January 21, 2010
Introducing PayPalthe faster safer way to pay and get paid online……..
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Agenda
• State of Online Giving
• PayPal and Secure Donations
• PayPal in the Non-Profit Sector
• Success Stories
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Online Fundraising on the Rise
• Online Growth Statistics– Online Donations Outpacing Offline Donations by 7x
• $20B globally in 20071
• Charities reported 20% increased web traffic in 20082
• Social Networking is growing 5x faster than internet use and 7x faster than e-commerce3
– Crises fueled shift to online giving• 1/3 of donations from South Asian tsunami online4
• ½ donations from Hurricane Katrina online• Why Online Fundraising is a Critical Component of Your Campaign
– Average Gifts are Larger5
– Donor Acquisition Costs are Lower• Costs 10 times more to acquire offline than online5
– Rising cost of postage– Production cost
• 63% charities report worse response rates to direct mail than previous year6
• 41% charities report smaller gifts, fewer donors with direct mail6
– Online Donors are Younger and More Affluent7
• Nearly 3X higher lifetime value than donors acquired by mail
1) Ted Hart, http://www.slideshare.net/tedhartusa/2007-annual-online-giving-estimate-ted-hart, ePhilanthropy Foundation 2) Convio Online Marketing Nonprofit Benchmark Index Study 3) eMarketer 4) Network for Good 2006 5) 2007 Kintera survey of 1100 nonprofits 6) DMA Nonprofit Federation, Oct 2008 Nonprofit Economic Survey 7) Network for Good 2006 & Target Analytics survey 1350 nonprofits, 2009
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PayPal has Gone Global• 2008 payment volume: 9% global e-commerce and
15% US e-commerce 1
• 78 million active accounts worldwide
• $3B stored value that is spent and donated every 2 weeks
• 190 countries and territories– PayPal reaches almost the same number of
regions as Visa and MasterCard
• 25 fully tradable currencies– Including all main currencies: USD, CAD, EUR,
GBP, JPY, AUD
1. Based on Forrester estimates of US e-commerce with the addition of eBay Inc. internal metrics totaling $256B
PayPal in Canada:
• 3rd largest market for PayPal (behind the US and UK)• More than 8 million Canadians have a PayPal account. (2 out of 3 online shoppers)• Canadians purchase more than $2 billion online annually through PayPal• PayPal volume in Canada growing more than 2X the rate of ecommerce sales
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Nonprofits of All Shapes and Sizes Accept PayPal 100,000+ nonprofits raise $850M+ with PayPal annually
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In Canada, PayPal growing 4x rate of eCommerce . .
Source: emarketer e-commerce in Canada report Dec. 2008, PayPal CA
0
2,000,000
4,000,000
6,000,000
8,000,000
10,000,000
12,000,000
2004 2005 2006 2007
Canada Online Buyers PayPal CA
YoY Growth 11.5%
YoY Growth 48.4%
. . . over 60% of online shoppers use PayPal
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Canadians wary of sharing financial details online . .. . . with 56% “very” or “extremely” concerned
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Streamlined & Secure Donations
• One payment solution accepts multiple forms of payment– Less staff to handle payments. Donation records and
downloadable reports available online – Convenient for donor
• Secure– Charity never obtains donor’s bank or credit card details.
Eliminates PCI compliance issue– Donor feels protected
PayPal sends the money-but never shares
consumer’s financial information
Consumer picks Funding source
Funds go to Charity
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PayPal’s Impact on Checkout & Merchant Sales: 29.7% increase in Conversion
Increase in Conversion
% of Buyers
Increase in Sales Dollars
Total PayPal Checkout 29.7% 7.4% 2.2%
StandardCheckout
60.2% conversion
78.1% conversion
Study conducted in Q1 2009 using comScore’s online consumer panel on 14 participating PayPal online retailers, which make up approximately 15% of total non-travel ecommerce dollar share
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Enabling PayPal in the Artez System
• Check-box to enable in administration settings
• Can be configured per event, campaign, or donation form
• Uses the account ID & password provided by PayPal
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Donor experience on a donation page
• Donor chooses ‘Pay using Paypal’ or regular credit card options (Visa, MC, Amex, etc.)
• Option can be added to your existing credit card payment gateway.
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Donor experience on a donation page
• When selecting ‘Pay using Paypal’, donors are directed to their familiar PayPal login screen.
• With a successful transaction, donors receive regular “thank you” & “tax receipts” emails from Artez.
• Event reports contain full donor details, name, amount, addressing, payment type.
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Case Study: Kiva
• Kiva supports micro-lending to entrepreneurs in developing countries
• In last 3 years, it raised $70 million online using PayPal, receiving donations from 40 countries. 100% of public micro-loans are processed with PayPal.
“PayPal gives us the ability to do something quite remarkable – combine millions of small transactions processed through the PayPal system to fund millions of dollars worth of small business loans to the working poor in the developing world."
Fiona Ramsey, Kiva’s Public Relations Director
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Case Study: Child’s Play
• Child’s Play supports 60 hospitals worldwide
• All online giving comes through PayPal and eBay Giving Works. 30% public donations are from PayPal.
“PayPal is a great partner. It’s easy to implement, it’s easy to check our donations and it attracts new donors for us. Our overall donations have definitely increased since we chose PayPal.
Kristin Lindsay, Coordinator, Child’s Play
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“PayPal has played an important part in helping to raise thousands of dollars for the Whaleman Foundation, an effort I greatly appreciate because saving the whales and our world’s marine life means so much to me personally.” – Hayden Panettiere
Stephen Colbert offered his stockings and sweater as sweepstakes prizes to anyone donating to Feeding America widget
“The MySpace widget is a great way for people to do a little thing that helps a lot. Our supporters use their friend’s list to spread the word.” – Best Friends Animal Society
Charities Reach New Donors on Social Networks
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Getting Started…
Adding PayPal is simple:– Reach out to your Artez representative: [email protected]– PayPal will assign a sales representative to work with you on:
• Setting up a PayPal Business Account• Contract• Pricing (1.90% + $0.30 – 2.9% + $0.30, depending on
volume)
Start Accepting Donations Through PayPal Immediately!!
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