Technology as an Accelerator

Not a Creator

Lisa M. Dietlin

President and CEO

Lisa M. Dietlin and Associates, Inc.

March 15, 2005

ePhilanthropyTsunami Relief

• $350 million raised online by all charities according to industry estimates for Tsunami Relief (as of January 8, 2005)

– American Red Cross raised $236.2 million with more than $84 million donated online

– Catholic Relief Services raised $41 million with more than $11.3 million coming in through the organization’s website

– World Vision USA received gifts totaling $29 million with Internet contributions accounting for $12.9 million

• $215 million raised online by 9/11 charities

Tsunami Relief Online Giving Trends

• Large percentage of relief agency financial support is coming via the Internet

• Majority of gifts are from new donors• More than half are asking not to be contacted

again by relief agencies• Nonprofit organizations of all sizes are

collecting relief funds online

How does Tsunami relate to everyday philanthropy?

• Donors are becoming more and more comfortable with giving online

• Online donations are one piece of the moves management cycle

• Large to small nonprofit organizations can capitalize on the Internet as a resource for fundraising

• Donors are more likely to respond to a clear and compelling cause

Online Giving Current Trends

• Making a solicitation online costs only 20 cents compared with $1 or more for each direct-mail or telephone solicitation, according to a McKinsey & Co. study published in May 2003.

• Only about 1% of total donations were raised online in 2002, though the Internet's share probably rose to 3% or 4% in 2003

• It is estimated that nonprofit organizations will raise 5-10% of their funds online in 2005

Online Philanthropy “Tips of the Trade”

Establish Web Presence for Your Organization• Building an online brand is just as important as an off-line

brand• Register your website with major search engines by

keywords

Cultivate Prospects through Integrated Online Efforts

• E-mail and Internet can support your other fundraising efforts• Find creative ways to link e-mail with driving more visitors to

the organization’s website• Keep your supporters informed, engaged and connected

Moves Management

An organization’s online efforts can help support every aspect of the Moves Management Cycle

• Identification • Qualification• Cultivation • Ask• Stewardship

Moves Management Cycle

Ask

Stewardship

Identification Qualification

Cultivation

Online Philanthropy “Tips of the Trade”

Know Your Contributors• What are visitors looking for in your website?

– Resource Center• Emphasize your mission and vision• How will an online gift make a difference?

Make Online Giving Enjoyable• Tribute Gifts, Contests, Interactive Capabilities• List specific areas in need• Profile online donors• Make online giving quick and easy

Online Philanthropy “Tips of the Trade”

Drive Traffic to Your Website• List your website on all publications and mailings• Use your website as a marketing tool

– Don’t let your IT department drive website strategy and content

• Offer the option for online giving with every fundraising effort• Offering online registration works well with events

Ethics, Privacy and Security• The highest standards are expected

Online Philanthropy “Tips of the Trade”

Build a Community• Communicating effectively takes time and resources• Utilize the Internet to cost effectively build a community of

supporters– Collect email addresses and contact information– Provide “opt-in” opportunities

• Think creatively when attracting new donors and improving stewardship

Remaining Current is Crucial• Create a schedule for updating and review• Remain fresh – users should learn something new every

time they visit the organization’s website

Online Supporter Perspective

• Is the organization legitimate?• Is my donation secure and private?• Can I ask questions?• Do I receive a confirmation or receipt of my

donation?• Is there contact information?• Will I receive acknowledgement?• How will my donation be used?• Can I receive further information?

Diversification is Key

• Embrace change

• Lay the foundation for baby boomers and the younger generation

• The Internet, email and other technological

tools are becoming fundamental in running an effective fundraising program

Assessment and Implementation

• Assess your Development Program• Determine how your organization can best

incorporate ePhilanthropy into your overall fundraising strategy

• Always be strategic• Assure proper stewardship for online donations• Online effectiveness is not always measurable,

benefits can be long-term and often aren’t directly correlated back to your organization’s online presence

Final Thought

“ How an organization reacts to technological change is a good indicator of its inner drive for greatness versus mediocrity.”

Good to Great

by Jim Collins