How Going Online Can Improve Your Fundraising

1
How Going Online Can Improve Your Fundraising

• Dinuke Ranasinghe
• Managing Director, PayPal Australia
• 11th May 2009

2
Agenda

• Pitfalls of traditional fundraising
• State of online giving
• Online giving in era of social networking
• Benefits of online fundraising
• PayPal in the non-profit sector
• Accepting online donations
• Local international success stories

3
Pitfalls of Traditional Fundraising

• Australians dislike being telephoned to elicit
  donations
• Most frequently reported approach is disliked by
  77.8 of donors1
• Direct mail losing effectiveness
• 32.7 of Australians dislike receiving direct
  mail1
• Further 65 dont respond to direct mail at all1
• In US, 41 charities report smaller gifts/fewer
  donors with DM2
• Direct mail is costly, high production costs

1) Giving Australia Report 2005 2) DMA
Nonprofit Federation
4
Online Giving is on the Rise

• Online giving is still in infancy
• Globally, only 2 giving online
• Crises fueled shift to online giving
• 3 million channeled online through Australian
  Giving Centre following Asian Tsunami
• In US, 50 of Hurricane Katrina donations made
  online
• Online growth outpacing offline donations by 7X
• 20B globally in 20071
• 53 growth annually

• 1) Tedhart.com and Harvard University Initiative
  http//www.slideshare.net/tedhartusa/2007-annual-o
  nline-giving-estimate-ted-hart
• 2) ePhilanthropy Foundation

5
Benefits of Online Fundraising

• Lower donor acquisition costs
• Costs 10 times more to acquire offline than
  online 1
• Approx 1 to acquire by mail versus 10 cents
  online
• Increase donation value
• Average gifts are larger 1
• Attract younger donor base
• Donors are younger and more affluent 2
• Nearly 3X more valuable than donors acquired by
  mail
• Low Cost Solution
• Streamlines your fundraising administration
• Give donors 24/7 access anytime, anywhere

1) 2007 Kintera survey of 1100 nonprofits 2)
Network for Good 2006 Target Analytics survey
1350 nonprofits, 2009
6
Giving Online in an Era of Social Networking

• 89 of Australians using the Internet1
• 63 already making payments online1
• 1 in 5 Australians now belongs to an online
  community
• 36 using social networking sites1
• Charities can reach new donors on social networks
• Widgets enable personal appeals for causes
• Facebook application available for personal
  fundraising

1) Sensis e-business report 2008
7
e-commerce among Australian non-profits

• Australian non-profits yet to embrace web for
  fundraising
• 81 have a website 1
• BUT.
• Only 22 use the internet for fundraising 1
• Only 27 use the website for selling goods or
  services 1

1) Not-for-profit e-business report 2008
8
PayPal in the Non-Profit Sector

• PayPal provides donors with a safe, secure way to
  donate online
• 100,000 non-profits globally raise money via
  PayPal
• Processed US850 million in 08
• 250 non-profits globally sign up daily
• Gateway to international donor base
• Access to 184m account holders worldwide
• 5m in Australia
• PayPal is preferred way to pay online amongst
• Australian consumers1
• More than US3 billion stored in PayPal accounts
• Spent and replenished every 2 weeks
• Donate as guest if you dont have PayPal
  account

1) AC Nielson Consumer Report
9
PayPal in the Non-Profit Sector
100,000 nonprofits raise money with PayPal
annually
10
Raising Money Online with PayPal

• PayPal helps charities and non-profits to receive
  donations in numerous ways
• PayPal Donation Button is designed to help you
  start accepting donations online in as little as
  45 minutes
• Add Recurring Donations for ongoing giving
• Giving Widget is intended for personal and
  nonprofit fundraising on Web sites and blogs
• BlackbaudNow is a website builder with in-built
  PayPal donations processing
• 31 donors would have chosen not to make donation
  to charity had PayPal not been offered1

1) Survey of Australian customers who made a
donation using PayPal between Mar Apr 2009
11
Accepting Donations Online is Cost-Effective

• One payment solution accepts multiple forms of
  payment
• Less staff to handle payments
• Donation reports available online
• No set-up fees pay-as-you-go
• Safe and secure meaning you never have to obtain
  a donors bank or credit card details
• Eliminates PCI compliance issue

12
Accepting Donations Online is Easy

• Adding a Donation Button to your website is
  simple easy
• Start accepting funds online in as little as 45
  minutes

13
Creating an Online Presence is Simple

• Build a website with in-built PayPal donations
  processing - in as little as 10 minutes
• Point and click to create web site
• Donations built-in
• Email campaign management
• Donor database

14
Local Case Study Koala Hospital

• Worlds first hospital dedicated to preservation
  and care of Koalas
• In the last year, the Koala Hospital raised more
  than AU100,000 using PayPal
• PayPal is a trusted global brand that gives our
  supporters a simple way to make donations online,
  regardless of where they live.
• We may be a local organisation, but we have an
• international base of supporters and need to
• make it as easy and secure as possible for them
• to donate money to our cause. Even though we
• still offer mail order, cheque and cash payments,
• we receive the majority of funds online via
  PayPal
• because it is convenient and easy to use.
• Bob Sharpham, President, Koala Preservation
  Society of NSW Inc.

15
International Case Study Kiva

• Kiva supports mircolending to entrepreneurs in
  developing countries
• In last 3 years, it raised 70 million online
  using in PayPal, receiving donations from 40
  countries
• PayPal gives us the ability to do something
  quite
• remarkable combine millions of small
  transactions
• processed through the PayPal system to fund
  millions
• of dollars worth of small business loans to
  the working
• poor in the developing world."
• Fiona Ramsey, Kivas Public Relations
  Director

16
Resources and Contacts

• To start taking advantage of online giving,
  visit https//www.paypal-portal.com/au/
  charity/index.html
• To create your own donations button, visit
  https//www.paypal.com/au/cgi-bin/webscr?cmd_dona
  te-intro-outside
• To see a demo of a giving widget, visit
  http//www.paypalaustralia.com/pp/widget.html.
• About PayPal
• PayPal is the faster, safer way to pay and
  get paid online. The service allows members to
  send money without sharing financial information,
  with the flexibility to pay using their account
  balances, bank accounts, credit cards or
  promotional financing. With more than 184 million
  account holders in 190 markets and 19 currencies
  around the world, PayPal enables global
  ecommerce. PayPal is an eBay company
  https//www.paypal.com/au.