Non-Profit Organizations: Why an Internet Presence is Needed

With over 1.7 billion people across the world having access to the Internet, including 220 million in the United States alone, millions of businesses and for-profit organizations are recognizing the potential of these numbers by adapting and transforming the way they interact with customers, market their products, and receive revenue through developing an easy-to-use, up-to-date Internet presence. So why aren't non-profits taking advantage of these numbers?

Is it because the majority of substantial monetary donations are not received over the Internet? Let's take a look.

According to a recent study conducted by Convio, an organization that provides software solutions to non-profit and educational institutions, an out-dated approach to Internet fundraising could be costing charities a substantial amount of money.

Convio surveyed more than 3,000 donors with 23 non-profit organizations that are considered "wired wealthy," which Convio defines as "people who give at least $1,000 per year to a single cause, who average $10,896 in donations per year to charities, and have a median gift size of $4,500." These "wired wealthy" philanthropists make up only 1% of donating population, but contribute 32% of monetary donations.

The results of the research concluded that more than half of the "wired wealthy" prefer donating online and over 80% have made some kind of donation using the Internet. Furthermore, 72% participants surveys noted that they believe donating online is a more efficient and cost effective than by other means, such as snail mail.

Again, why aren't non-profits taking advantage of these numbers?

It seems as though there are two main reasons critics claim non-profit organizations are not adapting to the Internet world.

One major reason, as mentioned by The Jewish National Fund's marketing director Howard Horowitz, "E-philanthropy is never going to replace face-to-face solicitation." In 2004, The Jewish National Fund estimated that from 2004 to 2008, only about 10% of their projected $42 million would be received online (that's $4.2 million).

I was curious to see if these results held up and I found that only halfway through the donation period, in 2006, The Jewish National Fund had already received their projected 10%. Never going to replace the face-to-face solution, eh?

A second reason, as stated by Seth Godin, is that non-profit corporations simply fear technological change. In his blog, he notes that there are a great deal of free marketing suggestions and tools that non-profits could be taking advantage of, and simply are not. One example Seth uses is that out of the top 100 people or organizations using Twitter, ZERO are non-profit. There may be some truth to his claim.

So what should a non-profit organization do to embrace this technological need?

• Assess the need for a website. Decide if an online presence is necessary for your non-profit organization. Talk to experience professionals with knowledge of constructing non-profit websites. Ask yourself, "Will having this presence increase donors, volunteers, awareness of your cause?" "Will having this website cut direct mailing costs, while potentially increasing online donations?"
• Decide on a Marketing Strategy. The saying, "If you build it, they will come" does not apply with website creation. Just because your organization has developed an online tool to receive donations doesn't mean people will use it. Come up with some strategies, both online and off to drive people to the website.
• Take Advantage of Free Tools. There are an abundance of free marketing tools available for organizations to get their name out there and increase web traffic. Do some research into how to use these tools effectively for business purposes. Use them appropriately as it relates to your organization.
• Integrate Online/Offline Donors. Add your offline donors to your online donor list. Send direct mail donors surveys asking for their e-mail address and potentially what they want from an online presence. Add the snail mail donors to your online donor list and take advantage of this free form of communication.
• Send Newsletters/Thank You Letters. Let people know that you are appreciated by their donation. Inform donors about new happenings with the charity. 29% of those surveyed in the Convio study say they want to develop a relationship with the charity, while 41% said they are interested in how their money is being put to use.