Online Ambassadors Lead to Major Donor Fundraising

The bigger the purchase, the more our peers influence our decision.

A 2014 Word of Mouth Marketing Association study found that “higher consideration purchases” – like buying a home or a car – are influenced by peer recommendation more than “lower consideration purchases” such as clothing or food.

Would you agree that a major gift is more of a big or “higher consideration” purchase than a “lower consideration” purchase? Of course that’s true. Learn more about how this translates into major gifts fundraising in the video below:

Is your organization or institution uncovering new major gift prospects with online ambassadors? Are your digitally savvy major donors leading seven-figure online fundraising campaigns? If not, send us your contact info via the form below and we’ll get right back to you with some ideas on advancing peer-to-peer for major gifts at your organization.

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Giving Days Done Right with Major Donors – UCSB

When asked “which giving day do you think had the best planning and preparation?” the University of California Santa Barbara is always at the top of my short list of examples. From the theme, to messaging, to online ambassadors, to email, UC Santa Barbara does giving day as well as any institution.

One of the most impressive aspects of UCSB’s first giving day was in the realm of major gifts – an area that is not traditionally associated with donor participation events like giving days …but then again, times are changing in philanthropy.

UCSB raised approximately $1.5 million before their April 8, 2016 #UCSBGiveDay event. This helped secure an enormous $3.72 million overall. Here is the breakdown:

• $800,000+ was raised for a smart, balanced match and challenge plan. This allowed major donors to see themselves deeply connected to a grassroots campaign as sponsors of matches and challenges. The gamification provided by the matches and challenges also led to UCSB’s best single annual giving day in the school’s history as it was one of many drivers of donor activity throughout the day.
• $600,000+ was raised for large “seed” gifts. These are simply large gifts donors preferred to give prior to the day offline as opposed to making an online gift during the event.
• In addition to the money raised from major donors before the campaign, another donor gave a $1.6 million real estate gift during the event. Because of the large gift protocol UCSB had in place, they were able to use the giving day as additional leverage for locking down and promoting this large gift during the event.

Big giving from major donors during a giving day doesn’t happen by accident. UCSB had success with their large gift donors, because development department leadership made the giving day a priority. The enthusiasm that started at the top with Associate Vice Chancellor Beverly Colgate trickled down through the entire department and energized gift officers to use the giving day as another tactic for engaging and re-engaging their donors and prospects. The results speak for themselves: more money for giving day and major donors who were excited to be part of an exhilarating event.

Major donors were thrilled to be part the highly visible, successful #UCSBGiveDay fundraising event.

Just as a reminder, here is why you want to get the major gifts program involved well before you launch your giving day.

• Because major donors love digital and we want them to be happy:
  • 85 percent of all millionaires use social media, text messaging, and smart phone apps (Fidelity Investments)
  • 55 percent of affluent individuals use mobile pay. That’s compared to 40 percent of the general population and 52 percent for Millennials. (Accenture) That’s right – major donors as a group are more likely than Millennials to pay for a cup of coffee with their iPhone.
• Giving days are a HUGE celebration of an institution and philanthropy. When major donors are at the center of such a vibrant event, they feel good. (That’s why we say giving days offer major donor stewardship opportunities)
• Matches and challenges drive small gift giving. According to The Why Axis, by Uri Gneezy and John List, donors are 20 percent more likely to give when a match is in play.

Majors donors love online giving … big gifts drive small gift activity … digital campaigns offer another point of engagement, cultivation, and solicitation for major donors … the reasons for building major donors into your next giving day are many. Be sure you major gifts team is ready to seize this opportunity.

Justin Ware is the Vice President for Digital Fundraising Strategy at ScaleFunder – a Ruffalo Noel Levitz platform. Justin can be reached via email at justin.ware@scalefunder.com or on LinkedIn by clicking here.

HOW TO Build a Digital Major Gifts Program

I love it when anecdotes plus statistics lead to predictions, which then become real life case studies and finally evidential proof.

In 2012, we first witnessed major donors taking notice of online campaigns when a dozen major gift prospects made their first gifts ever to Florida State University during the school’s inaugural “Great Give.” These were prospects who had never made a gift of any size or type, but felt compelled to do so for the first time during the online giving day micro campaign. (Most gifts were made online in the $500 to $5,000 range with one coming in offline as a $100,000 pledge)

Major gift donors and prospects often give four- and five-figure gifts through ScaleFunder’s crowdfunding and giving day modules without being specifically solicited.

Flash forward to the nearly 900 crowdfunding projects and online giving days ScaleFunder’s team has helped to launch and the refrain is similar in many cases – big gifts come from major donors and prospects, often unsolicited.

But those big gift donors should have been solicited, because we know:

• 85 percent of millionaires use social media, text messaging, AND smartphone applications. (Fidelity Investments study of millionaire investors)
• Online donors have higher household incomes than those who only give offline. (2012 Convio study)
• Online-acquired donors give twice the average size of gift compared with donors acquired via mail. (2012 Blackbaud study)

The statistics tell us the more money a person has, the more likely it is they are engaged online and via social media. Past experience tells us big donors are excited by innovative online giving efforts. For these reasons, digital is quickly becoming a staple of the best major gift programs. With that in mind, here are a few tips for injecting digital energy into your traditional major gifts program:

Train gift officers to be active in the digital space

This is not a mandate that every single gift officer opens and maintains Facebook, Twitter, and Instagram accounts for engaging donors. Instead, find those gift officers who are already active online as well as those who have an interest in increasing their digital footprint for fundraising. Build a training program for the willing gift officers that helps the novices get started and the pros polish their online appearance.

The same goes for your institution’s leadership. For the right donor, having a president or chancellor comment on that donor’s Facebook photo of their granddaughter’s graduation could be monumentally effective at strengthening that donor’s affinity for the institution. Again – provide training for your administration so those opportunities can be identified and leveraged.

Provide digital opportunities for major gift donors

From offering innovative matching and challenge opportunities to branding a giving day theme in the name of a specific donor’s family, online giving campaigns can serve as virtual naming rights for your digitally active major donors and prospects. Whether it’s a giving day theme or a crowdfunding perk, think about how you might build your biggest donors into your online campaigns in visible and meaningful ways.

Create a subgroup of major donor online ambassadors

We’ve seen major donors set up crowdfunding campaigns that have brought in $60,000 in a matter of days. More importantly, those major-donor-led crowdfunding campaigns have identified new major donor prospects through the networks of the major donor ambassadors who launched the campaigns. Which makes perfect sense – major donors often have major donor prospects in their networks (online and offline). Leveraging a major donor’s support as both a donor and recruiter can more than double their impact.

Major donors are proving to us they want to be involved during online campaigns through their actions during those campaigns. On Wednesday January 20, RNL/ScaleFunder’s Vice President of Digital Fundraising Strategy, Justin Ware (that’s me), led a webinar with tips and tactics for building digital into your major gifts program. Click here for the recording, slides, and infographic of that webinar.