Presented at the 2010 Civil Society Congres in the Netherlands. Focuses on trends in the global not-for-profit sector, fundraising in Europe, the use of the Internet and Web 2.0 tools, and ways that nonprofits can better leverage technology.

1. Blackbaud
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Philanthropy 2.0
Steve MacLaughlin - Director, Internet Solutions
www.blackbaud.com/connections
© 2010 Blackbaud

2. Blackbaud
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About Me
Director - Internet Solutions
Blackbaud, Inc.
14+ years of Internet experience
Frequent speaker at nonprofit
conferences and events
Serves on the Board of Directors
Read my blog at:
of NTEN
www.blackbaud.com/connections
Editor and contributing author of
the book Internet Management
for Nonprofits Follow me on Twitter:
smaclaughlin
© 2010 Blackbaud

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The Agenda
The Changing World
Understanding Philanthropy 2.0
European Not-for-Profit Trends
The Internet, Online Giving, and Web 2.0
The Future and Beyond
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The world is changing
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Your world is changing too
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Real things are important
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Digital things are also important
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Everyone here is experiencing change
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Monthly Donors
Micro-Lending
Twitter Membership Targeted Content
Mobile Advocacy Stewardship
360° View
Security
High Touch Legacy Donors
Major Donors Multichannel Donor Focus
High Volume
Email I18n L10n Mashup
Analytics Personal Meetings
Benchmarks Direct Mail
Facebook Lifetime Value
Online Giving Privacy
APIs Website
Peer to Peer Fundraising
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Some change is easy
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Some change is scary
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Not everything can be explained
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Everything will be ok
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Understanding Philanthropy 2.0
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Philanthropy 1.0
Single-Generational
Single-Strategy
Single-Channel
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Philanthropy 2.0
Multi-Generational
Multi-Strategy
Multi-Channel
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Philanthropy 1.0 Problems
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Philanthropy 1.0 Problems
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Gen Y is
the future.
Gen Y is
your future.
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Multi-Channel Communication
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Change is already happening
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2009 State of the Not-for-Profit Industry Survey
6 week online survey conducted in the Netherlands,
France, Germany, Italy, and the United Kingdom
1,000+ European not-for-profits responded
4 areas of focus were General Operations,
Accountability and Stewardship,Technology and Internet
Usage, and Fundraising
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Netherlands and Not-for-Profit Sectors
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France and Not-for-Profit Sectors
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UK and Not-for-Profit Sectors
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What does your organisation do?
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Top Fundraising Strategies
Netherlands France Italy Germany UK
Community
Direct Mail Major Donors Major Donors Major Donors
Fundraising
Committed Giving Direct Mail Special Events Direct Mail Other
Committed Committed Committed
Other Committed Giving
Giving Giving Giving
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Netherlands - Importance / Performance
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UK - Importance / Performance
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European Communication Methods
Netherlands France Italy Germany UK
Mail Mail Personal Meeting Mail Mail
Website Personal Meeting Email Personal Meeting Email
Email Email Mail eNewsletter Personal Meeting
eNewsletter Website Website Website Website
Phone Phone Phone Email Phone
Personal Meeting eNewsletter eNewsletter Phone eNewsletter
Other Call Campaigns Other Call Campaigns Other
Call Campaigns Other Call Campaigns Other Call Campaigns
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Netherlands and Not-for-Profit Roles
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France and Not-for-Profit Roles
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What Technology Factors are Important
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Technology Strategy and Planning
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Technology Strategy and Planning
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Technology Strategy and Planning
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Areas of Increased Investment
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How is your website managed?
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Who has primary responsibility for the website?
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What is the primary purpose of the website?
Market Your Organisation /
Educate the Public
Serve Programme Recipients
Raise Funds
Promote Campaigning
We do not have a website
Other
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Actively Using the Internet for Fundraising
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What tools do you use in your Internet strategy?
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Who visits your organisation’s website?
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Do you feel your website is effective?
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Top Ways for Driving Online Donations
Netherlands France Italy Germany UK
“Donate Now” Email to Current Email to Current Email to Current Email to Current
button on website Donors Donors Donors Donors
Email to Current Email to Potential Banner
Event Promotions Events
Donors Donors Advertisement
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Online Giving Universe
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Donor Focus Organization Focus
External Website
Visa
Mission Giving Donation
Fish Gateway Widgets
Facebook
Network Causes Nonprofit
for Good Central
Friends Donation
Donor Campaign
Asking Forms
Portal Micro
Internal Website
Friends Sites
Employee Event Membership
Gift
Giving Forms Forms
Catalogs
Portal
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Online / Offline Giving Trends
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2008 donorCentrics Internet Giving
Collaborative Benchmarking Analysis
24 large direct marketing organizations.
Aggregate of 9.5 million donors, $750 million in revenue.
Gifts above $5,000 were excluded.
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Online donors are younger than traditional donors
Source: 2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis, Target Analytics
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Online donors have higher incomes than offline donors
Source: 2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis, Target Analytics
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The Internet is a significant source of new donors
Source: 2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis, Target Analytics
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Online donors switch channels. Offline donors do not.
Source: 2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis, Target Analytics
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Online donors are not as loyal as offline donors
Source: 2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis, Target Analytics
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Multichannel donors are more valuable donors
Source: 2008 donorCentrics Internet Giving Collaborative Benchmarking Analysis, Target Analytics
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Online Fundraising Growth
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2008 Total US Fundraising
$292.23 Billion
Offline
$15.42 Billion
Online
Source: Giving USA, Blackbaud
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Total US Fundraising
$320,000,000,000
$240,000,000,000
$160,000,000,000
$80,000,000,000
$0
2001 2002 2003 2004 2005 2006 2007 2008
$246B $245B $243B $245B $283B $295B $314B $307B
Source: Giving USA
© 2010 Blackbaud

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Total US Online Fundraising
20,000,000,000
15,000,000,000
10,000,000,000
5,000,000,000
0
2001 2002 2003 2004 2005 2006 2007 2008
$550M $1.1B $1.9B $2.62B $4.5B $6.87B $10.7B $15.42B
Source: ePhilanthropy Foundation, Blackbaud
© 2010 Blackbaud

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39 Month Trend
Source: Blackbaud
© 2010 Blackbaud

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2009 Online Giving Trends
Blackbaud analyzed data from ~2,300 nonprofits
This represents the largest and most comprehensive
study ever done in the nonprofit sector
Online recurring gifts and pledges were excluded as
well as outlier gifts and growth rates
Source: Blackbaud
© 2010 Blackbaud

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2009 Online Giving Trends
Online revenue grew 46% in 2009
December online revenue grew 32% in 2009
May online revenue grew 66% in 2009
Source: Blackbaud
© 2010 Blackbaud

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2009 Online Giving Trends
30% of online revenue was processed in December
46% of online revenue was processed in the last three
months of the year
Online transaction volume grew 74% YOY in the first
three months of the year
Source: Blackbaud
© 2010 Blackbaud

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Online Giving Benchmarks
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You, Me, and the Bear
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Year Over Year Growth
Blackbaud analyzed ~1,700 nonprofits with YOY data
65% of nonprofits had positive YOY growth
The median YOY growth rate was 21%
Source: Blackbaud
© 2010 Blackbaud

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Year Over Year Growth
Amount Raised Online YOY Growth Rate
$1,000,000 + 35%
$500,000 - $999,999 19%
$100,000 - $499,999 28%
$50,000 - $99,000 13%
$10,000 - $49,999 3%
All Organizations 21%
Source: Blackbaud
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2009 Average Gift Trends
Business / Corporations $194.05
Cultural $112.47
Family / Human Services $154.13
Foundations $209.53
Healthcare $95.21
Hospitals $120.16
Higher Education $204.05
Independent Schools $371.62
Other $110.04
Recreational / Social $134.31
Religious $196.44
All Organizations $144.72
Source: Blackbaud
© 2010 Blackbaud

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Online Major Gift Trends
Source: Blackbaud
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2009 Online Major Giving
77% of nonprofits had at least one gift ≥$1000
Largest online gift was $60,000
Median online major gift was $3,500
Source: Blackbaud
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2009 Online Major Giving
17%
$1,000
00
% 60,0
9 $
$5, 18%
001 1-
- $1 0,00
0,0 $1
00
20% 36%
$5,000 $1,001 - $4,999
Source: Blackbaud
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Haiti Earthquake
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Source: Blackbaud
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What should orgs be raising?
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Where do you fit in?
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Web 2.0
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Web 1.0
First Generation Web Content
One Way Communication
Driven by Marketing / Communications
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Web 2.0
Second Generation Web Content
Two Way Communication
A Common Strategy Driven Across the Organisation
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Rule #1:
You are not
in control
anymore
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Rule #2:
Always be
listening
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Rule #3:
Focus on
building
relationships
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Rule #4:
It takes
time,
patience,
and passion
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RSS
Really Simple Syndication
Subscription content
Universal format
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Weblogs
Social content
Not website content
Requires commitment
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You Tube
Social video
Internet scale reach
Viral capabilities
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Flickr
Social photos
Raw image content
Multiple applications
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Facebook
Social networking
Activity as content
Grow fans and build
relationships
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Twitter
Social messaging
140 characters per
message
Build followers
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The Future and Beyond
© 2010 Blackbaud

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We can’t
just apply
old ideas to
new things
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It’s all getting personal
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Are you
counting
or are you
measuring?
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Stick your neck out
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Internet Management
for Nonprofits
27 nonprofit experts
AFP Fund Development Series
Makes a great gift!
© 2010 Blackbaud

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© 2010 Blackbaud

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Thank You
Steve MacLaughlin
Director, Internet Solutions
steve.maclaughlin@blackbaud.com
Twitter: smaclaughlin
Blog: www.blackbaud.com/connections
© 2010 Blackbaud