We live in an age where opportunities for communication are increasing faster than ever. With the rise of Web 2.0 media such as social networking sites and blogs, it has become all the easier for philanthropic organizations to build new connections, as well as publicize their activities and needs.

And charities have responded, emerging as the surprising leader in the social media landscape. A UMass Dartmouth study released in June stated

“new research shows that charitable organizations are still outpacing the business world and academia in their use of social media. In the latest study (2008) a remarkable eighty-nine percent of charitable organizations are using some form of social media including blogs, podcasts, message boards, social networking, video blogging, and wikis.”

These figures are an increase from 2007, in which “seventy-five percent of the respondents…reported they use at least one form of social media.” However, one area where charities can improve is in leveraging these tools to raise funds. In 2008, the study notes, only forty-five percent called social media “very important” to their fundraising strategy, versus forty-six in 2007. “Somewhat important” answers received a small decrease as well, with thirty-six percent in 2008 versus thirty-eight in 2007.

These figures are an interesting anomaly in what is overall a strong push among charities to adapt to and take advantage of social media. As these new forms of communication take hold and break boundaries, it is important to explore what they can bring to fundraising.

Case Study: Facebook Causes

“Causes” is one of Facebook’s most popular applications, boasting almost 34 million active users and over 174,000 fans. Active since 2007, Facebook Causes is “founded on the belief that in a healthy society, anyone can participate in change by informing and inspiring others…We strive to build tools for people to mobilize their friends for collective action…eventually [launching] movements that span local communities or even the globe.”

The application enables users to create an advocacy group, or “Cause” on Facebook, on which members can “discuss the issues, share their experience, post media, and sign petitions” as well as solicit donations to be delivered monthly to an agency of the cause’s choice, processed by partner Network for Good. It emphasizes equal access and touts itself as a way for smaller charities as well as larger ones to build an audience. It links to a page with “success stories” of organizations that have maximized Causes’ potential to grow a support base and often raise thousands of dollars in funds.

Causes is not without its detractors or controversy, however. An April 22 Washington Post article (“To Nonprofits Seeking Cash, Facebook App Isn’t So Green”) states

“Causes…has been largely ineffective in its first two years, trailing direct mail, fundraising events and other more traditional methods of soliciting contributions. Only a tiny fraction of the 179,000 nonprofits that have turned to Causes as an inexpensive and green way to seek donations have brought in even $1,000, according to data available on the Causes developers’ site…fewer than 1 percent of those who have joined a cause have actually donated money through that application.”

Among its findings, the article noted that $25 is a median donation on Causes, vs. $50 through traditional methods, and that just 185,000 members have ever contributed via the application.

The Washington Post article has been criticized by nonprofit-related blogs, as advocates emphasize that building relationships with prospective donors takes time and effort by an organization, and that the raised awareness makes the effort worthwhile. Nonprofit developer Betsy Harman of Harman Interactive is quoted as stating:

“Any nonprofit who thinks they can simply put a donate now button on their website or simply create a “Causes” page on Facebook and wait for the money to roll in, doesn’t understand online fundraising. It’s still about building relationships, telling your story, and taking potential donors through the process of cultivation, stewardship and solicitation…Causes…is just a tool for peer to peer fundraising but in order to raise money that tool has to be used by someone who is passionate about the organization and proactive about telling the organization’s story.”

Joe Green, Causes co-founder, was quoted in the Post article as saying that “Causes raises almost $40,000 a day across its groups, up from $3,000 a day a year ago” and that “the biggest successes have been tiny nonprofits who don’t have the name recognition of the big guys.”

Lastly, the Post noted that online fundraising is still in its infancy, and that less than three percent of total nonprofit fundraising is done online.

Last thoughts

The case study of Facebook Causes reveals some interesting points about fundraising through the use of social media. The takeaway for this is that, though it has much potential, it a very new field and not the instant, automatic money maker charities often hope for. But nonprofits should not discount the immense opportunites it can bring now and in the future.

The best route for charities is broaden goals long-term, talking advantage of new media in increasing awareness and building advocacy. Through convincing the global audience social networking sites can provide of the necessity of their work, organizations can help grow a support base for the future.

As final questions: How has your organization used or considered using social media to expand its audience? What have the results been? Is there any advice you would give to charities considering online fundraising?