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The Real Costs of Online Fundraising

Come on, you know there’s no such thing as a free donation.

September 2008 By Steve Kehrli
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Staff training
So, you listened to the sales pitch and decided you really had to buy that new e-mail platform that can do all those amazing things. But did you really expect Suzie to jump ship a month later to go on that personal quest she secretly waited for her entire life? Now you have a fancy platform, and you’ve spent your training dollars on a person who’s currently walking with a stick through the north of England.

To get the most out of what you pay for, do not be shortsighted with the training. Get that replacement off to training — yesterday! While you’re at it, send two other people as well — one from marketing and one from major gifts. They’ll come back with a broader experience and appreciation for what it takes to run an e-campaign, and you’ll have the makings of a Plan B.

Even if you’ve had that platform for a while, plan with your existing staff members. Have them write standard operating procedures for everything they do, and then take the time to read each one and ask questions. Keep a directory of these SOPs, and update them regularly.

Staff development
This goes hand in hand with training. Well, sort of. You have Jim. He’s brilliant at what he does with your Web site, but he still believes that message boards are going to overtake e-mail soon as the preferred method of donor communication.

Do not waste another minute! Sign him up for a Nonprofit Technology Network conference and a couple Direct Marketing Association Nonprofit Federation conferences. Seriously … you must get these people out from behind the screen and get them networking with their peers. Who knows? It might create a little healthy competition both internally and externally.

But don’t stop there. Have them come back from the conferences and lead a development/marketing team meeting to share what they’ve learned.

Marketing budgets
Do whatever it takes to get your marketing team versed in the cost of bringing on a new donor. Ask what they need to get your site or blog ranking moved up 10 percent to 25 percent — then help them find the investment dollars to make it happen. It will return generously in your future development efforts.

Research and development
Finally, you should consider a cost for the hours you’ll spend learning and growing. The salesperson who has the latest and greatest Web plug-in/feature/tool that promises to revolutionize fundraising as we know it today will come knocking. You’re going to want to peek behind the curtain and see what he’s talking about, so factor in the cost of your time. Do it now by budgeting a few hours a month for R&D time for these new projects. And remember that your time is money!

What an exciting journey we’re on with our online fundraising programs. Every day we’re out there innovating and helping our donors find purpose and fulfillment while strengthening our causes. The opportunities and challenges we face are intense in the online medium, and they take hidden resources that make it clear there are no free donations.

I would love to hear any additions you might have to this list. Send an e-mail to stevek@peta.org and tell me your favorites. Oh, and how you measure these investments — that’s a whole different article. FS

Steve Kehrli is development director at PETA.
 

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COMMENTS

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Most Recent Comments:
Steve Kehrli - Posted on September 29, 2008
Right you are Jason - there are so many choices on the market - and more and more every day. I guess the true cost here is the time as you mentioned and making sure you trust your partner and understand all that each component can and can not do. Steve
Jason Dick - Posted on September 27, 2008
Thanks for your article you have a great point about the cost of using new platforms. But, i think that you are showing only one side of the online fundraising equation.

Their is a very high cost to use paid platforms like Convio, or purchase database systems and train your staff. However if you look there are a lot of free or low cost platforms that are out there too.

Small nonprofits can compete with large nonprofits online through free SEO, blogging, widgets, building an online community, and many other things that if done right can cost next to nothing except for time. I'd love to talk to anyone more about this.
Jason Dick
www.ASmallChange.net
Click here to view archived comments...
Archived Comments:
Steve Kehrli - Posted on September 29, 2008
Right you are Jason - there are so many choices on the market - and more and more every day. I guess the true cost here is the time as you mentioned and making sure you trust your partner and understand all that each component can and can not do. Steve
Jason Dick - Posted on September 27, 2008
Thanks for your article you have a great point about the cost of using new platforms. But, i think that you are showing only one side of the online fundraising equation.

Their is a very high cost to use paid platforms like Convio, or purchase database systems and train your staff. However if you look there are a lot of free or low cost platforms that are out there too.

Small nonprofits can compete with large nonprofits online through free SEO, blogging, widgets, building an online community, and many other things that if done right can cost next to nothing except for time. I'd love to talk to anyone more about this.
Jason Dick
www.ASmallChange.net