Growing Philanthropy Part 3: Identifying New Audiences, Channels, and Forms of Giving with Strong Potential for Growth

Encourage the adoption of monthly giving. Monthly giving has so many benefits for charities and donors that I am always amazed at how few nonprofits promote this option. Per Sergeant and Shang, the lifetime value of supporters giving in this way is estimated to be 600 to 800 percent higher than "non-sustainer" donors. They note that younger donors prefer monthly giving because it is considered more convenient and environmentally friendly, requiring less renewal and reminder mailings. Donor retention is far higher for sustaining donors as well. It's a no brainer.

Improve the sector's engagement with young people. Promote giving at an early age and help develop a "giving habit". Utilize new digital media such as digital applications, virtual environments, gaming platforms, and social networking. Find ways to make it easy, affordable, and enticing to include them in the philanthropic process.

Encourage and promote best practices in social media. Traditional giving channels still significantly outperform online giving, and social media accounts for only just over 10 percent of that small portion. Nonetheless, social media has a huge potential to greatly increase a supporter's engagement, and engagement is the key to healthy giving. Social media also has the potential to build donor commitment, trust and loyalty. But it must be done well. This is a great opportunity for an astute nonprofit since so much social media based fundraising is done so poorly.

Encourage asset-based giving. 93 percent of American wealth is made up of stocks and non-cash assets such as real estate, business interests, and personal property. Charities are "missing the boat" if they are solely focused on chasing the 7 percent cash available. Provide easy means for donors to contribute asset-based resources.

Improve the quality of bequest fundraising. Although 80 percent of Americans will support the nonprofit sector during their lifetimes, only 8 percent will provide for charities in their estates. Sergeant and Shang believe part of the challenge is that charitable bequest solicitation has been relegated solely to the planned giving departments at nonprofits. They suggest that soliciting bequests should receive wider and broader communication and informational materials be accessible and employed by all staff.

Leveraging companies to promote philanthropy. Since many individuals spend most of their waking hours at work, provide opportunities in the workplace to educate employees about charity missions and outcomes. It must be more than simply a card table and brochures set up in a lobby. One nonprofit had launched a campaign to address obesity and set up a fajita bar at a local business to teach workers how to prepare healthy fare. They effectively hammered home their brand, their goals, and addressed latent objections such as proper dieting is no fun.

Although Sergeant and Shang's report included other recommendations, they concluded with this insightful statement, "Instead of viewing donors as a source of revenue and maximizing the value of that relationship, they (nonprofits) need to focus more on the individual and the articulation of that person's philanthropy. Only when we stop asking for money and instead ask for individuals to reflect on their own philanthropic identity will the needle truly be moved on giving."

Let's move the needle.

Thinking Outside the Box: Donation Payments

I don't know about you but I don't keep a lot change -- or even cash -- in my pocket any more. I use my discount debit or cash rewards credit cards nearly exclusively. Recently, I have been wondering how that might affect charities that depend upon "point of sale" or impulse contributions.  How has that adversely affected an organization such as the Salvation Army and their extremely lucrative Red Kettle program. Even though Red Kettle contributions exceeded $147 million in 2011, how much revenue was lost because people don't have as much loose change?

Well, the Salvation Army isn't taking any chances and last year started using a device that can be plugged into a smart phone, an iPad, or an Android device and accept credit card donations on site. A volunteer can take a contribution with his left hand as he continues to the ring the kettle bell with his right. It is called Square and it was developed by Jack Dorsey, the fellow that created Twitter. Unlike the clumsy credit card machines that could barely be jerry-rigged on a remote site, Square is really simple. Plug the Square device into your smartphone's headphone jack.

You can then swipe your donor's card, punch in the payment or donation amount, and have the donor sign the touch screen. Done!

Pretty cool, huh?









There is another device that might just be a boon to nonprofits unwilling to leave even the smallest contribution on the table. It is called DipJar. DipJar was developed in 2008 by another enterprising entrepreneur, writer, and (aspiring) academic named Ryder Kessler. As the story goes, Kessler was at his favorite coffee house and remarked to one of the baristas that although the place was "crazy packed" that night, the tips must make up for the mayhem. He was shocked to learn that this wasn't the case and that gratuities had really plummeted in recent years. Apparently, few patrons had much pocket change since they were making their beverage purchases on plastic. Well, as any brilliant entrepreneur would do, Ryder decided that this problem needed a solution. Hence, DipJar was created.

DipJar is particularly spiffy because it blends high-tech with high-tactile. Its design is simple and familiar. Slide your card into the opening just like dropping a tip into a cup. DipJar is set up to accept $1 dollar donations for each dip or swipe but it could be modified to charge different amounts.

How could you use tools such as these to advance your fundraising? Let me know about great, outside the box ideas.




*Thinking Outside the Box is an occasional post about innovative possibilities in fundraising.

Old Charity. New Technology.

According to the Associated Press, the Salvation Army set a record for donations generated by their ubiquitous "Red Kettle" fundraising efforts this past holiday season. Bell ringers attracted $147.6-million dollars eclipsing the $142-million dollar record set in 2010. More than $41-million dollars were collected outside Wal-Mart and Sam's Club stores alone!

The Salvation Army has been collecting donations with their red kettles since 1891, but don't think they are stuck in the past. Recently, they have launched two "virtual kettle" programs. Now, individuals, teams, or corporations can host their own Online Red Kettles. Using Salvation Army web-tools, supporters can build a personal Online Red Kettle page, upload an address book, and send email invitations that encourage friends and family to support the cause.

Additionally, the charity introduced an option to make credit card donations on-the-spot using mobile payment technology through a Salvation Army representative's smartphone. The Salvation Army is the biggest nonprofit to adopt mobile payment technology offered by Square Inc. 

There are a couple of interesting lessons that can be learned from these initiatives:

• A 147 year old organization can learn "new tricks", particularly if they focus on the needs of the donor.  Major George Hood, the charity's spokesman stated, “A lot of people just don’t carry cash any more. We’re basically trying to make sure we’re keeping up with our donors and embrace the new technologies they’re embracing.”  Three cheers to the Major and his associates!

• A lot of small donations sure add up! Don't underestimate the impact of volume. Considering that the average kettle gift is less than $2.00, amassing $147.6 -million is an achievement that might understandably be considered totally unrealistic if a charity hadn't just gone out and done it. 

I look forward to seeing what the Salvation Army does next.