Slatecard, USA Today, and Transparency in Processing

by David All 8. May 2008 16:23
A week or so ago, Ronald Hansen of the Arizona Republic and USA Today included Slatecard.com in his round-up of companies on the Right and Left which candidates use to process their online donations. I was quoted in the piece:

Processing fees already may be viewed as an unavoidable expense as basic to campaigning as phone bills and plane tickets.

"Your average online donor is an impulse buyer," said David All, a Washington, D.C.-based consultant who last year founded Slatecard.com, which he hopes to be a Republican answer to ActBlue. So far, the site's donors have raised more than $5,000 for GOP presidential candidates.

In charging a 4.5% flat fee, All said he loses money on small donors, which is hopefully offset by the bigger ones. In any event, he sees the site as filling a critical void for the GOP.

"With online donors, the sooner you can seal the deal, the better," he said. "You're risking not sealing the deal if you can't donate online." 

While I appreciate the mention, I think Ronald missed some important points about Slatecard that I added to the comments of the post. Here's what I wrote:

Thanks for including Slatecard.com in your round-up. This a very important discussion to have.

Transparency, openness and honesty are just a few of the guiding principles we cling to at Slatecard.

In fact, that's why one of our first blog posts back on October 11, 2007 (we launched October 8) dealt with this issue specifically, titled "Transparency in Processing."

We're proud to be one of the most cost-effective online processing solutions for Republicans and while we're doing this as a volunteer effort, we believe it's necessary to helping give the Right the tools it needs to better leverage the power of the Internet.

One point I'd like to include is that while we may have only raised a little over $5k for Presidential candidates, we've raised well over $325k for other Federal Republican candidates and committees. In fact, we're proud that over 41 candidates have already signed up to use Slatecard to exclusively process their donations.

We're just getting started but we're making tremendous progress given the fact that we've only been up for six months.

Thanks again.

David All
Executive Director
Slatecard.com PAC

The bottom-line is that a processing fee for online donations will always be a part of the process. However, we're proud of our lowest-on-the-market rate of 4.5% regardless of what credit card a donor uses and the fact that we don't charge a per transaction fee or a set-up/monthly fee to candidates.

To keep this operation running - we instead rely on generous donations from you - the Slatecard community. And, as you know, we appreciate it.

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Buzz | Transparency | Merchant Services

Slatecard takes Best In Show at Blog, P.I

by David All 4. December 2007 07:50

In his latest post, "Rightroots, Big Red Tent, and Slatecard: An Assessment," William Beulter of Blog, P.I. and New Media Strategies, has said some really nice things about what we're doing here at Slatecard. As Bill did at his blog post, let me also disclose that Beutler is a friend but I had no knowledge that he was working on this essay.

Here's the comment I left on his blog post:

Thanks for the thoughtful analysis Bill. It’s good to see you back in the blogging saddle. We no doubt have work to do to catch up to ActBlue but I’m glad to see that we’re all, collectively, working to give them a run for their money.

I appreciate the good work of Rightroots and Big Red Tent. The guys behind those operations have some great ideas and impressive initiative. It is my hope that there’s room at the table for all three of these operations to help push and pull the GOP to the modern world.

Three points I’d like to add with regard to Slatecard and then I’ll address your direct points:


    1. Take Control Candidate Portal

As you correctly noted, we have been honored that several candidates are using Slatecard exclusively to transact their online donations. In fact, organically, we now have eight candidates seeking Federal office doing so.

And with the launch of our candidate portal, Take Control, we expect many more as campaigns realize the benefits of using Slatecard over a political or commercial third-party vendor. Those benefits include superior technology, a smarter aggregation of real-time data, and a cost-effective pricing structure (no set-up, monthly, or per transaction fees — flat 4.5% of donation). We’re hopefully appealing to the commonsense side of the decision-making process.

As you may know as a reader of our blog, the Take Control candidate portal (Version 1.0) gives campaigns real-time access to donor information which can be downloaded as a text or excel file and the ability to update their Slatecard directory profile. (And don’t blame us for that 120-word bio that we found on their website or Wikipedia entry — campaigns have the ability to control every single word on it — and someone from Fred’s campaign should do so!)

With regard to the socnet icons linking to the profiles - I think that’s pretty easy to figure out for users. Or at least once they do figure it out, they’ll understand what the entire “Connect,” section is for. However, using the URL instead of the Home icon isn’t such a bad idea.

But the point I’m trying to make here is that we have always given campaigns a way to update their profile, but we’re still going to do our best to fill in the gaps in the meantime. With over 420 candidates - it’s a long process.


    2. Transparency in Processing

Transparency, openness, and honesty are guiding principles at Slatecard. That is why we are committed to being honest with the candidates that use us and the Slatecard community about what fees (flat 4.5%) are taken out of the credit card donation for processing and why that’s necessary.


    3. “Snacktivism” and the Ticker

The third innovation which could increase activism is the notion of “Snacktivism,” the combination of “Snack” “Activism.” Because every action on Slatecard is registered in The Ticker, a stream of all action on the site and personalized for each Slatecard and candidate, we’re letting activists play the role of a voyeur. The activists can see who is popular on the site and read the messages that other candidates are sending to the candidates through the issue badges. By so doing, people can poke around the site freely, partaking in snack activism.

I’ll be open with you. Since you’re not privy to a more accurate portrait of our website analytics, here’s the executive summary from our launch on October 8 to December 2.

  • 15,603 Visits
  • 66,065 Pageviews
  • 4.23 Pages/Visit
  • 47.34% Bounce Rate
  • 00:03:38 Avg. Time on Site
  • 64.74% % New Visits

Innovations, like the Ticker, have led to some impressive early website stats. In fact, those metrics I’m proudest of include our decent bounce rate (which is the sexiest web metric ever), our ridiculously high pages/visit and nearly four minute average time spent on the site. These are clear indicators that while we still have some work to do, we’re heading in the right direction with our community.

Remember — not a single dollar has been spent on advertising. This is all organic. Friends are telling friends. Bloggers are alerting their readers about Slatecard. The influentials are paying attention. Collectively, we’re starting to get it.

But to be sure, we have work to do.

You’ve noted some good advice in your blog post and we take advice seriously. A few answers and thoughts with regard to your direct points:

  • We ask for your phone number in case there is a problem with your donation. This information is also collected and passed along to the campaign in case they need to follow-up.
  • We’re working on search. It’s not a switch that we can simply flip but we’re getting to it. It’ll be there in the near future.
  • Re: Issue badges. Each issue badge is weighted with the dollar amount and number of individuals which have given that badge. As you look at a candidate’s profile, the issue badges read left to right with respect to their “value” by the community. This data is accessible by the campaign. Obviously, as has always been the plan, once we have more issue data for all candidates, we’ll launch our issue search function to find candidates who receive the issue badges that you care about.
  • Net Neutrality is an important, non-partisan issue. So far, only the “Supports Net Neutrality” badge has been given out to Republican candidates. As our community recommends, we’ll continue to add more Long Tail issues as we progress.
  • You make a good point about the “Defeat Radical Islam” badge. I sought outside advice from several bloggers I trust on the issue and that was the recommendation. It’s very difficult to visualize but I’m open to suggestions for swapping it out. We had another idea of using an AK-47 to represent it holding up the Islam flag. Thoughts?

Thank you for noting our early success. As of today, we’ve raised $77,083.35 from 520 donations for Republican candidates and committees.

But we’ll never rest on our laurels. We’ve got some neat things cooking in the oven that I need to tend to.

Revolution,

David All
http://slatecard.com

 

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General | Buzz | Guiding Principles | Transparency

About that $75K Challenge

by David All 20. November 2007 12:24

It started with an email at 4:17 PM EST on Friday. We asked, "Will you help Slatecard break the $75K mark by Sunday at Midnight?"

To be sure, we weren't too far away.

At that point we had already raised $72,672.80 from 356 contributions to Republican candidates and committees.

On Saturday, the ticker had moved up thanks to five contributions bringing our total to $72,815.30.

On Sunday afternoon, we reached out again, pushing the total to $72,976.30 from 370 contributors.

By Sunday at 9:32 PM EST our ticker had jumped almost $1K to $73,909.80 from 393 contributors.

Overnight, our friends from the West Coast and even places like Hawaii joined in, pushing the total to $74,504.55 from 429 contributors.

Which brings us to right now - 8:37 PM EST - nearly 24 hours after our deadline. The tally is short of our goal of $75K, but we're proud of what you've done:

  • $74,884.65
  • 457 contributors
  • $163.86 average contribution

Over a weekend, 101 individuals contributed to Republican campaigns and committees. And that's something to be proud of.

In the end, we ended up short of our goal by a mere $115.35.

But through the process, we didn't fudge the numbers. We sought your help, and you stepped up to the challenge. 101 contributors joined the process or contributed more to campaigns and causes that they support.

Thank you.

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General | Transparency | Milestones

Transparency in Processing

by David All 11. October 2007 07:13

One of the guiding principles at Slatecard.com PAC is our commitment to openness, honesty, and transparency with the Slatecard community. That's why it is important for us to let you know as much about the backend processing of transactions as possible so that you feel comfortable using our utility.

While we fully explain the processing of transactions in our "Frequently Answered Questions," it is important for me to break it down in this space which covers a larger audience based on the past few days' site analytics.

To be clear, no matter what contribution you make to a candidate or as a gift to Slatecard.com PAC, 95.5% of your transaction will arrive in the form of a check from Slatecard.com PAC to that recipient candidate or committee with all of the FEC-required donor data to properly report the contribution. In other words, the fee which is charged to the candidate for using Slatecard.com PAC is 4.5%.

A majority of that fee goes to Authorize.net and the merchant provider who literally makes the transaction. Their fees include monthly fees, per transaction flat fees, and varying percentage fees based on the type of credit card used. We also pay a monthly fee for an SSL certificate to safely and securely encrypt your personal data along with fraud protection service to protect our users as best as possible.

Here's a chart to help explain how this process works based on different donation sizes:



As you can see from the chart above which only accounts for a few of the fees associated with operating a comprehensive online merchant system, even at a rate of 4.5%, the cost of processing lower dollar contributions exceeds the fee. That's why any remainder of the fee for higher-dollar contributions will be used to help offset low-dollar contributions, pay our monthly fees for the merchant gateway, and help pay other expenses associated with running (and hopefully expanding) the PAC. Without a processing fee, we could not ensure the longevity and viability of a utility with a national scope.

By way of comparison, the cost of transacting donations using a third-party system like PayPal is about the same as Authorize.net's fee structure (monthly fee for merchant gateway, per transaction fee, percentage of total dollar amount fee). Once we have some relevant statistics, e.g., average donations, type of credit cards being used, and whether people want more options (like PayPal), we will review and amend our structure and/or provider as appropriate.

As always, we want to ensure that you understand as much about the process as possible to better understand the motives of the utility. In other words, the goal of the 4.5% fee is to essentially break even with our cost of doing business while providing a flat fee rate that our community and the recipient candidates easily understand at all times.

Therefore, we are 100% reliant on our community to help us operate and expand beyond the beltway. That's why on each donation, we ask for a voluntary monetary "tip" to help us do just that. If we don't offer a good service to the community, and if you don't think the work we're doing is valuable, we recognize that people won't support our efforts. But for those that do support us, we promise to make you proud to have helped.

If you have feedback, please send us an email at team AT slatecard.com. (As we noted on the blog, comments are disabled as we work through a bug.)

UPDATE 11:50 PM: A Slatecard user from Maine has asked if other sites, like ActBlue, charge a transaction fee. The answer is yes. Earlier this year, ActBlue wrote a blog post on how they had to make the organization sustainable and "built to last":

Moving political money properly takes a lot of gear ($) and staff ($$).  As ActBlue grows into the premier fundraising platform for Democrats up and down the ballot, Auburn Quad's responsiblity to maintain and scale the system grows as well.  These things are anything but cheap.

Here's how it all works.  Auburn Quad charges a service fee of 3.95% against gross contributions.  Most of that fee ends up going to the credit card companies; about 1.5% stays at AQ.  That 1 1/2 cents on the dollar pays for pretty much everything behind the website: computers, the programmers, and the coffee; or in specific terms, all the additional transactional costs borne by AQ to receive and remit contributions on your behalf.

Meanwhile, the real action still lies inside ActBlue.  Your tips and other generous contributions to the PAC allow us to extend our operations into new states, assist thousands of campaigns with their online fundraising, hold training events across the country, share best practices with our partners, and most importantly, offer these tools and top-flight customer service *for free to everyone*.  ActBlue is working to empower a new class of active Democrats who can reshape the country's political dynamic and grow our party for generations to come.  Every last bit of this work is funded with your contributions.  Freed from the financial responsibilities of the payment platform, ActBlue spends every last political dollar on politics. 

We're building Slatecard to last and grow quickly -- from day one.

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