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Building a Great Web Site to Raise Money & Awareness for Your Organization

"Ask the Expert" Transcripts

"Building a Great Web site to Raise Money & Awareness for Your Organization" by Bill Freeman
April 29, 2004
Yvette Green, NRC Moderator
Actual Transcript – Duration 60 Minutes

Moderator (Apr 29, 2004 2:52:41 PM)
Welcome again. My name is Yvette Green and I am the NRC Client Support Administrator, and today's Moderator. We are pleased and excited that you have agreed to participate in our fourth Ask the Expert online training on "Building a Great Web site to Raise Money & Awareness for Your Organization." First off, don't worry - this is an easy activity in which to participate.

Moderator (Apr 29, 2004 2:54:30 PM)
There are three roles in this session: Bill Freeman is today's Expert, I am the Moderator, and you are the discussion participants. Bill will take the lead and present the session. This includes providing information, answering questions and feeding discussions. As the Moderator, I am like a switchboard operator. When you ask your questions, they are presented to me (you won't see them). I will then review your questions and send them on to Bill. For most questions, I will post them live for all of us to see and for Bill to respond.

Moderator (Apr 29, 2004 2:56:59 PM)
We are waiting for a few more folks to join us.

Guest Speaker (Apr 29, 2004 2:58:45 PM)
Welcome - we are almost ready to start!

Moderator (Apr 29, 2004 3:00:16 PM)
Let's get started!

Guest Speaker (Apr 29, 2004 3:00:53 PM)
Welcome! Now first off - I have never been an "Expert" before, so let's go with "Moderately Proficient!"

Guest Speaker (Apr 29, 2004 3:01:08 PM)
Today we look at the Internet and specifically Web sites. As we progress through today's agenda, I will provide you with examples of links and commercial service providers that I personally find to be exemplary. Please note that these sites and services are only my suggestions, and do not constitute an endorsement by the National Resource Center or the Federal Government.

Guest Speaker (Apr 29, 2004 3:01:31 PM)
The web has changed, forever, how we relate to each other, how we communicate and how we organize.

Guest Speaker (Apr 29, 2004 3:01:45 PM)
Just look at what Howard Dean did with the Internet.

Guest Speaker (Apr 29, 2004 3:02:39 PM)
A nonprofit or faith-based organization without a Web site and a strategy for that site is just outdated and not providing the level of services needed.

Guest Speaker (Apr 29, 2004 3:02:47 PM)
This is today's Agenda:

  • Developing a Web site Plan
  • Writing for the Web
  • Web Content Development
  • Building an Online Community
  • Fundraising on the Net - Marketing Your Web site
  • Web statistics Measurements
  • Help

Guest Speaker (Apr 29, 2004 3:03:51 PM)
Let's start with a Web site plan. This is just essential to the success of any site. We would never think of launching a program without any planning, so why would we do it on the Web?

Guest Speaker (Apr 29, 2004 3:04:21 PM)
BTW - I am going to provide you with a Word document on Online Fundraising and some useful links. You don't need to take notes! We will send you a complete transcript after the event. Just sit back and participate.

Guest Speaker (Apr 29, 2004 3:04:51 PM)
Now back to your web plan.

Guest Speaker (Apr 29, 2004 3:04:54 PM)
There is a saying that for the sailor without a destination, any wind is the right one. Unfortunately, so many Web sites are like the aimless sailor, adrift on the ocean of the Web. If you don't have a written business plan for your site - a clearly definable goal statement with solid objectives and desired outcomes - than it really doesn't matter what you do. Further, you will never know if you are succeeding or for that matter, failing. I think there are a few reasons why association and nonprofit administrators don't develop web plans.

  • First of all, it is often hard to quantify what we do. For those sites that are focused on sales or sales support, it really is clearer and more objective. Either amazon.com sells books or it doesn't. And all of its ancillary services (easy purchasing, personalized buy recommendations, and visitor profiles) support the sales objective.


  • Second, and following from the first, we haven't been stretched or creative enough to see that our Web sites can serve multiple purposes - that is programmatic, education and publicity. Let's face it, there are far more examples of terrible organizational sites then there are of great ones.


  • Third, these two reasons have resulted in a lack of resources - financial and personnel. And why would they? If you believe that your site is a "nice appendage" with no day-to-day reality - it doesn't make sense to direct limited (and often shrinking) dollars to support a Web site.

These points are not excuses; don't let them become your reasons for inaction. It is because our work is multipurpose that we must have a web plan. One of` the real dangers of our work is the fog that we can create - "see how hard we work, our work is so important" without objectively asking and soberly measuring if our work makes a difference at all.

Guest Speaker (Apr 29, 2004 3:07:19 PM)
Plans don't have to be long and tedious - just know where you want to accomplish and by all means KNOW WHO YOUR AUDIENCES ARE.

Guest Speaker (Apr 29, 2004 3:07:49 PM)
It amazes me as I consult, that so many organizations have no idea who their web audience is or could be. Or can't answer the question, why do you want a Web site or what do you hope to accomplish online?

Guest Speaker (Apr 29, 2004 3:08:17 PM)
Ok - now that you have a plan - what is next?

Guest Speaker (Apr 29, 2004 3:08:53 PM)
You need to get a web name (this is known as a URL). For example, www.501cweb.com and www.faithadvocates.org are web names.

Guest Speaker (Apr 29, 2004 3:09:26 PM)
The best place to go is www.godaddy.com. You can get a web name for $8.00 a year; this is the best and cheapest place.

Guest Speaker (Apr 29, 2004 3:10:09 PM)
Ok - now you have a plan and a name - now you need to contract with a web developer to work with you to develop an attractive and usable site.

Guest Speaker (Apr 29, 2004 3:10:19 PM)
You don't have to spend a fortune.

Guest Speaker (Apr 29, 2004 3:10:58 PM)
Maybe someone on your board can do this or know someone who can. Often a for-profit company will give you an in-kind contribution of site development.

Guest Speaker (Apr 29, 2004 3:11:40 PM)
BUT - remember that donated garbage is still garbage. Don't sacrifice on quality.

Guest Speaker (Apr 29, 2004 3:12:09 PM)
What the developer will do for/with you is to develop a structure and look for your site (that is the navigation and the graphic treatment).

Guest Speaker (Apr 29, 2004 3:12:29 PM)
Ok - now comes the interactive part of the session -- so wake up :-)

Guest Speaker (Apr 29, 2004 3:12:48 PM)
Question: What is the most important part of any Web site ??? Vote now.

Yvonne CJH Educational Grant Services (Apr 29, 2004 3:13:14 PM)
Contact information??

Carolyn (Apr 29, 2004 3:13:40 PM)
Up-to-date information?

Guest Speaker (Apr 29, 2004 3:13:51 PM)
Contact information is important and it is incredible that so many sites don't have it.

Guest Speaker (Apr 29, 2004 3:14:22 PM)
Yes - THE MOST IMPORTANT feature of any site is . . . . drum roll, please . . .

Guest Speaker (Apr 29, 2004 3:14:26 PM)
CONTENT.

Guest Speaker (Apr 29, 2004 3:14:30 PM)
Content is King.

Guest Speaker (Apr 29, 2004 3:14:33 PM)
Content Rules.

Guest Speaker (Apr 29, 2004 3:14:36 PM)
Content Rocks.

Guest Speaker (Apr 29, 2004 3:15:32 PM)
And as Carolyn said, not just any content but "up-to-date information." A gold star for you Carolyn!

Guest Speaker (Apr 29, 2004 3:16:14 PM)
But writing for the Web is VERY DIFFERENT from off-line writing. So many people pull their brochures onto the Web - that's just terrible. Let's talk about writing for the Web.

Guest Speaker (Apr 29, 2004 3:16:25 PM)
This is essential. Writing for the Web is different from regular, off-line writing. Here is your thumbnail summary on developing winning Web Content. Use this as a quick checklist as you review your site.

  • Organize content into logical categories and sub-categories.
  • Divide material into page size blocks. Endless scrolling can be annoying.
  • Use headings and subheadings to help your readers zero in on the content that interests them.
  • Use color and graphics to create interest and visually direct focus from one topic to the next.
  • Chunk your content. Break content up into short paragraphs for easy reading.
  • Limit the width of lines of text. Long lines of text are harder to read and can cause eyestrain.
  • Make use of bulleted or numbered lists. Information in lists can be quickly and easily digested.
  • Use bold text for emphasis.
  • Never underscore text that is not a link.
  • Clearly label all links.
  • Use legible fonts and font sizes. Verdana is a great font.

Guest Speaker (Apr 29, 2004 3:17:03 PM)
Here is a great link on web writing: http://www.umext.maine.edu/webauthor/lesson4.htm

Guest Speaker (Apr 29, 2004 3:17:50 PM)
And the content has to be up to date. Think about it -- what do you think when you go to a site and it references events in Feb 2002?

Guest Speaker (Apr 29, 2004 3:18:04 PM)
It completely flavors the value of the entire site.

Guest Speaker (Apr 29, 2004 3:19:06 PM)
Now, you need an organizational plan to develop content - it doesn't just happen - here are my recommendations:

Guest Speaker (Apr 29, 2004 3:19:09 PM)

Seven Easy Steps to Web Content Development

Obviously, all content must be approved prior to publication on the site. The most constructive means of accomplishing this task is to use an individual Web Editor, an Editorial Director, or a "content team" composed of marketing, technical, and editorial representatives.

Whether it is an individual or a committee, successful editing requires a standardized person or body of people to monitor the content intended for use on the Web site. Besides the sometimes tedious task of editing for grammatical and stylistic imperfections, content preparation must necessarily include the decision of what information the Web site should present to its audience.

This decision-making process must be completed well in advance of any practical application, as it determines the philosophy espoused by the site.

  1. Tracking. Work Web sites by their very nature are collaborative affairs. It is important to keep a record of who is responsible for what task, so that everyone is on target.
  2. Pre-Production. A useful step in the process is a "kick-off meeting" to review the project and identify any areas that may need more time. It is a good forum to review the tracking record, to ensure everyone's responsibilities are understood.
  3. Copy Editing. Every author has a love/hate relationship with his or her editor. While an editor can impede the process, slowing it down over the placement of a comma, he/she can also add the elusive adjective that conveys the author's thoughts more completely. Copyeditors are an important facet of a site that is uniform, of a style that is consistent, and of a message that is communicated effectively.
  4. Legal Approval. The stringent process that an organization applies to their printed publication materials must also be used in the online arena. An approval policy is necessary to ensure that the site has complied with all legal guidelines.
  5. Quality Control. A tedious yet imperative task, quality control must be performed before the page is posted. Links should be tested, typos should be identified and corrected, and graphics should be positioned correctly. This will save time (and perhaps face) later on, when the site has to be revisited and corrected after the public has seen it in its imperfect form.
  6. Going Live. When the site has been thoroughly checked, and the Webmaster is assured that there are no broken links or missing graphics, it is time to post the pages of the site. This step should be a smooth and flawless one, as much time has been devoted in the development process to ensure comprehensive and persuasive content in an aesthetically pleasing format. This step is the realization of all the hard work that has come before it.

Guest Speaker (Apr 29, 2004 3:21:00 PM)
Ok - we have gone on for a while -- any questions at this point?

Moderator (Apr 29, 2004 3:21:58 PM)
What is a hosting service?

Guest Speaker (Apr 29, 2004 3:22:03 PM)
Good question!

Guest Speaker (Apr 29, 2004 3:22:20 PM)
A hosting service - hosts or displays your Web site.

Guest Speaker (Apr 29, 2004 3:22:43 PM)
Literally, you rent some space on their server that is connected to the Internet and pay (usually) on a monthly basis.

Guest Speaker (Apr 29, 2004 3:23:10 PM)
Costs totally vary from about $60/year to $50/month - based on services provided.

Guest Speaker (Apr 29, 2004 3:23:30 PM)
I have gone through four hosting services and my favorite is www.uplinkearth.com

Guest Speaker (Apr 29, 2004 3:24:02 PM)
This is because - every hosting service is great at the beginning, but what makes a great hosting service is his or her level of continued customer support.

Guest Speaker (Apr 29, 2004 3:24:22 PM)
I have found Uplinkearth's to be exceptional - and they won't make you feel dumb by asking questions.

Guest Speaker (Apr 29, 2004 3:24:51 PM)
One final thought on developing Web content:

Guest Speaker (Apr 29, 2004 3:24:53 PM)
There is no one uniform set of guidelines to follow in designing Web site content; these steps together form a suggested outline that I feel will be useful. Every organization and every Web site is different. But no matter the mission, the programs, or the services offered, every organization seeks to simplify and streamline their administrative tasks. In creating a smooth content development process, an organization can focus on what matters most -- its mission.

Guest Speaker (Apr 29, 2004 3:25:40 PM)
Ok - you are wondering - hey, wasn't this "Ask the Expert" session supposed to be about fundraising on the net? Did you trick me into signing on?

Guest Speaker (Apr 29, 2004 3:25:52 PM)
Oh, no I didn't!

Guest Speaker (Apr 29, 2004 3:26:34 PM)
Raising funds on the Web requires an easy to navigate site, great, relevant content and a RELATIONSHIP.

Guest Speaker (Apr 29, 2004 3:26:59 PM)
You raise money on the Web by creating an online community experience.

Guest Speaker (Apr 29, 2004 3:27:26 PM)
And let's be clear, the first objective of any Web site from Amazon is your own is RETURN visitors.

Guest Speaker (Apr 29, 2004 3:27:39 PM)
"Drive-bys" don't matter. Drive-bys don't form community.

Guest Speaker (Apr 29, 2004 3:28:18 PM)
And you form relationships by beginning to understand what people are looking for and providing it. And how do you know what people want?

Guest Speaker (Apr 29, 2004 3:28:51 PM)
You ask them - every chance you get! Through information requests, forms, watching what they view, e-newsletters . . .

Guest Speaker (Apr 29, 2004 3:29:16 PM)
But the heart of great Web sites are those that build community. Let's look at that for a moment:

Guest Speaker (Apr 29, 2004 3:29:30 PM)
Creating a successful online community is one of the most sought after and elusive goals in a Web strategy. For-profits budget huge sums to perfect online community strategies as they seek to build relationships that create loyal consumers (e.g. return visitors). In a nonprofit context, the "customer" takes the form of a constituent, advocate, grantee, funder, member, board member, or citizen. And the stakes are higher because usually the nonprofit's goal is not to sell a product, but a mission. In this context, an online community can be a powerful tool to bring constituents together to share their concern for an issue, to win advocates and to change minds.

Jeff Youth Empowerment Services (Apr 29, 2004 3:29:44 PM)
And to get feedback.

Guest Speaker (Apr 29, 2004 3:31:31 PM)
For only $70 you can have a full-featured online community for your site including the ability to accept online donations, establish bulletin boards, have a list serv, maintain a membership database online, even send a regular e-newsletter.

Guest Speaker (Apr 29, 2004 3:32:34 PM)
This is the BEST deal that I know of ---- The company is www.doubleknot.com out of California ---- I have checked them out and am using them for another project with great success. They provide awesome tools for online communities and for just $70 a year!!!

Charles Dare Mighty Things (Apr 29, 2004 3:32:07 PM)
Question - about how much time is typically required to build and maintain this successful online community?

Guest Speaker (Apr 29, 2004 3:32:45 PM)
Charles -- great question.

Guest Speaker (Apr 29, 2004 3:32:58 PM)
Building a site can take 100 hours.

Guest Speaker (Apr 29, 2004 3:33:08 PM)
Or much less, depending on your plan.

Guest Speaker (Apr 29, 2004 3:33:23 PM)
Remember that your plan is vital.

Guest Speaker (Apr 29, 2004 3:33:37 PM)
If that is too ambitious - start smaller and build up. If you have a Web site but don't have a plan, then write and implement one.

Guest Speaker (Apr 29, 2004 3:33:41 PM)
Be realistic.

Guest Speaker (Apr 29, 2004 3:34:23 PM)
But no matter how many or few pages you have, make sure that they are complete. The worst thing is seeing web pages that say "Under Construction." How dumb, the entire web is under construction -- build as you have resources.

Guest Speaker (Apr 29, 2004 3:34:38 PM)
Far better to have ten pages of relevant, fresh content and 50 without.

Moderator (Apr 29, 2004 3:35:52 PM)
The next topic is going to be Fundraising on the Internet.

Moderator (Apr 29, 2004 3:36:21 PM)
Please feel free to ask questions at any point.

Guest Speaker (Apr 29, 2004 3:37:06 PM)
Since the mid-1990's, nonprofit organizations have been aware of the potential income opportunities that the Web promises. With recent developments in e-commerce and the fast pace of Internet growth, people are becoming more ready to donate online. An example is $1.2 million in online gifts for Balkan Relief, from more than 9,000 donations received by the Red Cross in the first half of 1999. And the response to the Sept. 11, 2001 attacks was unprecedented.

Guest Speaker (Apr 29, 2004 3:39:03 PM)
I have prepared an Online Fundraising Primer as a Word document and will provide it via email to everyone who has signed on.

Guest Speaker (Apr 29, 2004 3:40:03 PM)
But with www.doubleknot.com -- they have the full fundraising software that allows you to accept online donations immediately. They manage the entire process -- you don't even need a credit card account.

Charles Dare Mighty Things (Apr 29, 2004 3:39:50 PM)
Question - is fundraising on the Internet effective for FBOs/CBOs? What is a reasonable benchmark for effort (percentage of time) that should be applied to this activity apart from other mailing campaigns, etc.? 

Guest Speaker (Apr 29, 2004 3:40:23 PM)
Charles - this is a great question.

Guest Speaker (Apr 29, 2004 3:40:37 PM)
And the online benchmarking question is just too early to have an answer for.

Guest Speaker (Apr 29, 2004 3:40:54 PM)
Recall that the first line of HTML wasn't written until 1990!

Guest Speaker (Apr 29, 2004 3:41:03 PM)
We are all babies on the Net.

Guest Speaker (Apr 29, 2004 3:41:24 PM)
But we are seeing that e-commerce has firmly established itself and fundraising is happening.

Guest Speaker (Apr 29, 2004 3:41:56 PM)
There are a few options for raising money online - (the document I am sending discusses these in more detail).

Guest Speaker (Apr 29, 2004 3:42:03 PM)
This first are online Charity Malls.

Guest Speaker (Apr 29, 2004 3:43:06 PM)
These are merchants that link from nonprofit Web sites and agree to provide a percentage of proceeds based on visitors from your site (their web software tells them from where the visitor entered).

Guest Speaker (Apr 29, 2004 3:43:17 PM)
A second option is Donation Portals.

Guest Speaker (Apr 29, 2004 3:44:35 PM)
These are services that -- for a fee -- handle the entire donation process. There are a number -- but be careful because they can hit you up for a hefty fee (percentage of donation), plus a monthly charge.

Guest Speaker (Apr 29, 2004 3:44:46 PM)
That is why I really like www.doubleknot.com.

Guest Speaker (Apr 29, 2004 3:44:59 PM)
The third option is having (building) your own system.

Guest Speaker (Apr 29, 2004 3:45:20 PM)
This is the most customized, but as you can imagine -- the most expensive.

Guest Speaker (Apr 29, 2004 3:45:34 PM)
Frankly, I would stay away from these unless you are a large organization with a dedicated Web staff.

Guest Speaker (Apr 29, 2004 3:46:23 PM)
And remember, if you use your own (or if you contract with another service) you or the company that is representing you has to complete the charitable registrations in 39 states! All of the reputable third party donation service firms have done this.

Guest Speaker (Apr 29, 2004 3:46:31 PM)
Don't get in trouble here.

Guest Speaker (Apr 29, 2004 3:46:58 PM)
Here is a great book on Internet fundraising:

Fundraising on the Internet: The ePhilanthropyFoundation.org's Guide to Success Online, 2nd Edition by Mal Warwick (Editor), ISBN: 0787960454. Amazon Price: $20.30.

View the booklisting at the Amazon.com Web site.

Guest Speaker (Apr 29, 2004 3:47:18 PM)
This is my personal bible on net fundraising.

Guest Speaker (Apr 29, 2004 3:48:41 PM)
And here is a great Web site: 

Groundspring.org's (www.groundspring.org) mission is to improve the effectiveness of the nonprofit sector by providing information technology solutions that facilitate and enhance communication and engagement between nonprofit organizations and their stakeholders.

They do this by offering software tools and services, training, and consulting that helps nonprofit organizations raise funds and communicate with their stakeholders online, and manage their operations more effectively. To date, Groundspring.org has processed more than $4.1 million in online donations. Grant totals include individual contributions as well as $1.5 million in matching funds from Working Assets. This is the BEST online tool - use it, bookmark it. http://www.groundspring.org/index_gs.cfm.

Guest Speaker (Apr 29, 2004 3:49:47 PM)
Also, here is a site that provides great (free) information directly on building and sustaining nonprofit and/or cause-related Web sites --- http://www.501cweb.com.

Guest Speaker (Apr 29, 2004 3:50:27 PM)
That is the material that I wanted to present today. Let's open up the session now for questions (and remember, we are sending you a complete transcript tomorrow).

Guest Speaker (Apr 29, 2004 3:52:41 PM)
And remember, the National Resource Center can help you with your site issues, just contact us. My email is wjf@daremightythings.com

Moderator (Apr 29, 2004 3:53:42 PM)
Our time is getting short, let's have just one more question. Any burning questions?

Charles Dare Mighty Things (Apr 29, 2004 3:54:59 PM)
Question - you provided a lot of information during this session. Will there be opportunities to discuss Web site and electronic service topics in the future?

Guest Speaker (Apr 29, 2004 3:55:25 PM)
Yes. I would like to provide ongoing TA on this vital issue. The web is truly my personal passion.

Guest Speaker (Apr 29, 2004 3:55:46 PM)
I believe that the next issue -- one of great importance -- is the issue of Internet marketing.

Guest Speaker (Apr 29, 2004 3:56:14 PM)
So may people have the "field of dreams" theory of the Web. "If we build it they will come."

Guest Speaker (Apr 29, 2004 3:56:15 PM)
NOT!!!

Guest Speaker (Apr 29, 2004 3:56:50 PM)
Anyone can put a buoy in the middle or the ocean, the challenge is to get people to your site and to get them coming back.

Guest Speaker (Apr 29, 2004 3:57:20 PM)
This issue is worth an entire session and there are some great resources to help.

Guest Speaker (Apr 29, 2004 3:58:23 PM)
We also use our e-newsletter for provide information like this. We encourage people who are not signed up for the e-newsletter to do so. It's fast and easy - just go to http://www.ccfnews.org.

Moderator (Apr 29, 2004 3:58:44 PM)
Thank you for participating in today's session. As always, we are here to help you anyway that we can. We are as close as a phone call or web click! Good-bye and we will see you here again next month.

Yvonne CJH Educational Grant Service (Apr 29, 2004 3:59:08 PM)
Thanks!

Carolyn (Apr 29, 2004 3:59:09 PM)
Thank you

Charles Dare Mighty Things (Apr 29, 2004 3:59:30 PM)
Thank you very much!

Jeff Youth Empowerment Services (Apr 29, 2004 3:59:37 PM)
Thank You

Yvonne CJH Educational Grant Service (Apr 29, 2004 4:00:44 PM)
I would definitely like a transcript of this to share with our sub-award organizations.

Moderator (Apr 29, 2004 4:01:25 PM)
Sure, no problem, everyone who participated will receive a transcript. In addition, it will be in the May 11, 2004 e-Newsletter.

John Project Reach (Apr 29, 2004 4:03:01 PM)
Thank you for your help!

Supplemental Article

The National Resource Center
Ask the Expert Online Training
April 29, 2004
Building a Winning Web site

Online Fundraising: A Primer

Rapid adoption of the Internet is creating a universe of potential online donors that is, according to a recently published study by CMS Interactive, "vast and largely untapped." These technology-savvy donors tend to be professional, affluent, and younger, which makes them attractive to many nonprofit arts organizations. Of those Internet users who are likely to make a donation online, 67% have purchased a product or service over the Internet, making online ticket buyers ripe prospects for online giving.

The operative word here is "potential." Charitable giving over the Internet is still in its infancy. CMS estimates that of the $135 billion donated by individuals in the US in 2002, $300 million was contributed electronically via the Internet.

While the Internet is unlikely to totally replace more traditional approaches to giving in the immediate future, nonprofit organizations are beginning to explore Web-based fundraising techniques and tools. Many nonprofit fundraisers agree that the Internet will eventually become an important part of the development office's toolbox for raising money and building relationships with donors. The key is to begin experimenting with these tools.

And many nonprofit arts organizations have been testing the waters. The most common approach to online donations found on nonprofit arts Web sites these days is to simply publish the organization's membership or annual fund brochure. The pitch also includes a membership form that the visitor can print and send to the organization via U.S. postal mail with a check or fax with a credit card number. Lincoln Center offers an example of this.

On some Web sites, the visitor is also given the option of phoning the development office with a credit card number. Some organizations, such as Joyce Theatre, have used their Web site to build direct mail prospect lists. As e-commerce sales continue to grow ($75 billion in transactions in 1999), completing the donation transaction online eventually will become a necessary convenience for donors and a standard feature at most nonprofit Web sites. As many performing arts organizations have moved beyond "brochureware" Web sites to online box offices, the online development office probably isn't far behind. But where do you start?

There is a whole industry of vendors catering to the nonprofit development officers who want to transform web surfers into web donors. Browse through the Cybergift discussion forum and you will find a dizzying array of services and products. According to Putnam Barber, editor of the Internet Nonprofit Center, there are more than 80 vendors on his online fundraising resources list.

It is important to remember that a specific technology or vendor should not drive your online fundraising strategy. It should be part of an overall fundraising plan based on a thorough assessment of your organization's fundraising efforts and use of technology. Some questions:

  • What are your current fundraising strategies?
  • How can online fundraising enhance your offline activities?
  • How does your Web site support fundraising strategies?
  • How can your Web site be a more effective solicitation, cultivation, or stewardship tool?
  • If your site offered the secure online transactions, would your Web visitors use it?
  • Why or why not?
  • What is the potential for new revenue and/or new donors?
  • Does your organization transact any other business on its Web site?
  • How might e-commerce and online donations be integrated?

The next step is to explore the various approaches for incorporating online fundraising technologies into your plan. The options essentially fall into three different types: Charity Malls, Donation Portals, and Your Own System.

While each has its benefits and disadvantages, they may not necessarily be mutually exclusive. An online fundraising plan might include a combination of several options.

Option 1: Charity Malls

Remember as a kid when your little league team or Girl Scout group sold candy bars or cookies to raise money for uniforms or a community project? For each candy bar sold, the organization received a percentage of the sale.

Charity Malls are the 90's version of this concept. Your organization places a banner ad link to an online merchant or mall on your organization's Web site. Web donors click on the link and are taken to an e-commerce site where they can purchase a variety of items, designate their favorite cause or charity, and the merchant or mall donates a percentage (usually 5%) of the sales revenue back to your organization.

For nonprofits, the main advantage is that it requires no investment in staff, time, or technology. Your organization simply collects a check. However, that check can take a long time to find its way into your organization's cash flow as Charity Malls set a minimum of collected contributions before they issue a check.

And, it might be a small one unless your organization can generate significant traffic and purchases at the online mall. If your site has a lot of supporters and those supporters are comfortable with shopping online and purchase products, why not sign up with one?

There are a growing number of Charity Malls. One of the more popular Charity Malls is Greater Good, which contributes between 5-15% of the sale to IRS-registered 501(c)(3) charitable organizations. Shoppers can designate a specific nonprofit organization or select from a list of charities featured on the site.

The site has more than 80 well-known e-merchants, including Neiman Marcus and the Sharper Image, whose shoppers probably share a lot of common demographics with arts consumers. As a nonprofit organization, you can register easily online. Other Charity Malls include Igive.com and shop4charity.com.

One of the potential drawbacks of Charity Malls is that according to IRS guidelines shoppers are not eligible for tax deductions on the money being donated to nonprofit organizations. The IRS limits tax deductibility for charitable contributions to the amount paid over and above the fair market price for an item. Since the prices at most Charity Malls are the same as purchased directly from the merchant, no tax-deductible event occurs.

Some Charity Mall vendors argue that for some consumers the amount is so small, the tax deduction isn't worth dealing with the paperwork. A couple of vendors are prevailing to tax authorities to find ways to preserve tax deductibility, but no clear rulings have been made.

One of the best ways to compare vendors is to contact nonprofits already listed on the site and ask if their experience has been positive. You will also want to do a bit of comparison shopping by reviewing the fine print and specifics for each vendor on their Web site before you sign on the electronic line. Questions that will help you compare vendors:

  • How many merchants, nonprofits, and consumers participate?
  • How does the Charity Mall promote its site?
  • What is the monthly traffic?
  • Are there any up front or hidden costs?
  • Does the Mall restrict recipients to 501-C organizations?
  • What is the retail mix? Are these products of interest to YOUR donors?
  • What is the percentage of each sale that is contributed to your organization?
  • What are the rules in terms of banner/ad link placement on your Web site and other requirements for promoting the Charity Mall on your Web site or to your audiences?
  • What is the minimum amount that needs to accrue before the Mall issues a check?
  • How is the check issued (snail mail or electronically?
  • Can you enter into relationships with more than one Charity Mall?
  • What is the privacy policy of the site and how is it enforced?

Option 2: Donation Portal

A donation portal Web site typically provides information about many different nonprofit organizations. Web visitors can select their favorite charity and make a donation online using their credit card.

The Donation Portal processes the transaction, acknowledges the gift, and forwards the money along with a report including donor information to the nonprofit organization.

Donation Portals do not typically have a setup or monthly fee, although some retain a small percentage to cover credit card fees. Examples include: AOL Foundation's Helping.org, Charitable Way and All Charities.

The main advantages for nonprofits are that it requires a minimal investment in time, staff, or technology to experiment. Several of the Donation Portals are marketing their services to corporations to assist with employee giving via the company's intranet as well as heavily promoting their sites on other portal sites to drive visitor traffic. To evaluate vendors, visit their sites and read their materials. Some good questions to ask:

  • What and how many other nonprofits are included on the site?
  • What is the cost of registering?
  • Are there any restrictions in terms of participating or working with other online fundraising vendors?
  • Can the nonprofit organizations provide a direct link to organization's information page on the charity engine site?
  • What is the fee?
  • Is it a flat fee, based on transactions, or combination?
  • Does the donation portal make is revenue from other sources than fees?
  • Is it in the business to sell services to the nonprofit?
  • How does the donation portal promote its site?
  • What is the traffic?
  • What are the legal risks?
  • Is the site registered as a professional solicitor in all 39 states that require it?

Like Charity Malls, Donation Portals are still in their infancy. So, don't expect to see huge jumps in income right away. It is also important to be aware of the potential legal issues.

Any US nonprofit that decides to do fundraising over the Internet is required to register as a professional solicitor in all 39 states that require it. To make the process more manageable, there is now a Universal Registration Statement that is accepted by 33 of the 39 states that require it. If you decided to sign up with a Donation Portal, make sure that the vendor has registered so that your organization will be protected from any possible funds.

Option 3: Your Own System

While this option enables your organization to have complete control of the transaction process, it requires a substantial investment of time, money, and expertise. If you want to an overview of what is involved, take this E-Commerce Tutorial from Wired's Web Monkey.

Arts organizations that have already installed an e-commerce system to accept credit card information for purchasing tickets and merchandise from gift shops, can more easily incorporate online transactions for donations (assuming, of course, that the box office software can talk with the fundraising software!) The Atlanta Symphony is one example.

The Metropolitan Museum has created a special membership category called "Net Met" for online visitors. For an annual fee of $50, Web visitors enjoy some unique "online" benefits such as discounts and a screen saver. Met Net members can join online at the Met's online gift shop. According to museum membership staff, as of late November, 1999 there were 2,390 Met Net Members.

If the thought of implementing an e-commerce system in-house sounds like a nightmare, there are some less complicated and less costly strategies such as using a "PSP" or "Payment Service Provider."

A PSP is a vendor who will manage the entire back-end of your donations and payments. The PSP enables your organization to accept credit card transactions by providing a link on your organization's Web site to a pledge or donation page that resides on the PSP's server.

Most PSP's allow you to customize the look of your donation page, thank you message, and reports. Rates range from flat monthly fees to a tiered per transaction or gift amount fee. PSP's that cater to nonprofit include RemitNet and DonorNet. Some questions to help you evaluate vendors:

  • Does the vendor offer secure transactions?
  • What is the level of technical support?
  • How reliable is the service?
  • How much does it cost?
  • What is the per transaction fees?
  • What are the set up costs?
  • What is the length of the contract for services?
  • How long does it take to set up an account?
  • What does the organization need to provide/do for the set up?
  • How much control/customization is available on the donation solicitation page or is it simply a "submit" link?
  • Can the confirmation email/screen be customized?
  • What type of customer support is provided to the donor should there be a problem?
  • What type of reporting is available to organization online or via email?
  • Can it be customized?
  • Can it be exported in my database?

Online fundraising is still in the embryonic stages of development. With new vendors appearing and disappearing and no available "consumer reports" type research, the challenge for development officers is to become knowledgeable consumers. Technologically savvy nonprofit arts organizations that thoughtfully explore the tools will be better positioned to be successful cyber fundraisers in the future.

 

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