SOCIAL MEDIA [PDF]

FUNDRAISING & MARKETING WHITEPAPER

Last revision March 4th, 2015.

Social Media and the Future of Fundraising

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For many years, fundraising has been conducted through mediums such as mailing and telemarketing. In recent years, fundraising has expanded online in the hopes of raising contribution levels amongst its millennial population. Over the next decade, the industry will see a contribution gap between Generation X and the Millennials, and eventually an overall decline in fundraising efficiency. The use of landlines and physical mailings for fundraising efforts will become archaic – which leaves social media as the only option in securing the future of fundraising.

The discussion of social media and its applications in fundraising is nothing new. Many organizations have shied away from the opportunity to expand online, while others have slowly begun to accept it. Glasspockets, a philanthropy transparency group, conducted a survey in which they gathered information regarding social media and its use by fundraising foundations in the United States. They found that 45% of foundations utilize social media, but 71% of those foundations do not have a properly developed social media strategy.1 Along with this information, the organization gathered data on which social media platforms foundations use. It turns out that Facebook is the most popular with 65% using, then Twitter with 40% and YouTube with 32%.2 This same survey found that out of the organizations using social media, 74% found social media helpful in furthering philanthropic work online. This entails personal involvement and financial giving.

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Glasspockets Survey (http://glasspockets.org/glasspockets-gallery/foundations-and-social-mediainfographic) 2 Ibid.


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The issue present is the fact that, out of the 1.5 million fundraising organizations within the United States, only 675,000 involve themselves with social media. From those same 675,000 organizations, only 196,000 actually have a fully developed social media strategy. The development of social media and its application in social marketing becomes an absolute necessity, given the strong movement towards online-everything. As the millennial generation moves closer to handling almost all aspects of professional life online, there will be a significant decline in traditional fundraising efforts. Over 41% of millennials currently do not own a landline.3 Looking at physical media sales in 2013 as an indicator of the desire for physical products, CD sales dropped by 13%, while digital formats increased by 9.1% - correlative evidence that physical mailings are also in decline.4 With an inevitable, overall decline in traditional fundraising tactics on the horizon, there needs to be a remedy to this problem. Through technological advancements and the birth of the internet, millennials have caused this industry to turn upside down in a matter of years. That’s why social media is this industry’s ultimate salvation.

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AARP “12 Things Millenials Refuse to Do” (http://www.aarp.org/politics-society/history/info-082013/12-things-millennials-refuse-to-do.html#slide3) 4 Hubspot “Adjusting Traditional Marketing” (http://blog.hubspot.com/marketing/adjust-traditionalmarketing-tactics-millennials-var)


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Developing a greater social media presence becomes the only option available for fundraising organizations. Throughout the next decade, fundraising will drastically change due to this rise in a millennial audience. For example, there has been more innovation in technology in the past 10 years than at any point in history, and it all began with word processors on 64K IBMs instead of typewriters. Social media will have an incredible impact on the fundraising industry, due to the fact that it cultivates a whole new genre of online giving.

As social media is approached in-depth, the numbers become a critical focal point when deciding to run a large fundraising campaign. Traditional go-to campaigns have involved physical mailings, telemarketing, and a small percentage of online advancement. Now, new campaigns must place high priority on social media and online advancement, with mailing and telemarketing as the minor percentages. Arguably, the decline in mailing and telemarketing will start out slowly over the next few years, since Generation X will not be gone over night. But the process must start now in order for fundraising organizations to be able to absorb the shock when the turning point comes. By 2020, there will be a significant decrease in the effectiveness of mailing and telemarketing, and every organization will want to be prepared, or else risk major depreciation in fund results. As a proposed solution, the following outline will guide any organization in the proper direction for successfully initiating a social media development campaign and eventual marketing strategy. In regards to bringing fundraising initiatives online, research from The Millennial Impact Report of 2012 shows that 55% of millennials prefer social media as a way


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to learn about and get involved with organizations. In fact, 92% have “Liked” (and eventually shared) organization pages on Facebook.5 First: Consider the Campaign. It’s important to think through the fundamental elements of the fundraising campaign before diving into social media. What are the goals? Who is the target audience? Learn where organization donors, advocates, and volunteers are and what social media platforms they prefer. Start the conversation there, rather than trying to be everywhere at once. Second: Customize the Message. Each social media channel is unique, so posts should be written to fit each specific audience. Don’t apply a “cut and paste” approach over different platforms. Instead, customize each post to fit the channel. For example, Twitter has a limit of 140 characters per post so brevity is a necessity, Instagram is all about pictures and imagery, and there will need to be videos created in order to use YouTube. Third: Be Engaging, and Engaged. Social media is a two-way street, so keep in mind once the journey begins, there will need to be someone at the wheel monitoring conversations. Every interaction with a donor should receive a response, even if it’s just to acknowledge thanks. Get even more involved in the community’s conversation by sharing and retweeting all influencers’ posts and links. Find companies and organizations you want to align with and join Facebook and LinkedIn groups and Google+ communities they are involved in. Fourth: Experiment with Different Types of Content. Try different approaches to see what works. If there is a particular day of the week, time, or type of post garners more response, continue in that direction. Pay attention to feedback received from followers and adjust any posts to fit what inspires or engages them. Most social media platforms now include some type of free analytics that can be used to gauge response and measure effectiveness.

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“8 Ways to Boost your Nonprofit Fundraising” (http://www.frontstream.com/8-ways-boost-nonprofitfundraising-using-social-media/)


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Fifth: Convey Urgency. Social media is all about the present. Provide real-time updates on the progress of each campaign and how far away it is from meeting their individual goals. Seeing a post that says there is less than a few hundred dollars to go could inspire someone to pull the trigger on donating to help cross that monumental mark. Sixth: Focus on Impact. Use social media to thank donors and volunteers for their contribution and let them know specifically how their gift will be used. Let them see the real impact of their donation by breaking it down to show the results (i.e. “For each $50 that is donated, we can buy 5 pairs of shoes for children in need.”) Consider creating a thank you video using testimonials from those receiving the benefits of the campaign. Spotlight volunteers and donors to showcase their stories and why participating in the organization’s cause is an important part of their lives. Seventh: Include a Call to Action. Don’t forget to add a call to action in some of the social media posts asking all followers to take the next step. Chances are, they want to help share the organization’s story, but they might need a reminder such as “click here to donate now”, “share this”, “help spread the word”, or “get your tickets here”. Eighth: Turn a Network into an Army. All the hard work that goes into building a successful network of real-world volunteers, donors, and ambassadors can translate into a similar approach for fundraising efforts via social media. Invite followers to chime in with their ideas and testimonials. Encourage them to raise money or promote a campaign through their own channels. Contests are great ways to drive participation and expand the organizaiton’s network of contacts. By asking people to share a campaign, you are increasing social exposure since their own friends and followers will become aware of the organization’s efforts. Social media can be used as a powerful tool for nonprofit fundraising. Remember to be conversational and not too strong. Focus on creating a conversation around the campaign that people will share.6 6

“8 Ways to Boost your Nonprofit Fundraising” (http://www.frontstream.com/8-ways-boost-nonprofitfundraising-using-social-media/)


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While contemplating a development in the organization’s social media outreach, it is important to consider the benefits to both the organization and its contributors. The organization, Nonprofit Tech for Good, released data in June 2014 regarding fundraising, social media and mobile technology.

Source: Donor Drive.

They found that a clean and responsive website design doubles giving on mobile devices. Millennials seek mobile websites that are convenient and easy to use – those which get them to their destination within a matter of taps. Minimally invasive sites with a clean, crisp design which renders appropriately on all popular mobile devices would greatly add to the contributory factor.


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Among the website responsiveness, custom-branded donate pages nested inside a nonprofit’s website raises 6X more money than an average or poorly branded giving portal. Currently, many contribution portals end up displaying very basic forms which blandly ask for user giving information. When the effort is made to show more personality on the giving page, these results can be seen.

Source: Network for Good Digital Giving Index.

Proper design consultation for an organization’s giving portal is advised, especially aided with the input from a millennial designer or consult. The design process can vary based upon one’s age, personality, and design portfolio.


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Interestingly enough, Blackbaud found that in 2013, online giving grew by 13.5%. Projecting that growth forward, even with a reduction of 10% growth for each year, that places a 50% increase in online giving within the next 5 years, and 100% in the next decade.

Not to mention that, compared to online giving, overall giving increased by 4.9%. This includes mailings, telemarketing, as well as minor emailing (not many major email campaigns currently exist in the fundraising industry). In addition to everything, we see that small organizations had the greatest potential in growing their online giving platform, with an 18.1% increase in faith-based organizations. Finally, out of all charitable giving in 2013, online giving accounted for 6.4%. Taking the projections from before, means that online giving through social media will have a minimum market share between 15.09% 20.01% by 2025. Although if one factors in the rate at which social media is growing, around 14.8% annually, according to eMarketer that number jumps closer to 25%.7 Considering the direction fundraising will be taking over the next decade, a total market share will be split between social media (25%), email campaigns (50%), and telemarketing (25%). 7

“Social Media Growth Rate” (http://www.emarketer.com/Article/India-Leads-Worldwide-SocialNetworking-Growth/1010396)


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Ultimately, the applications of social media marketing in the fundraising world are of critical necessity to the survival of the industry. Given that 74% of organizations found social media to have a positive effect on their contributions, combined with the fact that millennials are moving farther away from what have been considered traditional marketing mediums (landline telephones and physical mailings), it is inevitable to expect that an overall decline in traditional fundraising methods will emerge.

In order to form an organized approach to this issue, the development of a greater social media presence becomes the only option available. Throughout the next decade, the drastic decline in traditional fundraising methods will require drastic measures of confidence to be taken now. The investment into expanding online giving through social media campaigns is one worth having, as it will provide security for the fundraising industry.


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Zachary Barden is a serial entrepreneur who consults and writes on entrepreneurship from his residence on the East Coast. He runs the startup consultancy Exapto Enterprises and the blog www.ZacharyBarden.com. He is the author of the eBook, Getting an Idea, and is currently working on a number of other works which will be published in print and released online over the next year.

You can reach Zachary by email, Twitter, or his website. Email: [email protected] Twitter: @ZacharyBarden Website: www.ZacharyBarden.com