Mobile Giving and Infrastructure

Sam Stein of the Huffington Post has a well-reported item up on mobile giving and campaigns. The takeaway is that everyone knows mobile giving is the next big thing but the actual "how" of the process as it relates to political donations is still unclear. As I've mentioned before, what we're dealing with is fundamentally an infrastructure problem. Amazon's one-click model works for two reasons: you can buy almost anything on Amazon and people are now broadly comfortable with the idea of purchasing things on the internet (in no small part due to Amazon's work in that area).

In the political world, neither of those conditions hold. For starters, the environment is far more fractured, with most candidates pursuing a la carte solutions. If you take a random sample of 25 campaigns, you'll find ten different vendors are responsible for processing donations, each with a particular set of technical constraints that means they can't play nice with one another. That means that each campaign would have to set up their own mobile donation platform, which in turn would require donors to create a mobile profile for each and every candidate they want to give to. Surprisingly, most people aren't up for that. 

Second, online political donations are a fairly new phenomenon and people's comfort zones are still adjusting. A few years ago, an online fundraising program was an optional part of your campaign plan. Today, it's essential. That change happened very fast, and it's why we regularly receive calls from folks who want to give to a candidate but aren't comfortable doing so over the internet. That's not unusual in circumstances like these. In 1998, Newsweek ran an editorial questioning whether anyone would ever buy books–much less other things–using internet retailers like Amazon. Today, the questions are somewhat different: will Amazon kill off book publishers, for example.

The reason ActBlue Express has succeeded relative to many other approaches to mobile giving is that we provide the same clearinghouse advantages that Amazon enjoys. You can create a single profile and give to every Democrat listed on our site (which is to say: almost every Democrat). Instead of campaigns pursuing endlessly duplicative infrastructure and trying to lure donors to this website or that website, they can come to a single place and connect with a pre-existing community of users. Crucially, the fact that these users have ActBlue Express accounts means they're donors and they have a pretty high level of engagement with politics. 

The fact that we've been around for a while and people know and trust us doesn't hurt either.

But the single greatest advantage we enjoy in here is the fact that we're a political committee, not a business. That means we can innovate in ways that for-profit vendors can't match. Simply put, they have to look after their bottom line. Because margins in this business are thin, if something isn't going to be immediately profitable it tends to land on the back burner. At ActBlue, we're able to get out in front of things like mobile giving because we're not as constrained in that regard. Our constituency of interest is our userbase, not our shareholders. If we can provide value to our users, that's the metric we're interested in.

ActBlue Express is simply one expression of that core tenet. 

Over $100,000 Delivered to Warren

In July, the Progressive Change Campaign Committee (PCCC) asked ActBlue to set up a draft fund for Elizabeth Warren. By mid-August the PCCC had shattered all records for the largest and fastest growing draft fund in our history, raising over $102,000 from around 7,000 supporters even before Elizabeth Warren formed an exploratory committee for a Massachusetts Senate run.

Today, their unprecedented success is the reason we're sending her committee a six-figure check.

The PCCC's landmark efforts are not only impressive, they tell us something important about the way politics is changing in response to the digital age. In 2009, the PCCC was a brand new organization. Today, the PCCC has a played a central role in a number of key battles over the last two years — from the fight for the public option and the push to keep Keith Olbermann on the air, to this year's Wisconsin recall elections and the Draft Warren fund. With the help of a large and active donor community, the PCCC has raised millions even though their average donation size is just under $15. In short, they've become a major political player at a speed and donation size that would've been unthinkable five years ago.

Much the same can be said of ActBlue. Seven years after our founding in 2004, we've become the single largest source of political funds in the United States. Our mission was (and is) to give voice to the voiceless, and bring attention to those donors and communities that are often ignored or overlooked. We call it "Democratizing Power," and this is how it works:

ActBlue raises up small donors, who raise up the PCCC, which raises up Elizabeth Warren. 

It's an organic, bottom-up process that's based on shifting the incentives that politicians face in a direction that's a win for everybody involved and the political system at large. By using ActBlue, the PCCC can demonstrate to everyone who cares to look that they can have a major impact on campaigns, and their donors can see exactly how powerful they are when they work together. Politicians learn that grassroots donors can be counted on to produce major results when it matters. And over time we get a political system that's responsive to the needs of folks who contribute $25, not just those who can afford $2500 donations.

Our architecture and their work–which has already raised another $7,000+ for Warren–improves your government. It's a good thing, man.

2011: Q1 Totals

The first quarter of the 2011-12 election cycle is on the books, and it’s a doozy. We saw a massive uptick in contributions relative to previous cycles, driven by the backlash against Gov. Walker’s union-busting in Wisconsin. That drove a precipitous drop in the average contribution size relative to 2009, which was made starker by a higher-than-usual contribution size in 2009 thanks to inaugural events. All in all, the trends are exactly what we want to see: more money, coming from more people and going to more Democrats.

Number of contributions 180,547
Total raised $8,715,611.77
Average Contribution size $48.27
Committees receiving money 881
Fundraising pages receiving money 974
Pages created 1,029

 

And here’s how those numbers stack up to the last few cycles. Remember that we offer 2007 as a benchmark for a pre-presidential off-year and 2009 to illustrate cycle over cycle growth:

Q1 2007 Q1 2009 Q1 2011 Change
Contributions 31,441 24,361 180,547 641%
Volume ($) $3,141,038.27 $5,343,772.70 $8,715,611.77 63%
Mean Donation $99.90 $219.36 $48.27 -78%
Committees 235 651 881 35%
Pages Created 346 1,026 1,029 .3%
Pages w/ Money 203 684 974 13%

 
And here are the five top committees, ranked by number of donors, for Q1 2011.

Name Race Donors Dollars
PCCC Organization 61,542 $691,584
Democracy for America Organization 44,767 $503,841
Democratic Party of Wisconsin Organization 43,595 $1,099,087
Wisconsin State Senate Democratic Committee Organization 30,726 $768,067
PCCC Recall Committee Organization 25,481 $267,919

 

Here, as everywhere else this quarter, we see organizations dominating the field as political campaigns have yet to ramp up. Those organizations, in turn, are laying the groundwork that will make them valuable allies when the horse race gets underway in earnest.

ActBlue In One Take: Sen. Al Franken

Our latest installment of "ActBlue in One Take" features Sen. Al Franken. The Senator from Minnesota understands the value of grassroots donors–he raised over $2M on ActBlue in 2008, funds that were crucial to both his election day victory and drawn-out struggle against Republican attempts to keep him from taking his seat in Washington. Click on the video below to see what Sen. Franken had to say about the role of grassroots donors–and ActBlue–in 2010

You can search for your favorite Democrat in our candidate directory, or visit our homepage and support the candidates that lead our hot candidates list.

Who to Hire: ActBlue

On Tuesday, the Personal Democracy Forum (PdF) released their "Who to Hire" guide to political technology providers, and we were happy to see that ActBlue took 2nd place overall, with a 4.23/5 rating and the third highest number of survey respondents. If you follow the link above, you'll see that when they broke down the responses by category, ActBlue led decisively across the board:

  • Capacity and Reliability of Software: 2nd
  • Usability of Software: 1st
  • Quality of Customer Service: 2nd
  • Fairness of Pricing: 2nd

No other service provider placed as highly in as many categories. In our internal discussions, these are exactly the categories where we strive to be an industry leader and it was humbling to see that our efforts were recognized by survey respondents. I want to highlight the "Usability of Software" category, and not just because we stand atop the podium.

As Nancy Scola has written, one of ActBlue's core goals is to normalize the act of political giving. That's fancy talk for a pretty simple idea: political giving should be a regular part of American life. You go to work, cook dinner, and after dinner head over to the computer and donate $5 to your preferred candidate.

A lot of the anger Americans feel toward their elected leaders is rooted in the idea that Washington serves special interests rather than the American people. And, to the extent that this intuition is correct, it's because those special interests have a lot of campaign cash to dole out. The obvious answer to this problem is to create an alternate source of funding for our elected officials, so that standing up to special interests isn't such an electorally damaging proposition.

The central idea behind ActBlue is that the American people have the potential to be that alternate source, and at this point we've clearly demonstrated proof of concept. ActBlue has sent $127.3M to thousands of Democratic candidates and committees, with an average donation size of around $100. And ActBlue users send their money to everything from presidential campaigns to mayoral races. As a final note, we practice what we preach: we fund our operations through tips and direct donations from our users.

However, if political giving is going to become a normal part of American life, it has to fulfill two criteria:

  1. It must be easy.
  2. It must be transparent.

I'm going to tackle the second point in a separate entry, as it's a complicated one. But #1 is pretty straightforward. Very few Americans pursue politics as a career. In fact, most of us are preoccupied by our roles as parents, small business owners, or what have you. So, if you want people participate in politics, you have to find a way to slot it into the very busy lives we all lead.

When I see that ActBlue is ranked #1 in terms of usability it tells me that we're making progress toward that goal. Whether you're a campaign or just someone looking to make a difference in the five minutes they have to spare, ActBlue is your best option.

(And, as a final note, it's not just PdF that feels this way. The New Organizing Insitute (NOI) honored us with the Most Valuable Technology award.)

Transparency is Money

If you're a campaign, the real-time numbers and transparency ActBlue provides are things you should embrace.

ActBlue helps your fundraising momentum get noticed as it happens, rather than months later. In September, Rep. Joe Wilson (R-SC) yelled "you lie" at President Obama. 48 hours later his Democratic opponent, Rob Miller, had racked up $1,000,000 on ActBlue. The first $100,000 came in overnight, and the rest poured in over the next 36 hours. For an entire day, Rob Miller was getting $7 a second through ActBlue.

That surge happened because reporters could see it happening in real time. The press coverage–Bloomberg, CNN, Politico–pushed the story out to an even wider audience, and the money kept pouring in. As a result, a race that was off the radar is now the focus of national attention. That's what ActBlue can do for you. You can't control when your opponent will make a mistake, but ActBlue ensures that you won't leave any money lying on the table when they do.

ActBlue isn't just about capitalizing on major fundraising events. It can also help you build a stable base of grassroots support and increase the size of your email list. That means when your opponent messes up, you'll have someone to tell.

When grassroots donors give, they're looking to connect with your campaign, to play a part in something larger than their $15, $20 or $50 contribution. When they give through ActBlue, their contribution is recorded and added to your total in real time. They can see how many other people are a part of this effort, and broadcast your momentum through their own social network using Facebook and Twitter. Using our recurring donation system, you can build a war chest and network of supporters months, even years before an election.

In other words, ActBlue means more donors, a bigger list, and more money

Without ActBlue, when the donor contributes that money disappears into your payment processing apparatus and doesn't see the light of day until months later, when it gets written up in an article about campaign finance that they won't read. They don't feel like they've made a difference, and they're less likely to give again.

That is–quite literally–a mistake you can't afford to make.

Preaching the (Act)Blues

Guest Post by Karl-Thomas Musselman

In the midst of a very busy start this year in the online fundraising and campaign finance worlds, we thought we'd take a step back and look at how things are going halfway through the 2010 election cycle. For that, I've pulled together some numbers and charts that put into perspective the activity at ActBlue.com in all of 2009 as compared to 2007, the most recent similar mid-cycle year.

[Ed–I pulled this graph out of the body of the post because, in KT's words, "When the 'worst' quarter of 2009 is on par with the 'best' quarter of 2007 you have to be impressed." But keep reading, there's plenty of great data below.]

Year | Total Raised | Contributions | Avg Contribution Size

2007   $16,781,745    125,601         $133.61
2009   $30,811,495    241,267         $127.71

Those are some impressive numbers. That's 84% growth in total dollars raised for Democrats, 92% growth in individual contributions, while seeing just under a 5% decline in the average contribution size. But in addition to the dollar and donors, what's even more exciting is this next batch of numbers which reflect ActBlue's mission to assist all Democratic candidates and causes and allow anyone to create personal fundraising pages. 

Year | # Unique Recipients | # Personal Pages w/Donors

2007   1017                  1233 
2009   1942                  3286

This is where we're democratizing the process of financing campaigns. The 91% increase in unique recipients means that in 2009 nearly twice as many Democratic candidates received a check for funds raised through ActBlue- which is impressive because the raw number of elected offices is a fairly static. Even more amazing is the 167% increase in successful personal ActBlue fundraising pages- skyrocketing to over 3,000 in 2009, a year when just a handful of states held their statewide elections (most notable being New Jersey & Virginia) and a greater number held municipal elections as part of ActBlue trial program. We'll be looking in more detail at this growth at the state and local level in future analysis.

Now for some charts. These compare a number of 2007 v. 2009 metrics on the quarter by quarter level.

That huge surge of contributions in the last half of 2009 was due in part to the upswing in the health care debate, the Joe "You Lie" Wilson effect on fundraising for Democrat Rob Miller, the No on One / Protect Marriage Equality campaign in Maine, and Netroots based fundraising flowing into the Progressive Change Campaign Committee, Democracy for America, FDL Action PAC, and Blue America's PAC.

The drop in the average contribution size in late 2009 goes hand in hand with the increase in small dollar giving noted by a number of the committees in the prior graph.

That's just beautiful- don't you think?

This last graph is the best in my opinion- you can see the democratization of fundraising and empowerment of the average donor to raise small dollar contributions for the candidates or causes of their choice. That's what this is all about.

New Year Means New Federal Contribution Limits

Have you noticed something new on some of our contribution pages? That's today's $4,800 question.

If you were browsing through the 2010 federal candidates and officeholders listed in the ActBlue directory for the U.S. Senate or House of Representatives you might have noticed that the maximum contribution level has changed to $4,800 for candidates. This is due to new increased contribution limits laid out by the Federal Elections Commission, as expected after each 2-year cycle begins at the federal level.

Federal candidates may now receive a maximum contribution of $2,400 per individual for any primary election and up to another $2,400 per individual for the general election. Prior to a primary, candidates are allowed to raise general election funds (as some may remember being noted in news stories surrounding presidential fundraising in 2007-2008). ActBlue allows campaigns to collect the full $4,800 from individuals prior the the conclusion of a primary. After a candidate's primary has passed, the highest contribution level listed on ActBlue will automatically drop to $2,400 which will be the maximum per individual for just the general election. Note- It is incumbent upon campaigns, however, not only to properly report these funds but also to refund any general election designated monies they have received should they not be successful in becoming the Democratic nominee.

Changes were made to other levels of giving as well as has been noted by The Hill.

Individual donors will now be able to give up to $2,400 per election, or $4,800 for both a primary and a general, according to the new guidelines. That's up from the $2,300 per-election limit during the 2008 cycle. Donors are also able to fork over $30,400 to national parties, higher than the $28,500 they were allowed to give last cycle. A single donor is limited to $115,500 — including $45,600 to candidates — per cycle. National parties and their affiliated senatorial committees can aid their Senate candidates with up to $42,600 per election, $2,700 more than they could give during the last cycle. Political action committee donations, which are not indexed for inflation, remain at $5,000 per candidate per election.

That can be a lot of money to keep track of, as total spending caps could potentially limit the amount you are able to give a candidate if they are close to hitting their total federal limit. That's why we encourage regular donors to sign up for an ActBlue Express Account which allows them not only to make one-click contributions that speed up the donor process, but also allows individuals to track the total amount of money they have donated, which campaigns they gave it to, and when they gave it.

ActBlue Now Active for State Races in New York

ActBlue is pleased to announce that we’re now active for state races in New York.  You can now contribute to Democrats running in state elections through ActBlue.  Better yet, set up your own page and start fundraising!

Everyone here at ActBlue is very excited about this development.  To mark the occasion we’ll be livebloging on The Albany Project tonight, 1/31/08 starting at 7PM.  Political Director Erin Hill, Deputy Political Director Nate Thames, and Netroots Coordinator Melissa Ryan will be on hand to answer you questions.

To learn more about this exciting development here’s our press release:

ACTBLUE GOES LIVE IN NEW YORK STATE

CAMBRIDGE, MA, JANUARY 31,
2008? ActBlue, the online platform that allows Democrats to raise funds
for the candidates of their choice, is now active in New York State.
With the launch, ActBlue puts a new tool into the hands of Democrats
across the state, allowing them for the first time to support not only
federal candidates but statewide candidates, party committees and
Democrats running for State Senate and State Assembly.

State party co-chairman David Pollak heralded ActBlue’s arrival in
New York today.  "ActBlue has proven to be an invaluable resource for
Democratic candidates across the country," says Pollak. "By adding
functionality for state legislative candidates, ActBlue will play a
critical role in helping Democrats at the grassroots level get involved
in the effort to take back the New York State Senate."

Beyond party activity, the entry of ActBlue into New York will make
it possible for individuals in New York State to start mobilizing
friends and colleagues in support of Democratic candidates at all
levels.  Much as in Virginia, where a broad coalition of activists and
bloggers joined hands through ActBlue with Governor Kaine and the state
party to take back the Virginia Senate for the first time in a decade,
ActBlue will facilitate cooperation between New York Democratic
institutions and communities of Democrats from upstate to Manhattan.

"This is something that those of us focused on state level races in
New York have been wanting for at least two years, and we are beyond
excited that this day has finally come," says Phillip Anderson,
editor-in-chief of the Albany Project, a prominent blog devoted to
Democratic victories in New York State. "I think that we may look back
on this day a year from now and see this as a real game-changing event
in the effort to take our state government back."

ActBlue has enabled individuals and groups across the country to
raise more than $36 million for Democratic candidates and committees
since 2004. More important, says executive director Jonathan Zucker,
ActBlue has built a new kind of infrastructure capable not only of
raising untapped millions at unprecedented speed but also of mobilizing
support for Democrats in the closest races. "Building infrastructure is
the most important thing we can be doing as a party," says Zucker. "We
ran wheezing behind Republicans for years when it came to
infrastructure, but ActBlue’s $36 million is proof positive that we’re
not only catching up but on course to win."  Zucker is expecting
ActBlue’s funding total to top $100 million this cycle.

ActBlue will be live blogging from their headquarters tonight from 7 to 8 at the Albany Project, online at http://thealbanyproject.com.