Is the online revolution passing you by
Jill Ruchel gets up on her soap box and wonders if charities understand that they are living through a revolution, and that if they don't board the online train now it may leave the station without them.
I was horrified that only about 25 charities attended Ted Hart's master class in online fundraising at the recent Fundraising Institute Australia (FIA) conference in Sydney.
Online is the fastest growing type of philanthropy. According to Ted Hart, it's now raising $20 billion around the world. Although this is only 1-2% of total fundraising, the issue is the speed at which that growth is occurring.
If you don't get on the boat, you'll miss it, or at a minimum be left churning in the wash.
Remember the charities that were far-sighted and bold enough to embrace face-to-face fundraising in the early 2000s These charities are now sitting comfortably on thousands, if not tens of thousands, of regular givers.
The charities that keep up with their donors' online use now - providing tools and opportunities to give - will be comfortable in five years time, when those around them are playing catch-up (again).
Donors in the driver's seat
That so few charities took advantage of Ted Hart's wisdom and experience on this issue was a sad indictment of Australian fundraising.
Internet usage in Australia has grown from 33% in 2000 to over 74% in December 2007, according to International Telecommunication Union.
Household access to the internet has grown from 16% in 1998 to 67% in 2007/08, an increase of more than 300%.
We need to appreciate that right now we are in the midst of a revolution. What is going on in information technology and the way it is transforming communication and social structures is tantamount to being alive when the printing press was introduced.
It is changing the power structures of our societies. It is giving power to the consumer - our donors.
The barriers to change are diminishing. Donors can switch charities and who they support in a heartbeat. They can scrutinise the activities of nonprofits in a way they never could before. They can compare the performance of different charities.
And they like to do things online. It's easier for them. And guess what They make higher average gifts online than offline.
This does not mean that charities should abandon other fundraising methods. But we have to respond to the demand to add this option.
If you haven't already done so, take a look at www.kiva.org. Kiva allows people to lend small entrepreneurs a maximum of $25 each. You get to choose who you give to. You get reports on their progress. The money gets repaid. The donor has control!
This is where fundraising is going, and if as a charity you're not heading there, you are way behind.
The future and peer-to-peer fundraising
I was heartened that Ted Hart's general conference session was packed to the rafters. There is hope after all. I was also cheered that the session given by Everyday Hero was full to overflowing - it seems fundraisers really do want to find out about online.
On that note, Sean Triner in his plenary session observed that face-to-face fundraising was the most successful mass acquisition channel in history.
I offer the view that online peer-to-peer fundraising will be next, as it capitalises on the extraordinary growth of online social media growth around the world, it transcends international boundaries, and the costs of entry by both the donor and the charity are low.
Roll on the revolution!
Jill Ruchel is the founder and managing director of Praxis Fundraising. Jill has been a fundraising consultant for more years than she cares to let on, and she specialises in copywriting, online fundraising and strategy.
F&P edition: Agenda e-bulletin - March 2009
Written by Jill Ruchel
