The New Peer-to-Peer Potential

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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.

What are you?

ElaineGantzWright’s blog is for people interested in using the Web and online marketing to drive social change. Elaine covers social media for nonprofits, philanthropy trends, online giving, cause marketing, random life musings, and more. Find out more at SocialFuse.

ringquestion I am the first to admit it. I am an anomaly—a distinctive amalgam of eclectic experiences and pronounced passions. I am a seasoned, accomplished professional, schooled in the most traditional marketing media techniques; but I have also journeyed to the cutting edge of the vast social media abyss. It’s largely uncharted territory for my brethren “of a certain age,” so carving out my professional niche while straddling disparate worlds, approaches, and generations can be a challenge.

In fact, I am still processing a recent conversation with a respected nonprofit headhunter in Dallas. The silver-maned, super-savvy staffing pro peered over his polished tortoiseshell reading glasses, took a breath, and asked, “So, Elaine, what are you?” The silence was palpable. I’m thinking in my rattled brain things like—single mom, daughter, job-seeker, brunette, social media consultant, and . . . derailed.

He continued, “So really, are you a fundraiser, or are you a marketer? Which one? I think you need to decide.” My first reaction to that was, “Well, of course, I’m both, and that is the value that I bring to my clients and my employers.” I’m not sure he bought that, because he added, “Well, you have to understand that my client needs to churn out hundreds of funding proposals.” I think he was just a product of his context—his pre-Web 2.0 consciousness.

All weekend, I have pondered that three-hour conversation and its many nuances. Lots of food for thought as he expertly excised ever decision I have ever made since age four. Invasive yet thought-provoking. Later, I mused that I really do hate labels, but I understand they are a necessary evil in the recruiting biz—especially with this economy with such a buyer’s market. But, I suspect I do have to address the question—what (or who) am I, anyway? And what is it I am on this earth to accomplish?

I know I have I entered the social media space for a reason—even though I am not your typical demographic for the job. And I believe more strongly than ever that social media is becoming the new norm and the essential vehicle for product and service communication—whether it’s for nonprofits or for-profits. It’s merging the accepted definitions of marketing, sales, public relations, market research, customer service—and even fundraising for nonprofits.

socapThe recent Socap 09 Conference is a salient example of this invention and innovation. It exemplifies our morphing toolbox for addressing social needs. The whole realm of social enterprise fascinates me. Though the concept of the “social entrepreneur” may even seem like an oxymoron to some, it’s the emerging reinvention of society’s approach to achieving results in the social sector—a new way to think about ROI and change the world.

Socap09 in San Francisco brought together a unique mix of the world’s leading social innovators—traditional investors, impact investors, social entrepreneurs, philanthropists, new media evangelists, NGOs and nonprofits, wealth managers, development agencies, venture capitalists, MBA students, and other groups interested in the growing opportunities related to social capital. These folks account for a new breed of philanthropist—the social catalysts. Last year’s conference gathered more than 650 leading global investors and entrepreneurs from 26 countries. This year’s sold out again and featured speakers from the Skoll Foundation, Food Inc, LINKtv, Invisible Children, Global Giving, the World Economic Forum, Virgance, Kiva, Change.org, Ushahidi, McKinsey, The Economist, and many others. The opening keynote will be given by Sonal Shah, director of the White House Office for Social Innovation.

Founder Kevin Jones said, “In these turbulent times, social innovators in the public and private sectors, from foundations to social venture funds to development agencies to grassroots Web 2.0 activists, are working together to build a new economic foundation for the world.”

I heard about one panel that particularly intrigued me. Having worked with a fledgling cause website, I know this space can be tricky and challenging. “The Future of Social Innovation on the Web” panel was facilitated by Dennis Whittle of Global Giving and featured Premal Shah of Kiva.org, Jonathan Greenblatt of Our Good Works, Steve Newcomb of Virgance, and Ben Rattray of Change.org.

Beth Kanter attended and interviewed several of these guys after their presentation. She reported that Premal talked about the need for creating “magic for users” and building in workflow software that actively facilitates relationship-building through a clear process of engagement. In talking about the next Web transition, he said, “If Web 1.0 is about one-way communication, and Web 2.0 is about two-way communication, then Web 3.0 is about building a bridge between two-way online communication and offline actions and impact.”

Ben Rattray commented on the effectiveness of social media platforms—now and down the road:

“The vast majority of social good platforms have failed because they have modeled social-good platforms on commercial applications. We assumed that if we created a generic platform that people would start their own actions. They don’t. It isn’t as easy to throw up an action on the web as it is to throw up a video. The vision is to provide a platform for collective social action, so it is easy for people who care about an issue to connect. There must be catalytic organizations. If you build the platform, will spontaneous organizing happen? No! Synthesis of grassroots organizations is needed to channel social change.”

And from Premal Shah:

“Kiva is at the intersection of money and meaning. There is going to be a socially responsible investment. There is a third access – it is not about ROI or social impact. It’s the user experience that drives adoption. Never underestimate something that is fun and has short feedback loops. If we want people to engage, it has to be easy, fun, and addictive. Return on experience versus investment.”

Clearly, the line between for-profit and nonprofit is blurring. It’s less about “what you are,” and more about what you can achieve.

Stay tuned, hold on tight, and think about it . . .
“What are you?” or better yet, “What do you want to be?”