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Direct Marketing Facts and Figures in the Nonprofit Industry

Direct Marketing Facts and Figures in the Nonprofit Industry
July 27th, 2007 11:11 am

The “Long Tail” of Fundraising in Social Networks

p>If you missed the launch of Facebook Apps Platform almost two months ago, you’re already way behind the times.  The technology "enables anyone to build any application that…Facebook could build."  The Causes application by Project Agape enables anyone with a Facebook account to support and engage their Facebook networks to support a "Cause" - be it "Save the Seals!," "End Global Warming!," or "Fight Hate".

All of the Causes have to be linked to a Guidestar-verified 501(c) (3).The developers hope to revolutionize the way people give money, using the principles of group fundraising and social networking.

We took a sampling from all of the Causes to get a sense of what the potential is.  There are currently about 8,000 Causes, and we sampled about 10% of them.  Lots of zero dollar donations in that sample (555 out of the 774 we sampled).  Of the 218 causes that actually had donations, the average money earned was about $290, and the average number of supporters was about 6,600 (that was after throwing out all of the zeros).  That works out to an average of about $1.24 per supporter.  The total donations ran from $5 to $22,871.  The members range from 0 to several hundred thousand.  Here are the graphs of the results below.  It’s a pretty long tail.  If you’re a spreadsheet junkee, you can email me and I’ll send you the data.

Money Donated to Casues on Facebook
# of Members in Facebook Casues

Perhaps more relevant than the average in this case, however, are the median (36 for Cause members, $0 for donations or $30 if you throw out all the instances of zero donations) and the mode (6 for members and $0 for donations — $10 if you throw out the 555 instances of zero).  Translation:  you’re more likely to get between $0 and $30 per Cause — not the average of $290.

As much as there is potential for "free" money, social networks — and the apps that go with them — are not a silver bullet, yet.  To be fair, though, this particular tool is only about two months old.

If you want to venture into social networks for promoting your org, the same old organizing rules still apply.  The "Field of Dreams" strategy doesn’t usually work anywhere on the web, social networks included.  However, they’re different from other mediums in that they tap into some basic human needs in a new way — the need to be part of a group, need to be creative, need to have a voice heard in a public forum — but it’s tough to get in the middle of that as an organization.  It takes a lot of time and a personal touch.

So for now, we’ll remind you to think like a rock band if you want to spend your time in these mediums.  Seriously, pay attention to what rock bands do to mobilize people on social networks.  And yes, you should be everywhere, but prioritize.

If you want to get down and dirty with the costs and benefits of social network recruiting, we have put together a Social Networks ROI Calculator you can use to help with your decision-making as well as a few how-to articles and case studies .

Justin Perkins, Nonprofit Services Director, Care2
James O’Malley, Chief Blogger, frogloop.com

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