INSIGHTS
- Some digital donation strategies used by large US non-profits include e-campaign programs, Crowdfunding, direct messages to targeted groups, multi-platform social media posts, updating supporters, and online strategic communication among others.
- People who use Amazon Alexa are now able to donate to almost 50 charities using this voice-based technology.
- More Americans are using smartphones and tablets to make charitable donations with a report showing that 20% of all donations through PayPal used mobile devices in 2015.
OVERVIEW
Our extensive research showed that large US nonprofits, including Caring Bridge, Go Fund Me, Save the Children, and St. Jude use digital donation strategies. Some strategies in use
include e-campaign programs, Crowdfunding, direct messages to targeted groups, multi-platform social media posts, updating supporters, and online strategic communication. We present our findings below.
include e-campaign programs, Crowdfunding, direct messages to targeted groups, multi-platform social media posts, updating supporters, and online strategic communication. We present our findings below.
SOME FACTS ON US CHARITIES AND DIGITAL FUNDRAISING
Below are some facts showing that digital fundraising for charities in the US is on the rise. While charitable giving in the US increased by 1.6% overall, online charitable giving, on the other hand, increased by 9.2% which shows that donors are adopting online giving. 14% of all online donations are done via mobile technology with 20% of these being done during events.
Reports also show that online donations are preferred by first-time donors with 71% of all online giving being from first-time donors. The use of flexible platforms has increased opportunities for non-profits to fund raise using multi-channel campaigns like Peer-to-Peer (P2P), events and giving days.
In terms of online donations to charities in the US, the following statistics were reported. The most popular causes for online giving from February 2017 to February 2018 were human services at 89M, education at 45.4M, and healthcare at 39.9M. The total amount given to charities grew by 4.1% in 2016, and in 2017, this amount was expected to go up to 4.6%. In 2016, Americans gave a total amount of $389.05 billion towards charities. This was an increase of 4.2% from 2015. In 2016, the largest charitable givers were individuals at $281.86 billion which was 72% of the total giving; foundations at 15% with $58.28 billion, bequests at 8% with $30.36 billion, and corporations at 5% with $18.55 billion.
SPECIFIC DIGITAL DONATION STRATEGIES USED BY NON-PROFITS
CUSTOMIZED DONATION PAGES
Caring Bridge is making use of customized pages in their fundraising efforts. For example, they are using people ailing from certain ailments whereby they explain the person's story in detail and then invite donors to make donations through a GoFundMe page. Caring Bridge also implements a robust testing strategy on their website to optimize results which in turn improves donor conversions.
USE OF SOCIAL MEDIA
Charitable organizations are making use of social media platforms whereby they make use of email contacts and direct messages on social media accounts to solicit donations through GoFundMe. They actively add people as followers and friends on social media accounts and then send them personalized outreaches through text messages, email, and even direct messages on social media. They update their accounts on Facebook, Instagram, Twitter, LinkedIn etcetera, add more friends and then share the GoFundMe link with their network.
Whereas direct mail targets the older generation, social media sites like Snapchat appeal to younger generations including teenagers. Big charities like Concern have successfully used social media to come up with innovative ways of attracting donations. The Big Give for Autism, a charitable organization has also seen exponential growth in donations through the use of social media channels.
DIRECT MESSAGES TO TARGETED GROUPS
Non-profits are making use of direct messages to targeted groups of people. This is done through emails, phone calls, text messages, Facebook posts, or even private Facebook messages. They explain to their target groups why the campaign is important and why it should be funded. They also request their target groups to share with their networks as well.
USE OF MULTI-PLATFORM CHANNELS
Due to the fact that people are online 24/7 these days, the use of multi-platform channels is very appealing for fundraising. This is where charitable organizations embark on sharing their fundraising updates across multiple platforms instead of just using one of them. For example, on Monday, they could share on Facebook while on Tuesday they may send a fun post on Instagram. This ensures that they do not overshare anything on one platform.
Forgotten Horses Ireland charity has successfully used Facebook campaigns to raise funds for mistreated and neglected horses. Save the Children charity also actively raises funds through multi-platform channels like Facebook, Twitter, Instagram, and WhatsApp among others.
UPDATING SUPPORTERS
The best way for charitable organizations to engage with their supporters is to post updates frequently for the sake of building and maintaining donation activity platforms like GoFundMe. Regular updates can be done online to thank their supporters, share personal stories or quotes regarding the fundraising situation, in addition to sharing recent news, photos and videos.
CROWDFUNDING
Crowdfunding has become a popular way to raise money for special projects. Currently, there are technologies and online registration systems designed specifically to support crowd-sourced events. Many organizations support and engage major donors from crowdfunding events. These events engage donors from all ages.
Crowdfunding has become very popular in recent years for online fundraising for charitable organizations. For example, an online fundraising platform raised over €2.7 billion in seven years for various causes through crowdfunding. The crowdfunding initiatives can range from personal to community-driven events raising thousands of dollars every day. This way, non-profit organizations make use of the generosity of donors who are willing to donate to worthy causes.
STRATEGIC ONLINE COMMUNICATION
Save the Children charity has successfully made use of strategic communication to increase the length and visibility of their campaigns to large masses of people. The organization has focused on social media as the main means of communication. They have followed this strategy to make sure that a message gets to thousands of social media users instantly. They also encourage their users to like and share posts.
Save the Children is also very active on social media platforms. They actively drum up support for fundraising through online strategic communication where they ask people to not only get involved but to also engage with their friends to maximize the outreach.
USE OF VOICE-BASED TECHNOLOGY FOR FUNDRAISING
People who use Amazon Alexa are now able to donate to almost 50 charities using their voice. This is after a new feature was launched by Amazon with an aim of making charitable giving much easier. Alexa Donations, "allows users to donate up to $5,000 to the charity of their choice by saying, "Alexa, I want to donate to [charity name]" within earshot of the digital assistant."
Payments are handled through Amazon pay and no set up is required on the donor's side. Some US charities that people can donate to using this voice-based technology include ProPublica, St. Jude Children’s Research Hospital, Doctors Without Borders, and The American Cancer Society.
ROLE OF MOBILE DEVICES ON DONATION ACQUISITION
As more and more people make use of mobile devices to shop, more Americans are using smartphones and tablets to make charitable donations. This is due to the fact that donating to charities has been made easier through the use of mobile technology. Reports show that 20% of all donations through PayPal used mobile devices in 2015.
Mobile donations are not only convenient but also produce immediate receipts which can be used for tax deduction purposes. Mobile devices are no longer optional, and it is the consumers themselves who are driving this behavior. Many companies are now making it easier for donors to donate using mobile devices by developing new apps. This development is critical to the success of fundraising, and non-profits must adopt it to succeed in this area.
CONCLUSION
This report discusses the various digital donation strategies of non-profits including e-campaign programs, Crowdfunding, direct messages to targeted groups, multi-platform social media posts, updating supporters, and online strategic communication. The use of voice-based technology and mobile technology in fundraising has also been discussed.