An Easier Way to Text-to-Pay

Recently, Obopay Inc., an online mobile payment company, and Benevity Social Ventures Inc., a company focusing on the social practices and giving habits of corporate America, partnered to create a new text-to-donate platform for non-profits.  This new easy-to-setup, easy-to-manage platform takes away many of the problems that have been associated with text-to-give in the past.

The new platform:

• Is FREE for all registered organizations with active 501(c)3 status
• Takes less than 24 hours to setup
• Pays organizations within 30 days
• E-mails tax receipts to donors immediately

Prior to this texting platform, setting up a text-to-give campaign took months and the providers that were available focused mainly on larger high profile clients (the Obama campaign and the Haitian relief effort are just two examples). Payment often took 60-90 days and there were a multitude of fees and charges associated with the products.

In an earlier post, I discussed the merits and benefits of micro-donation campaigns and ways they can best be implemented. Unfortunately, I did not have many suggestions on available products at that time. Many local non-profits and arts organizations simply did not have the budgets or profile to take on such campaigns.

This new text-to-give platform (which currently has no specific name) allows for easy setup and processing of text-to-give donations. A non-profit organization goes to the Obopay website, registers for a key word and the Benevity Corporation, in partnership with the American Endowment Foundation (AEF), creates the account and sets up the service on behalf of the non-profit. No extra work, no forms, no hassle.

When using this service:

• Tax receipts are provided directly to the donor from Benevity via e-mail
• Donations are received by the non-profit every 30 days
• A 7% processing fee is collected from the donation by Benevity and AEF to process the transactions
• The non-profit only receives 93% of the total donated amount
• 100% of the donation is tax deductable (Benevity & AEF are also non-profits)

Overall, this simplistic process combines Obopay’s easy text-to-pay platform with Benevity’s non-profit database and backend billing system, allowing for an easy-to-setup, easy-to-manage platform. A patron texts the organization's keyword to a short code (usually 5 numbers long) and immediately receives an SMS text in response. Potential donors are then prompted to enter a phone number and pin code to donate or they can use the mobile donation website which, on average, takes less than 90 seconds to complete.

Future expansion of this service will include corporate matching and a customizable database with a recommendation function. Benevity already has all registered US non-profits in their searchable database. Soon, the non-profits themselves will be able to be personalize their profiles, and a recommendation function for donors will be added.

Donors prefer push button solutions, mobile applications and ease of use. This new text-to-give solution by Benevity and Obopay opens the doors for arts organizations and other non-profits to provide cutting edge solutions to this problem.

Arts organizations across the country should be looking at this as a huge opportunity to expand micro-donation campaigns and reach new audiences. Patrons are most likely to give directly after or during an experience involving a non-profit. This quick and easy solution for instant giving provides a way for people to support organizations they care about while the experience is still fresh in their minds. Both companies recommend event based marketing for text-to-give donation campaigns.

Arts organizations should advertise how to donate via SMS text during intermissions, around galleries or surrounding specific events. It is a quick way for people to show their support and generally has little effect on their other giving habits. More importantly, the platform can provide a  new revenue stream that opens up giving to a wider range of people and secures multiple gifts from long time donors.

Firing Up Museums With Sparks! Ignition Grants

From digital archiving techniques to mobile websites, museums around the country are finding news ways to innovate in our current and rapidly changing information age. There is now an emphasis on experimentation and testing the boundaries of what traditionally defines a museum. The Institute of Museum and Library Services (IMLS) has initiated a new grant program with this emphasis in mind and is seeking proposals for the current fiscal year. The Sparks! Ignition grants can be up to $25,000, are available for a period of up to one year, and have no matching requirements. Yes, you read that correctly. No matching requirements.

The Sparks! Ignition program is intended for all eligible institutions that want to utilize innovative methods to address some of the current problems that museums and libraries in the U.S. are experiencing. For more information about the application and to find out if your institution meets the criteria for eligibility, visit the IMLS website .

On November 3^rd, IMLS staff will be offering a webinar explaining the purpose of the grants, articulating the application process, and answering questions. Your organization will have to move quickly though, the application deadline for all Sparks! grants is November 15^th, 2010.

Building “Real World” Relationships Online: Alan Cooke of Convio

Alan Cooke of Convio

Alan Cooke knows arts donors. This opera-lover also happens to be a master marketer (formerly with Hewlett Packard) and he puts his passion and his skills to good use at fundraising software company Convio, specializing in systems for non-profit organizations across the spectrum.

Convio’s most visible campaign is likely the Susan G. Komen Race for the Cure team fundraising efforts. (They have also done a fantastic job with Pittsburgh’s own Carnegie Museum.) However, Convio provides a range of different tools—at the core is Convio online marketing, which is a collection of tools—email marketing, website design, platforms for peer-to-peer fundraising, etc.

I recently interviewed Alan after seeing his presentation on online fundraising at the Opera America Conference in June.

Arts organizations, more often than other non-profits, have two messages that they’re getting out there. They’re asking people to buy tickets and on the other hand, they’re asking for a donations. How do you find that different from your other non-profit clients when you’re working with performing arts organizations?

The ticket-selling organizations are a little bit different from the majority of our organizations which only have contributed income. I think that, in terms of opera companies, many people really don’t understand the economic model of an opera company very well. I certainly did not understand that when I was an occasional single ticket buyer for the opera.

Perhaps one of the things that needs to happen is that organizations need to do a much better job, first of all, of making the case that simply selling tickets is not going to cover the cost of the productions. A lot of that is just education. You can make that case pretty well on your website and also through your communications with people, but you do need to make that case. Secondly, there’s the question of where you want to start. In the case of ticket-selling organizations, it’s logical to optimize your website for ticket purchases. There are things that you can do after someone has actually purchased a ticket where you can start to move them down a path and start to make your case--really simple things, like when they buy a ticket give them the option of making a small donation or trying to get people on a monthly plan where they’re giving a relatively small contributions every month. It’s automatic, you don’t have to worry about it and typically the lifetime value of those donors is very, very high.

One of the things that I have seen with digital communications in arts organizations is that you have the marketing department… And then you have the development department. Sometimes they play together very well, but sometimes, you’ll see accounts that are very obviously controlled by one or the other, and not a lot of overall relationship building. Your thoughts?

This problem of silos is a very common problem throughout the whole non-profit world. I think we have marketing departments that have their own agenda and their own tools and then you have a development department that has their own separate tools and they don’t talk about it to each other very much, which causes all kinds of confusion. Breaking down those organizational silos is easier said than done. Often smaller organizations have an easier time because they have fewer people, but as organizations get large, those walls sometimes can become very, very strong. It’s true that there is a lot of marketing chatter, which often doesn’t have very much to do with relationships. I think we’re starting to figure out how to build relationships the way that the development people have always done—you can do those same things online.

A lot of organizations are getting people’s email addresses after they’ve attended one performance and then they get an email asking for, for example, a $150 donation. Marc Van Bree has made the point that that’s like asking someone to marry you after the first date.

That’s right. It’s all about relationships. The online world is not dramatically different from the real world. You need to ask permission and you need to build a relationship with somebody before you start hitting them up for money. That’s a simple thing to do but there’s a surprising number of people who don’t do that.

Then how do you build that relationship and making the case for support to new pools of donors? In your Opera America session, you mentioned the concept of a welcome series.

So, the idea of a welcome series is that when somebody takes that step of raising their hand and saying, “I am interested in what it is that you have to offer” by giving you their email address, at that point you can’t just ignore them. You can’t just take it for granted and then immediately start asking them for money. Just like you would in a normal face-to-face relationship, you need to welcome that person to your community and you do that by seeking out some spaced email communications thanking the people for getting to know your organization and giving them some background information. Gradually, as you move down what we refer to as the relationship pathway, you give them more and more ways to become involved and to get more deeply embedded in the culture of the organization.

One of the very good things about using a technology platform is that you can automate all that, so you don’t have to write these things every time. It can be completely built out beforehand and automated. And we have found that by doing that, by making sure that as soon as someone joins your list, they get put into that communication stream. Not only are the open rates higher, but the conversion rates are much higher. And once they actually convert and donate, becoming a financial supporter of the organization, you can take them out of that stream and put them in a different stream. All of that can be automated and set up quite easily.

One of the ways that you mentioned non-profit arts organizations could combat the current economic climate is to reposition themselves as a community resource. How can an organization do that via digital means?

This came out of a conversation that I had with the general manager of my local opera company in Austin and I think that what they had said was fascinating. The difficulty that they encounter, especially in a medium-sized market like Austin, Texas, is that it’s not easy to sell opera. There is a relatively small audience for opera in that kind of a city and particularly in times of recession, it’s difficult to make the case. So this was an enormous struggle for the opera company in Austin, as I feel it is for many opera companies.

What they decided to do, which I thought was very clever of them, was they built an excellent music school on the premises right next to the concert hall and they started to garner quite a bit of attention in the city because of the quality of the music education that they offered to children. They had promoted that pretty heavily on their website and they have started to build a whole new pool of supporters for the opera who are people who would have never been on their list before—parents of children who now go to the school at the opera. It’s a completely new donor pool for them and it’s a donor pool that is amenable to different techniques, so they have started to do a fair amount of online fundraising to that audience, and that’s been pretty effective. They are obviously younger people and people who are not perhaps as familiar with the opera as the traditional audience. It’s basically given them a new pool of donors.

I heard that you recently added a database component to your collection of online tools. Tell me about that.

The database component an interesting new development for us. There are obviously a lot of vendors out there that sell databases to non-profit clients, but it became apparent to us that a lot of clients didn’t only want a set of on-line tools. They wanted a set of online tools, but they also wanted an entire CRM [Customer Relationship Management] system, where everything worked together. I think we have done a pretty good job in the past of integrating with programs like Raiser’s Edge. Data flows back into the master database and flows the other way.  But it became apparent that a lot of those database tools were expensive and were relatively complex and that there was an opportunity for us to build a more integrated system together, and that was really the approach that we took.

What we decided to do rather than actually building something from scratch ourselves is we partnered with Sales Force. Sales Force has what they refer to as a non-profit template, which is a kind of a database for non-profits based on their commercial product. We built on top of that core piece and we built a product which is called Common Ground™. It’s a database specifically for non-profits, which talks to our online pieces.

So, if I were a development director, sending out emails and getting fine return on investment, but I really want to take my fundraising to the next level, what’s the first thing I should look into from Convio?

Rather than even looking for a tool, Convio is known for extremely interesting and high-quality research. For someone who is just thinking about how to get to the next level, I think they are thought-provoking. Obviously, they are not going to get you there automatically, but there very interesting. For a technology company, we do a lot more research than many technology companies and I think that’s one of our great assets. It depends on who you are; if you are a small organization, I would hope that you are really at the point where you are strongly thinking about bringing in technology to help you get to the next level, I would hope you’d look at product tours, which are short. They are a pretty good way to see what’s possible.

Raising More Money for the Good Work We Do

This afternoon, I had the pleasure of working with Jerry Yoshitomi on a conference session dedicated to grassroots fundraising for the attendees of The Association of American Cultures (TAAC) conference in Chicago. Below are the slides for each of our presentations. Jerry's presentation on grassroots fundraising:

Grassroots Fundraising

Download presentation here.

My presentation on online tools and practices for grassroots fundraising:

Online Tools and Practices for Grassroots Fundraising

Download presentation and notes here.

Kickstarter: funding for (and by) the masses

Crowdfunding websites are a simple way for artists to solicit and accept donations online.  One of the best-known sites is Kickstarter, which hosted the record-breaking crowdfunding of Diaspora. With Kickstarter, you set a fundraising goal and have three months to achieve it. If you reach your goal within three months, you keep the cash. If you don’t, the funds are returned to your backers.  You design a menu of rewards to motivate backers to give.  And, you keep 100% of ownership over your project -- an important consideration for artists dealing with copyright and distribution issues.

Helen DeMichiel, who funded a series of webisodes with Kickstarter, says the all-or-nothing structure is a great motivator. “You have to hustle,” she explains, and your backers get caught up in the excitement.

A previous project backer and current project starter, Tirzah DeCaria points out that most projects are funded largely by backers within the artist's existing network. She advises artists to look at Kickstarter as an opportunity to consolidate and mobilize your network rather than as a tool for reaching large groups of new fans. Of course, Kickstarter isn’t for everyone. The site is curated, and in addition to an application process, projects must have a U.S. address and a U.S. bank account. And there are the guidelines.

In a quick scroll through Kickstarter’s current projects, I came across many projects posted by individual artists or small groups, as well as projects by a design studio, a non-profit performance company, and a video game developer.  Kickstarter clearly doesn't exclude businesses, but established organizations aren't the primary users.  If your organization is considering a project, Joe's post on micro-donations has some good thoughts and advice.  And, again, consult Kickstarter's guidelines.

Other crowdfunding sites for artists:

• Projects on IndieGoGo can be based anywhere in the world. Unlike Kickstarter, the site isn’t curated, so projects cover a broad spectrum -- creative endeavors, causes, and entrepreneurial work.  And, IndieGoGo is not an “all-or-nothing” enterprise.  You can keep any funds you raise along the way.  IndieGoGo also has several innovative partnerships, including a fiscal sponsorship program through Fractured Atlas and the San Francisco Film Society.

• RocketHub is another “all-or-nothing” crowdfunding site geared toward artistic and creative projects.  RocketHub is not curated, though projects must be legal and “in good taste.”   You must have a PayPal account to start a project.

What is your experience with crowdfunding art?  Should established organizations stay out of it or join in the fun?

Social Media, Funding & Prom Queens

American Express recently started a grant program funding arts organizations through online voting instead of traditional non-profit success metrics. Quality of art, financial stability, and community impact were not the deciding factor in who received a $200,000 grant this summer, votes were. In a scene reminiscent of American Idol or Dancing With the Stars, arts organizations compete for the grand prize. Twitter, Facebook, and E-mail, took center stage as organizations launched their online campaigns. A competition was born and America voted to determine the winner.

American Express’s use of the high school prom queen method to choose a winner evokes many new questions for funders and fundraisers alike:

• Does the idea of a contest remove art from arts funding?
• Is the best organization being rewarded?
• Is this a popularity contest or a social media war?
• How do you send a message for support without degrading the integrity of your opponents?
• How will social media be affected through this type of funding?

Galloping ahead of many traditional forms of communication, technology and social media have taken the arts community by storm over the last few years. This contest adds yet another facet to their use: fundraising. With the voting apparatus hosted online, social media makes perfect sense as the advertising weapon of choice, but is this a good choice for the arts?

Building communities, starting conversations, and sharing information top the list of ‘the best ways to use Social media.’ Advertising and sales lead the least effective uses. In an attempt to gain votes, organizations risk alienating their supporters through using inflammatory messaging or hyper focusing on their votes and forgetting the online communities they created.

Bashing the competition, touting superiority, or focusing on why one organization ‘needs the money more’ represent strategies and messaging that could easily be adopted. These messages are uncomfortable for many people and can fracture the arts community. However, without competitive messaging the prize would simply go to the organization with the highest online presence, essentially starting the contest on an unfair playing field.

Assuming an organization crafted an effective campaign without causing any damage, the biggest question still remains unanswered. Should grants be determined by popular vote?

On one hand supply and demand compose the framework of the funding structure. The organization with the highest public demand receives a reward to create more art. On the other hand, many see this as a popularity contest with the biggest flashiest organizations gaining a clear advantage. Unfortunately, art comprises no part of either approach. This funding model is not based on the organization, what they do, who they do it for, or why they do it: a counterintuitive approach in my opinion.

While increased online support and a focus on technology use to reach constituents could provide benefits in this funding model, the prom queens method of distributing support should probably be left where it belongs: high school. This model has no way of insuring the best organizations reap the rewards or that the most efficient and effective programs receive funding. Popularity does not always equal quality, but it will always decide the winner in this funding model.

Baby Boomers, Facebook, and the Australian Example.

Reluctance to embrace social media as an appropriate avenue for reaching arts patrons has often been blamed on the demographics of the user base. Many people look at sites like Facebook and immediately write them off as platforms only representing a younger generation. Not any longer. In 2010 educated adults over the age of 40 comprise the fastest growing demographic on Facebook, the age group 55+ grew by over 900%, and 40 million Facebook users in the US are now over the age of 40. This exposition of established professionals opens up the world of social networking even wider and begs the question: Are we properly using social media in the arts?

With 10 million Facebook users over the age of 55, Baby Boomers are staking their claim in the world of social media. This new demographic is college educated, professionally employed, and comprised of over 60% women. If that sounds familiar, you might be recalling the audience profile for the average arts patron in the U.S. The fastest growing segment on Facebook matches the traditional arts patron in the United States almost perfectly.

Other social media platforms have experienced similar growth outside of the traditional 18-34 age bracket. Currently users between 35 and 55 comprise the largest age bracket on Twitter. LinkedIn’s primary constituents are over 50 and MySpace continues its strong hold on original members now between the ages of 30 and 50.

These statistics along with the growing momentum around interactive websites, electronic outreach, and digital networking make social media the next frontier for audience development in the arts.

Innovations in social media within the arts have already sprouted around the country with great success:

• Characters from plays now have their own Facebook accounts to entice theatre goers to interact with them before and after the show.
• Interactive confession booths in galleries across the country load videos directly online for audiences to view and interact with.
• Viral online marketing is playing a larger and larger role in making buzz around productions and increasing web traffic.

But is it enough?

We can look to Australia for a prediction. Australia adopted social media faster that the US, UK or mainland Europe, with the highest user rates per capita in the industrialized world and the highest percent of users over the age of 35. Arts organization in Australia use Social Media to interact with patrons before, during, and after performances/exhibitions.

In the article Geeks, tweets and bums on seats, Elissa Blake discusses the adoption of social media in Australia and its affects on the arts. In the article, she writes about a production of King Lear where a woman asked permission to tweet during the performance. When asked why she did so, her response was:

It's about sharing your emotions and your experience of the show. You might have a favourite scene or a line that you love and you want to share it instantly. I thought King Lear might be dry, but it was really interesting, and I wanted my friends to go and see it...

Many Australian arts organizations and artists see social media platforms as a way for audience members to interact with companies, individual artist and each other. This interaction builds new passions for attending live performances as friends that could not attend receive enticing updates through their Twitter feed. This free viral marketing increases audience participation and makes Australia a leader of innovation in social media for the arts.

Fee Plumey, the digital program officer at the Australia Council for the Arts stated:

If arts companies want to attract new audiences, they have to jump in and chat about the minutiae of what's going on, Audiences are not just interested in a celebrity on stage. They really want to know how the show works, how the set was made, how it was cast, who's doing the lighting and what goes wrong… [social media provides that outlet].

Australia is a great case study for how social media can affect the arts. Now it is time for the US to see how social media can be creatively applied in audience development within our own country.

Foursquare: Helping You Find Your Favorite Playground

Foursquare is one of the newest social media platforms to be embraced in the last year and one of the most promising new applications for businesses. According to the website, foursquare is “a mobile application that is a cross between a friend-finder, a social city-guide, and a game that encourages users to explore their neighborhoods and rewards them for doing so.” The point of the application is to help users explore their surroundings, discover new things and share their experiences with others. Foursquare uses micro-blogging similar to twitter and interfaces all of the check-ins (posts) with a virtual map. In doing this, users tag locations, businesses and events that they are currently attending for their friends to see and read about. It is a way to share knowledge, play a game and receive promotions and rewards from businesses simultaneously. Due to the mobile aspect of the application, most Foursquare users interact with the site through smart phone applications.

The game portion of Foursquare is what sets it apart from other applications that allow users to tag locations with their posts. In foursquare, a user gets points and earns badges for checking-in at different locations, the frequency of their check-ins and the uniqueness of where they travel. An example would be the Starbucks honorary barista badge. If someone checks into five different Starbucks locations, they become an honorary barista and earn the barista badge. Starbucks is tying this badge into their customer loyalty program and offering promotions and discounts to their honorary baristas.

Collecting badges has become very trendy in many urban settings and adds a fun aspect of competition to social media. Badges are just one option that Foursquare is offering for businesses to promote themselves on the site.

Many businesses are using:

• Mayoral specials – specials unlocked by foursquare to the person who has checked-in most frequently over the past 60 days
• Frequency specials – specials that are unlocked by foursquare to users every ‘X’ number of check-ins
• Check-in specials – a one time special unlocked by foursquare after ‘X’ number of check-ins or for checking-in at a specific time or date
• Wildcard specials – not managed by foursquare, but verified by the businesses staff

Once a business sets up an account with Foursquare and tags its location on the Foursquare map, users can click on the location to receive a brief description and a To-Do list. The To-Do list is a list of recommendation that the business and other user have provided for the location. A museum might add an exhibit, event or activity to their to do list along with whatever recommendations other users have added. This along with check-in based promotions adds a new level to social media marketing and community building technology for arts organizations.

How businesses can utilize Foursquare:

• Tag the location and business on the Foursquare map
• Add a brief description of the location to the map
• Link twitter account to Foursquare to increase activity
• Add items and recommendation to the To-Do list of the location
• Integrate check-in and badge based promotions
• Use Foursquare as a part of a customer/patron loyalty program

Foursquare is also providing an analytics system for businesses. Foursquare analytics has a personalized dashboard for each business that shows which users are checking-in at their locations most often, what time the location has the most Foursquare traffic, and how many check-ins are being linked to other social media plat forms. It gives a demographic breakdown of their Foursquare patrons and provides information such as total check-ins, total unique check-ins, and statistics based on daily, weekly, monthly and annual traffic. This type of data is priceless to organizations and adds a way to track profitability, return on investment, and patron use.

Foursquare is less than two years old and already has over 500,000 users. The integration of social media, entertainment and business prowess makes this company a very promising investment for the arts community. Foursquare has shown enormous potential and incredible growth. It has the possibility of becoming the next Twitter and is offering much greater potential for businesses to harness the power of social media while creating a new outlet for promotions, marketing, and community building.

How to Opt Out of the Facebook Mistake

Facebook’s privacy settings and the wave of controversy they caused have created a new level of user awareness when it comes to personal information on web-based technologies. The Palo Alto giant decided to roll out a new program where people were automatically opted in to share their personal information across the web that they had saved on Facebook. Facebook coupled this roll out with a poor explanation of what it was, who it was affecting, and how users could manage it. The convoluted privacy controls and constitutionality were hit hardest, but they were not the real problem in this case. The actual problems here lie in communication and choice. I agree with Mark Zucherburger that a more open Internet is a better Internet and that the more people share, the more social the Internet will become. Unfortunately, sharing ones personal information needs to be a choice and users need to understand how and why they are sharing their information. “Because it’s good for you” is not an acceptable answer for most people.

Arts organizations in the US need to take this Facebook quagmire and use it as a case study for their own e-marketing and e-mailing policies. Communication and choice will lead to stronger web based support and a happier constituency.

Things arts organizations should keep in mind:

1. E-mail and e-marketing should almost always be opt in for supporters
2. Organization should explain why and how they will be contacting people
3. If possible, users should be able to customize what they receive
4. Opting in and opting out should be very easy and take little effort
5. Safety measures on how the organization will protect a users personal information and contact information should be clearly stated on the website and reiterated in the first e-contact

Opt in policies are generally the most effective and considered to be best practice. This is where Facebook made their fatal mistake and where arts organizations need to ensure they are excelling.  Organizations only want people to receive information that want to receive it. By allowing people to opt in to programs, the organization is letting the individual take responsibility and targeting individuals who want more contact with the organization.

Once someone has opted in to e-marketing and/ joined the e-mail list for an organization, they should be able to choose what they want to receive information about. Maybe they only want information on ticket sales or a certain type of programming. Maybe they only want the annual report and education programming. Being able to customize what information they receive will help keep them more engaged with the organization and make them less likely to opt out or stop reading e-blasts.

Finally, people should feel safe giving an organization their e-mail address and personal information. With all of the information sharing, spamming and possibilities for profit, consumers are very wary of giving away any contact information these days. Post on your website and in the confirmation e-mail how you are protecting their identity and their personal information. These practices will help any organization build a strong e-mailing list and e-marketing campaign.

Micro-donations: Proving Size Doesn’t Always Matter

The Obama campaign, the Nelson Mandela Foundation, and The American Red Cross have all embraced electronic micro-donation campaigns as an effective tool in gathering financial and community support for their causes. The prominence of these cases and their rampant success provides the evidence necessary for arts organizations to begin adopting this new technology to enhance their current giving campaigns. These organizations altered the traditional view of contributed income by looking at three hundred $10 donations as equal to and in many ways greater than one $3,000 donation. This logic has very little to do with the amount of money being given and much more to do with the amount of people giving it. Micro-donation campaigns are about involving as many people as possible and using their collective support to raise awareness as well as funds. They are not just about filling the coffers. They are about educating donors, building support, and cultivating future participation and giving.

A micro donation can be defined as a small gift usually given through electronic media and most often associated with the support of a cause, project, or individual. Point-and-click web based interfaces, e-mail, and SMS txt messaging are the most popular and effective platforms.

Reasons to start a micro-donation giving campaign:

• Small time commitment from management
• Little implementation cost leading to a large return on investment
• Widening donor market segments
• Generating new donors and interest
• Creating ‘buzz’ and word-of-mouth support
• Ease of social media integration
• Building momentum, education, and visibility of the organization

Having acknowledged these benefits, micro-donation campaigns have not been proven effective for annual giving platforms, large gifts or operating funds. They have been proven effective in supporting specific projects, programs, campaigns, and Individuals.

A recent article written by Rich Mintz, the man behind both the Obama Campaign and the Haiti relief effort by the American Red Cross provided 5 big tips to help organizations set up a successful micro-donation campaigns and/or internet giving program.

1. Make it easy to give money and sign up online
2. Reward people who have just signed up with useful follow up contact and content
3. Communicate how much donations matter (even the very small ones)
4. Create online participation opportunities
5. Give people a sense of what’s going on backstage – and in your back offices.

To elaborate:

• Micro donations should be the easiest way a person can give money to an organization. It should take less than three clicks on a website or the simple task of responding to an SMS txt message or e-mail.
• Donors want to know more about an organization once the feel they have invested in it. Send an initial personalized e-mail or SMS text message to donors within 24 hours elaborating on what they are supporting and how they helped.
• Every donor even one who only gives $5 should feel like they have made a difference and created impact. By framing their support this way, the organization is setting itself up for future involvement and donations.
• Creating an online community and an interactive online space provides an outlet for people to be involved with the organization outside of the physical space.
• A behind the scenes look at an organization shows transparency and provides a sense of community. It puts faces, personalities and people with the names, this is important when building support,

Technology has provided a new and proven opportunity for cultivating contributed income in the current economy. If adopted, these campaigns will soon be key in cultivating new donors, creating new support and sheering up funding for new and innovative projects in the cultural community.