What’s Trending in Philanthropy: Information and Innovation
2012 Creating Connections Conference Shelley Brown Christopher Maddocks
“…(we) are in a confluence of two sectors (healthcare and philanthropy) undergoing profound transforma:on, each the focus of extensive debate.”
Emerging Trends: The Changing Landscape of Health Care Philanthropy AHP 2010
Our Philanthropic Landscape… Volatility investment RECESSION transformation cost containment Vigilance ROI donor-centric IMPACT compliance COLLABORATION Competition transparency metrics INNOVATION ACCOUNTABILITY “May we live in interesting times….”
Confucius
Today’s Challenges Rising financial obliga0ons, shrinking public support (financial and moral), increased need for unrestricted dollars and transparency “Going global:” more compe00on, more opportuni0es, greater sophis0ca0on ShiB in donor mo0va0on from “doing good” to “inves0ng in community/cause” The new impera0ve: transforma0on
Our Best Response Keep to the basic principles—build the base, deepen rela0onships, make the case Use new media and methods in service of those principles—to extend reach and shape content Inform decision‐making and donors: know your donors and let them know you Invest in new ideas and create transforma0onal opportuni0es for donors
Today’s Conversa:on Share the good news: revenue in healthcare up by 8% in 2010 (children’s hospitals among the greatest successes)! Highlight trends and experience shaping our ‘best response’—informa0on, innova0on, investment Share success (and not so much) stories Ques0ons???
INFORMATION: TRENDS AND EXPERIENCE
INFORMATION: TRENDS
Genera:onal ShiKs Technology usage is the most common theme for how the emerging genera0ons (Gen X, Millennial) define themselves
Source: Pew Research Center - http://pewinternet.org/Presentations/2012/Feb/National-Religious-Broadcasters.aspx
Gadget Genera:ons
Source: Pew Research Center - http://www.pewinternet.org/Presentations/2012/Jan/The-New-Environment-for-Advocates--NGOs.aspx
Mobile Revolu:on 83% of all adults are mobile phone subscribers 45% use smartphones
Source: Pew Research Center - http://www.pewinternet.org/Presentations/2012/Jan/The-New-Environment-for-Advocates--NGOs.aspx
On their Mobiles 63% of Adults are wireless Internet users Increased by 26 percentage points in just 3 years
Source: Pew Research Center - http://www.slideshare.net/PewInternet/state-of-social-media-2011
From Mobile to Social 50% of all adult Internet users are on social networks
Source: Pew Research Center - http://www.pewinternet.org/Presentations/2012/Jan/The-New-Environment-for-Advocates--NGOs.aspx
Social Revolu:on Adults aged 50 – 64 are the fastest growing popula0on, Having grown from 25% to 52% adop0on in 3 years
Source: Pew Research Center - http://www.pewinternet.org/Presentations/2012/Jan/The-New-Environment-for-Advocates--NGOs.aspx
Systema:cally Social Half of adults aged 18 – 49 use social media on a daily basis According to the Pew Project for Digital and American Life For social network users between 18 and 49 years old, the primary reason to use social media is to connect with friends and groups they like. For users over 50, the top reason to is to connect with family.
Source: Pew Research Center -http://www.slideshare.net/PewInternet/state-of-social-media-2011
A Friendly Bunch Social media users aged 18 – 34 have twice as many friends as users aged 47 – 56 and four 0mes as many as users aged 66 – 74.
Source: Pew Research Center - http://www.pewinternet.org/Presentations/2012/Jan/The-New-Environment-for-Advocates--NGOs.aspx
But what about the wealthy? It turns out, they’re not that different…
The Wired Wealthy • A tandem of research studies examined the online habits of the affluent. • One research project by Edge Research and Convio studied the online habits of 3,443 major giB donors with income greater than $200,000 • The second study by McKinsey and Company and the Hewlel Founda0on examined online behaviors and informa0on needs for major giB donors.
donations. Looking forward, 46 percent said that they expect to make a greater percentage of their charitable gifts online within the next 5 years.34 While our focus in this paper is on more affluent donors, this trend is certainly encouraging and supports our belief that online platforms will increasingly be an effective channel.
Online Habits 
Exhibit 11
Online usage is high for affluent
<$100K $100-150K $150-250K $250K or more
Percent 48 45
44
41
38
40 32 29
27
25
24
23
23
22
17
17 14
14
14 7
Travel information or reservations
Banking
Made a purchase
Gathered information for shopping
Source: Mendehlson Affluent Survey, 2006; Pew Charitable Trust; Luxury Institute; expert interviews
Barriers to greater impact
Financial information/ stock trading
!(6.*$,3($#*.$#,26(/8$9+($4&3/#$:;&%"3($<=$>3.4&6(/$1(?$,##3&2"#(/$4.3$(,5+$.4$#+($#+3(($56"/#(3/8$ 9+($/(5.)-$:;&%"3($@=$>3(/()#/$56"/#(3$23(,1-.*)/$4.3$(,5+$.4$#+($0,A.3$/(5#.3/$.4$).)>3.4&#/$ *($/#"-&(-$:(8%87$B)&0,6$C(64,3(7$D(,6#+7$(#58=8$E6(,/($#,1($#+($/(5.)-$#,26($*&#+$,$%3,&)$.4$ /,6#$F$#+($>3.>.3#&.)/$,3($3(46(5#&'($.4$#+($%3.">/$*+.$5+./($#.$>,3#&5&>,#(7$,)-$0,?$.3$0,?$ ).#$3(46(5#$#+($56"/#(3$-&'&/&.)/$.4$#+,#$()#&3($/(5#.38$G."3$0&6(,%(7$&)$.#+(3$*.3-/7$0,?$',3?8$ $ !
Wired Wealthy Clusters
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How They Choose to Give • The Hewlel research found a growing segment of “strategic” or “outcome‐oriented” philanthropists (comprising roughly 1/3 of major donors) who demand greater informa0on before making a giB. • These donors increasingly use online informa0on sources to inform key charitable giving decisions: – Which organiza0ons to ini0ally support – Which organiza0ons to con0nue to support
What motivates donors?* Why givehigh-net-worth again?
Impact-driven
Why give again? that they would ng byWhy give? Percentage of HNW households reporting give more to charity if the following occurred Important motivations for charitable giving by Percentage of HNW households reporting that they would HNW households (percent
give more to charity if the following occurred
75
86 Less money spent on 86 admin Less money spent on admin Meet critical needs 83 Giving back to Able society to determine impact Able to determine impact of gifts 83 of gifts Reciprocity
82
82Desired impactMore financially secure 69 69 64 62 62
62 57
Nonprofits provide services Better return Being asked
Set an exampleNot
64 on investment 62
58
More financially secure
62 Knew of more organizations
Religious beliefs
Able to use Expected in social network
57
Better return on investment
More access to27research 26
Leaving legacy
Knew of more organizations
Understood8goals Limit funds to heirs
1 giving vehicles More info on 1
36
Name would not be made public
More time
35 31
Able to compare notes with peers 21 Not already leaving donations in estate
Name would not be made public
40 36 36
36
Understood goals of nonprofits
of nonprofits Less legal red tape
47
40
More access to research
More time
53
47
Not already financially committed
skills 29 in nonprofits More info on giving vehicles
Good business sense
58
53
already financially 62 committed Able to use skills in nonprofits
Identification with causes
75
21
35 31 21 21 20 16 15 15
20 16
* Defined as households with Incomes greater than $200,000 or assets in excess of $1 million Source: The Center on Philanthropy at Indiana University, Bank of America Study of High Net Worth Individuals: Initial Report, 2006
Less legal red tape
15 institutions with signifiAble tofor compare peers information, financial In light of this demand more andnotes betterwith performance cant donor servicesâ&#x20AC;&#x201D;including JP Morgan Chase,in Wells Fargo, Bank of 15 America, UBS, and Schwab Not already leaving donations estate
Wired Wealthy Take‐Away • Major donors read your email and social media • They make a first giB – Because they believe that you meet cri0cal needs – Because they want to make an impact
• They con0nue to give – When they know their giB impact – When they see return on philanthropic investment – When they understand your goals
uality of proxy information
No
y, accessibility, and Is the information . . . Publicly Type of information Knowable? available? proxy information Strategy
Type of information Knowable? Management team/board
Management and support
Mission
Peer networks
Strategy
Funders Beneficiary feedback
4
model
Expert/peer/donor ratings
ManagementAwards team/board Output metrics
Peer networks Metrics (e.g., # of meals served) Organization metrics (e.g., staff size, turnover)
Financial metrics Beneficiary feedback (e.g., fundraising costs)
Expert/peer/donor ratings
Publicly available through a nonprofitâ&#x20AC;&#x2122;s annual report or website Searchable and easy to get online through aggregated website(s) An independent third party has analyzed the information Alternatively termed an impact model or theory of change
Awards
Analyzed?3
No
Is the information . . .
Logic model4
Funders
Yes
Mission
Program and goals
Feedback Logic
1
Easy to get?2
Publicly available?1
Easy to get?2
Analyzed?3
INFORMATION: EXPERIENCE
Our Take‐Away Survey donors and industry best prac0ces—and apply the learnings! Burke donor survey corroborated common wisdom: designate appeals, communicate impact, increase online and offline connec0ons Digital media assessment confirmed what worked (interac0ve) and what doesn’t (text messaging)
Inform decision‐making and donors: know your donors and let them know you Invest in new ideas and create transforma0onal opportuni0es for donors
INNOVATION: TRENDS AND EXPERIENCE
INNOVATION: TRENDS
Mobile Innova:on? Not Strategic Giving • In January, Pew and the Berkman Center at Harvard released a report :tled “Real Time Charitable Giving” that analyzes trends in mobile giving. • Findings included: • • • •
9% of donors have given via text message 43% indicated they were influenced to give by friend and family sharing via social media 50% of mobile givers say they were driven by impulse 58% of mobile givers indicate that aKer their dona:on, their connect to the receiving organiza:on is “not too close” or “not at all”
Source: Pew Research Center, Berkman Center for Internet and Society, mGive Foundation, “Real-Time Charitable Giving”, January 12, 2012, http://www.pewinternet.org/Reports/2012/MobileGiving.aspx
Social Innova:on?
about Facebook. )*+,%-./+0**1%2+34%0563)%.7.8+9+,,:
DRIVING TRAFFIC AND ACTIONS
solidly defined what it mea spread information and can set out to achieve.
Each of these perceived goa different to each organizati mean to yours?
Communica:on vs. giving channel 100% 90%
80% )*+,%-./+0**1%2+34%)567+%/*8,969:+89,%9*%./96*8;
80% 70% 60% 50% 40%
% Respondents
% Applicable Respondents
90%
Minimal
70%
100%
No effect
Some
60%
Substantial 50% 40% 30%
30% 20% 10%
20% 10%
0%
Increased Website0% Traffic
Moved People to Actionour Provided Take Spread
Increased Email List Increased
Increased Donations
additional information awareness of information more widely organization Source: Idealware, “Using Facebook to Meet Our Mission”, Juneour 2011, See Appendix A for a more detailed explanation and breakdown of this data.
http://www.volunteertoday.com/PDF/Facebook_survey_2011_v2.pdf
In addition to constituent impact, we asked respondents about goals not directly involving constituents that can be easily quantified. These included website traffic, donations, email list size, and moving people to
CASE STUDY
The Bookkeeping Center Based in New York City, The Bookkeeping Center
You can’t use it to fundraise… Peer-to-Peer Event Fundrais But your supporters can.
Figure 5: Fundraising Methods 80% 73% 58% 49% 41% 31% 18%
Letters/ postal mail
Phone calls
In-person asks
Social networking/ media
Hosted an event
Other
(guest bartender night, house party,
Source: Blackbaud, “Peer-To-Peer Event Fundraising Consumer Survey”, June 2011 bake sale, etc.) https://www.blackbaud.com/files/resources/downloads/WhitePaper_RunWalkRidePeerToPeerParticipantSurvey2011.pdf
Online Tools: Easy or Difficult to Use It’s fair to say that online fundraising is easy and effective for peer-to-peer fundraising events. When
They’ll certainly share this… If They’ll Share This…
It isn’t all fundraising…
A Visual Trend • Visual and interac:ve media (i.e. video) are on the rise with the trend towards smaller compu:ng devices • Content needs to be increasingly ‐able
Be (P)interes:ng • Pinterest – Highly‐visual social network of images – Launched Two Years Ago – 10 Million Unique Visitors per Month – 2,702% Increase in visitors since May 2011 – Average Time on Site = 15.8 Minutes – 50% of users have kids – 28% of Users have Household Income > $100k – 40% of users are 35 years old or older
Innova:on Take Away • Leverage mobile solu0ons that serve donors. Give them rich content or give them tools to beler fundraise for you. Think twice about mobile giving. • Unleash your content and make it ‐able. Search‐able, scan‐able, embed‐able, comment‐able and mob‐able (i.e. mobile‐friendly). • Highly visual content and video are well‐suited to moible and tablet computers. • Use social to magnify your brand – talk about your mission and outcomes – it isn’t all fundraising.
INNOVATION: EXPERIENCE
Investment Pays…and Pays Off • Advantage new technology and strategies to extend reach of exis0ng events • Make way for the new: Use ROI analyses to refresh and replace fundraising ac0vi0es • Tailor engagement and giving opportuni0es to appeal to the “venture philanthropy/investment” mindset • Go where the donors are—the global community
Build an Inclusive Approach • Research showed that social, digital and mobile trends cut across demographic and economic lines. • Be wary of adop:on trends. • Think about mobile opportuni:es that meet diverse cons:tuents needs. Consider solu:ons that aren’t just focused on event or annual donors. What would a Major GiK donor want in an app? A volunteer solicitor?
Social Innova:on
Be everywhere. Integrate social into all your other channels and bring content from your other channels to social.
QUESTIONS?
Thank You!! Shelley Brown Vice President, Opera:ons Children’s Hospital Trust shelley.brown@chtrust.org Christopher Maddocks Director, Informa:on Management & Technology Children’s Hospital Trust christopher.maddocks@chtrust.org
Resources Emerging Trends: the Changing Landscape of Health Care Philanthropy (AHP 2010) The Online Giving Study Network for Good and TrueSense Marketing The Cygnus Donor Survey 2011 Twitter – @clm2134 Presentation – www.issuu.com/clm2134/ Pinterest Board – pinterest.com/clm2134/emerging_trends