Pedestrian Bridge in the Navy Yard

What Nonprofits Can Learn from Kickstarter

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Nonprofit online fundraising lacks good follow-up. Some nonprofits like charity: water are fantastic with their post donation experience, including thank yous, reporting results, and continued community cultivation. But in general, most nonprofits that participate in giving days or host their own larger online fundraising events fail to deliver in their post donation experience.

Ironically, or perhaps to no surprise, Kickstarter — the standard used in for-profit online fundraising — provides a more rigorous customer-centric solution. The platform requires certain amounts of interaction and follow-up after a pledge has been made. Success demands that businesses and individuals fulfill their commitments with updates, surveys, and of course, product delivery.

Focusing on the Wrong Things

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A charity: water drilling success.

Nonprofits know donors are important. They could not exist without them. Yet most fundraisers are designed to get donations and achieve a dollar goal, as opposed to cultivating relationships with donors who also care about what the nonprofit is trying to achieve. That monetary focus creates the motive for failing to achieve a great post-donation experience.

Even the vaunted Knight Foundation Giving Day Playbook in its follow up section encourages community foundations to analyze the data so they can learn, and grow a bigger giving day (whatever their foundation-centric goal is). Umm, what about interacting with donors after they give? What is the community experience, Knight Foundation?

The biggest problem with the Knight Foundation’s playbook is that it completely focuses on galvanizing a community to raise money (or grow an community foundation’s fund, or…) by activating nonprofits, leveraging partnerships with media and the like, and mass communications. It ignores the donor experience. That would be like the NFL focusing solely on teams and media partners, and completely ignoring the fan experience. Huge mistake. But that is another post for a different day.

As Avinash Kaushik, Google Analytics wizard and product marketing evangelist, says “Suck Less” by focusing on the user (e.g. donor) experience as your primary driver and not data points. Nonprofits have to look at donors small or large as investors. Just like a Kickstarter, people give money for something: To affect change, support a friend, and/or to feel better about a problem.

When a nonprofit fundraises, it is to achieve something. That is the shared value, the goal that all parties want to see.

The customer wants to see and possibly participate in the achievement of that goal, or at least the attempt to get there. Getting back to charity: water, one of my favorite case studies features the nonprofit failing to drill a well in 2010. It was something investors experienced with the brand, and they responded well when the failure occurred. Founder Scott Harrison said at that time, “Perhaps people wanted to see us fail. Perhaps it was a triumph for the cynics and apathetics. But I don’t think so. I think people just want to know the truth.”

Investors want to be communicated with. They want to know what is going on, and they understand that the journey has bumps in it. Communicate with them. Which brings us to the lessons nonprofits can learn from Kickstarter.

Lessons from Kickstarter

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An image from my personal trial Kickstarter for a book, Cuba: Seven in 10.

There are many aspects of the Kickstarter platform that are worth experiencing. From prompts to updates to how to structure a fundraiser and promote it for success, nonprofits can leverage a lot for their own efforts. It’s worth setting up a small personal fundraiser just to experience it. That being said, the three big Kickstarter takeaways for a nonprofit post-event experience include, communicate often and frequently, fulfill your commitments, and make it engaging.

Communicate

Kickstarters require frequent updates. Successful campaigners communicate often, as they deliver not only the product, but also offer a level of transparency into their efforts. That is true during the Kickstarter when someone is soliciting. It is also true afterwards when brands fulfill their promised product or action for their backers.

Nonprofits often communicate frequently during the fundraiser, but afterwards most simply solicit investors for more dollars. Worse, these solicitations tend to bore investors!

Instead, provide regular progress reports. Show your donors/investors how their dollars are making an impact. Do it without asking for a donation every time, too. You might be surprised how well that will go over, and create additional fundraising opportunities in the future.

Fulfill

Kickstarters promise a result. You can communicate all you want with your backers, but if you don’t fulfill it is a fail.

Many people feel the same way about nonprofits, and won’t donate to a cause again if it fails to achieve success. So the biggest way to garner repeat donors is to actually show progress. Demonstrate that you are achieving your mission’s results. If you fail, communicate why and what’s next, just like charity: water did.

Some fundraisers back a specific action or program. The same principle applies in those cases: Show results for that action or program.

Engage

Kickstarters are inherently exciting and engaging. With Kickstarters people create videos, add stretch goals, and send fun promos, which are all part of the solicitation process.The post process should continue that experience. Let people have a say, let them experience the execution of the product first hand. The meaningful part of engaging in an activity or with a cause cannot be underestimated.

One of the better executions I’ve seen was a contest my client Meyer-Optik ran for its customers. They bought a product, the Trioplan 100, and it has shipped. Was that the end? No, you could win a contest with pictures you are taking with the product.

The point is find ways to let people experience how your cause is changing the world. Invite them to an event, let them see field work via video, or meet the executive director via a Hangout.

A nonprofit can always create other ways for people to engage beyond donating, too. Volunteer, or send messages of encouragement, or advocate. Find ways.

What do you think?

Fundraising: To Email or Not to Email

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To email or not to email, that is the question of the modern fundraiser.

I understand the email quandary. We want to reach our customers and very important friends, and make sure they know about our fundraiser (or any other initiative). At the same time, we don’t want to alienate our contacts with spammy solicitations.

Several years ago, I worked with a nonprofit on their hopeful $30-$50,000 fundraiser. In the beginning, we were all in agreement on the importance of building a strong email list and accessing partner networks to get the word out. Focusing on an exciting initiative, the effort would seek to activate and engage in a first time giving event for this sector of the nonprofit. At that time, this would have been unique.

But then the corporate messaging initiatives began to take precedence. Protocol mattered more than engagement. Using the list and partners’ lists for the fundraiser came into question. Concerns arose about antagonizing people with the fundraiser. The nonprofit already emailed the list frequently with its various news items and corporate partner initiatives.

Social media, a single relatively benign email, and content would need to carry the effort. Needless to say, things didn’t fare as well as we had originally hoped. The fundraiser sputtered and bumbled its way across the $10,000 mark. The Fundraising Wall began at the outset.

Social and Blog Content Usually Can’t Carry the Weight Alone

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One truth about online fundraisers: It is very, very hard to succeed with social media and blog content alone. I would say it is almost impossible UNLESS you have a super engaged community. Frankly, you need multiple tactics, an integrated strategy (the subject of my last business book Marketing in the Round), but of all the tactics email is almost a must have for a successful fundraiser. .

An email list really is an extension of a super engaged community, too. I would argue that an exhausted email list that sees mass opt-outs during a fundraiser reflects a larger problem. Perhaps the organization uses its email list as a mechanism to simply ask and get rather than to provide value.

There is a reverse to that equation. If people are subscribed to your organization’s list and all they receive is valuable information, but are unwilling to receive an email from you about an important initiative, then perhaps they are not really a part of your community. They just like free information.

This may have to do with the list that they are opting into. Was it clear that they will receive occasional offers (e.g. solicitations) from you? It may be worth segmenting people that complain about solicitations into a different list.

Also, let’s be honest with ourselves, do people just find our solicitations to be spammy and boring? If your email is a blatant request to give you money for something they may not want, then maybe your quandary is well justified. You may get a few backers or donations. You will also piss off a lot of people, too, particularly if you continuously make obvious uninteresting overtures with your email community.

Figure It Out or Hit the Wall

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There are two critical aspects to the email problem: Content and community. There are many resources that can help you create a stronger content initiative with the actual email. Is the email copy entertaining and useful to the list member. Or do they just feel like you are talking about yourself and asking for something?

Then there are the community members, the people who have subscribed to your list. Frankly, if you are concerned about a dead or dying list, then maybe it’s time to get honest about the state of your email program. Email represents a relationship tool. People who have had enough of your organization’s email, probably don’t belong on the list anymore. Would you email a friend who kept complaining about your jokes?

While invigorating your list with better content, consider a new opt-in prompt for people who have not opened one of your emails in six months. This inactive list campaign may take more than one communication, but if you are not getting a response, my recommendation is to cull them. In my mind, they have indicated through inaction that the email communications aren’t working for them. Let them go.

Focus on stronger content, more value, higher open rates, and better interaction with your email community. Figure it out before your online fundraiser, or you will hit the Fundraising Wall.

There are many other components to a successful online fundraiser, including online advertising, influencer activation (your influencers, not those big wig celebrities!), PR, live events and more. But without email as a basic fundamental outreach, you may be dooming yourself to a lesser fundraising effort.

From the Internet of Things to Video Moxy

I have the great privilege of hosting the xPotomac Conference every year with Patrick Ashamalla and Shonali Burke. We just published video recordings of our 2014 sessions, including our keynotes, on YouTube. You can see the whole channel here.

Here are each of the sessions:

KEYNOTE: Robert Scoble on The Age of Context



Find out more about Robert Scoble at facebook.com/RobertScoble.

Lauren Vargas, Digital Media in a Regulated Environment


Find out more about Lauren at rootreport.com/about/.

Toby Bloomberg, Broadcast and Print Media Adoption of Digital

Learn more about Toby here: about.me/TobyBloomberg.

Peter Corbett, The Internet of Things

Find out more about Peter at istrategylabs.com.

Danielle Brigida and Allyson Kapin, Disrupting Social Change

Find out more about Danielle at https://twitter.com/starfocus and Allyson at womenwhotech.com.

KEYNOTE: Jim Long, The Wild World of Video


Learn more about Jim at vergenewmedia.com.

Give to the Max

After five months of planning and hard work, Give to the Max Day is here. Today, 1300 Washington area nonprofits will be fundraising, and experimenting with social media tools in a collective training exercise and contest. More than $140,000 in awards are available.

If you are interested in a capacity building oriented contest, check out the site. You will see a wide variety of creative tactics and approaches to winning, all using social media tools.

Please browse the participating nonprofits and donate or share about your favorites. If you live in the Greater Washington Area, this is your chance as an individual to make a statement to the country about our region’s compassion. We are expecting tens of thousands of citizens to donate and spread the word.

K Street Taken by @Give2Max

The event is part of Digital Capital Week or DCWEEK, the current festival bringing together the region’s designers, developers, entrepreneurs, technologists and social innovators. In fact, we are holding a rally tonight to close out Give to the Max Day. The rally is also the after party for the DCWEEK Keynotes at the Warner Theater. Please join us!

Finally, a special word of thanks to organizing partner Razoo for allowing me to serve as general manager of the event. It’s been a real fun and meaningful experience, from flash mobs to training hundreds of nonprofits on how to be more successful online. Today will be a great day!

Coalition Marketing for the Common Good

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Image by jdhilger

Just as individual web site owners use affiliate marketing, small and large companies and nonprofits are engaging in teams — coalition marketing — to reach common stakeholder groups. Modern Internet tools have made coalition marketing incredibly simple. It’s easy as setting up a web site and providing the common offering or cobranding.

Coalitions take several forms. Often joint marketing initiatives are fielded where both or a group of brands are co-promoted (almost like a large summer music festival with multiple headliners). For example, consider how your grocery store may be affiliating with a gas company to provide loyalty programs. Also consider how Zoetica and RAD Campaign co-market the Nonprofit 2.0 Conference.

Another form is traditional channel sales, where a brand builds a great product or service and the other markets it to its customers. Cause marketing relationships take this form, with the nonprofit offering the service and the consumer facing business selling it as part of a package to its customers. And of course, many parts of the technology industry are driven off the channel model.

In fact, if you consider the Google-Motorola acquisition this week and the issue of patents, Google acquired one of its Android coalition partners to protect itself from lawsuits. The intellectual property had become too distributed. In marketing “Droids,” Google was both using Motorola as a channel partner and co-marketing within a coalition.

Given how companies and nonprofits increasingly fill niches, and customers need more than just one product or service type, this trend of partnering will continue. There simply isn’t enough individual brand capital to grow in a desired fashion. Teaming provides the collective might needed to succeed in broad marketing initiatives. This is particularly true of smaller players competing with large established companies. So partners who naturally operate in the same space, but don’t necessarily compete head on will start gravitating towards each other naturally.

There are strengths and weakness to coalitions. Some considerations for partnering are mutual benefit to both organizations without costing or sacrificing too much capital on one side or another. When business relationships become lopsided, they tend to disintegrate or become one-off opportunities. In addition, trial deals are helpful, too, to see if the chemistry works between brands.

Obvious Bonds Are Needed

An Enemy of the People
Image by Shehal

Finally, a word on authenticity. Consumers are not stupid (see forthcoming Journal of Consumer Research article), and they know when a brand is faking it, or partners with another entity that seems out of sorts with its core mission. This is almost always true with cause marketing and the marriage between corporation and nonprofit. There needs to be obvious synergies.

But it is also true of corporate partnerships, too. The primary criticism of Google’s acquisition of Motorola Mobility is the unnatural tie forged with an Internet company owning a mobile phone manufacturer. The stretch is too much. Similarly, if Warner Brothers were to suddenly co-market Bugs Bunny with Playboy, there would be obvious issues in spite of the common rabbit icons.

Some marketers will tell you authenticity does not exist, that customers don’t want it. While this may be true for your worst individual personality defects, customers have expectations of behavior and delivery for a corporate brand. Note the difference. Frankly, personal identities that have evolved into real going concerns online need to adjust to this reality, too. When a brand is in place — regardless if it is named after a person — people have expectations of what the brand stands for, and the product/service that they will receive.

When you supersede those brand expectations in a partnering stretch to make money or paint a better brand image, customers balk. This rejection takes the form of less or no sales! It is important to be mindful in your marketing actions, and to be true to your brand’s core identity. That is authenticity, and practicing conscious awareness in business. Choose your partners well.