New Opportunities in Online Fundraising

Featuring:Economic Impact, Academic Research

Social Networking, Social Vibe, Widgets & Online Raffling

Presented by Professor Janine Jacques, Mount Ida College

Agenda Economy and Giving Online Donor profile Academic research Social Networking Web Metrics Social Vibe Widgets Online Raffles

Bureau of Labor Statistics consumer expenditure survey

Charitable Giving USA

Charitable giving reached $307 billion in 2008

A 5.7 percent drop from 2007 largest decline in recorded history

The second recorded decline since 1956 1974 donations dropped by 5.4 percent. Two-thirds of public charities receiving

donations saw decreases in 2008

Individual Contributions

Individuals contributions accounted for

$229 billion A decrease of 6.3 percent

Who’s doing well…

Religious congregations and other religious organizations received an estimated $106.89 billion

35 percent of total giving An increase of 5.5 percent Religious gifts averaged $284 Median gift amount was $75.

Who is not…

Social-services organizations raised 16 percent less than last year.

A poll of 228 such organizations (Giving USA) found that 54 percent reported an increase in need for their services in 2008.

Internet Opportunities

Websites Email Campaigns Social Networking Blogging Youtube Twitter Online Auctions NetRaffles

Online Giving

$15.42 billion was given online to US charities in 2008. This is a 44% increase over 2007's online giving estimates

Online giving accounted for just over 5% of total giving to charities in the US during 2008

A study of 1,350 nonprofits from Q1 2008 to Q1 2009 showed a 30% year-over-year growth in online revenue

AMEX Survey

About two-thirds (65 percent) of Americans in this study gave to charity in the past year

6 percent gave online The median charitable $50 Average online amount ($165) Average offline amount ($174) Two-thirds of donations were $100 or less 24% give between Thanksgiving to New Year's

Internet Giving Benchmarking Analysis Online giving is still small when compared to direct mail

giving. Online donors are younger and have higher incomes

than traditional, primarily direct mail donors. Online giving has become an increasingly significant

source of new donor acquisition. Online donors have slightly lower retention rates overall

than traditional donors. Online giving is not a strong renewal channel; every

year, large numbers of online donors migrate away from online giving and to other channels, primarily direct mail.

Donors in the southwest and mountain regions of the United States are disproportionately more likely to give online.

Online Audience

Communicating with different age groups online Email remains the most popular online

activity for older internet users (64+) Yet, email has loosing popularity with

younger generations (18-32) Generation Y (internet users age 18-32)

communicate through social network sites Teens use IM and Texting

Who is winning the fundraising race?

What’s the secret sauce?

Obama - Online Fundraising Success Campaign raised $750 million dollars $500 million of which was raised online Most donations were under $100 The average donor gave more than twice  80 staffers focused on new media:

Online content Outreach Social Networking Site

3 million Facebook followers 500,000 Twitter followers 13 million e-mail subscribers

Sam Graham-Felson, former director of blogging for Obama Have a blog (blogger.com) Hire a social media manager to craft content, email, and

social networking strategies More email addresses = more $$$. Focus on capturing

email addresses “Never point an email campaign message to your

homepage—send users to an action page.” Personalized page asking for a donation, a comment to a blog, download a newsletter, or contact a Congressman

Be personal, authentic, trustworthy. Remember Please and Thank you

Review Data Analytics

Katrina and Tsunami

Half of $487 Million donated to Katrina victims raised online

$252.5 Million raised online after Tsunami disaster

$5.83 billion, or 79% of disaster relief, contributed by individuals

Antecedents to Donations

Trust Perceived benefits Attitude towards Nonprofit Attitudes towards Nonprofit Organizations Attitudes towards helping others

Trusted Web Interface

‘Trust Engineering’ - Websites Usefulness Ease of Use Benevolence Competence Integrity Risk Reputation

Perceived Benefits

Direct benefits for themselves Recognition among their social groups Enhanced self esteem Relief from guilt Direct benefits for their family

New Opportunities - Viral Marketing Social Networking Sites - Facebook Widgets - FirstGiving Social Vibe YouTube Online Raffles - NetRaffle

Facebook

Fan Page Causes - audience they reach through

Causes is typically younger and are often first time donors

10 Ten Facebook Causes

Lupus Foundation

Increased Cause membership 584% in 6 months Increased online donations in Facebook by 790% in

the same time frame.

Facebook Insight

Social Vibe

Firstgiving.com

™ netRaffle.org

Celebrities for Charity launched netRaffle.org ™ in 2005

Internet based raffle system that utilizes patented methods and technology to enable celebrities and charitable organizations to legally conduct online raffles on a worldwide basis.

Benefits of Online Raffles

Proven to generate more money than online Auctions.

Exponential return on investment (Time, Energy, Money)

Everyone contributes, not just winner of an auction

Capture email addresses from all donors

5 years of netRaffle.org ™

Online raffles have consistently resulted in an average sale per transaction of $25.00.

Raffles can suit an size nonprofit and deliver Small, Medium or Large depending on the distribution, effort and prize.

Small

Cystic Fybrosis Washington Redskins $3,725

Courtside Celtics Tickets $4,010

Medium

Celtics Owners Opening Night $43,057

Evens Celts Luxury Suite $53,601

Large

JeRod Super Bowl Ring $169,931

One More Big Game $187,937

What we learned

Distribution Strategic Partnerships with Corporations Shorter Durations Social Networking Opportunities Remember the basics – Why people donate

Emphasize charitable giving Emphasize personal benefits (the prize!)

Prize

Produce a “Never in a Lifetime” Can you buy this prize anywhere for any price? If the answer is “no,” that’s a good start. The more

unique the prize, the more likely you are to get superior results

Professional Athletes or Hollywood Celebrity memorabilia or meet-n-greets

Where we are heading

Extra Large Raffles: Lincoln Park United State Equestrian Team

Packaged solutions Raffle-in-box Subscription based

An example of our vision…

There are 61 million golf enthusiasts in the world At auction a round of golf with Tiger Woods

raised $425,000 If just 0.5% of the 61 million golfers (305,000

golfers) purchase raffle tickets at the historical average of $25.00 per transaction, the amount raised would be $7,625,000.

The difference $7,625,000 - $425,000 = $7,200,000

The Raffle Process

Celebrities for Charity facilitates the raffle by: Using netRaffle.org ™ patented methods and

technology to conduct the raffle pursuant to its Massachusetts Charitable Gaming License

Managing all customer inquiries and technical support issues

Managing all legal requirements; including completing and filing the necessary tax returns and related tax payments

Facilitating the contact and delivery with the raffle winner

How to get started

Think of your prize Think of your distribution Contact NetRaffle.org

info@netraffle.org Celebrities For Charity Foundation, Inc.

38 Main StreetAndover, MA 01810