The Giving USA Foundation/Giving Institute released its Annual Report on Philanthropy for the year ending December 31, 2008 in June of this year. Notably, despite the impact of the recession and arguably the most challenging economy since the Great Depression, total giving to charitable causes in the United States reached an estimated $307.65 billion.
The key finding here is that individual giving continues to account for the largest percentage of overall giving at 75 percent of the total. Individual giving is an estimated $229.28 billion, (down by 2.7 percent over 2007 with a -6.3 percent adjustment for inflation). Education organizations received an estimated $40.94 billion, or 13 percent of the total. Gifts to this type of organization decreased 5.5 percent with a -9 percent adjusted for inflation.
As fundraisers, the path is clear. Individuals represent our greatest opportunity for recovery and growth. That said, our methods of securing individual donations definitely deserve some scrutiny and consideration—especially in light of rapid-fire technological changes impacting the landscape.
Just how can we maximize individual giving? And what are the fundamental trends and challenges influencing the proven solicitation process?
Throughout my career, I have heard mentors chant, “People don’t give to institutions; they give to people.” It is a time-tested fundraising adage, and it defines the essential nature of one-on-one solicitation at the very heart of fundraising. The process of one person asking another to give is what fundraising is all about. One-on-one meetings and conversations are the moments where the school’s case for support is made most effectively with a blend of passion and hard facts. It is the personal relationships between volunteer solicitors and donors that generate funding and continuing support for institutions across the street and across the globe. Research, cultivation and stewardship are all part of the solicitation process, but nothing happens until—we ask.
As we learned from the game-changing success of Internet fundraising in the last presidential campaign, closed–door handshakes and smoke-filled rooms are anachronisms. One of the most remarkable aspects of the Obama groundswell was the return of grassroots participation—the return to people. That is, people reaching out—one to another—to ask for support. Whether online or on the front porch, people asked— peers and strangers.
The automation of the contact process was nothing short of amazing—phone scripts downloaded seamlessly to kitchen and dining-room computers all over the nation and people giving up their Sunday afternoons to attend calling parties with cell phones in hand. Real-time tracking reports updated party calling returns as it the volunteers were dialing—thus enlivening the competitive spirit along with the political passion for change.
This was the fruitful marriage of personal peer-to-peer power and technology.
Today, the world of online fundraising tools and platforms is evolving rapidly. Social media is a radical new milieu impacting the time-honored one-on-one tradition. Think about Facebook CAUSES with more than 33 million monthly active users and social action sites such as www.change.org. or www.care2.com.
Everyone is trying to figure out how the infuse electronic appeal with the authenticity of human emotion. Photos, audio, video—innovations are expanding exponentially. Charity:Water has used video as the medium for its organization’s message very effectively.
So, what are some other opportunities tools and methods? I am interested in learning how schools, universities, and institutions are absorbing these tactics. What’s working? What’s not? What’s changing? What needs to change? How can we best automate and streamline the peer-to-peer solicitation process?
In a world with so many demands on time and attention, we as fundraisers will be more successful if we can appeal to the behaviors and preferences of those making the asks—our volunteers, ambassadors, and emerging Gen X leaders of today and tomorrow.
Contact me at elgantz @ yahoo.com.
2 thoughts on “The New Peer-to-Peer Potential”
Check out http://www.givezooks.com Our social fundraising platform helps nonprofits raise more funds online and broaden their network of supporters, emulating the Obama model.
Great post. Another example of peer to peer influence is http://www.10beyond.com which lets people place a donation tag as part of their email signature and track their influence among their peers.