Online fundraising potential of social networking sites

A couple of years ago, the term 'social networking site' would have drawn blank looks from all but the technologically savviest of us. Now, websites such as Facebook and MySpace have a global currency to rival brands such as Coca-Cola and Nike.

Initially frequented by teenagers and university students, the sites are increasingly popular among people of all ages. Recently, the average age of users of Facebook was found to be 32.

The publicity potential is huge. Most celebrities have spotted an excellent avenue for self-promotion. According to a recent study by JupiterResearch, 33 per cent of European online advertisers plan to launch their own profiles on social networking sites in the next year.

And charities, quite rightly, want a piece of the pie.

Many have already got in on the act. There are countless unofficial groups dedicated to charities on Facebook but the organisations are now taking the initiative and creating their own online ventures.

Oxfam has a new online charity shop which hopes to raise £2m a year. Currently over 50,000 donated items are available, along with goods such as Fairtrade chocolate and coffee, jewellery and other gifts.

Everyclick provides an online fundraising platform where users can donate to or be sponsored for any UK charity. Everyclick is also a search engine which donates 50% of its advertising revenue to charities, chosen by the user as they search the web.

Charity blogging has also seen big growth. Oxfam has its own blog on MySpace, while visitors to Second Life, Actionaid's networking site, can tour WWF's virtual conservation island.

The Royal British Legion has taken advantage of the power of social networking and has created a virtual poppy for Facebook users. Although the poppy badge does not directly earn the charity any money, they hope it will spur people on to make a donation.

Google has also developed an application programming interface called Opensocial, which will enable the creation of Facebook-like applications, including charity badges, on any social networking site. Everyclick provides its users with a 'widget' which can be added to any website, through which people can search and donate directly to the charity chosen by the user.

Brand Control

But where there are benefits there are risks.

Networking sites can also be used to quickly spread misinformation and negative publicity, and there is always the chance people will bypass institutions altogether and locate beneficiaries themselves, recently noted in the Guardian.

Nate Elliott, senior analyst at JupiterResearch, issues the following words of warning: "As it stands, most European advertisers are jumping on the engagement marketing bandwagon without truly understanding which tactics represent the most appropriate and effective use of their marketing resources."

Will it work?

Research suggests a more personalised approach is effective at converting awareness to giving. A recent survey by Harris Interactive revealed that 61 per cent of people gave to charities because a personal connection asked them to make a contribution.

And there is an element too, however subconscious or subdued, of wanting to flaunt your goodness, as well as ask people to share in it, which should give charities hope.