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Version 1.0 0413 Copyright Advanced Business Software and Solutions Limited 2014
Introduction
Now is a very exciting time for charitable fundraising. Not only is economic confidence slowly recovering,
there has also been a fundamental change in the way causes are promoted which is having a massive
impact on public donations.
Web- and text-based donation platforms, boosted by vast-scale viral promotions over social media, have
altered the way people give - and the way not-for-profit (NFP) organisations raise awareness for their
activities. What’s so powerful about these more dynamic fundraising opportunities is that they can have a
huge and immediate impact, in a way that is both highly targeted, yet with vast reach – and typically for a
fraction of the cost of traditional campaigns.
At one level, individuals can now quickly and effortlessly promote their own fundraising efforts to their
extended networks - using social media platforms such as Facebook and Twitter to drive friends and family
to one-click donation sites such as JustGiving, or to ‘give now’ mobile numbers. At another, huge national
and international campaigns driven by social media are capturing the public’s imagination in unprecedented
ways – in some cases raising millions of pounds within a matter of days. This kind of success is
unparalleled in the world of traditional media advertising, shopping-centre clipboards, and scattergun direct
mail campaigns. In terms of results, the scope is up there with BandAid/LiveAid, Comic Relief and Sports
Relief - but without the huge logistical effort.
As Web 2.0 (social media and mobile Internet exploitation) gives way to a new generation of online activity
(dubbed Web 3.0), the opportunities for fundraising are set to multiply again. In the emerging scenario
there is a chance not only to use social channels more creatively, but also to understand the more subtle
impact such activities are having, so that future campaigns can be optimised to drive maximum results.
In the third sector, the transition to emerging Web 3.0 opportunities has prompted its own new
terminology. Charities and NFPs are now being encouraged to adopt ‘Fundraising 3.0’ strategies – ie new
approaches to fundraising based on analyses of donor behaviour.
But how geared up are charities and other NFPs to take full advantage of these new opportunities?
Assuming that the public’s ability to donate remains finite, the long-standing rules of fundraising still apply.
Charities and NFPs must compete for donors’ hearts and minds, and be able to turn compassion into cash,
and cash into longer-term pledges, so that the work they are doing can be sustained and built on.
This requires an ability to identify and follow what’s going on, and to influence, guide and develop this. At
the heart of emerging fundraising strategies, then, is rich data – data that must be captured, combined,
interpreted and managed. This in turn relies on seamlessly connected processes and systems.
The following white paper examines the way that fundraising has developed in the digital age, highlighting
what can be achieved if all available channels are harnessed effectively with the right underlying processes
and systems in place. It then looks ahead to how emerging options might shape campaigns in future, and
how charities and NFPs can begin to prepare now for as-yet unknown opportunities.
Fundraising 3.0:
Turning social data into repeat donations
An Advanced Business Solutions white paper for charities and not-for-profit organisations
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Current hurdles to successful fundraising
Charities and NFPs have long understood that the key to successful fundraising is to get people to relate to a cause in a
personal way. Cancer charities, for example, tend to do well at attracting funds because so many families are affected
by the disease. But there are so many worthy causes today that consumers are often torn, not knowing how best to
distribute any money they can spare.
There are also now so many special fundraising days (Children in Need, Comic Relief, Sports Relief, etc) and specially
designated events (eg Race for Life), that fundraisers have to battle against ‘compassion fatigue’ for supporters
attention. Here, people may have become so worn down by endless requests to give, and hardened to the shocking
images used in campaign promotions, that they have stopped giving altogether or are setting firm limits and sticking
to them. Another contributor to donor fatigue is growing scepticism about how funds are used – for example, what
percentage gets to the real cause, and how much is lost to administrative processing. Increasingly, the public has begun
to question what happens to the money they donate, and to have opinions about how it is being allocated. Even when
campaigns are successful viral donors are often not getting on the database because they are ‘butterfly’ donors – they
press the donate button or the SMS but do not commit any further. The latest challenge is to turn butterfly donors into
committed donors to which the solution is simply better data management.
All of this means that fundraisers need to work harder to connect with target donors, by developing new narratives, by
making it very easy to give small amounts, and by showing people what their generosity has achieved.
Experts in the US
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have calculated that the average retention rate of newly-acquired donors has fallen from 33% a
decade ago to 27% or lower today. This is consistent with the above point, that ‘butterfly’ donors attracted by digital
campaigns don’t appear to commit to long term pledges in the way their parents did. There isn’t much point investing
heavily in strategies to bring new money in at the front end, if existing donors are simultaneously drifting away due to
diminished engagement.
The evolution of digital giving
The Internet has played an increasingly important role in helping to overcome several of the barriers to fundraising.
Websites have allowed charities and NFPs to provide more extensive information without having to keep paying for
media campaigns or paper flyers. They have also provided a valuable forum for letting donors know what has been
raised and how the money has been spent. And they have enabled interested parties to sign up to newsletters and
information feeds, set up regular donations, or donate online in a tax-efficient way (complete with a simple tick box Gift
Aid form).
First-generation or ‘Web 1.0’ charity web sites were largely static and passive, being little more than an online brochure
for the organisation. But, as technology has matured and charities’ skills with them, they have become increasingly
sophisticated – providing more timely content, greater interactivity and more seamless links to other channels. This
second-generation (Web 2.0) scenario has seen users create their own content in the form of blogs, and consumers
having online conversations with and about brands on social networking sites.
When bone marrow charity Anthony Nolan upgraded its website to make it more interactive and intuitive for mobile
users, it saw a 29% increase in site visits and an 8% increase in conversion rate (defined as people filling in the bone
marrow registration form online). It also found that visits via Facebook soared by 200%. The new improved site lets
Anthony Nolan add new content and stories more easily, and the charity has been sharing more on social media – to the
point that Facebook is now by far the charity’s biggest source of referrals.
The role of social media in driving donations
Today social networks do a lot of the work in building momentum around fundraising campaigns - blending into
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people’s lives, and letting casual ambassadors spread the word through networks of peers. Geographical constraints are
removed, as are many demographic limits. The Internet has proven itself to be a great leveller, allowing organisations
of all shapes and sizes to find their target markets quickly and easily through ad-hoc shared-interest groups and global
networks of networks.
In 2013, the Disasters Emergency Committee (DEC) raised £13m in a single day during its humanitarian appeal
following the devastating typhoon in the Philippines. It attributed much of this success to social media, particularly
Facebook and Twitter. Aid charities followed suit, sharing footage of the areas affected and the progress of relief efforts.
The Department for International Development (DfID) meanwhile, used Twitter to highlight how the UK Government was
helping. The hashtags #TyphoonHaiyan and #TyphoonAid trended on Twitter for several days, driving wave after wave of
public giving.
In other cases, social media campaigns have been led by the public themselves. In early 2014, the high-profile
‘#nomakeupselfie’ campaign, in which women posted photos of themselves wearing no make-up on Facebook,
Instagram and Twitter, raised £8 million for Cancer Research, potentially footing the bill for 10 new clinical trials. The
charity had played no part in initiating the campaign. Charities can attempt to maintain or re-run these campaigns but,
to get long term success they must ensure the campaign is durable and repeatable, balancing online awareness with
offline activity. This is why Race for Life is so successful – Cancer Research UK can target organisers and participants
year after year because they are on their database. Successful marketing campaigns use Web 3.0 to ensure all data
generated and captured during such activities are brought back into the database.
And these are just the big-news successes. What’s even more exciting about digital fundraising is that it offers massive
reach at very low cost for any charity or NFP, no matter how modest its size or how local the cause. Once a campaign
(formal or otherwise) finds and resonates with the right audience, it builds its own momentum, spreading like wildfire. In
2011, after the London riots, concerned members of the public united over social media to raise money for the victims,
including the Malaysian student who was mugged and had his jaw broken, and the 140-year-old, family-owned furniture
store in Croydon which was destroyed.
In some cases, it is the very personal story of an individual that captures people’s imaginations – such as a family in
need, whose plight becomes known across a community, then beyond. In 2013 and 2014, sudden deaths of participants
in the London Marathons led to mass donations to those individuals’ chosen causes. And in April 2014, the story of
Stephen Sutton, a teenage cancer sufferer, went viral on Facebook after public figures backed the 19-year-old’s attempt
to raise a target amount for a teenage cancer charity that had supported him during his illness. Their efforts raised
millions, almost half the charities previous annual income, from a single campaign.
Multimedia & message personalisation
Growing use of multimedia – images, sound, video, animation, etc – are helping to get messages across in new ways
too. A quick link to a poignant YouTube video is easy for any fundraiser to create.
In 2013 Cornish monkey charity Wild Futures was shortlisted for a Digital Media award in the national Third Sector
Excellence awards, for a campaign film, Joey’s Story. The three-minute video, presented by Stephen Fry, told the story
of a rare monkey which had been kept in a cage for nine years. The aim of the clip, which ran on the charity’s web site
home page, was to showcase Wild Futures’ charitable rescue and rehabilitation work, highlight why monkeys are not
suitable as pets, and drive potential donors towards an ‘adopt a monkey’ scheme.
A key part of the project was to establish a large network of influential online ‘pushers’ who would share the campaign
on the same date at the same time. Each was sent a document which outlined the actions required, including the
important hashtags, keywords and links. The aim was to funnel as many hits to the landing page as possible.
An app called ‘Monkey Nutz’ was launched simultaneously, containing a link to the film. Adopters were also encouraged
to add a ‘twibbon’ (a small overlay that can be added to an individual’s Twitter avatar photo or image to display a cause)
to their social media profiles to encourage others to follow suit. Within 24 hours, the film had attracted more than 4,000
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views. The campaign generated extensive media coverage, promoting the cause, and resulted in a 21% increase in
income from the ‘adopt a monkey’ scheme.
Something that has cemented the success of such campaigns is the personalisation of the accompanying messages
as individuals share the links with their friends, telling how they have been sufficiently moved to donate and they’re
“sure you will be too”. Their compassion is visible, and an element of peer pressure helps spread the feeling and the
compulsion to give. Online donation platform provider JustGiving estimates that, on average, a single Facebook ‘share’
generates an extra £5 in donations for charities.
Easy payment mechanisms
Another crucial element in social media’s success in driving donations is the ease with which spontaneous ‘me too’
donors can give - by clicking through to donation pages and portals which, in turn, are linked to Paypal or existing
payment details, and tax reclaiming facilities. Increasingly mobile text options are offered too, so donors can simply add
£2, £5 or £10 to their mobile bills.
When this is part of a national or global swell of emotion, these small amounts (which are easy to justify as discretionary
spending) feel worth it, because of the speed with which the funds visibly multiply – so that the £20,000 raised on day
one becomes £8 million by day seven. Compared to putting loose change in a charity container at the supermarket
checkout, the feeling of having made a real contribution is far greater.
Later, the donors are able to collectively pat themselves on the back too as they share the follow-up links highlighting
how much was raised, how this money will be spent, and the difference it will make to people’s lives. This immediacy of
feedback is a fundamental part of today’s digital culture. It is also vital in overcoming compassion fatigue, and as more
causes vie for people’s attention.
Crowdfunding
A further development in digital fundraising has been crowdfunding. Here, organisations can appeal to a mass audience
of potential fund providers - typically private individuals. In the case of a charity or NFP appeal, the donors choosing this
route may do so because they prefer to contribute to a cause with some kind of guarantee that a target will be reached
and that something specific will come of it (usually in a crowdfunding scenario nothing is handed over until a minimum
target for pledges has been reached). This makes it a potentially useful channel for defined projects.
Crowding In, a report published in December 2012 by the innovation charity NESTA, projected that crowdfunding could
raise £4.7bn a year for UK charities by 2016. As with social media campaigns (planned or otherwise), crowdfunding
can be a quick route to significant amounts of money, but it is not a strategy in its own right. Indeed, in the case of
crowdfunding, there is a very real risk that nothing will be raised unless the right mechanisms are in place to ensure that
targets are reached efficiently. So, while such channels have their part to play, they should not be viewed as a panacea
to faltering donations.
Web 3.0 – turning intelligence into strategic advantage
With so many different digital routes to fundraising, it would be easy for charities and NFPs to lose control of what’s
happening. In the short term this may not feel important (if the money is flowing in), but organisations need to find a
way to sustain that momentum and capitalise on each new trend as it develops.
All of this various social digital behaviour, even where (or perhaps especially where) it develops a life of its own, leaves
a valuable data trail. With the right strategy and supporting processes and systems in place, charities and NFPs can tap
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into this data and use it to refine their fundraising planning.
Web 3.0 promises organisations the ability to mine very granular data about consumers’ online activities, so that they
can connect with donors in unprecedented, personalised ways. According to the World Wide Web Consortium (W3C),
Web 3.0, also known as the ‘Semantic Web’, “provides a common framework that allows data to be shared and reused
across application, enterprise, and community boundaries.”
In its broadest definition, Web 3.0 aims to combine social media, more sophisticated searching (ie more meaningful
data), greater connectivity (as more devices are connected to the Internet) and artificial intelligence technology. For
charities and NFPs, the bottom line is that Web 3.0 will provide much richer data which they can use to inform their
campaign activities, and the ability to engage with potential donors in new and more personalised ways.
Turning spontaneous acts of kindness into repeat giving
Charities and NFPs that are creative and react quickly to the current public mood stand a good chance of raising a lot of
money quickly if they find the right hook and the right audience. But as every organisation turns to the same channels
and repeats the same formula, there is a risk that donors will switch off again. As individuals are finding, as more of
their friends run races and climb mountains in the name of charity, there can be too much of a good thing.
There is a danger, too, that if a charitable organisation experiences a sharp rise in donations by riding a social media
wave, they will expect this level of donations to continue if they keep doing the same things – setting themselves up for
a shock if the peak in activity is followed by a deep trough. The challenge is how to then maintain momentum and keep
donors engaged.
This means being able to capture detail about everything that has happened to date, so that the organisation can
measure what has been successful, where, when and how. It means being able to see who is giving, what led to this,
what they gave and through which mechanism.
With so much activity spanning so many channels, it is vital that fundraising managers and marketing teams are able
to join up the dots, to create complete visibility of what is working where, how the various campaigns and vehicles are
interweaving, and what impact this is having overall.
Securing a sustained, long-term increase in funds means being able to use emerging trend information to predict
and influence how donor behaviour might evolve and change over time, so that charities and NFPs can be ready with
something meaningful and new that will resonate.
One of the opportunities presented by social media and now Web 3.0 capabilities is the opportunity to chart trends,
and to maintain levels of engagement by identifying and responding to subtle shifts in mood, and by keeping the
conversation going – for example by reporting back periodically on how that new project is coming along. If the public
remains connected to something they helped with in the past, there is more chance they’ll join the next push to take the
project to another level.
Next steps: Developing a Fundraising 3.0 strategy
In building repeat donations, the aim for charities and NFPs is of course to minimise the cost of each transaction so that
the proportion of useable income rises.
In a Web 3.0 context, charities and NFPs have an opportunity to learn more about existing and potential donors
and personalise the user experience accordingly (just as Amazon does by recommending books, films and music to
customers based on previous selections and choices made by consumers with similar tastes). This is because Web
3.0 technologies are able to measure and manage behavioural data, rather than merely generic demographic and
transactional data.
But how can charities and NFPs begin to build this sort of data, and profile existing and would-be donors at a deeper
level of sophistication?
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The starting point must be to create a 360-degree view of the customer across all channels and touch points and to
follow through any activities as they produce results (or not). This means joining up back- and front-office processes
and associated systems, so that there is complete visibility from one end of the organisation’s activities (and associated
performance) to the other. Where in the past charities had the problem of silos of data popping up in unauthorised
Access and Excel databases, now they are building silos of data on the web, in donation sites, online catalogues, online
event registration systems, online surveys and so on. Ideally data from all these sources needs to flow into a single
strategic fundraising database where it can be managed, monitored and reported upon.
End-to-end activity, performance and resource management enable organisations to more effectively match teams,
talent, facilities and budget to where this will have the most impact at a given time - and to ensure that momentum is
measured, analysed and harnessed optimally in every possible way.
The data deluge
In commercial circles, much is being made now of ‘big data’ and ‘real-time analytics’. Having the ability to process
and interpret huge volumes of incoming data about customers and their actions has become vital as companies
attempt to become more reactive and pre-emptive in all that they do – i.e. more finely tuned to the market, and to
continually-changing customer trends and preferences. To monitor and respond to these trends, their ‘eyes’ need to be
simultaneously trained on all channels and all sorts of inflowing information.
Charities and NFPs must now learn from this and implement their own predictive capabilities. Assessing current
fundraising performance, comparing this with past experiences, and optimising emerging opportunities all depend on
interplaying information from all of the data repositories available within the wider organisation such as finance, human
resources, fundraising, marketing, and customer / member / donor relationship management.
Before charities and NFPs can make any significant improvements, they need to know where they are currently on the
evolutionary curve as it moves away from traditional fundraising approaches and toward a modern, agile Fundraising 3.0
strategy.
What they need to aim for is an all-encompassing, joined-up strategy that allows them to capitalise on Web 3.0-based
opportunities and blend these optimally with other tried and tested methods of driving donations. However the evidence
suggests that the majority of charities and NFPs have stalled at a very early stage on the curve.
In December 2013, a survey of the UK not-for-profit sector by Source Information Services found that 96% of
organisations were struggling to make full and effective use of data they already had access to. Many admitted they did
not have a single accurate source of data about organisational effectiveness, marketing effectiveness, service users or
projects, members or supporters, employees, or even finances. The vast majority relied extensively on spreadsheets,
with 92% using Microsoft Excel as a standard reporting tool.
Data duplication was found to be rife too, with 87% of organisations conceding that they regularly enter data in more
than one place - to the point that 80% say they have difficulty producing reports that require data from different
systems.
This is having a direct effect on charities’ and NFPs’ ability to act on the findings embedded in their data: 78% of
respondents said they were faced with conflicting data or reports; 69% were having difficulty understanding reports
from different parts of the organisation; and 66% highlighted a lack of integration between front- and back-office
operations. As a result, 72% of charities and NFPs taking part in the research felt that decisions were being made in
their organisations without sufficient data to support them.
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Transforming this situation demands that charities and NFPs consolidate and streamline their planning and management
activities, so that there is a single, clear line of sight - from the front-end of donor-facing activity, to the back office
where books are balanced and resources managed.
Creating a clear line of sight across the organisation
Only by tightly integrating promotional activity, donor relationship management, consumer campaign performance,
finance and HR, can organisations hope to understand how one course of action impacts the bigger picture, and how
subtle alterations to consumer communications can drive increases to income flow and donor retention.
All data, whether collected online or through other channels, must either feedback into a unified, centralised database
or in the very least organisations must have the ability to access all data from a single point of entry via a systems
connector. As well as relieving the burden of manually consolidating reports from multiple sources of data, this helps to
create a consolidated, 360-degree view of an individual supporter or major donor that can be shared by all authorised
staff to build long-term relationships.
As they seek to align internal processes and systems, charities and NFPs should work through a checklist of capabilities
- establishing where they are currently, and what streamlining may be needed to strengthen activities in certain areas. A
suggested checklist is offered below.
Fundraising 3.0 readiness checklist:
To what extent can your organisation, in a joined-up and efficient way and with good-quality data reporting, manage or
support the following:
•	 Customer/member/donor relationships;
•	 Fundraising and campaign activities;
•	 Membership and subscriptions;
•	 Events and conferences;
•	 Timely financial consolidation;
•	 Merchandising and sales order processing;
•	 Lotteries and public collections;
•	 Grant applications;
•	 Legacy marketing;
•	 Distribution;
•	 Service delivery;
•	 Full web site integration;
•	 Integration with social media platforms; and
•	 Digital communications - via email, mobile, SMS and more.
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How easy or difficult would it be to report end to end activity incorporating several of the above areas? If there are gaps,
or if several or all of these activities are happening in isolation, the fundraising organisation will be limiting its potential
to maintain and grow its share of consumer giving.
Choosing software which integrates readily with other, related systems is a good place to start; alternatively
organisations could opt for a purpose-built software suite that has been designed to cater for a Fundraising 3.0 future.
A further option is to harness the cloud to pull together systems, processes and data, and to provide the raw engine
power to analyse all of the incoming data. Action for Children is just one charity that has turned to the cloud to
take advantage of cost-effective data analytics, so that it can hone its fundraising efforts based on the latest donor
intelligence.
Conclusion: Staying one step ahead of the market
Fundraising, like the web, is evolving constantly. This applies not just to the technology available but also to the
innovative ways charities and NFPs are implementing it, changing their processes, and adapting their internal culture
and structure.
All of this means that organisations can’t afford to stand still with their strategies, or with their internal IT systems and
business processes, because what works today may not work tomorrow.
JustGiving points to the mobile channel as being one of the most critical environments for attracting donations in future.
In a 2013 blog, Jonathan Waddingham, the company’s social and labs product manager, noted that mobile donors are
twice as likely to share content and information as desktop donors, vastly accelerating the impact of social media on
fundraising. After optimising its donation platform for mobile use, JustGiving generated over £3 million from 100,000
‘superfast’ donations for the charities it supports. Mobile and tablet donations now represent half of all pledges it
handles.
Any charity or NFP with suitably integrated processes and timely, consolidated data capture and reporting capabilities
should be able to take advantage of such trends without a break in productivity.
Increased economic optimism should help to drive new data initiatives over the period ahead. A 2014 report, Managing
in the New Normal, by PwC, Charity Finance Group and the Institute of Fundraising, found that 70% of charities felt
more positive about the climate for donations than in previous years, and that charities would be looking for ways to
make the most of the recovery. How ready is your organisation?
Sources  resources
Challenges for charities and NFPs
One Thing Most Nonprofits Stink at (Donor Retention) and How You Can Change It in 2014, NPengage,
January 2014: http://www.npengage.com/online-fundraising/12-donor-retention-tips-from-nonprofit-
fundraising-experts
Professor Bertrand Taithe speaks to BBC on “compassion fatigue”, audio interview, HCRI News, November
2013: http://www.blog.hcri.ac.uk/?p=872
Compassion fatigue for international development, Blog by David Philpott, October 2013, CivilSociety.
co.uk: http://www.civilsociety.co.uk/governance/blogs/content/16226/compassion_fatigue_for_
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Digital evolution/Web 3.0
What is the Semantic Web? World Wide Web Consortium: http://www.w3.org/RDF/FAQ
Why Web 3.0, the Semantic Web, Will Be Even More Disruptive than Web 1.0, Sandhill, January 2014:
http://sandhill.com/article/why-web-3-0-the-semantic-web-will-be-even-more-disruptive-than-web-1-0/
Businesses should prepare for Web 3.0, says BoozCo, ComputerWeekly.com, July 2011: http://www.
computerweekly.com/news/2240105143/Businesses-should-prepare-for-Web-30-says-BoozCo
Are you ready for Web 3.0  Social CRM?, CAM Foundation: http://www.camfoundation.com/blog/are-you-
ready-for-web-3-0-social-crm/
Three content strategies from the charity sector, E-consultancy.com, November 2013: https://econsultancy.
com/blog/63869-three-content-strategies-from-the-charity-sector#i.e5cefnhkbdfpz4
10 charities and how they use Pinterest, E-consultancy.com, April 2013: https://econsultancy.com/
blog/62498-10-charities-and-how-they-use-pinterest#i.e5cefnhkbdfpz4
How charity Anthony Nolan made the move to responsive design, E-consultancy.com, February 2014:
https://econsultancy.com/blog/64346-how-charity-anthony-nolan-made-the-move-to-responsive-design#i.
e5cefnhkbdfpz4
Fundraising 3.0
Fundraising 3.0, Huffington Post, September 2012: http://www.huffingtonpost.com/clive-mayhew/social-
media-charity_b_1917910.html
Fundraising 3.0 – New approaches to sharing, giving online, Hilborn, November 2012: http://www.
charityinfo.ca/articles/Fundraising-3-0-New-approaches-to-sharing-giving-online
Fundraising 3.0 video, The Digital Exec/Spinweb.tv: http://www.spinweb.tv/episodes/fundraising-3.0/
Action for Children moves into the cloud, CloudPro, May 2013: http://www.cloudpro.co.uk/cloud-essentials/
hybrid-cloud/5574/action-children-moves-cloud-rackspace
How to slash the cost of big data analytics, ComputerWeekly.com, March 2014: http://www.
computerweekly.com/news/2240215936/Interview-how-to-slash-the-cost-of-big-data-analytics
Non-profits: Cloud-based fundraising 3.0, Bloomerang blog, October 2013: http://www.marketingtechblog.
com/bloomerang/
The role of social media in fundraising
How social media can change the face of fundraising, Guardian. Com, January 2014: http://www.
theguardian.com/voluntary-sector-network/2014/jan/23/how-social-media-can-change-fundraising
The top five charity social media stories of 2013, CivilSociety.co.uk, January 2014: http://www.civilsociety.
co.uk/it/blogs/content/16662/the_top_five_charity_social_media_stories_of_2013
3 Ways to Use Social Media in Your Next Fundraising Campaign, NPTech blog, March 2013: http://
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amysampleward.org/2013/03/05/3-ways-to-use-social-media-in-your-next-fundraising-campaign-and-free-
ebook/
Seven tips for charities using Twitter, E-consultancy.com, April 2013: https://econsultancy.com/
blog/62629-seven-tips-for-charities-using-twitter#i.e5cefnhkbdfpz4
Breakthrough Breast Cancer launches first social media fundraising campaign, Marketing Week, February
2014: http://www.marketingweek.co.uk/sectors/charities/not-for-profit/public-sector/breakthrough-breast-
cancer-launches-first-social-media-fundraising-campaign/4009431.article
Social media success stories
DEC Philippines appeal raises £13m in a day, CivilSociety.com, November 2013: http://www.civilsociety.
co.uk/fundraising/news/content/16420/dec_philippines_appeal_raises_13m_in_a_day
No-makeup selfies raise £8m for Cancer Research UK in six days, Guardian.com, March 2014: http://www.
theguardian.com/society/2014/mar/25/no-makeup-selfies-cancer-charity
How a No MakeUp Selfie Trend Suddenly Became a Cancer Awareness Effort, Adweek.com, March 2014:
http://www.adweek.com/adfreak/how-no-makeup-selfie-trend-suddenly-became-cancer-awareness-
effort-156480
Generous well-wishers donate £22,000 to Malaysian student whose jaw was broken as online campaigns
spring up for riot victims and heroes, DailyMail.co.uk, August 2011: http://www.dailymail.co.uk/news/
article-2025225/London-riots-Ashraf-Rossli-receives-22k-donations-JustGiving-campaign-attack.html
Dying teenage cancer sufferer Stephen Sutton could raise £2million for charity after Jason Manford backs
campaign, Mirror.co.uk. April 2014: http://www.mirror.co.uk/news/uk-news/stephen-sutton-dying-teenage-
cancer-3446908
Monkey charity based near Plymouth shortlisted for national award, Plymouth Herald, August 2013: http://
www.plymouthherald.co.uk/Monkey-charity-based-near-Plymouth-shortlisted/story-19657053-detail/story.
html
Crowdfunding
Crowdfunding: A Viable Option For UK Charities?, WhiteFuseMedia: http://whitefusemedia.com/blog/
crowdfunding-viable-option-uk-charities
Analysis: Is crowdfunding the way forward?, ThirdSector.co.uk, April 2013: http://www.thirdsector.co.uk/
Fundraising/article/1180206/Analysis-crowdfunding-forward/?HAYILC=RELATED
Crowding In: What opportunities does crowdfunding hold for the UK’s businesses, charities, government,
and financial system?, report by NESTA, December 2012: http://www.nesta.org.uk/publications/crowding
Crowdfunding charities, Crowdfunder.co.uk: http://www.crowdfunder.co.uk/projects/search/
category:Crowdfunding_Charities/
Crowdfunding isn’t a quick fix for charity fundraisers: Crowdfunding might be increasing in popularity, but
charities need to ensure they have a proper strategy in place, Guardian.com, April 2012: http://www.
theguardian.com/voluntary-sector-network/2012/apr/02/crowdfunding-quick-fix-fundraisers
Nonprofit Crowdfunding: 3 Tips for Fundraising Success, Mediacause.org, March 2014: http://mediacause.
White
Paper
org/nonprofit-crowdfunding-3-tips/
Charities, NFPs and big data
The choices not-for-profits need to make about collecting and using data, Source Information Services
Ltd, 2014: http://www.advancedcomputersoftware.com/collateral/abs/register.php?doc=advancednot-for-
profitreportfinal.pdf
The power of data: Is the charity sector ready to plug in?, New Philanthropy Capital (NPC), October 2013:
http://www.thinknpc.org/publications/the-power-of-data/
The potential of big data in the charity sector, Royal Statistical Society, December 2013: http://www.
statslife.org.uk/opinion/1101-the-potential-of-big-data-in-the-charity-sector
The future of fundraising
Nine reasons why social and mobile are the future of fundraising, JustGiving blog, 2013: http://blog.
justgiving.com/nine-reasons-why-social-and-mobile-are-the-future-of-fundraising/
Lack of digital literacy threatens future fundraising in UK charities, Eduserv, March 2014: http://www.
eduserv.org.uk/insight/news/2014/03/CharityComms-report
10 years time: social media and the future of fundraising, Guardian.com, February 2014: http://www.
theguardian.com/voluntary-sector-network/2014/feb/06/10-years-time-social-media-and-fundraising
New research shows charities are cautiously optimistic about the future, Institute of Fundraising, April
2014: http://www.institute-of-fundraising.org.uk/newsroom/latest-news/new-research-shows-charities-
are-cautiously-optimistic-about/
For more information
Advanced Business Solutions is a brand name of Advanced Business Software and Solutions Limited, registered in England, company
number 03214465. Registered office: Munro House I Portsmouth Road I Cobham I Surrey I KT11 1TF.
t: +44 (0) 08451 606 162 f: +44 (0) 1932 584 001 e: marketing@advancedcomputersoftware.com www.advancedcomputersoftware.com/abs
Advanced Business Software and Solutions Limited recognises the trademarks of other companies and their respective products in this document.

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Fundraising 3.0: Turning social data into repeat donations

  • 1. www.advancedcomputersoftware.com/abs Version 1.0 0413 Copyright Advanced Business Software and Solutions Limited 2014 Introduction Now is a very exciting time for charitable fundraising. Not only is economic confidence slowly recovering, there has also been a fundamental change in the way causes are promoted which is having a massive impact on public donations. Web- and text-based donation platforms, boosted by vast-scale viral promotions over social media, have altered the way people give - and the way not-for-profit (NFP) organisations raise awareness for their activities. What’s so powerful about these more dynamic fundraising opportunities is that they can have a huge and immediate impact, in a way that is both highly targeted, yet with vast reach – and typically for a fraction of the cost of traditional campaigns. At one level, individuals can now quickly and effortlessly promote their own fundraising efforts to their extended networks - using social media platforms such as Facebook and Twitter to drive friends and family to one-click donation sites such as JustGiving, or to ‘give now’ mobile numbers. At another, huge national and international campaigns driven by social media are capturing the public’s imagination in unprecedented ways – in some cases raising millions of pounds within a matter of days. This kind of success is unparalleled in the world of traditional media advertising, shopping-centre clipboards, and scattergun direct mail campaigns. In terms of results, the scope is up there with BandAid/LiveAid, Comic Relief and Sports Relief - but without the huge logistical effort. As Web 2.0 (social media and mobile Internet exploitation) gives way to a new generation of online activity (dubbed Web 3.0), the opportunities for fundraising are set to multiply again. In the emerging scenario there is a chance not only to use social channels more creatively, but also to understand the more subtle impact such activities are having, so that future campaigns can be optimised to drive maximum results. In the third sector, the transition to emerging Web 3.0 opportunities has prompted its own new terminology. Charities and NFPs are now being encouraged to adopt ‘Fundraising 3.0’ strategies – ie new approaches to fundraising based on analyses of donor behaviour. But how geared up are charities and other NFPs to take full advantage of these new opportunities? Assuming that the public’s ability to donate remains finite, the long-standing rules of fundraising still apply. Charities and NFPs must compete for donors’ hearts and minds, and be able to turn compassion into cash, and cash into longer-term pledges, so that the work they are doing can be sustained and built on. This requires an ability to identify and follow what’s going on, and to influence, guide and develop this. At the heart of emerging fundraising strategies, then, is rich data – data that must be captured, combined, interpreted and managed. This in turn relies on seamlessly connected processes and systems. The following white paper examines the way that fundraising has developed in the digital age, highlighting what can be achieved if all available channels are harnessed effectively with the right underlying processes and systems in place. It then looks ahead to how emerging options might shape campaigns in future, and how charities and NFPs can begin to prepare now for as-yet unknown opportunities. Fundraising 3.0: Turning social data into repeat donations An Advanced Business Solutions white paper for charities and not-for-profit organisations White Paper
  • 2. 2 Current hurdles to successful fundraising Charities and NFPs have long understood that the key to successful fundraising is to get people to relate to a cause in a personal way. Cancer charities, for example, tend to do well at attracting funds because so many families are affected by the disease. But there are so many worthy causes today that consumers are often torn, not knowing how best to distribute any money they can spare. There are also now so many special fundraising days (Children in Need, Comic Relief, Sports Relief, etc) and specially designated events (eg Race for Life), that fundraisers have to battle against ‘compassion fatigue’ for supporters attention. Here, people may have become so worn down by endless requests to give, and hardened to the shocking images used in campaign promotions, that they have stopped giving altogether or are setting firm limits and sticking to them. Another contributor to donor fatigue is growing scepticism about how funds are used – for example, what percentage gets to the real cause, and how much is lost to administrative processing. Increasingly, the public has begun to question what happens to the money they donate, and to have opinions about how it is being allocated. Even when campaigns are successful viral donors are often not getting on the database because they are ‘butterfly’ donors – they press the donate button or the SMS but do not commit any further. The latest challenge is to turn butterfly donors into committed donors to which the solution is simply better data management. All of this means that fundraisers need to work harder to connect with target donors, by developing new narratives, by making it very easy to give small amounts, and by showing people what their generosity has achieved. Experts in the US 1 have calculated that the average retention rate of newly-acquired donors has fallen from 33% a decade ago to 27% or lower today. This is consistent with the above point, that ‘butterfly’ donors attracted by digital campaigns don’t appear to commit to long term pledges in the way their parents did. There isn’t much point investing heavily in strategies to bring new money in at the front end, if existing donors are simultaneously drifting away due to diminished engagement. The evolution of digital giving The Internet has played an increasingly important role in helping to overcome several of the barriers to fundraising. Websites have allowed charities and NFPs to provide more extensive information without having to keep paying for media campaigns or paper flyers. They have also provided a valuable forum for letting donors know what has been raised and how the money has been spent. And they have enabled interested parties to sign up to newsletters and information feeds, set up regular donations, or donate online in a tax-efficient way (complete with a simple tick box Gift Aid form). First-generation or ‘Web 1.0’ charity web sites were largely static and passive, being little more than an online brochure for the organisation. But, as technology has matured and charities’ skills with them, they have become increasingly sophisticated – providing more timely content, greater interactivity and more seamless links to other channels. This second-generation (Web 2.0) scenario has seen users create their own content in the form of blogs, and consumers having online conversations with and about brands on social networking sites. When bone marrow charity Anthony Nolan upgraded its website to make it more interactive and intuitive for mobile users, it saw a 29% increase in site visits and an 8% increase in conversion rate (defined as people filling in the bone marrow registration form online). It also found that visits via Facebook soared by 200%. The new improved site lets Anthony Nolan add new content and stories more easily, and the charity has been sharing more on social media – to the point that Facebook is now by far the charity’s biggest source of referrals. The role of social media in driving donations Today social networks do a lot of the work in building momentum around fundraising campaigns - blending into 1 http://www.npengage.com/online-fundraising/12-donor-retention-tips-from-nonprofit-fundraising-experts White Paper
  • 3. 3 people’s lives, and letting casual ambassadors spread the word through networks of peers. Geographical constraints are removed, as are many demographic limits. The Internet has proven itself to be a great leveller, allowing organisations of all shapes and sizes to find their target markets quickly and easily through ad-hoc shared-interest groups and global networks of networks. In 2013, the Disasters Emergency Committee (DEC) raised £13m in a single day during its humanitarian appeal following the devastating typhoon in the Philippines. It attributed much of this success to social media, particularly Facebook and Twitter. Aid charities followed suit, sharing footage of the areas affected and the progress of relief efforts. The Department for International Development (DfID) meanwhile, used Twitter to highlight how the UK Government was helping. The hashtags #TyphoonHaiyan and #TyphoonAid trended on Twitter for several days, driving wave after wave of public giving. In other cases, social media campaigns have been led by the public themselves. In early 2014, the high-profile ‘#nomakeupselfie’ campaign, in which women posted photos of themselves wearing no make-up on Facebook, Instagram and Twitter, raised £8 million for Cancer Research, potentially footing the bill for 10 new clinical trials. The charity had played no part in initiating the campaign. Charities can attempt to maintain or re-run these campaigns but, to get long term success they must ensure the campaign is durable and repeatable, balancing online awareness with offline activity. This is why Race for Life is so successful – Cancer Research UK can target organisers and participants year after year because they are on their database. Successful marketing campaigns use Web 3.0 to ensure all data generated and captured during such activities are brought back into the database. And these are just the big-news successes. What’s even more exciting about digital fundraising is that it offers massive reach at very low cost for any charity or NFP, no matter how modest its size or how local the cause. Once a campaign (formal or otherwise) finds and resonates with the right audience, it builds its own momentum, spreading like wildfire. In 2011, after the London riots, concerned members of the public united over social media to raise money for the victims, including the Malaysian student who was mugged and had his jaw broken, and the 140-year-old, family-owned furniture store in Croydon which was destroyed. In some cases, it is the very personal story of an individual that captures people’s imaginations – such as a family in need, whose plight becomes known across a community, then beyond. In 2013 and 2014, sudden deaths of participants in the London Marathons led to mass donations to those individuals’ chosen causes. And in April 2014, the story of Stephen Sutton, a teenage cancer sufferer, went viral on Facebook after public figures backed the 19-year-old’s attempt to raise a target amount for a teenage cancer charity that had supported him during his illness. Their efforts raised millions, almost half the charities previous annual income, from a single campaign. Multimedia & message personalisation Growing use of multimedia – images, sound, video, animation, etc – are helping to get messages across in new ways too. A quick link to a poignant YouTube video is easy for any fundraiser to create. In 2013 Cornish monkey charity Wild Futures was shortlisted for a Digital Media award in the national Third Sector Excellence awards, for a campaign film, Joey’s Story. The three-minute video, presented by Stephen Fry, told the story of a rare monkey which had been kept in a cage for nine years. The aim of the clip, which ran on the charity’s web site home page, was to showcase Wild Futures’ charitable rescue and rehabilitation work, highlight why monkeys are not suitable as pets, and drive potential donors towards an ‘adopt a monkey’ scheme. A key part of the project was to establish a large network of influential online ‘pushers’ who would share the campaign on the same date at the same time. Each was sent a document which outlined the actions required, including the important hashtags, keywords and links. The aim was to funnel as many hits to the landing page as possible. An app called ‘Monkey Nutz’ was launched simultaneously, containing a link to the film. Adopters were also encouraged to add a ‘twibbon’ (a small overlay that can be added to an individual’s Twitter avatar photo or image to display a cause) to their social media profiles to encourage others to follow suit. Within 24 hours, the film had attracted more than 4,000 White Paper
  • 4. 4 views. The campaign generated extensive media coverage, promoting the cause, and resulted in a 21% increase in income from the ‘adopt a monkey’ scheme. Something that has cemented the success of such campaigns is the personalisation of the accompanying messages as individuals share the links with their friends, telling how they have been sufficiently moved to donate and they’re “sure you will be too”. Their compassion is visible, and an element of peer pressure helps spread the feeling and the compulsion to give. Online donation platform provider JustGiving estimates that, on average, a single Facebook ‘share’ generates an extra £5 in donations for charities. Easy payment mechanisms Another crucial element in social media’s success in driving donations is the ease with which spontaneous ‘me too’ donors can give - by clicking through to donation pages and portals which, in turn, are linked to Paypal or existing payment details, and tax reclaiming facilities. Increasingly mobile text options are offered too, so donors can simply add £2, £5 or £10 to their mobile bills. When this is part of a national or global swell of emotion, these small amounts (which are easy to justify as discretionary spending) feel worth it, because of the speed with which the funds visibly multiply – so that the £20,000 raised on day one becomes £8 million by day seven. Compared to putting loose change in a charity container at the supermarket checkout, the feeling of having made a real contribution is far greater. Later, the donors are able to collectively pat themselves on the back too as they share the follow-up links highlighting how much was raised, how this money will be spent, and the difference it will make to people’s lives. This immediacy of feedback is a fundamental part of today’s digital culture. It is also vital in overcoming compassion fatigue, and as more causes vie for people’s attention. Crowdfunding A further development in digital fundraising has been crowdfunding. Here, organisations can appeal to a mass audience of potential fund providers - typically private individuals. In the case of a charity or NFP appeal, the donors choosing this route may do so because they prefer to contribute to a cause with some kind of guarantee that a target will be reached and that something specific will come of it (usually in a crowdfunding scenario nothing is handed over until a minimum target for pledges has been reached). This makes it a potentially useful channel for defined projects. Crowding In, a report published in December 2012 by the innovation charity NESTA, projected that crowdfunding could raise £4.7bn a year for UK charities by 2016. As with social media campaigns (planned or otherwise), crowdfunding can be a quick route to significant amounts of money, but it is not a strategy in its own right. Indeed, in the case of crowdfunding, there is a very real risk that nothing will be raised unless the right mechanisms are in place to ensure that targets are reached efficiently. So, while such channels have their part to play, they should not be viewed as a panacea to faltering donations. Web 3.0 – turning intelligence into strategic advantage With so many different digital routes to fundraising, it would be easy for charities and NFPs to lose control of what’s happening. In the short term this may not feel important (if the money is flowing in), but organisations need to find a way to sustain that momentum and capitalise on each new trend as it develops. All of this various social digital behaviour, even where (or perhaps especially where) it develops a life of its own, leaves a valuable data trail. With the right strategy and supporting processes and systems in place, charities and NFPs can tap White Paper
  • 5. 5 into this data and use it to refine their fundraising planning. Web 3.0 promises organisations the ability to mine very granular data about consumers’ online activities, so that they can connect with donors in unprecedented, personalised ways. According to the World Wide Web Consortium (W3C), Web 3.0, also known as the ‘Semantic Web’, “provides a common framework that allows data to be shared and reused across application, enterprise, and community boundaries.” In its broadest definition, Web 3.0 aims to combine social media, more sophisticated searching (ie more meaningful data), greater connectivity (as more devices are connected to the Internet) and artificial intelligence technology. For charities and NFPs, the bottom line is that Web 3.0 will provide much richer data which they can use to inform their campaign activities, and the ability to engage with potential donors in new and more personalised ways. Turning spontaneous acts of kindness into repeat giving Charities and NFPs that are creative and react quickly to the current public mood stand a good chance of raising a lot of money quickly if they find the right hook and the right audience. But as every organisation turns to the same channels and repeats the same formula, there is a risk that donors will switch off again. As individuals are finding, as more of their friends run races and climb mountains in the name of charity, there can be too much of a good thing. There is a danger, too, that if a charitable organisation experiences a sharp rise in donations by riding a social media wave, they will expect this level of donations to continue if they keep doing the same things – setting themselves up for a shock if the peak in activity is followed by a deep trough. The challenge is how to then maintain momentum and keep donors engaged. This means being able to capture detail about everything that has happened to date, so that the organisation can measure what has been successful, where, when and how. It means being able to see who is giving, what led to this, what they gave and through which mechanism. With so much activity spanning so many channels, it is vital that fundraising managers and marketing teams are able to join up the dots, to create complete visibility of what is working where, how the various campaigns and vehicles are interweaving, and what impact this is having overall. Securing a sustained, long-term increase in funds means being able to use emerging trend information to predict and influence how donor behaviour might evolve and change over time, so that charities and NFPs can be ready with something meaningful and new that will resonate. One of the opportunities presented by social media and now Web 3.0 capabilities is the opportunity to chart trends, and to maintain levels of engagement by identifying and responding to subtle shifts in mood, and by keeping the conversation going – for example by reporting back periodically on how that new project is coming along. If the public remains connected to something they helped with in the past, there is more chance they’ll join the next push to take the project to another level. Next steps: Developing a Fundraising 3.0 strategy In building repeat donations, the aim for charities and NFPs is of course to minimise the cost of each transaction so that the proportion of useable income rises. In a Web 3.0 context, charities and NFPs have an opportunity to learn more about existing and potential donors and personalise the user experience accordingly (just as Amazon does by recommending books, films and music to customers based on previous selections and choices made by consumers with similar tastes). This is because Web 3.0 technologies are able to measure and manage behavioural data, rather than merely generic demographic and transactional data. But how can charities and NFPs begin to build this sort of data, and profile existing and would-be donors at a deeper level of sophistication? White Paper
  • 6. White Paper The starting point must be to create a 360-degree view of the customer across all channels and touch points and to follow through any activities as they produce results (or not). This means joining up back- and front-office processes and associated systems, so that there is complete visibility from one end of the organisation’s activities (and associated performance) to the other. Where in the past charities had the problem of silos of data popping up in unauthorised Access and Excel databases, now they are building silos of data on the web, in donation sites, online catalogues, online event registration systems, online surveys and so on. Ideally data from all these sources needs to flow into a single strategic fundraising database where it can be managed, monitored and reported upon. End-to-end activity, performance and resource management enable organisations to more effectively match teams, talent, facilities and budget to where this will have the most impact at a given time - and to ensure that momentum is measured, analysed and harnessed optimally in every possible way. The data deluge In commercial circles, much is being made now of ‘big data’ and ‘real-time analytics’. Having the ability to process and interpret huge volumes of incoming data about customers and their actions has become vital as companies attempt to become more reactive and pre-emptive in all that they do – i.e. more finely tuned to the market, and to continually-changing customer trends and preferences. To monitor and respond to these trends, their ‘eyes’ need to be simultaneously trained on all channels and all sorts of inflowing information. Charities and NFPs must now learn from this and implement their own predictive capabilities. Assessing current fundraising performance, comparing this with past experiences, and optimising emerging opportunities all depend on interplaying information from all of the data repositories available within the wider organisation such as finance, human resources, fundraising, marketing, and customer / member / donor relationship management. Before charities and NFPs can make any significant improvements, they need to know where they are currently on the evolutionary curve as it moves away from traditional fundraising approaches and toward a modern, agile Fundraising 3.0 strategy. What they need to aim for is an all-encompassing, joined-up strategy that allows them to capitalise on Web 3.0-based opportunities and blend these optimally with other tried and tested methods of driving donations. However the evidence suggests that the majority of charities and NFPs have stalled at a very early stage on the curve. In December 2013, a survey of the UK not-for-profit sector by Source Information Services found that 96% of organisations were struggling to make full and effective use of data they already had access to. Many admitted they did not have a single accurate source of data about organisational effectiveness, marketing effectiveness, service users or projects, members or supporters, employees, or even finances. The vast majority relied extensively on spreadsheets, with 92% using Microsoft Excel as a standard reporting tool. Data duplication was found to be rife too, with 87% of organisations conceding that they regularly enter data in more than one place - to the point that 80% say they have difficulty producing reports that require data from different systems. This is having a direct effect on charities’ and NFPs’ ability to act on the findings embedded in their data: 78% of respondents said they were faced with conflicting data or reports; 69% were having difficulty understanding reports from different parts of the organisation; and 66% highlighted a lack of integration between front- and back-office operations. As a result, 72% of charities and NFPs taking part in the research felt that decisions were being made in their organisations without sufficient data to support them.
  • 7. 7 White Paper Transforming this situation demands that charities and NFPs consolidate and streamline their planning and management activities, so that there is a single, clear line of sight - from the front-end of donor-facing activity, to the back office where books are balanced and resources managed. Creating a clear line of sight across the organisation Only by tightly integrating promotional activity, donor relationship management, consumer campaign performance, finance and HR, can organisations hope to understand how one course of action impacts the bigger picture, and how subtle alterations to consumer communications can drive increases to income flow and donor retention. All data, whether collected online or through other channels, must either feedback into a unified, centralised database or in the very least organisations must have the ability to access all data from a single point of entry via a systems connector. As well as relieving the burden of manually consolidating reports from multiple sources of data, this helps to create a consolidated, 360-degree view of an individual supporter or major donor that can be shared by all authorised staff to build long-term relationships. As they seek to align internal processes and systems, charities and NFPs should work through a checklist of capabilities - establishing where they are currently, and what streamlining may be needed to strengthen activities in certain areas. A suggested checklist is offered below. Fundraising 3.0 readiness checklist: To what extent can your organisation, in a joined-up and efficient way and with good-quality data reporting, manage or support the following: • Customer/member/donor relationships; • Fundraising and campaign activities; • Membership and subscriptions; • Events and conferences; • Timely financial consolidation; • Merchandising and sales order processing; • Lotteries and public collections; • Grant applications; • Legacy marketing; • Distribution; • Service delivery; • Full web site integration; • Integration with social media platforms; and • Digital communications - via email, mobile, SMS and more.
  • 8. 8 White Paper How easy or difficult would it be to report end to end activity incorporating several of the above areas? If there are gaps, or if several or all of these activities are happening in isolation, the fundraising organisation will be limiting its potential to maintain and grow its share of consumer giving. Choosing software which integrates readily with other, related systems is a good place to start; alternatively organisations could opt for a purpose-built software suite that has been designed to cater for a Fundraising 3.0 future. A further option is to harness the cloud to pull together systems, processes and data, and to provide the raw engine power to analyse all of the incoming data. Action for Children is just one charity that has turned to the cloud to take advantage of cost-effective data analytics, so that it can hone its fundraising efforts based on the latest donor intelligence. Conclusion: Staying one step ahead of the market Fundraising, like the web, is evolving constantly. This applies not just to the technology available but also to the innovative ways charities and NFPs are implementing it, changing their processes, and adapting their internal culture and structure. All of this means that organisations can’t afford to stand still with their strategies, or with their internal IT systems and business processes, because what works today may not work tomorrow. JustGiving points to the mobile channel as being one of the most critical environments for attracting donations in future. In a 2013 blog, Jonathan Waddingham, the company’s social and labs product manager, noted that mobile donors are twice as likely to share content and information as desktop donors, vastly accelerating the impact of social media on fundraising. After optimising its donation platform for mobile use, JustGiving generated over £3 million from 100,000 ‘superfast’ donations for the charities it supports. Mobile and tablet donations now represent half of all pledges it handles. Any charity or NFP with suitably integrated processes and timely, consolidated data capture and reporting capabilities should be able to take advantage of such trends without a break in productivity. Increased economic optimism should help to drive new data initiatives over the period ahead. A 2014 report, Managing in the New Normal, by PwC, Charity Finance Group and the Institute of Fundraising, found that 70% of charities felt more positive about the climate for donations than in previous years, and that charities would be looking for ways to make the most of the recovery. How ready is your organisation? Sources resources Challenges for charities and NFPs One Thing Most Nonprofits Stink at (Donor Retention) and How You Can Change It in 2014, NPengage, January 2014: http://www.npengage.com/online-fundraising/12-donor-retention-tips-from-nonprofit- fundraising-experts Professor Bertrand Taithe speaks to BBC on “compassion fatigue”, audio interview, HCRI News, November 2013: http://www.blog.hcri.ac.uk/?p=872 Compassion fatigue for international development, Blog by David Philpott, October 2013, CivilSociety. co.uk: http://www.civilsociety.co.uk/governance/blogs/content/16226/compassion_fatigue_for_
  • 9. 9 White Paper international_development Digital evolution/Web 3.0 What is the Semantic Web? World Wide Web Consortium: http://www.w3.org/RDF/FAQ Why Web 3.0, the Semantic Web, Will Be Even More Disruptive than Web 1.0, Sandhill, January 2014: http://sandhill.com/article/why-web-3-0-the-semantic-web-will-be-even-more-disruptive-than-web-1-0/ Businesses should prepare for Web 3.0, says BoozCo, ComputerWeekly.com, July 2011: http://www. computerweekly.com/news/2240105143/Businesses-should-prepare-for-Web-30-says-BoozCo Are you ready for Web 3.0 Social CRM?, CAM Foundation: http://www.camfoundation.com/blog/are-you- ready-for-web-3-0-social-crm/ Three content strategies from the charity sector, E-consultancy.com, November 2013: https://econsultancy. com/blog/63869-three-content-strategies-from-the-charity-sector#i.e5cefnhkbdfpz4 10 charities and how they use Pinterest, E-consultancy.com, April 2013: https://econsultancy.com/ blog/62498-10-charities-and-how-they-use-pinterest#i.e5cefnhkbdfpz4 How charity Anthony Nolan made the move to responsive design, E-consultancy.com, February 2014: https://econsultancy.com/blog/64346-how-charity-anthony-nolan-made-the-move-to-responsive-design#i. e5cefnhkbdfpz4 Fundraising 3.0 Fundraising 3.0, Huffington Post, September 2012: http://www.huffingtonpost.com/clive-mayhew/social- media-charity_b_1917910.html Fundraising 3.0 – New approaches to sharing, giving online, Hilborn, November 2012: http://www. charityinfo.ca/articles/Fundraising-3-0-New-approaches-to-sharing-giving-online Fundraising 3.0 video, The Digital Exec/Spinweb.tv: http://www.spinweb.tv/episodes/fundraising-3.0/ Action for Children moves into the cloud, CloudPro, May 2013: http://www.cloudpro.co.uk/cloud-essentials/ hybrid-cloud/5574/action-children-moves-cloud-rackspace How to slash the cost of big data analytics, ComputerWeekly.com, March 2014: http://www. computerweekly.com/news/2240215936/Interview-how-to-slash-the-cost-of-big-data-analytics Non-profits: Cloud-based fundraising 3.0, Bloomerang blog, October 2013: http://www.marketingtechblog. com/bloomerang/ The role of social media in fundraising How social media can change the face of fundraising, Guardian. Com, January 2014: http://www. theguardian.com/voluntary-sector-network/2014/jan/23/how-social-media-can-change-fundraising The top five charity social media stories of 2013, CivilSociety.co.uk, January 2014: http://www.civilsociety. co.uk/it/blogs/content/16662/the_top_five_charity_social_media_stories_of_2013 3 Ways to Use Social Media in Your Next Fundraising Campaign, NPTech blog, March 2013: http://
  • 10. 10 White Paper amysampleward.org/2013/03/05/3-ways-to-use-social-media-in-your-next-fundraising-campaign-and-free- ebook/ Seven tips for charities using Twitter, E-consultancy.com, April 2013: https://econsultancy.com/ blog/62629-seven-tips-for-charities-using-twitter#i.e5cefnhkbdfpz4 Breakthrough Breast Cancer launches first social media fundraising campaign, Marketing Week, February 2014: http://www.marketingweek.co.uk/sectors/charities/not-for-profit/public-sector/breakthrough-breast- cancer-launches-first-social-media-fundraising-campaign/4009431.article Social media success stories DEC Philippines appeal raises £13m in a day, CivilSociety.com, November 2013: http://www.civilsociety. co.uk/fundraising/news/content/16420/dec_philippines_appeal_raises_13m_in_a_day No-makeup selfies raise £8m for Cancer Research UK in six days, Guardian.com, March 2014: http://www. theguardian.com/society/2014/mar/25/no-makeup-selfies-cancer-charity How a No MakeUp Selfie Trend Suddenly Became a Cancer Awareness Effort, Adweek.com, March 2014: http://www.adweek.com/adfreak/how-no-makeup-selfie-trend-suddenly-became-cancer-awareness- effort-156480 Generous well-wishers donate £22,000 to Malaysian student whose jaw was broken as online campaigns spring up for riot victims and heroes, DailyMail.co.uk, August 2011: http://www.dailymail.co.uk/news/ article-2025225/London-riots-Ashraf-Rossli-receives-22k-donations-JustGiving-campaign-attack.html Dying teenage cancer sufferer Stephen Sutton could raise £2million for charity after Jason Manford backs campaign, Mirror.co.uk. April 2014: http://www.mirror.co.uk/news/uk-news/stephen-sutton-dying-teenage- cancer-3446908 Monkey charity based near Plymouth shortlisted for national award, Plymouth Herald, August 2013: http:// www.plymouthherald.co.uk/Monkey-charity-based-near-Plymouth-shortlisted/story-19657053-detail/story. html Crowdfunding Crowdfunding: A Viable Option For UK Charities?, WhiteFuseMedia: http://whitefusemedia.com/blog/ crowdfunding-viable-option-uk-charities Analysis: Is crowdfunding the way forward?, ThirdSector.co.uk, April 2013: http://www.thirdsector.co.uk/ Fundraising/article/1180206/Analysis-crowdfunding-forward/?HAYILC=RELATED Crowding In: What opportunities does crowdfunding hold for the UK’s businesses, charities, government, and financial system?, report by NESTA, December 2012: http://www.nesta.org.uk/publications/crowding Crowdfunding charities, Crowdfunder.co.uk: http://www.crowdfunder.co.uk/projects/search/ category:Crowdfunding_Charities/ Crowdfunding isn’t a quick fix for charity fundraisers: Crowdfunding might be increasing in popularity, but charities need to ensure they have a proper strategy in place, Guardian.com, April 2012: http://www. theguardian.com/voluntary-sector-network/2012/apr/02/crowdfunding-quick-fix-fundraisers Nonprofit Crowdfunding: 3 Tips for Fundraising Success, Mediacause.org, March 2014: http://mediacause.
  • 11. White Paper org/nonprofit-crowdfunding-3-tips/ Charities, NFPs and big data The choices not-for-profits need to make about collecting and using data, Source Information Services Ltd, 2014: http://www.advancedcomputersoftware.com/collateral/abs/register.php?doc=advancednot-for- profitreportfinal.pdf The power of data: Is the charity sector ready to plug in?, New Philanthropy Capital (NPC), October 2013: http://www.thinknpc.org/publications/the-power-of-data/ The potential of big data in the charity sector, Royal Statistical Society, December 2013: http://www. statslife.org.uk/opinion/1101-the-potential-of-big-data-in-the-charity-sector The future of fundraising Nine reasons why social and mobile are the future of fundraising, JustGiving blog, 2013: http://blog. justgiving.com/nine-reasons-why-social-and-mobile-are-the-future-of-fundraising/ Lack of digital literacy threatens future fundraising in UK charities, Eduserv, March 2014: http://www. eduserv.org.uk/insight/news/2014/03/CharityComms-report 10 years time: social media and the future of fundraising, Guardian.com, February 2014: http://www. theguardian.com/voluntary-sector-network/2014/feb/06/10-years-time-social-media-and-fundraising New research shows charities are cautiously optimistic about the future, Institute of Fundraising, April 2014: http://www.institute-of-fundraising.org.uk/newsroom/latest-news/new-research-shows-charities- are-cautiously-optimistic-about/ For more information Advanced Business Solutions is a brand name of Advanced Business Software and Solutions Limited, registered in England, company number 03214465. Registered office: Munro House I Portsmouth Road I Cobham I Surrey I KT11 1TF. t: +44 (0) 08451 606 162 f: +44 (0) 1932 584 001 e: marketing@advancedcomputersoftware.com www.advancedcomputersoftware.com/abs Advanced Business Software and Solutions Limited recognises the trademarks of other companies and their respective products in this document.