Nonprofit Overhead Series: Pt. III Online Communication and Donor Decision-Making

Part I of this series suggests one way to assess nonprofit organizations would be to shift the focus from overhead and financial ratios to how well they deliver on their mission and outcomes. Having the ability to communicate how their outcomes have helped solve problems would provide opportunities for nonprofit organizations to increase their impact.

Part II of this series suggests that financial professionals, donors, and even nonprofit organizations perpetuate misconceptions that hurt giving and organizational effectiveness. Effective communications may be critical to the success and survival of nonprofit organizations.

Part III focuses on the role of online communication in donors’ decisions to give to charities and nonprofit organizations.

The March 2010 Convio study, “The Next Generation of American Giving,” offers information useful to nonprofit organizations challenged by the need to appeal to four generations of possible donors. Each generation has communication channel preferences and different needs and expectations.

The communication channels range from phone calls and direct mail to social networking sites and web sites. In order to reach donors and other constituents, nonprofit organizations need to leverage these communication channel preferences to reach each generational audience. 

According to an excerpt from Jakob Nielsen’s report on web site usability, the ability to find and understand a nonprofit organization’s mission and goals are a “key factor” in the giving decision. Regardless of the communication channel used, potential donors and other constituents expect to find basic information about a nonprofit organization:

• Mission
• Vision
• Services provided/clients served
• Success stories/outcomes
• Current projects/goals
• Donation information
• Contact information

Communicating key messages and making important information easy to find are important aspects of the donors’ experience – how donors feel about the organizations.

Since giving decisions can be based on emotion, the value of clear, accessible communication cannot be underestimated.

Our jobs as marketers and fundraisers are to find stories that can be easily told and re-told, but that are sufficiently compelling to get a response. Good stories have three key elements — a character you care about, escalating conflicts and a payoff.

Homer Simpson for Nonprofits

If donors can’t find the information they are looking for, they will look elsewhere. Looking elsewhere could mean giving elsewhere.

Donors have plenty of external resources available. For example, the Better Business Bureau provides the Wise Giving Guide and links to accredited charities.

Charity-rating organizations and watchdog groups provide information that can influence donors’ decisions. Organizations such as Charity Navigator, Philanthropedia, GiveWell, GreatNonprofits, and Guidestar each use different criteria to evaluate nonprofit organizations.

Communication that is accessible how and where each of the four generations of donors may be looking for it stands the best chance of reaching them. Communication that allows potential donors and other constituents to assess nonprofit organizations’ effectiveness based on their outcomes – the difference they are making – provide an alternative to financial ratios. Combining accessible information with compelling stories can be a powerful combination. For the nonprofit organization, a well-designed website with accessible, basic information can be a 24-hour communication tool. It is a great resource that can be used to influence donors.

Please share your stories about the role of online communication in donors’ decision-making.

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