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Fundraising on the Internet: Finding Dollars Requires More Sense

According to the Canadian Centre for Philanthropy, the number of registered charities in Canada, currently standing at 76,000, will increase by over 1500 per year, for the next several years. That increase in demand for donor dollars has already caused average response rates to fundraising initiatives to drop from four to one and a half percent. The Internet can play a critical role in linking people and organizations with worthwhile causes. This week we take a look at some of the proven ways online technology increases the effectiveness of fundraising. We also provide a list of links and resources to assist any organization in their fundraising efforts.

At first glance, the Internet looks like it could be the fundraiser's dream. After all, online technologies can help you promote your worthwhile cause around the world, almost instantly. As a result, it would seem that Internet technologies could also dramatically reduce the costs of finding prospects and collecting funds, usually associated with direct mail campaigns. While online fundraising may still be in its infancy, effective campaigns have demonstrated the application of today's technologies to proven core fundraising principles.

PRINCIPLE: Fundraising needs to be integrated into an organization's overall strategy.

Before taking your fundraising to the world, carefully consider the mandate of your organization. The short and long-term costs of building and sustaining an effective web presence need to be weighed against the benefits of raising your organization's profile. At a minimum, fundraising activities need to be linked to broad organizational initiatives such as community education and membership drives.

PRINCIPLE: Both online and offline fundraising initiatives need to be integrated.

Messages have most impact when they appear in different media. For example, an agency's hard copy newsletter or communications at special events, can spread the word about upcoming online chat rooms and board meetings. At the same time, success can be increased by repeating fund development messages on the Internet at relevant and high profile websites. For example, organizations can highlight fundraising campaigns at webmalls such as Charity Village. Organizations can also link together with like-minded organizations in order to reduce the costs of banner advertisements. Online auctions can also provide profile-building opportunities that span many websites and media.

PRINCIPLE: Fundraising requires building meaningful relationships with donors.

Today's fundraising efforts also determine the effectiveness of tomorrow's campaigns. The long-term nature of fundraising means emphasizing relationships with existing and prospective donors. Developing such relationships requires getting to know donors well. Campaigns should use web technologies to collect, maintain, analyze and update information about donors and website cruisers. Basic, but worthwhile demographic information includes: age; income; sex; other favourite charities; comfort with technology; time using new technologies; concern with Internet security; and interest in receiving regular announcements.

Internet technologies also allow for providing donors with as much, or as little, information as they want. For example, you might provide donors with the opportunity to establish their own web page along with a schedule for receiving updates on causes, campaigns or changes in your organization. Alternatively, your website might notify donors of changes to your page. Another technique includes assigning an identifier that automatically generates a personalized greeting for donors and/or visitors whenever they return to your website. Finally, auto reply messages ensure that any request for information is instantly answered. This reduces the chance for would-be members/donors to become frustrated with the lack of attention or interest in their questions.

PRINCIPLE: Donors want to know what's in it for them

Every successful fundraising campaign provides something for donors. The challenge becomes identifying these benefits. Donors are people who share a real concern for a cause. Establishing an online chat facility can help bring these people together in an anonymous and safe environment. Such a forum can be a real benefit and help you to uncover future donor needs. Other benefits for donors that might be identified include opportunities to acquire merchandise, invitations, special draws, and reductions in membership fees. The Internet also offers an excellent venue for organizations to profile those donors who wish to be publicly acknowledged for their support.

PRINCIPLE: Make it easy for donors to give

The decision to donate can be a tenuous one. While the donor knows that they will experience satisfaction once their donation is complete, there is often a moment of hesitation. The easier it is for a donor to make their donation, the shorter the time of hesitation and the sooner is the feeling of satisfaction. Internet technologies, when applied strategically, can shorten this time.

Web sites that are designed for the effective collection of donations consistently make giving easy. First, the click through process is streamlined so that donors don't have to hunt for where to donate and are not asked to repeat information. Second, they provide forms and payment methods that are familiar and leading edge. Third, they remove any doubt about the security and privacy about the information being collected. Finally, a frequently used feature is the sending of e-mail reminders periodically to tried and true donors.

The New Measures of Success

Fundraising campaigns are ultimately judged by how much money they raise. But, fundraising on the Internet adds two more criteria for success: the amount of webpage traffic generated by the campaign, and the quality of feedback received from existing and prospective donors. Only by using all of these measures, can a fundraising campaign take advantage of the most substantial difference between online and traditional fundraising: the opportunity to maintain on-going involvement with donors. And only by using proven fundraising principles can such campaigns hope to compete for the ever-shrinking donation dollar.

Fundraising Resources

- Philanthropy Journal Online
- Fund-Raising.com
- Fundraising Online
- The Virtual Warehouse
- Canadian Centre for Philanthropy
- National Society of Fundraising Executives

Books

Fundraising on the Internet: Recruiting and Renewing Donors Online
by Nick Allen (Editor) (1997)

Fundraising: Hands On Tactics for Nonprofit Groups
by Peter L. Edles (1992)

Games for Fundraising
by William N. Czuckrey (1995)

How to Raise Millions: A Guide to Fundraising
by Carolyn Farb (1993)

Keep the Money Coming: A Step-By-Step Strategic Guide to Annual Fundraising
by Christine Graham (1993)

The Law of Fund-Raising (Nonprofit Law, Finance, and Management Series)
by Bruce R. Hopkins (1996)

Raising Big Bucks: The Complete Guide to Producing Pledge-Based Special Events
by Cindy R. Kaitcer (1996)

User Friendly Fund$Raising: A Step-By-Step Guide to Profitable Special Events
by Warren Williams (1994)

Directory of Fund Raising and Nonprofit Management Consultants
by Janice W. McLean (1992)

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