Thursday, July 17, 2008

Fundraising in Facebook

The largest check I ever wrote to a charity was the week after Sept. 11, 2001. I sent the equivalent of half my rent to the American Red Cross. Many Americans did the same. The Red Cross raised more than $1 billion in the weeks after the terrorist attacks.

There, I thought, slipping the envelope in the mailbox. I helped. I did something physical, tangible.

But now I wonder, why the Red Cross? I had done no research on the organization. I had no idea how my money would be spent, although I assumed it would be given to the victims' families. Where did I get the address? CNN? How did I buy groceries the rest of the month?

The donation was emotional, and convenient. The decision-making system I normally used for financial matters was overruled. People had died, and I had watched it unfold on TV. It would've been harder to choose not to donate, and the Red Cross was the most prominent aid group in the days after the attacks.

I thought about this after I read an article in Monday's Wall Street Journal about online charitable giving. (http://atlanticphilanthropies.org/news/news/charity_cases) It described how social networks Facebook and MySpace let individuals and groups make personal appeals for money, which increases the odds of a donation. Actor Kevin Bacon started a site, sixdegrees.org, that helps nonprofits and individuals (including celebrities) raise funds for charities or a personal cause.

Nonprofit leaders quoted in the article predicted mixing online payment and social networking sites will make it easier for Americans to donate money. There’s no stamp to find, no check to write, and you know where the money is headed—to your aunt, your co-workers or college roommate. Plus, everyone in your network can see you made a donation, a social bonus.

If my kitchen table is an indication, I think this argument is spot-on. There, I have amassed a small pile of solicitations from worthy organizations over the past six months, along with their accompanying gift of personalized mailing labels. I want to donate to these groups, but I never quite get around to it. Does that make me a poor citizen, or just a disorganized one? The AdCouncil has an entire campaign directed at people like me (http://www.dontalmostgive.org).

Personally, I would be more likely to donate to these groups if they stopped mailing the labels, and sent me an e-mail. There, with an unmissable “donate” link, I could draft money immediately from my checking account, just as I do when J. Crew has a sale. In the Wall Street Journal article, one industry expert floats the idea of putting pitches at the end of movies with a social message. So at the end of, say, Hotel Rwanda, people in the theater could text money to refugee support groups using their cell phones. Nonprofit groups can capitalize on people who, like me, unfortunately have bursts of interest rather than deep, sustained commitment.

As much as I understand the concept of the altruistic impulse buy from my Sept. 11 experience, I wonder if this is a wholly positive trend for nonprofit organizations. Is it better to raise extra money from donors contributing on a whim, or a committed pool of people who support your mission, especially when you need to pay for mundane office items, like the electricity bill? Nonprofits need people who care enough to turn off the TV and locate their checkbook.

I’ve only given money to the Red Cross twice (although they’ve accepted a fair amount of my blood). And donors like me are wreaking havoc on the organization. According to a January 2008 New York Times article, the American Red Cross has cut administrative staff because bad–weather donors who open their wallets for natural disasters insist that their donations be used for the victims of that incident, and those victims alone.(http://www.nytimes.com/2008/01/16/us/16charity.html?scp=14&sq=american%20red%20cross%20donors&st=cse). I think online donations using social networking sites will likely exacerbate this situation. Nobody wants their donation to pay for staples, but, in life, that’s what holds things together.

3 comments:

Alison said...

Kelly, having worked in the non-profit world I understand the need to find ways to reach out and garner support to carry-out your work. Adding to your insightful post, I also worry about the novelty wearing off with E-mails in the inbox piling up and going unanswered just like the letters on the kitchen table.

mayruka said...

Donations comes from the heart of the donors who have a genuine interest in a particular cause. I believe donors should have the option to direct their contributions to a specific cause and expect to be just for that. Organizations might need to start looking for ways to promote the generals of what they do if they want to avoid the disappointment of their donors. Contributions to sustain organizations administrative operations should come from corporate budgetary assignments, governmental and non-govenrmental grants and not necesarilly the common citizen. In this world of high technology and online capability, check boxes for donors to choose supporting a cause or the greater good should be available. Just like you choose the shipping cost and arrival time of a book you buy at amazon.com

emzee said...

Kelly, you're talking about changing behavior and eliminating the barriers to change -- a.k.a. making it easier for me to donate. But I think Alison has a point, even an easier tranfer process can become wallpaper if there isn't a more satisfying "what's in it for me?" Part of the human condition is to ask that question. Even if you're volunteering at a soup kitchen and the answer to WIIFM is "it makes me feel good" that's ok but everyone asks themselves. But did the Red Cross every tell you exactly what was happening to the money you donated? Did they let you know when they achieved their goal for the project to which you contributed? I'm going to hazard a guess that they did not. Nonprofits fail in keeping donors engaged by telling them what their donation achieved in specific terms. Everyone is motivated by recognition and donors need it too. So improving the exchange -- what do I have to give up, what do I get and is it worth it to me -- is the best way to keep the money flowing. Cha-ching...Monica