an alternative perspective on nonprofits fundraising via social networking sites

The AMA newsletter for May 12 delivered a story about nonprofits raising little money on Facebook. Since I am interested recently in NPO’s operations management and strategy, I took a close view on that article published by FundRaising Success[1]. It seems that more and more nonprofits are swarming into the social networking sites with the purpose of raising “easy” funds but to little avail. As reported by The Washington Post[2], “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”.

In an economic downturn, fundraising for nonprofits is more crucial to support its daily operations but much more difficult as far as donation-solicitation is concerned. While the social networking sites have seen success of Barack Obama’s presidential campaign and few other astonishing cases such as charity:water at YouTube.com[3], most nonprofits are experiencing a slump.

The failure is not a surprise and members of those nonprofits might have anticipated this. Social networking is a way to help you meet people, make friends with them, and form communities of common interests but of diversity[4]. However, if relying purely on these internet websites without knowing much about what these social media can produce, a failure is definitely assured. Social networking sites really help nonprofits reduce expenses of sending information to their donors and reach potential audience at a lower cost, but they should also pay attention to the following points.

  1. They need to make a long-term investment in organizational strategy and incorporate it into fundraising activities supported by social networking operations.
  2. Remember nonprofits differ from traditional organizations in that they require more outreach and relationship-building when conducting (commercial) campaigns.
  3. Social networks, such as Facebook, Myspace and the alike, are only tools for brand and reputation, via which nonprofits can reach potential donors and volunteers on a more personal levels rather than raise funds directly.

  1. Fundraising Success. 2009. Study: Most Nonprofits on Facebook but Raising Little Money. fundraisingmag.com. http://www.fundraisingsuccessmag.com/article/study-most-nonprofits-facebook-but-raising-little-money-406808_1.html. ↩︎

  2. Kim Hart and Megan Greenwell. 2009. To Nonprofits Seeking Cash, Facebook App Isn’t So Green. washingtonpost.com. http://www.washingtonpost.com/wp-dyn/content/article/2009/04/21/AR2009042103786.html (accessed May 16, 2009). ↩︎

  3. Chris Crum. March 27, 2009. New YouTube Call to Action Works Well for Non-profits. WebProNews.com. http://www.webpronews.com/topnews/2009/03/27/new-youtube-call-to-action-works-well-for-non-profits. ↩︎

  4. Brown, Karen. What is Social Networking? whatissocialnetworking.com. http://www.whatissocialnetworking.com/ (accessed May 16, 2009). ↩︎