Online fundraising is quickly becoming the most effective medium to engage supporters of your cause for your nonprofit organization. As donors continue to understand and adopt the power of the internet and social networks, other marketing initiatives such as direct mail are taking a back seat to online fundraising.
According to a study performed by Nonprofit Technology Community (NTEN) , online fundraising has maintained a steady annual growth for the past five years. During the recent recession there was a slight decrease in the amount given per online donations however the number of online donations continues to point upwards. In 2008 the average donation amount was $112.00 and in 2009 decreased to $92.00. The amount on online fundraising transactions is up 43% in 2009.
With statistics like these it is clear that online fundraising is the wave of the future. Even in tough economic times people are willing to give to a good cause. More importantly a broader range of individuals are becoming more familiar with the online donation process. If your nonprofit organization has not started an online fundraising campaign, now is the time to do so.
Many large nonprofits have already reaped the benefits of online donations by using expensive products like Blackbaud’s Razors Edge and Sage’s Fundraising Online. Most small to medium sized nonprofits do not have the budget to consider expensive products like these. In addition to their large price tag, these products prove difficult to use for the needs of most small to medium sized nonprofits.
The anatomy of online fundraising is quite simple and can be broken down into two categories. The first category consists of donations collected from individuals for a given cause. There are typically different levels of giving defined by the campaign manager. The donor is given the option to donate from themselves or in honor or memory of another person. The donor is also given the option to provide a onetime donation or repeat the donation on a set interval.
The second category focuses on engaging your supporter to utilize their network of friends and family. Typically they will adopt your cause and set a personal goal to raise money for the cause. In some cases the goal is tied to an event i.e. Red Sox Run to Home Base Program. With events similar to Breast Cancer Marathon, it is not uncommon for a fundraiser to join a team which has a team fundraising goal. Once you have decided which category is best for your nonprofit organization, configuring the online fundraising campaign is quite simple.
Next it is time to focus on the marketing for your online fundraising campaign. Strategies vary amongst nonprofit organizations however statistics show that social media has become the front runner in reaching your audience. With social networks like Facebook and Twitter and social bookmarking sites like Digg and Reddit your online fundraising campaign can reach the masses in minimal time.
Although social media is very powerful it is also cluttered with an abundance of information. Your marketing efforts must find a way to stand out from the rest. Some online fundraising marketers are focusing on grass root efforts to spread the word while others are trending to new innovative services like foursquare.
No matter your marketing approach, the first step of creating your online fundraising campaign needs to be completed. Forte Interactive offers easy to use and cost effective solutions for your small to medium sized nonprofit organization. Additionally our award winning designs will set you organization apart with a professional look for your website.