The Basics of Online Fundraising

By Gene Austin, Chief Executive Officer, Convio, Inc.

As Americans migrate in increasing numbers to the Internet, online fundraising campaigns are gaining ground in the nonprofit sector. Organizations can now employ the Internet as a tool to create long-lasting e-relationships with donors and constituents. Once an organization has developed an online relationship with its constituents, it’s time to make that first “ask.” Consider these approaches to ensure each online campaign is as effective as possible.

Determine Objectives
An organization must clearly understand its strategic objectives before launching an online fundraising campaign. Setting objectives sharpens messages while also establishing standards for measuring results.

For instance, a nonprofit’s goal might be to improve awareness and acquire new donors among younger supporters ages 28-40. This campaign might include four different emails, executed over a 12-week period. The objective of the first communication might be to engage this demographic with an informational update on the organization's activities while the second mailing might be an invitation to a special event for younger supporters. The third might include a fundraising appeal followed by a reminder to those who have not yet donated.
 
Segment Your Email List to Target Specific Audiences
Improve response rates by segmenting an email file based on factors such as constituent interests, donation history or any other defining characteristic. Use this information to target donors with specific messages. Following are a few techniques for gathering more information about donors and prospects:

• Regularly ask constituents to volunteer information about themselves, which will enable more personalized communications.
  
• Conduct "profiling drives" of existing donors, offering them the opportunity to receive personalized information that matches their specific interests.
  
• Ask donors and prospects for ZIP code information, which can be used to send communications about events or news in their communities.

Cross-Market to Reach More Donors
One of the greatest benefits of creating a database of email addresses with a detailed profile for each constituent is the ability to cross-market. Say, for example, a group of constituents have previously volunteered for the organization, but have never donated. Send them a targeted email thanking them for past support and re-engage them with an update on a recent organization development, event or project. After re-establishing that relationship, send another email encouraging a donation.
 
Create Compelling Messages That Get Read (The TRUST Rule)
To ensure that each email message generates an optimal response, follow the TRUST rule. Be sure each email is:

• Timely -- Time email messages around some kind of current event, holiday or something else that's happening in the near future.
  
• Relevant -- By including information specific to each constituent’s interests, each email communication from the organization will be more valuable.
  
• Urgent -- Email messages should be clear about why the recipient needs to act immediately.
  
• Specific -- Make sure the reader can determine exactly what the organization wants them to do, e.g., donate, sign up for an event, etc.
  
• Tested -- Test the email message before sending to the entire list to ensure all links work. Also, run it through a spam checker to test for elements that might prevent delivery. Test the message content for effectiveness by sending two or more messages -- with a varied element in each message such as the subject line -- to a percentage of the target audience. Then, send the most effective message to the remainder of the audience. 

Build Context In Which Supporters Can Participate
Provide context and create urgency by challenging supporters to participate in specific drives with stated deadlines and goals. Create the context -- or use an existing context such as a breaking event -- and then make it easy for supporters to take action.

Create Multi-Phased Email Appeals
Include a series of communications to maximize response. In the first message, an organization might announce a campaign and provide such details as how it will use the funds raised. A second message, sent only to those who did not respond to the first, could remind recipients about the campaign and encourage response. A third message might tell recipients how the campaign has progressed, and ask for help so the organization can meet its goal.

Include Dedicated Web Site Pages
Extend the reach of an online campaign with a landing page -- a Web page where the constituent goes to get details about a campaign and make a donation. Also consider creating a dynamic personal campaign page that recognizes and thanks each donor, shows his or her past donations, and offers the opportunity to donate again.

Offer Giving Level Options
Include several options so donors can give at their preferred level, and display the options based on the donor's last donation. For example, if a donor gave $100 one month, the next time he visits the site, he would see giving options for $100 and more, encouraging increasingly larger gifts. Also, offer sustainer-giving options that allow repeat donors to set up recurring (e.g., monthly) online payments.

 
The National Trust for Historic Preservation offers Web site visitors
several membership options.

Offer Convenient Online Donation Processing
Allowing donors to give online enables an organization to receive funds immediately and automatically. Today’s advanced software for nonprofits features donation-processing capabilities, including configurable online donation forms, so that an organization can choose the exact donation options it prefers on its Web site.

Give Ongoing Feedback
Donors may wonder, "What happened to my donation? Did it make a difference?" Keep constituents involved by letting them know how the organization used their donation. Send regular email updates to let them know how about campaign progress. This simple act helps donors feel that their donations have impact so they are more likely to give again when re-solicited.

Summary
By using the Internet to develop strong relationships with constituents, an organization can better target and sustain communications with donors. This, in turn, helps to drive giving. Today’s advanced technology solutions foster a more interactive approach to fundraising, and should be incorporated into every nonprofit’s campaigns.

About the author: Gene Austin is CEO of Austin-based Convio, Inc. -- the market-leading provider of software and services to help nonprofits use the Internet for developing strong constituent relationships to drive fundraising, marketing, advocacy and other forms of support. For more information, please visit www.convio.com.