Match this: More than $800,000 raised in 45 minutes and it
didn't involve a weapon of any kind.
Communicating, collaborating and cooperating are predominant themes
in the nonprofit sector these days. If the fundraising results achieved
in central Ohio this past March are any indication, those three
concepts, combined with the concept of putting your money where your
mouth is, are more than just warm and fuzzy themes.
The Columbus Foundation was feeling better than just warm and fuzzy
on Match Day, March 6, when it utilized PowerPhilanthropy, its new
online giving resource that builds on information as a basis for
fundraising, to leverage $815,900.
PowerPhilanthropy, which was launched in February, connects 400
nonprofits in central Ohio to each other, as well as to potential
donors. Organizations wishing to be included in the mix provide basic
information through the Nonprofit Toolkit on the foundation's Web
site, thus offering instant transparency to donors, who are encouraged
to make online donations through the links that are readily visible.
As if all this is not enough, The Columbus Foundation is one of
half-a-dozen organizations nationwide that are negotiating with
GuideStar to utilize the information-fundraising concept known as
DonorEdge, an online fundraising tool.
According to Lisa Courtice, vice president for research and grants
management of The Columbus Foundation, Match Day was a
fundraising-by-matching-contribution initiative for the organizations
included in its PowerPhilanthropy coalition. The fundraiser lasted as
long as the foundation's $25,000 in matching funds lasted.
"We started at three o'clock, and if anyone in our
coalition gave a dollar we matched it, and if anyone in the public gave
we matched 50 cents for every dollar," Courtice said. "If you
were a nonprofit and in PowerPhilanthropy then you were eligible to
participate in the match."
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Courtice said the initiative was publicized through an email
campaign and a video and that the individual organizations sent their
own electronic communication to their constituencies.
"We think 300,000 (communications) went out," Courtice
said. "We gave them three weeks to prepare. We exhausted all the
funds in 44 minutes."
An information sheet distributed by The Columbus Foundation for
Match Day shows that it received 7,400 unique visitors, 1,306 total
contributions and 800 new users registered in one day.
In all, 246 organizations received contributions, and of those,
seven received more than $10,000 in contributions and six others
received more than $5,000.
"We were afraid that some of the bigger, more sophisticated
ones would dominate (the fundraising), but everybody--big, little,
medium-sized--got a piece of the pie," Courtice said. Courtice
foresees continued growth of the coalition "family," to 700
nonprofits, and said that Match Day was a continuation of a fundraising
method that has worked well for her organization.
"In our work with community foundations we've found we
were most successful when The Columbus Foundation puts up matching
dollars; she said. "It really helps leverage a lot of money.
There's something to be said for these matching dollars."
Part of that effort involves encouraging people to make donations
as soon as they make an online visit. The information and the technology
mesh to help bring that about.
In terms of getting together with GuideStar, Courtice said there
are big potential benefits in combining local data-gathering capability
with a national heavy hitter.
"We needed a good technology provider, and with GuideStar,
well, that's their business," Courtice said. "Their
mission nationwide is to keep philanthropy more informed, and
that's our local goal. The more community foundations they can get
to adopt this new model, the better their data is going to be
nationwide. Someone will still have to enter the data, but they're
going to be a great technology partner."
The idea, Courtice said, is that nonprofits can benefit more from
donors who can conduct their own research about them than from those who
rely on word-of-mouth recommendation.
"We believe that informed philanthropy is more effective
philanthropy," Courtice added.
That approach is what GuideStar uses in forming partnerships with
community coalitions, said GuideStar CEO Bob Ottenhoff. And,
"informed" applies not only to donors but also to the
nonprofits.
He explained that GuideStar collects information, manages it in a
database and then presents it based on inquires, Ottenhoff said.
"They (local organizations) are then going to take that information
and use it as a tool to help people make decisions, make the right
donations, and those organizations can also use this information in
order to be more efficient," Ottenhoff said.
Efficiency is another keyword in the sector. "Donors are
saying things like 'I want to donate to the organizations that are
doing the best' or, 'I'm rewarding the efficient
organizations' or, 'I can't make up my mind among these
three organizations, and you can help me out,'" Ottenhoff
said.
"It's not about penalizing nonprofits or saying
'Gotcha!' It's about (donors) saying they want to
identify the nonprofits doing the best jobs, so we want to make sure we
hook up donors so the most work gets accomplished," he said.
Community foundations "like Kansas City or Columbus, two of
the biggest in the group, have hundreds of donor-advised funds that
they're managing. They become the nexus for philanthropy in their
communities," he explained.
The Kansas City organization to which Ottenhoff referred is the
Greater Kansas City Community Foundation, which six years ago initiated
and developed the system that would become known as DonorEdge.
"We certainly always used GuideStar, but at that point (six
years ago) GuideStar primarily had Form 990 information, and we
weren't sure how it had been vetted," said Laura McKnight, CEO
of the Greater Kansas City Community Foundation. She said the aim was to
build a comprehensive tool for learning about and measuring nonprofit
effectiveness.
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"What we built was DonorEdge, and that is a community process
that is backed by an online tool," she said. "We gather really
good information from all the nonprofit organizations in our area, not
just government statistics but also program effectiveness, diversity,
etc., and we validate the information. For example, we have a person on
staff to reconcile 990s with information we have to keep it up to
date."
In addition to posting information, the Greater Kansas City
Community Foundation offers guidance to donors about how to search
DonorEdge to best understand the material they are reading or to find
local nonprofits providing the services that are important to them.
Other organizations in the DonorEdge GuideStar alliance are the
Community Foundation of Central Florida, The Community Foundation of
Middle Tennessee, the Greater Houston Community Foundation and The
Foundation for Enhancing Communities, in Harrisburg, Pa.
"About a year ago we started talking intensively with
GuideStar because GuideStar wanted to provide good information on
effectiveness but also wanted to get up-to-date information,"
McKnight said. "So, the community can serve as the collecting arm
for data and therefore be helpful to donors."
McKnight said that her organization had undergone a long learning
process in terms of gathering and utilizing the information that is
collected.
"At the beginning we focused a lot on nonprofit capacity, that
is, the right financial information and right governance to be
effective," she said. That emphasis changed over time, as the focus
made the big shift from capacity to effectiveness.
There were also the traditional startup wrinkles that needed to be
ironed out.
"When we started we underestimated the amount of effort and
time it would take to build a profile template that both nonprofits and
donors would understand," McKnight said. "There was the issue
of language because the point is to help donors make good investments,
and in talking to nonprofits and donors we found a lot of disconnect. We
needed a format that a nonprofit could do easily and that donors could
understand. That's the learning that we were able to share."
That shared learning will provide the basis for what will be
happening in the future.
McKnight said that the national expansion of local outreach
"could be a major leap forward in the quality and quantity and
currency of verifiable information," one that can be available to
on a wide scale.
"We would like for anyone to be able to go to GuideStar and
get up-to-date information," McKnight continued. "It's
not unreasonable to think that any community foundation could link up to
its software, because every donor in every community is asking these
questions."
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