The Power of Social Network Fundraising

By Brittany Janis
Development Director, Busted Halo

Social networks are rapidly shifting the way individuals and companies communicate. Technology has not only changed the means through which people maintain relationships, but has revolutionized the size of those relationship networks and the magnitude of information which is shared through them. An individual’s capacity to publicly show their support for causes, people, and products has never been greater. Organizations, both for and non-profit, are seeking to capitalize on that potential.  Competing for the hearts, minds, and now status updates of their constituents, non-profits face the challenge of determining how best to keep their donors’ attention.

Facebook has more 350 million active users worldwide. Platforms such as Twitter have an estimated user base of 18 million, and they are growing in popularity daily. Social networks are where people communicate regularly and development professionals must ask themselves how they can effectively tap into these marketplaces of potential benefactors. In the days following the tragedy in Haiti, The Chronicle of Philanthropy reported that organizations such as the Red Cross or Oxfam America have been able to raise millions of dollars using social networks. These technologies must be re-considered as a powerful tool for fundraising.

Social networks themselves are not going to change the face of development. However, when used properly social networks can have a dramatic impact on a non-profit’s communication and development strategy. Seth Godin points out in his book Tribes,“New technologies are all designed to connect tribes and to amplify their work….but the internet is just a tool…The real power of tribes has nothing to do with the internet and everything to do with people.” Social networks are another tool that can be used to strengthen relationships, identify prospects, and empower leadership among a donor base.

A recent study finds that the Millennial Generation considers interactions and relationships conducted through social networks as meaningful as face-to-face interactions and relationships. Dr. Larry Rosen, a professor of psychology at California State University further points out, because these online relationships are the reality for many social networking users, the expectations people hold for communication have changed.  “...[the] newest generations, unlike their older peers, will expect an instant response from everyone they communicate with, and won’t have the patience for anything less.”

Implications for Non-Profits

The findings from Rosen’s study could have a number of implications for non-profits. First, to fulfill the expectations of current and future constituents, non-profit organizations need to be increasingly responsive and nimble. The hours for communication cannot be limited to nine to five on weekdays. Instead, availability should be fluid and conform to donor’s habits. A Facebook Fan page provides donors an opportunity to connect with your organization and fellow constituents, on their own terms.

When a constituent chooses to visit a website, it generally initiates a one-way conversation. This conversation is unchanging in that the visitor reads a message, but may not contribute or leave a message. Likewise, an e-mail while useful in communicating information can be viewed as intrusive and should be used sparingly. An e-mail cannot connect members of the community to each other like a social network can.

On the other hand, social networks allow nearly constant communication through status updates and posts, in a venue the user is already visiting. When consistently maintained, they can provide nearly instant feedback which invites broader conversation within the whole community. People who are already participating in a dialog are invited through social networks to connect with familiar (as well as unfamiliar) organizations in new ways. Constituents are thus engaged in a two-way conversation, more effectively and organically than a website or an e-mail.

Second, non-profits need to consider virtual interactions through social networks as a valuable means of building and nurturing relationships. This is particularly true when it comes to constituent groups who are not physically present in a non-profit’s community. In the same way that Facebook can reconnect grade school buddies, it can also connect new and potential donors. Once virtually connected, a relationship can begin to be built online through social networks, not in lieu of an eventual face-to-face meeting, but as a beginning touch point for a deeper relationship.

Beyond relationship building and donor acquisition the real strength of social networking lies in what it provides to the constituents themselves: a means of action. This was evident in the 2009 America’s Giving Challenge, a 30-day competition which used the Facebook Causes application. Donors gave over 100,000 donations and raised $2.1 million. Michael Smith, V.P. of Social Innovation at The Case Foundation, one of the sponsors, explains “It’s personal fundraising. It’s not about The Case Foundation asking you to donate. It’s your friend asking you—that’s the future.”

A non-profit’s donor database has a fairly static range of reach. The Red Cross does not have everyone’s cell phone number or e-mail address. However, when volunteers and donors are empowered through social networking, an organization’s capacity is magnified ten-fold. This is why millions of people chose to donate to the Red Cross via text following the Haitian disaster. The Red Cross did not have access to all those donors, but due to their communications strategy which included Facebook and Twitter, the friends of these donors who texted, updated their status, and tweeted gave the Red Cross the access necessary to raise millions. Empowering donors to access their networks on behalf of a non-profit is the power of social network fundraising.

Social networks are not a magic bullet, but the access they can provide to donors and donor networks has the potential to change the face of development. As technology continues to change and grow, non-profits must adapt to meet new needs. In embracing social networks and new technologies, non-profits can strengthen and empower donors while building new development relationships spanning beyond existing networks.

Brittany Janis is the Development Director at Busted Halo.com.