May 2002 - Issue 13

How Nonprofits Use Internet Communications

By Adrian Sargeant, Professor of Marketing
Henley Management College, England

Introduction

In the United States, it is estimated that 90 million households will be online by the end of 2004.  A typical American already spends 23 percent of his or her workday on the Internet. The value of the market created by the explosion in the number of Internet users is estimated to be immense. The profile of a typical user has shifted from a white middle-class, educated male, 29-34, to be more representative of society as a whole. A wide spread of ages is now represented with more recent growth accounted for by both younger and older individuals. There has also been a rise in the number of lower income or more poorly educated families connecting to the Web for the first time and a sharp increase in the number of connections established purely for recreation.

Nonprofit Internet Usage

It is against this backdrop of change that a large number of nonprofits are looking to establish a Web presence. In the United States, some 10 percent of nonprofits are now estimated to have Web sites and the number continues to grow at circa 12 percent per annum. While some have criticized nonprofits for offering nothing more than static representations of their offline marketing efforts, the reality is that many nonprofits lack the financial wherewithal to offer anything further and for others, a static presence may indicate a lack of technological expertise.  This article explores how nonprofits have utilized the Internet.

Who Was Surveyed?

A sample was generated of 500 U.S. nonprofit organizations currently utilizing the Internet. Guidestar supplied the sampling frame, with the researchers being able to identify from the organization's Web site the contact details of nonprofits presently listing a Web domain. The sample was stratified to represent a balance of different sizes of nonprofits based on income generated.  The results are therefore based on a usable response rate of 25.2 percent and are briefly summarized below.

Web Site Development
Initially respondents were asked whether their Web site was originally created in-house or by a specialist agency or consultancy. No relationship could be identified between the relative size of the nonprofits (in income generated) and their use of agencies. 

Table 1: Site Design

Respondents were asked to indicate the approximate cost of the Web site's original development. The mean cost was $15,804.74 with a standard deviation of $37,736.40 indicating a wide spread in responses and, in particular, high expenses associated with just a few organizations in the sample. Under such circumstances, the median figure is likely to be a more accurate reflection of average or typical costs and this was $3,000.00.

Site Purpose

Respondents were asked what their sites are designed to achieve. Eight purposes were provided and respondents were asked to grade them in importance using a 7-point scale where 1 is the least important and 7 is the most important:

Table 2: Purpose of Web site

Respondents were asked to specifically indicate whether any portion of their Web sites were designed to raise funds. This was the case for more than two-thirds of the sample:

Table 3: Sites designed to raise funds

Site Performance

Respondents were asked whether their organization employed dedicated staff to deal with the Web sites. Forty-one percent of respondents indicated that this was the case.

Respondents were asked which category of fundraising campaign generated the most online support. Respondents could respond positively to multiple options:

Fundraising Campaign	% Indicating
Annual fund	61.9
Attendance at events	28.6
Membership	27.9
Planned giving	7.3
Capital campaigns	2.4

Table 4: Campaigns generating most support

Respondents were asked whether they were able to monitor the profile of individuals visiting the site to facilitate marketing/fundraising. Only 10.5 percent of respondents indicated that this was the case. Only 7.3 percent of respondents reported a link between the Web sites and their "traditional" supporter databases.

Those organizations indicating that such a link did exist reported higher amounts raised over the past year. It is interesting to note that where such a link exists, the organizations concerned are also considerably more optimistic about future performance.  Similarly those Web sites equipped to monitor the profile of visitors to the site, thereby providing management with intelligence data, seem to perform better than those sites without such a facility.

Ongoing Communications

Finally respondents were asked whether visitors to the site can elect to receive updates or information by direct mail or email. Respondents could respond positively to both options:

Table 5: Ongoing communications

Web Site Promotion

Respondents were asked what means were used to promote their Web sites. Respondents could respond positively against multiple options:

Table 6: Web site promotion

These results would seem to indicate that those organizations spending larger sums on the development of their sites would tend to attract somewhat larger sums of money in return. These organizations would also seem most optimistic about the sums of money that will accrue in the future.