Building Civil Society By Making Money Online

While we know that internet advertising offers tremendous business potential, display ads and other online marketing tools are playing a critical role in building civil society and the social sector. In previous generations, small non-profits required capital to start fundraising programs and build a base of support, limiting new organizations. Today, with relatively little money, people can launch efforts to promote all kinds of change.

This blossoming of civil society has helped countless worthy causes find their base, and has brought new and diverse issues to the forefront of public consciousness. It's also made a significant impact on financing for non-profits. In the past, small donors have been expensive to maintain, coming in primarily through the mail and telemarketing. While low-level donors collectively can add up to big money, the investment -- even for organizations with large existing bases of support -- has been very high. Many non-profits have given up acquisition, effectively dooming their programs to long-run failure.

But these days, minimal investments can offer pay-off from in acquisition. Blackbaud's 2011 Donorcentrics Report indicates that gifts acquired online are, on average, larger. They tend to come from households with higher incomes, and have much larger cumulative giving.

This is an especially critical renaissance of acquisition coming at a time when the population of major donors is aging. Today's micro-philanthropists are tomorrow's major donors. Any organization that doesn't understand that today's continuum of giving starts with social media, display ads and online donations will lose money in the generational shift of wealth.

There is a flip side to the non-profit bonanza online: it is leading to a proliferation of charities doing similar work and competing for the same finite philanthropic dollars. Many of these organizations could join forces to make an even bigger impact. Nonetheless, it's a particularly exciting time to be thinking about revenue generation in the non-profit space.