Milestone Presentation
CS 410 Yellow Group
November 15, 2010
November 15, 2010
Fall 2010 Yellow Group
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Poor Economic Times
• According to the Bureau of Labor Statistics the
National Unemployment rate has been at 9.6%
since October of 2010.
• The Dow Jones Industrial Average just
experienced the worst May it has seen since
1940.
• U.S. banks repossessed nearly 258,000 homes
nationwide in the first quarter of 2010, a 35
percent jump from the first quarter of 2009.
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Declining Donations
• According to the American Association of
Fundraising Counsel, total giving was down
3.6% in 2009, the largest decline since
1956.
• Contributions to colleges and universities
were down 11.9% , the greatest decline ever
recorded, according to a 2010 report by the
Council for Aid to Education.
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Changes in Giving in Years with
8+ Months of Recession
Sources: The Giving USA Foundation, Center on Philanthropy at Indiana University
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Conventional Fundraising Methods
are Inefficient
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Overhead
• Between 2004 and 2008, fundraising
overhead cost the Children’s Health
Foundation 86% of their donations.
Source: CBC News Canada
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Reasons People Stop Giving
Source: 2010 Bank of America Study on High Net-Worth Philanthropy
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Reasons People Stop Giving
Source: 2010 Bank of America Study on High Net-Worth Philanthropy
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Problem
• Rising overhead and declining donations
make it hard for small non profit
organizations to meet financial objectives.
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Current Donation Process
Donor
accesses link
on University’s
web page
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Donor chooses
fund
Donor pays
with credit card
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Money is
deposited in
account
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Current Manual Overhead Process
Universities
request
transaction
from 3rd
party system
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Accountants
perform
book
keeping
Allocate
donations to
specific
funds
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Thank you
letter
Mail tax form
12
Introducing uRai$e
•
•
•
•
•
•
Internet-based: 24/7 availability
Social network integration
Supports Mobile Donation
Low overhead
Targeted fundraiser notifications
Bank account integration
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Social Networking Integration
Facebook
Twitter
•More than 500 million active users
•More than 100 million registered
•Average user has 130 friends
users
•People spend over 700 billion
•50 million tweets per day in 2010
minutes per month
•51% of active Twitter users follow
•26.22% of the World’s population are companies, brands or products on
currently Facebook users
social networks
•Second most visited site on the web
•Tenth most visited site on the web
Sources: Facebook, PC World, Alexa, Checkfacebook, Edison
Research/Arbitron Internet & Multimedia Study
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Recent Growth of Social Networking
• Social networking growth:
– Facebook: 400 million active users in February 2010 to 500
million active users in July 2010
– Twitter: grew from 2 million users in 2008 to 32 million in
2009
• Social networking awareness:
― Facebook: from 50% awareness to 88% in the same period.
― Twitter: exploded from 5% of Americans 12 and over in 2008
to 87% in 2010
• U.S. visits to social networking Web sites rose 62 percent
from September 2008 to September 2009.
Source: Facebook, Edison Research/Arbitron Internet & Multimedia Study, Hitwise
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Mobile Donations
• Over $30 million raised via mobile donations
so far
• 80% of Americans use a cell phone
• Over 20 mobile donation campaigns
supported Haiti
Source: MSNBC
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Mobile Donation Process Flow
Donor sends text with
donation amount,
fundraiser ID
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uRai$e verifies
the donation
Donor
confirms the
donation
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uRai$e verifies
that the
donation was
processed
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Standard Donation Process Flow
uRai$e sends alerts
based on donor
profiles
Organization signs
up for uRai$e,
creates a fundraiser
uRai$e charges
credit card
Donor decides to
donate
uRai$e deposits
money in member’s
account
uRai$e aggregates
into donation history.
uRai$e automates
thank you letters and
tax forms
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Automated integration
into existing
accounting system
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Site Map
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Donate to Fundraiser Screen
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User Profile Screen
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Fundraiser Report Screen
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Major Functional Components Diagram
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Alerts Algorithm
Get Donor
Get Donor Tags
Find fundraisers with matching tags
[Found fundraisers]
Create alert message
Get suggested fundraisers
[Accepts emails]
Send Email Alert
[Does not accept emails]
[Accepts text messages]
Send Text Message Alert
[No fundraiser found]
[Does not accept text message]
[Accepts Facebook]
Post to Facebook wall
[Does not accept Facebook]
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Fundraiser Suggestion Algorithm
Get donor
Find fundraisers with matching tags
Find donors with matching tags
Find donors with common donation history
Get new fundraisers
Get new fundraisers
Get top ranked fundraisers
Aggreate fundraisers
[Not for reporting]
[Done ranking]
[Get next fundraiser]
[For reporting]
Calculate interest rank
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Get all suggested fundraisers
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Database Diagram
Organization
FundraiserTag
Id
FundraiserId (O) (FK)
TagId (O) (FK)
Tag
Fundraiser
Id
Tag (O)
Id
OrganizationId (FK)
Name
Description
StartDate
EndDate
Goal
DonorTag
Id
TagId (O) (FK)
DonorId (O) (FK)
Id
Name
Description
Email
Phone
Address
City
State
Zip
Member
Id
OrganizationId (FK)
FirstName
LastName
Email
Phone
Password
Donor
Id
FirstName
Lastname
Email
Phone
Address
City
State
Zip
Password
URaiseApp
CreditCardDonation
Id
DonorId (FK)
TransactionDate
Amount
CreditCardType
Last4OfCreditCardNumber
CreditCardDonation
Id
Name
AuthorizationKey
URaiseAppCreditCardDonation
Id
CreditCardDonationId (FK)
URaiseAppId
MobileDonation
Id
DonorId (FK)
FundRaiserId (FK)
TransationDate
Amount
MobileCarrierId (FK)
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MobileCarrier
Id
Name
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Cloud Services Platform
• 5 million page views per month for FREE
• Highly available & fault tolerant platform
• 99.9% uptime service level agreement
• Same infrastructure that supports Google’s products
• Low maintenance overhead
• PCI standards compliant
Source: Google App Engine
July 26, 2016
Yellow Group, Fall 2010
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App Engine Resource Expenses
Free
Default
Quota
Billing Enabled
Default Quota
Stored Data
(billable)
1 GB
1 GB free; no
maximum
Number of
Indexes
200
200
Resource
Resource
Unit
Unit cost
Cost/1000 page
requests
Outgoing
Bandwidth
gigabytes
$0.12
$0.004
Incoming
Bandwidth
gigabytes
$0.10
$0.003
CPU Time
CPU hours
$0.10
$0.027
Stored Data
gigabytes per
month
$0.15
$0.004
Recipients
Emailed
recipients
$0.0001
$0.1
Total
July 26, 2016
Yellow Group, Fall 2010
$0.138
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Customer
• Non profit organizations that need to:
• Save money on advertising
• Be flexible according to their needs
• Attract new donors
• Case Study:
Universities that need to:
• maximize donations
• minimize overhead
• increase fundraiser transparency
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Customer Base
• Over 1.6 million nonprofit organizations registered
with the IRS
• Over 4,400 degree-granting institutions in the United
States
Sources: National Center for Education Statistics,
National Center for Charitable Statistics
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Case Study
• Old Dominion University
“…to accept a one-time $50 gift that we don't know we
will ever receive again we have had numerous people
touch the funds, creating and administering
accounts, and spending the funds. In man hours
alone, it costs far more than $50 to give away this
$50 gift!”
Anita Friedmann
Assistant Vice President
Office of Development
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Rising College Expenses
17,000
16,000
15,000
14,000
*Average 13,000
College
Expenses 12,000
11,000
10,000
9,000
8,000
2000
2001
2002
2003
2004
2005
2006
*Average undergraduate tuition, fees, and room and board rates charged for
full-time students in degree-granting institutions
2007
Source: Council for Aid to Education
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Tuition Increase
• On average, tuition rates will increase at about twice the
general inflation rate.
• From 1958 to 2001, the average annual tuition inflation
rate was between 6% and 9% (1)
• ODU tuition increased 7% this year.
• “…tuition and fees at ODU have risen 80 percent since a
state-imposed tuition freeze was lifted in 2002.” (2)
1. http://www.finaid.org/savings/tuition-inflation.phtml
2. http://hamptonroads.com/2010/04/odu-board-approves-7-percent-tuition-increase
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Changes in College Donations Related to
the Stock Market and Recessions
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Marketing Goal
• Acquire 1% of the market share within the
first year
Strategy:
– Online and social media marketing
– Target middle class
– Minimize advertising costs
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Marketing Media
• Google Ad Network
– Google owns 80% of Internet advertising
network
• Facebook
– Exposure to 500 million users
• Twitter
– Exposure to 100 million users
• Since 2008 Internet advertising has become
twice as big as broadcast TV advertising and
four times as cable.
• Approximately 50% of both YouTube’s and
Facebook’s American users are college
educated and at least 2/3 make over $50,000
making it a great place to advertise
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Distribution of Income and Age
Facebook:
Income Distribution
Twitter:
Income Distribution
Age Distribution
Age Distribution
Sources: Adplanner
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Return on Investment
• Minimize fundraiser processing overhead
o Reduced processing fees
o Automated integration with existing LOB applications
• Maximize fundraiser earning potential
o Social network integration
o Mobile donation support
o Automated donor notifications
• Manage fundraiser with more flexibility
o Custom fundraisers
o Added transparency
o Automated tax forms e.g 990 and “Thank You” letters
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Benefits for Donors
– Profile creation for targeted alerts
– Offers more transparency so donors have a
better understanding of how their money is
being used and how much money is needed
– Streamlined payment options
– More features, such as mobile donating, makes
the process of donating easier
– Ability to stay connected with organizations
without donating
Price Point
• The initial price to the customer for uRai$e is
$40 a month with no registration fee.
• 3.2% Processing fee/transaction.
• $8.00 Credit card system monthly fee
• $8.00 Recurring transaction monthly fee
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Advertising Expenses
• Google Ad Network
– $5.00 Activation Fee
– Cost-per-click Maximum $1.50
• Facebook
– Cost-per-click $0.70
Software milestone chart
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Software Deliverables
• Web services
• User interfaces
• Service Engines
–
–
–
–
–
•
•
•
•
•
Fundraiser Suggestion
Alerts Services
Credit Card
Mobile Donation
Banking Integration
Business Rules Application Logic
Business Objects Domain Model
uRai$e Data Access Layer
uRai$e database
Fundraiser Suggestion Data Warehouse
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Work Breakdown Structure:
Design
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Work Breakdown Structure:
Development
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Work Breakdown Structure:
Testing
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Phase 2 Staffing
Position
Number of
Employees
Hours
Needed
Cost
Project Manager
1
$105,000 $50.48
150
$7,572
Software Engineer
3
$68,000
$32.69
2500
$81,725
Financial Analyst
1
$50,180
$24.13
200
$4,826
Marketing Analyst
1
$67,500
$32.45
200
$6,490
Documentation Specialist
1
$38,000
$18.27
80
$1,462
Web Developer
2
$50,000
$24.04
1800
$43,272
Database Administrator
1
$80,000
$38.46
600
$23,076
Software Tester
2
$40,000
$19.23
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Salary
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Hourly
Rate
544
$10,461
Salary Cost $178,884
30% Overhead $53,665
Total Cost $232,549
48
Resource Budget
Resource
Workstations
Development Environment (Eclipse)
Adobe Photoshop CS5
Source Code Control (Mercurial)
Battery Backup UPS
Version One
MS Visio
Open Office
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Quantity
10
10
1
10
10
1
4
10
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Cost
$1,200
$0
$700
$0
$200
$745
$400
$0
Total Cost:
Total
$12,000
$0
$700
$0
$2,000
$745
$400
$0
$15,845
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Budget Overview
Phase
Total
$232,549
$15,845
$20,000
$268,394
Phase 2 Staffing
Resources
Advertising
Total
Advertising
$20,000
Resources
$15,845
Staffing
$232,549
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Break Even Analysis
At a cost of $480.00 per year for one customer and a targeted sales of 16,000 units, we
will see a profit at 560 units.
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Risks
• Customer Risks
– Customer data compromised
• Technical Risks
– App Engine server failure
– Mobile Donations
• Financial Risks
– Unwillingness of organizations to use the tool
– Development costs
– Not enough customers to cover expenses
• Legal Risks
– Credit card information stolen
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Risk Matrix
I
M
P
A
C
T
5
4
Key
T1,
L1,
F2
Customer Risks:
C1 – Customer data compromised
C1,
T2
3
Technical Risks
T1 - App Engine servers fail
T2 – Mobile Donations
F1
2
Financial Risks
F1 - Unwillingness of organizations to use the tool
F2 – Not enough customers to cover expenses
1
Legal Risks:
L1 – Credit card information stolen
1
2
3
4
5
PROBABILITY
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How to mitigate risks
Problem
Mitigation
Customer data compromised
SSL protocol will ensure confidentiality
Unwillingness of organizations to use the tool
Integration with social networks will make it
easier to get the word out, and ease of
use/reduction of overhead will provide
incentive
Credit card information stolen
Comply with PCI standards to keep credit card
information secure and reduce legal liability
for the customer
Mobile Donations
Contract with various cell phone providers
Covering expenses
Overhead will be decreased by automating
various processes and reducing manual work
App engine fails
System architecture can be ported to any
platform
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Team Structure
Athens Holloway
Project Manager
Jonas Porter
Domain Expert
Director of Information
Systems
Michael Gordon
Financial Specialist
November 15, 2010
Wayne Stilwell
Web Developer
Software Specialist
Natalie Maccall
Domain Expert
Accounting Director
Jay Winborne
Risk Analyst
Fall 2010 Yellow Group
Omer Alsayegh
Documentation &
Hardware Specialist
Filippos Raditsas
Marketing Specialist
55
Appendices
A.) Interview with Office of Development and Alumni Relations
B.) Email from Anita Friedmann, Assistant Vice President of the
Office of Development
C.) Work Breakdown Structure for Phase 2
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Sources
•
•
•
•
•
•
"Accept Donations and Payments Online. Church Contributions and Non-Profit Donations
and Payments Online. Acceptiva." Accept Donations Online and Non Profit Payments.
Donation Software. Church Contributions and Donations. Web. 11 Nov. 2010.
Alexa the Web Information Company. Web. 11 Nov. 2010. <http://www.alexa.com/>.
Blackbaud Fundraising Software: Nonprofit Accounting Software & Nonprofit
Management System. Web. 11 Nov. 2010. http://www.blackbaud.com.
Choney, By Suzanne. "Mobile Giving to Help Haiti Exceeds $30 Million - Technology &
Science - Wireless - Msnbc.com." Breaking News, Weather, Business, Health,
Entertainment, Sports, Politics, Travel, Science, Technology, Local, US & World NewsMsnbc.com. Web. 25 Oct. 2010.
<http://www.msnbc.msn.com/id/34850532/ns/technology_and_science-wireless/>.
Council for Aid to Education. "CONTRIBUTIONS TO COLLEGES AND UNIVERSITIES DOWN
11.9 PERCENT TO $27.85 BILLION GREATEST DECLINE EVER RECORDED." Web.
<http://http://www.cae.org/content/pdf/VSE_2009_Press_Relsease.pdf>.
"Enrollment in Educational Institutions, by Level and Control of Institution: Selected Years,
1869-70 through Fall 2018." National Center for Education Statistics (NCES) Home Page,
a Part of the U.S. Department of Education. Web. 25 Oct. 2010.
<http://nces.ed.gov/programs/digest/d09/tables/dt09_003.asp?referrer=report>.
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Sources
•
•
•
•
•
"Fundraising Software Pricing Info, Price List." Fundraising Software for NonProfit Donor
Management DonorPerfect. Web. 11 Nov. 2010.
<http://www.donorperfect.com/fundraising-software/pricing.asp>.
"Giving Statistics." U.S. National Park Service - Experience Your America. Web. 25 Oct.
2010. <http://www.nps.gov/partnerships/fundraising_individuals_statistics.htm>.
"Mobile Giving: Organizations Collecting Donations by Text | Mobile Commons." Web. 25
Oct. 2010. <http://www.mobilecommons.com/blog/2010/01/mobile-giving-how-yourorganization-can-start-collecting-text-donations/>.
Membership Management Software | Membership Software | YourMembership.com.
Web. 11 Nov. 2010. <http://www.yourmembership.com/pricing/>.
"Quotas - Google App Engine." Google Code. Web. 11 Nov. 2010.
<http://code.google.com/appengine/docs/quotas.html>.
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