Written by Natalie Moore on Feb 18, 2015

How Social is Changing Healthcare Fundraising Forever

We are pleased to introduce Lin Mac Master as part of our Leadership Series, Forward: Women at the Top. Mrs. Mac Master is a thought leader and the Chief Revenue and Marketing Officer at the American Cancer Society. She has managed brands like AARP and Optum Health, before moving her career to the nonprofit space to make a difference. Follow the American Cancer Society on Twitter, @AmericanCancer.

The world of fundraising is pivoting. What’s happening is that we’re moving to the next horizon, which is self-directed fundraising. Where we’re headed is fundraising that’s directed by your donors, not directed by your organization.

Is your signature event waning?

Organizations that think that the way they’ve raised money through their long-established signature events will continue—are mistaken. Many walks and runs are now 30-year-old products that haven’t been innovated for the times.

There’s fatigue, since many of those participating in these events are less likely to continue as they get older and the events are dated ideas that are just not appealing or relevant to the next generation of donors. I’m not saying that tomorrow we’ll shut off the signature-event faucet. But what we’ve seen is a continuous decline in the revenues they’re raising and the efforts to revive many of these events just haven’t worked.

Your donors want to take control, (let them).

The principle behind self-directed fundraising is that today’s donor wants to create their own avenue for raising money and then direct that at the causes that are meaningful to them. So your supporters may want to participate more than ever, but they want to express their passion in their own terms, not yours. That old idea of “our organization has built this signature event for 25 years and they will come” isn’t working anymore.

To get the new fundraiser, you’ve got to cede control.

Younger and newer donors want to do fundraising their own way, not the way your organization dictates. The technology I’m seeing in DonorDrive really enables that. Today and tomorrow’s donors want to fundraise for their run in the New York City Marathon or turn the giving of their wedding gifts into a fundraiser. They want to turn their passion into dollars for your organization. And, they want to do it their way.

There’s been a fundamental shift in how people engage thanks to social media. As an organization, we’re no longer able to just send a message and get a donation in the way we once could with a call or a letter. We can’t simply use social media to advertise our organizations either.

It just doesn’t work because individuals want to personalize their relationship as a donor to the cause of their choice. Which is why social media is very empowering for the individual.

One thing that social media has done is show people they now have the power to start something and instantly get a response and validation. A good example is The Ice-Bucket Challenge.

Social media has set a new expectation for how individuals want and expect to raise funds for a cause. When supporters have easy access to social media tools when they fundraise or give, it can get their entire networks involved and giving. It’s a dynamic that’s changed in the marketplace.

What’s attracting supporters today?

Today’s constituents seek a different message from organizations. What they’re looking at when deciding which nonprofit to apply their energy towards—is impact. Ultimately they’re asking: “What impact is this organization having? And, Do I share their values?

That’s very different than the motivation of the past: “I’m going to give to this organization because I know them.” You have to prove yourself to new supporters. And you have to re-validate yourself to lapsed supporters.

Show them what you do.

Constituents need to see the evidence of your organization’s impact. We’ve become a world of seeing everything. The time when news didn’t show a person who is dead in the street no longer exists. Everything is so graphic and personal.

In order for an organization to connect with their constituents, they have to connect on a personal and authentic level. And, that connection needs to communicate your value and the direct impact you are having on your cause.

Transitioning your fundraising.

Even though that signature event is fading away, it won’t be gone tomorrow. It’s probably still a big revenue producer, so you can’t just abandon it. The DIY fundraising your supporters are clamoring for is additive to everything you’re doing now. It’s an “and”, not an “or.” Just look at giving by mail.

You have to recognize that some segments still give by mail. For many organizations mail is their lifeline to planned giving. You can’t walk away from that if it’s still working for you. You just need to provide a spectrum of engagement options to best address your constituents’ needs.

Adding a new tool.

Think of the fundraising possibilities as a portfolio of opportunities to raise revenue with many different target audience groups. You have to make sure there are options available for the preferences of all your constituents.

There’s a groundswell that’s going on with Millennials through late stage Baby Boomers, those people who are very social media savvy. They’re not as much group oriented. You have to be able to provide the platform for those people to empower them to fundraise as an individual.

Let them know, and they will come.

Self-directed fundraising goes against your natural inclination to push it on your supporters. You can’t do that. You don’t have to sell them on it. Today, you have to pull them in. They’re actually waiting for you to invite them in.

Acknowledge that this supporter is there and just let them know you’ll provide the environment for them that allows them to fundraise on their terms. That’s the whole concept self-directed fundraising.

More ways to fundraise, not more staff.

While many nonprofits say they just can’t afford to add another program, I’m seeing that they can’t afford not to. A big advantage of self-directed fundraising is that it doesn’t have to be a resource drainer.

Unlike a signature event, you’re not doing the setup, or running the campaign: they are. You’re just giving them the freedom to express their passion for the cause in their own way, with their own energies, on their own clock.

It’s pretty obvious to me that nonprofits need to address this want of their fundraisers by adding self-directed fundraising to the toolbox now. Whether you set up a complete 3rd party fundraising program like World Vision and Doctors Without Borders, or do something more modest, you can expect it to become a growing part of your revenue stream.

Non-profits have the opportunity to open up millions of dollars in revenue if they meet their public where they are and become an enabler to giving by developing and leveraging the new dynamic in the marketplace of self-directed fundraising. How will your organization be the recipient of the next version of an “Ice-Bucket Challenge”?