The Impact of Technology on Donors Fundraising and

The Impact of Technology on Donors, Fundraising and the Field November 14, 2012 Bob Ottenhoff, President and CEO Center for Disaster Philanthropy

Three Big Trends • Greater demand for transparency and accountability • Greater demand for data on which to base decisions • Greater personal engagement in philanthropy 2

10 million users projected to visit www. guidestar. org in 2012

Most donors don’t spend a lot of time researching, and those that do look for simple, digestible info Only 35% ever do research Of those, ~75% spend <2 hours researching… …and they are looking for simple facts and figures Did Research on Any Donation in 2009 Quotes / Testimonials Stories 35% 65% Detailed Reports Never Researched Before Making a Donation Facts and Figures 4

C. HOW DONORS RESEARCH They use that information to validate their donation, not to choose between organizations For the 35% that do research, it is often to “validate” their choice of charity % of the 35% that research Comments from Focus Groups “I just want to make sure my charities ‘hurdle the bar’, I don’t care by how much” “I just want to ensure that I’m not throwing my money away. ” “I can’t determine which is the ‘best’ nonprofit, but I can find out if a nonprofit is bad” “We give to faith based organizations if they are accredited by our church” 5

B. WHAT DONORS CARE ABOUT However, donors are not alike. Statistically, donors break out into six behavioral segments Repayer Casual Giver High Impact “I give to my alma mater” “I primarily give to well known nonprofits through a payroll deduction at work” “I give to the nonprofits that I feel are generating the greatest social good“ “I donated $1, 000 so I could host a table at the event” “I support causes that seem overlooked by others” Faith Based See the Difference Personal Ties “We give to our church” “I think it’s important to support local charities” “I only give when I am familiar with the people who run an organization” “I support organizations that have had an impact on me or a loved one” “We only give to organizations that fit with our religious beliefs” “I only give to small organizations where I feel I can make a difference” “A lot of my giving is in response to friends who ask me to support their causes” Note: Segments based on statistical analysis. See appendix for details 6

HOW PEOPLE RESEARCH Individuals’ research behavior appears to vary more based on the type of donation than the type of donor OTHER THAN “HIGH IMPACT”, RESEARCH DOESN’T VARY MUCH BY DONOR SEGMENT NOTES § The type of donation (previous page) appears to be a greater predictor of research than the type of donor - Consistent with the majority of donors not wanting to make a ‘bad donation’ --- average § As such, there may be ways to target certain giving experiences to influence behavior and allocate greater dollars to HPNPs § “I don't think I researched any last year since these are all nonprofits that I contributed to before and I am aware of how they spend the funds and trust them. ” - Donor from Focus Group on “Individuals who Compare NPs” 7

HOW PEOPLE RESEARCH Individuals’ research behavior appears to vary more based on the type of donation than the type of donor OTHER THAN “HIGH IMPACT”, RESEARCH DOESN’T VARY MUCH BY DONOR SEGMENT --- average 8

Want do they want? www. guidestar. org/moneyforgood

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Are we a 21 st Century Institution? 1. What are we doing to disrupt the status quo? 2. What does it mean for us that the consumer is now king? 3. Are we seeking new personnel skill sets? 4. What are the new organizational structures? 5. How can we increase the speed of innovation? 6. Can develop new business models for today’s economic realties? Evan Williams: co-founder Twitter: • great businesses, • that change the world, • and we love our work

Thank You! Bob Ottenhoff – bob. disasterphilanthropy. org My blog: http: //ceo. guidestar. org/ Connect with us on Twitter: @Guide. Star. USA Connect with us on Facebook: http: //www. facebook. com/Guide. Star. USA Connect with us on Google+: Guide. Star