Changing the World with Social Media

Beth Kanter is always on the leading edge of social media adoption and integration. She is the ultimate nonprofit social media maven and was recently featured on Mashable. Here are some of her fundamental assessments of ways social media is shaping the nonprofit world: earth-day1

Giving the message intimacy and relevance.
A few weeks ago, the March of Dimes supporters came out in droves for a networked memorial service for a toddler named Maddie. The community raised tens of thousands of dollars for the March of Dimes in Maddie’s memory as well as covering the funeral costs for the family. The organization did little to stage this event. The March of Dimes has embraced openness and inspired their stakeholders to feel empowered enough to take action on their own.

Making birthdays matter.
Social media is enabling individuals to create, join, and grow groups around issues they care about. I love the way DonorsChoose providing a way to make birthdays a reason to give. And Stephen Colbert is setting the pace with “Birthday Give Back” . And as Beth says, keep an eye out for more social apps with a conscience that will offer even more creative ways for supporters to self-organize and take action around causes. As non-profits begin to engage their own communities in these online conversations, they are able to reach more people than ever before, and using less effort doing so. As Maddie Grant, a partner at SocialFish, observes, “We can all be change agents and that has to be good for the entire nonprofit industry, as long as organizations adapt to this new way of being part of a two-way conversation and groundswell of social responsibility.”

Integrating media.
An interesting example of crowd-sourcing by a nonprofit comes from Michael Tilson Thomas, artistic director of the San Francisco Symphony with the recent performance of the YouTube Symphony Orchestra. The performers were selected from thousands of video auditions from around the globe. The finalists were winnowed down by a jury of professional musicians, not unlike a traditional audition, but the winners were crowd-sourced by YouTube users via online voting. The resulting “mashed up” symphony orchestra, had more than 90 players representing over 30 countries.

Driving social change “in house.”
Danielle Brigidia, who is responsible for social media strategy for National Wild Life Federation , says “Internally, we have started to focus on cross-promoting our ideas and programs more thanks to social media tools like Yammer (internal Twitter).” Carrie Lewis, social networking strategist for the Humane Society of the US, observes how their Internet is now working differently. “We have daily 9 minute meetings. Short meetings have helped them be more efficient and effective with every aspect of social media campaigns.”

It’s going to be an exhilarating ride. Join us — and share your stories.

Clarifying Nonprofit Transparency

magnifyglass (2)Transparency is the media buzz word du jour—for our government, the Wall Street bailout, and for nonprofits. But I think the meaning and precise implications are a bit murky. Perhaps we need some transparent clarity? How does the call for transparency really apply in a practical way to nonprofits? As fiduciaries of organizations held in the public trust, how do we effectively translate the value for donors, development officers, and nonprofit organizations?

Guidestar.org recently conducted a study on nonprofit transparency. A review of 1,800 nonprofit websites revealed good news and bad news about the state of nonprofit transparency. In this context, Guidestar was actually assessing disclosure practices. They found that 93 percent of the nonprofits surveyed disclose information about their programs and services online.

However, they questioned the relevance of the actual data provided. The bad news was that only 43 percent posted their annual reports; 13 percent posted their audited financial statements, and a minuscule three percent posted their IRS letters of determination. Here are Guidestar’s steps for increasing transparency:

• Nonprofits should regularly update their websites with current, detailed program and evaluation information.
• In addition to posting names and titles of board and key staff members, nonprofits should post brief biographic information for these important leaders.
• All nonprofits should post these documents on their websites: annual report (if produced), audited financial statement (if available), copies of current and recent 990s, and IRS letter of determination.

And one additional note— if you use a third-party, social media tool to help you generate engagement and donations that is powered by Network for Good.org, http://www.networkforgood.org, be sure to register for Donor Tracking reports.

Whether you use Facebook Causes, or YourCause.com, it’s essential to know exactly who is making the contributions through the social media portals—giving you the opportunity to do proper stewardship and cultivation. And speaking of transparency, this is particularly critical with an organization such as Network for Good, which is technically a nonprofit organization, as well as a conduit for nonprofit giving. We as professionals must require full contact data disclosure on donors through these sources—including donors who have requested that their gifts be listed as anonymous—since we maintain the same vigilance about honoring those wishes for donors who make donations directly to our organizations.

What do you think?

Culivating Serious Online Relationships

Target Analytics, a Blackbaud company, recently released the 2008 donorCentrics™ Internet Giving Benchmarking Analysis. The findings confirmed that online giving is becoming an “increasingly significant source” of funds for nonprofit organizations. This is really no major revelation. The stats validate the results of the recent Presidential Campaign, as well as other research — including the 2008 AFP Survey, revealing that the only area of fundraising that tracked an increase over 2007 was online giving. Still, the challenge remains—how do you integrate online and offline fundraising channels to optimize long-term success for your organization? “With direct mail, the blueprints for success are well-known, but in this new multi-channel world everything is new and many strategies are still unproven.” said Rob Harris of Target Analytics.

Key findings from the 2008 Internet Giving Benchmarking Analysis:
• Online giving still represents a relatively small portion of donors and revenue at most organizations, but it is growing rapidly and is becoming an important source for new donor acquisition.
• Online donors are younger and have higher incomes than traditional direct mail donors.
• Online donors give larger gifts and, as a result, have a higher overall long-term value than donors to more traditional giving channels like direct mail, but they are less loyal in terms of repeat giving.
• The online giving channel must be an integrated part of an entire direct marketing program.
• Donors in the southwest and mountain regions of the United States are disproportionately more likely to give online.
• Differences in revenue per donor and retention rates between online and offline donors are consistent across geographical regions.

Interestingly, offline donors do not generally migrate to online giving, but online donors do migrate to offline channels in large numbers. Therefore, it’s important for your organization to have a donor “moves management” strategy in place to keep your online donors engaged and giving. It’s all about the relationship and potential donor value. One-time gifts are nice, but they will not do your organization any good in the long term, because online donors tend to downgrade—even disconnect when they move offline. Cultivation is key.

Other interesting findings:
• Even with its recent growth, online giving is still dwarfed by direct mail in aggregate.
• Online donors have a slightly lower retention rate than traditional donors. Perhaps it’s the difference in attention span?
• Online giving is not a strong renewal channel. Large numbers of online donors migrate away from online giving and to other channels, primarily direct mail.
• Direct mail donors rarely give online.
• Having an email address on file makes a positive difference in the giving behavior of offline donors.

Study background:
Over the past three years, Target Analytics held a series of annual meetings with twenty-four national nonprofit organizations on the subject of online fundraising. The primary purpose was to give each organization participating the information needed to benchmark its own online fundraising program performance against those of peer organizations—and to provide a forum for sharing best practices about online fundraising tactics and integrated marketing strategies.

How do you make the most of online giving?

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The meaning of social media for nonprofits and the wisdom of Sidney Poitier.

Every day at http://www.YourCause.com, I set out to make the world a better place by empowering nonprofit organizations. It’s an exciting, new landscape of trial and error; ups and downs; fits and starts — well, more fits than starts, particularly in the wacky world of a Web 2.0 start-up. Every once in while, I have the opportunity to be truly inspired, even electrified. I live for those moments. I had such an experience at the AFP International conference in New Orleans last week. Amidst the chaos and cacophony of more than 3000 “jazzed” fundraisers in the Big Easy, I witnessed communication at its finest, clearest, and most meaningful. Mr. Sidney Poitier, one our finest actors, commanded a room of thousands — with the clarity of his purpose and the weight of his presence.  His gravitas was magnetic–elegant, yet with an ease that comes with years of experience as a master communicator. This is a man comfortable in his own skin — and in his own head.  I could have listened to him speak for hours — riveted, in tears many times. The poignant authenticity and intimacy of his delivery were sheer magic — mesmerizing. He focused on those who had most impacted  his own life philanthropically — not through sweeping gestures and grand campaigns,  but through private, selfless, personal acts of kindness and consideration. And he overflowed with the gratitude that resulted from their sincere acknowledgment. Wow! What a privilege. “Philanthropy is the profound manifestation of the best in all of us.”  “Sometimes we need to take an honest look a how steady we are at the wheel of our existence.” – Sidney Poitier