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Giving Back E-Tips

Alternative Giving Campaigns — New Source of Funds or Headache?

The idea of sponsoring a wild place or adopting wildlife has a wide appeal — and not just for donors who want to feel that their dollars are going to support a tangible project.

These alternative giving “sponsorship” campaigns also appeal to nonprofits looking to open up new revenue streams on the same order as the successful Oxfam Unwrapped and Heifer International “give a cow” campaigns.

Another attractive benefit is that these gift campaigns bring in extra revenue during the Christmas holidays — enhancing year-end contributions, which typically represent the bulk of a nonprofit’s annual income.

I got an inside look at alternative giving campaigns when I helped a client launch their first “plant a tree” campaign last fall. This pilot campaign brought in a healthy level of donations and was deemed a success.

But its very success led to new issues. First off, we ran into the limitations of the GetActive system. While it was simple for donors to give one gift, the system was not set up for multiple gifts. We created an effective workaround, but it wasn’t the easy “shopping cart” experience that most online shoppers are now accustomed to enjoying.

Still, since the first gift-giving campaign surpassed revenue goals, the next logical thought was to replicate its success — by offering multiple sponsorship opportunities. But the sheer work involved is daunting for an already overworked membership office. I don’t think any of us anticipated the amount of autoresponders, Web pages, emails, and e-certificates that needed to be created and updated.

What’s more, an upcoming transfer to Convio requires purchasing a separate shopping cart add-on for a significant fee. Not only that, expanding into e-commerce could possibly require hiring a dedicated e-commerce manager, since running online shopping is more complicated than sending out fundraising emails and action alerts.

Another thought came to us a few months after the holidays. Although the campaign was popular, how many of last year’s gift-givers would want to give the same gift this year? And while the organization’s email list continues to grow, there are only a certain number of new activists and donors in any given year — and only a percentage of them will be potential gift-givers.

The next thought is possibly the most important to consider. Launching and updating the gift-giving campaign has proven to be hugely time-consuming. From my end, it took at least three times as many hours as a typical fundraising email campaign. And yet, it did not raise any more revenue than a dedicated e-appeal. Can an issue-oriented organization afford to have its attention and resources diverted to managing gift-giving campaigns?

Those are all interesting questions. And we’ll see how it goes. At this stage, we’re still assessing the opportunities and obstacles before going ahead. But I thought I’d share this because I know — at the outset — I was very enthusiastic about alternative giving campaigns. Now that I’m a little more “seasoned,” I wouldn’t jump in blindly. I’d like to review a carefully prepared cost-benefit analysis before proceeding.

What’s your experience with alternative giving campaigns? Share your thoughts with Karen at 718-680-1627 or at kg@karengedney.com.