Integration
into programs required strategy to compete
As the New Year progresses, many organizations and nonprofits
are evaluating their recent successes and the challenges ahead.
With the steady increase of outlets for giving, nonprofits are
trying to find new ways to expand and cultivate their base
constituency.
For many, the coming year will be the time to exploit the trend
toward online giving and relationship-building. In fact, with
the growing competition among nonprofits for the increasingly
scarce philanthropic dollar, some say integration of online
efforts is all but required.
In interviews with Convio’s Vinay Bhagat and
Blackbaud’s Charlie Cumbaa, we examine some of the ways
nonprofits can stay competitive in 2006, using the tools 2005
has thrust into the spotlight.
A year ago, The Wired Nonprofit predicted that 2005 would
be the year that ePhilanthropy came into its own. Indeed, in a
year full of horrific natural disasters, we have seen the
awesome power of online giving. Americans were able to – with
one click – give to the people in the Gulf Region. The world’s
citizens, en masse, supported the tsunami victims through
their giving – much of it on the web, as traditional channels
were perceived as too slow or not completely available in the
aftermath.
Increasing percentage
The estimated 45% of donations to Hurricane Katrina made online
was higher than the 22% for the tsunami, which in turn was
higher than the percentage for any previous disaster – including
9/11. Nonprofits are taking note, and fewer will be on the
digital sidelines in 2006.
Organizations are increasingly adopting eCRM (Constituent
Relationship Management) tools to help cultivate their prospects
and donors. According to Bhagat, there has been a realization
that the demographic profiles of online relationships have
shifted. In 2001, roughly 20% of the baby boomer generation
preferred to do business online; by 2010, that number is
expected to grow to 55%. As these major gift prospects become
more fluent in the web and eMail, nonprofits will need to adhere
to donor preference in order to retain their impact.
Establish branding position
Nonprofits also need to become savvier in their marketing and
branding. For many, the idea of branding has been foreign – an
activity of the corporate world not necessary or appropriate.
But as Blackbaud’s Cumbaa points out, it is in the interest of
nonprofits to achieve higher levels of communication with donors
and prospective donors, a tactic that can be achieved through
appropriate marketing.
With more organizations from which to choose, constituencies
need to recognize and associate a nonprofit with a cause. There
is no better way to guarantee this than with the use of the
Internet.
Bhagat and Cumbaa see the web and eMail as vital channels in the
new information age. For a long time, the web was considered a
cost of doing business. Now, mass communication is a core
necessity. The market has started to mature for ePhilanthropy
and the masses are realizing the shift to the digital medium.
In order for a nonprofit to navigate the online realm
successfully, a few steps are vital. First, the importance of
the web as a channel to market a nonprofit has to be understood
at the CEO level. It should be incorporated into a strategic
plan, and have a budget established.
There also have to be the right human resources and the right
partnerships in place to make the most of a new initiative.
Challenge is cultivation
The challenge is always cultivation, and how much money new
constituents will cost to obtain and make loyal. Many nonprofits
wonder what the appropriate level of investment is for the web.
It can be expensive to enter this new field of communication.
Expect to invest up front, but also to see the time for a return
on investment compressed when using online tools.
You cannot measure the success of the web strategy by online
giving alone – it needs to be thought of in terms of new
relationships established and grown. Cumbaa suggests first
taking baby steps – generate a list of possibilities for the web
and then prioritize and test the ideas that are most important
to your organization.
It’s important to remember that it’s a multiple-channel world.
Online strategies don’t replace anything, but instead augment
and work in tandem with direct mail and other initiatives. There
has been a validation of online giving with the disasters of
late, and they have raised awareness and increased the
philanthropic propensity to donate through the web. To take
advantage of this shift requires that nonprofits change, and
realize that competing in 2006 may require a new bag of tricks.
Nathan Shaver is an Associate Director of Changing Our World,
a philanthropic services firm helping nonprofits with
ePhilanthropy, major gifts and strategic planning;
[email protected]. Reprinted with permission of
onPhilanthropy (http://www.onphilanthropy.com/).
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