Online Fundraising in Six Easy Steps

By Jocelyn Harmon

So, this is the year you get serious about online fundraising. Here is my six-point checklist for developing a kick-butt online fundraising program in 2010.

1. Build a list.

Before you can start to fundraise online, you have to have an audience to solicit. So get started right away building your list. Collect e-mail addresses at events; include a link to your e-newsletter in every print publication you send. Consider doing an e-mail append. In addition, set aside a budget for ongoing acquisition. Why? Because people change their e-mail addresses! According to the eNonprofit Benchmark Study (e-benchmarksstudy.com), you can expect approximately 20 percent of your e-mail addresses to go bad each year. To make up for this attrition, you need to engage in acquisition to continue to grow your list.

2. Create compelling content.

Now that you have a list of prospective donors, you have to give those donors a reason to give. This means creating content that showcases the work you do and illustrates how donors can make a difference. Don't assume that your work can stand on its own. You also have to tell your donors what's in it for them. In other words, how will they benefit from investing their precious time, talents and treasures in your organization? This is called "donor-centric" communication, and it's a shift for many nonprofits that are used to waxing on and on about how great they are.

Another best practice is to create an editorial calendar. Brainstorm key dates and times of the year when your cause is top-of-mind for donors. For example, if you work on childhood obesity, use "back to school" season as a time to talk about the challenges of this epidemic. A calendar helps you to stay disciplined and attuned to what is happening in the broader environment.

3. Buy some software.

Next, you need software to raise money online. Now, don't panic. Creating the technology infrastructure for online fundraising is relatively straightforward. Just be sure to do your research and talk to your colleagues about their experiences. First, you need an e-mail service provider. An ESP allows you to create, send and evaluate the effectiveness of your e-mail fundraising effort. There are rules about sending bulk e-mail, so choose a vendor carefully. In particular, be sure to use an ESP that has relationships with the different Internet service providers to ensure that your messages get delivered.

Next, you need a donation-processing tool, like Network for Good's DonateNow, which will allow you to accept credit card donations on your Web site. It also gives donors the assurance they need that their credit card information is secure. There is variability in the cost and functionality of both of these tools. To learn which tool best fits your budget and needs, visit Idealware.org.

4. Determine your evaluation protocol.

To justify your investment in an online fundraising program, you want to have a method for evaluating success. Here are some metrics you might want to track to assess whether or not your program is working: number of donations received, number of dollars raised, open rates, clickthrough rates and bounce rates.

5. Put it in someone's job description.

It may sound obvious, but unless you have a person or team dedicated to managing and executing your online fundraising program, you're unlikely to succeed. Determine a workflow for every campaign, and be sure that the key steps in the process are assigned to a member(s) of your team.

6. Fix your Web site.

Just as you would clean your house before inviting guests for dinner, you should clean up your Web site before starting an online fundraising program. Think about it. Your Web site is the first thing your prospects see before deciding to donate because you direct them there! Make sure your site is clean, i.e., isn't cluttered with a list of every program success you've ever had or every press release you've ever written. In addition, make sure it's obvious how to make a donation to your organization. (Think big and colorful donate buttons!) For more on best practices, visit fundraising123. org/article/four-steps-more-donations.

Jocelyn Harmon is director of nonprofit services at Care2 (care2.com). Reach her at jocelynh@care2team.com