in helping attract new constituents,
More donations and awareness are generated, and
Organizations spend less time and money."

Nonprofits Embrace Technology for More Than Web Fundraising

“Nonprofits seem to be taking more and more advantage of technology as well as free services that exist to reduce both direct and labor costs, as well as court donors in a smarter way,” says Sinclair.

She notes trends in how organizations are using technology:

"Using free services like Salesforce to manage their data,
Spreading the word about themselves using Twitter and Facebook,
Reducing their dependence on direct mail and using email and the web to better communicate their message and generate donations,
Realizing that donors with an email address are more valuable- even if people still want to mail in their checks."

“Older donors are becoming more savvy online, emailing their kids and grandkids and sharing photos, so nonprofits are taking even more advantage of the benefits that online provides,” she adds.

As a result, the organizations realize “reduced costs, immediate access to news, trackable results, less staff time and effort. All of these make a huge difference to their mission and their bottom line.”

How to Get Started with Electronic Donor Communications and Online Fundraising

Sinclair has three main pieces of advice for nonprofit organizations not yet doing any kind of formal online communications or fundraising:

"Start now and use your assets. Have a snailmail address? Send a postcard to capture their email address. Have an email address? Start telling people the difference you make in the world. Have an event? Capture their info and email them right away. Get a URL and build a website, no matter how simple, and make sure it's searchable. There are plenty of solutions out there. Provide online donations and use some of the free tools available to spread the word about the difference you make in the world.
Capture an email address and use it! We see time and time again that those donors with an email address give 2x-10x higher gifts than those without, even if they still want to mail in their checks. Our clients entice folks online in many ways, such as giving them their tax receipts online in exchange for an email address. It works: they are delighted with access to this info, delighted that the nonprofits are being good stewards of their dollars and they are more valuable donors as a result of our ability to reach them online.
Test, measure and test again. So many organizations only look at the results from one letter, one email, one event. They don't look at the big picture about what each touchpoint does to the relationship or their overall metrics (acquisition, retention, average gift size, etc.). Test to find out what works (images, calls to action, copy, etc.). Then test again, as people will get used to certain tricks; you have to keep evolving."

By focusing on relationships rather than transactions, nonprofit organizations can engage donors in a meaningful way to increase donor loyalty and levels of giving. Better yet, using a donor-centered communications model as Sinclair suggests can translate into more time, dollars and effort for nonprofits to invest in the work of their missions.

The copyright of the article Work Smarter, Not Harder With Online Fundraising in Non-Profit Fundraising is owned by Molly Schar. Permission to republish Work Smarter, Not Harder With Online Fundraising in print or online must be granted by the author in writing.