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Online donors don’t return?

Posted by: Lauren Miller on Mar 19, 2009
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The NY Times ran an article on Wednesday with a pretty basic premise: “first-time online donors often do not return.”

That’s true – in many cases online donors don’t give again. But we respectfully disagree with their conclusion to the problem:

The findings suggest that while the Internet can be a valuable fund-raising tool for charities, particularly in soliciting gifts after disasters like Hurricane Katrina, it is not a replacement for direct mail or other forms of fund-raising.

This is a bit harsh; giving up on online fundraising isn’t the solution to your problems. If you’re having a difficult time converting your one-time donors into repeat donors, maybe it isn’t the donors’ fault – maybe it’s yours.

Online donors aren’t direct mail donors. You can’t send them a 6 page letter and a picture of a starving child or a sad puppy once every few months and expect the cash to come rolling in. Online donations require consistent communication and interaction to keep your supporters engaged. It requires empowering them to take action, capitalizing on key milestones and breaking news, providing transparency for what their donation is used for, and proving value in the work you do.

President Obama’s campaign helped prove the value of online donors to most of the political and nonprofit community. The Washington Post reported that 3 million donors made a total of 6.5 million donations to President Obama’s campaign, and more than 40% of Obama donors gave more than once.

And while the success of the Obama campaign is unprecedented, other BSD clients have had similar success converting one-time donors into repeat donors. For example, more than 20% of Senator Kennedy’s online donors have contributed more than once, and nearly 30% of contributors to the Democratic National Committee have contributed multiple times.

Most organizations can’t sustain their entire budget with online donations. But organizations can and should use online programs to supplement their other programs – field, communications, legislative/political, finance, etc – to deepen their relationships with supporters and make it easier to get involved (and yes, donate).

As the NY Times article points out, you can’t simply put a donation page up on a website – or send out an email with a big red “donate” button – and think you’re all set. Online organizing does take an investment of time and resources. But the investment of time and resources online, building a user-friendly website and creating that meaningful relationship, can be just as valuable as the time and resources you spend auto-dialing phone numbers or sticking first-class postage on a one-time mail drop.

Update: BSD client manager Teddy Goff had a great response to the NY Times article as well:

Broadly speaking -- I tend to see this article as validating exactly the kind of program we propose to run. The problem isn't, clearly, that people hesitate to give online; it's that organizations for the most part haven't been successful at keeping them engaged in the long term.  That means the focus of an online communications program needs to be not just on web traffic or bells and whistles, but on building a relationship based on two-directional communication, authenticity, clear benefits to the constituent, and a mutual understanding that an email list isn't just an ATM to be hit up for cash withdrawals once a week.  It's also a reminder that execution counts -- that the nitty-gritty of email copy, design, timing, message sequencing, etc., can mean the difference between success and failure in an environment where there's a willingness to give, but also an expectation that the ask be effective.