The Wired Wealthy: Recent Study with Significant Findings

This study is summarized here to help the arts field stay on top of trends in technology that radically affect donor cultivation. Major findings are followed by recommendations for the arts field. Callahan Consulting for the Arts also created a fuller summary of the study for the arts field intended for senior leadership in marketing and development.

Middle and major donors spend more time online and are more ready to donate online than assumed. An online survey created with 23 major nonprofit organizations, including some cultural institutions, targeted nonprofit donors whose cumulative giving totaled $1,000 or more per year to find out how nonprofits can connect to these donors. This large scale, reputable study, was conducted by Convio, Sea Change Strategies and Edge Research in 2007 and published in 2008. It profiled what they call the "Wired Wealthy," finding that they are:

• Wealthy - more than half make more than $100,000 per year, more than one quarter make $200,000 per year or more.
• Generous - they give an average of $10,896 per year to nonprofits, and make up 32% on average of nonprofits' total dollars.
• Baby boomers - their average age is 51 years old, and 63% are under 55.
• Educated - 51% have graduate degrees, and 87% have a four-year degree or more.
• Online - they spend an average of 18 hours online per week, on activities such as making purchases, banking, and reading the news.

See full summary for more information.

Three Clusters of the Wired Wealthy

The study profiled the wired wealthy into three groups, based on their communication preferences and demographics.

• Relationship Seekers - The group most interested in online connections with nonprofits is younger (25-44) and spend the greatest portion of their time online. Relationship Seekers want to hear from nonprofits, be inspired by websites and emails, and give feedback.
• All Business Donors - These donors were least interested in emotionally connecting to nonprofits, slightly older (45-64) and generally prefer offline giving channels. All Business donors are less open to receiving emails from causes. More than anything, they want websites to be well-organized, with simple donating processes, and opt-outs.
• Causal Connectors - Bridging the gap between Relationship Seekers and All Business donors, the Casual Connectors like periodic email updates about how their money is put to use, and success stories or news of innovations the nonprofit is utilizing.

See full summary for more information.

Current Wired Wealthy Attitudes Towards Nonprofit Emails and Websites

Overall, the survey found that the Wired Wealthy were dissatisfied with the quality of both nonprofit emails and websites. The study examined attitudes about nonprofits' emails and websites, asking the Wired Wealthy to rate them on the basis of many qualities, including whether they were well-designed, inspiring, and helpful in making donating decisions. Among the facts that emerged:

• 73% of wired wealthy read half or less of the emails they receive from nonprofits.
• Only 8% feel strongly that emails are well written or inspiring, and only 9% think that emails make them feel connected to the cause.
• Only 34% of wired wealthy find nonprofit websites "very useful" in helping them decide whether or not to donate.
• Less than 10% agree that websites are well designed, inspiring, or make them feel personally connected to their mission.

The wired wealthy want to be able to tell nonprofits how often, and in what instances, to email them. When asked how nonprofits could improve the quality of their online methods, this was the most overwhelming response. Almost three quarters said they would be more likely to donate in the future if these wishes were granted. Other improvements and content they would be interested in:

• End-of-the-year tax receipts for online donations.
• Uses and results of donations.
• Success stories, recent victories, and accomplishments.
• The chance to offer feedback to nonprofits.

See full summary for more information.

Recommendations

The study offered advice for nonprofits hoping to connect with the wealthy online, which is adapted here for arts organizations. While the nonprofits involved in the survey recognized, for the most part, that the wealthy are donating online, most had not developed a clear strategy for reaching them.

• Make it a priority to improve online communication around donating. Develop an annual plan, which sets expenses; staff and consultant roles and deadlines; as well as a budget for the necessary consulting, software and hardware.
• Segment donors into a set of clusters that you define based on your constituents. (You may choose the clusters the study designated - Relationship Seekers, All Business, and Casual Connectors.) Decide who these might be for your organization. One group might include young, single ticket-buyers who will text friends to join them for a late-night after show party. Or, they might include older subscribers who prefer afternoon matinees, and bank and donate online. Use this information to tailor communications to each group's preferences.
• Give donors control over the emails they get, both in terms of quantity and content receive. Ask donors their preference during all ticket sales and telemarketing calls. Provide a way for contacts to specify their interests with a link on all marketing emails.
• Don't overuse technology. Email only when there is something to say. Set a policy of what is email-worthy and customize emails for targeted groups. For example, artists might be interested in workshops and services, while donors might not be. Donors might want to know about exclusive meet-the-artist events, or breaking news on a sell-out performance, made possible through their support. Out of town contacts probably can't attend a lecture-demonstration happening tomorrow night. The survey also found that most Wired Wealthy are not particularly interested in Web 2.0 platforms. However, they are interested in video (particularly Relationship Seekers), so professional quality videos could help engage them. Having videos of artists who will perform or speak is a great way to connect to donors.
• Listen to your donors. Make sure to read and acknowledge any unsolicited email or feedback. Emails can easily be shared with box office and fundraising staff.

See full summary for more information.

Contact us to find out how you can put these principles to use in your own planning, fundraising, and evaluation of your results with donors and audiences.

For the full study report see Convio, Sea Change Strategies and Edge Research, The Wired Wealthy: Using the Internet to Connect with Your Middle and Major Donors, March 2008: http://my.convio.com/?elqPURLPage=104