Fundraising has always been an important way of supporting a cause, some special interests, inventions or even businesses and projects. However, with the emergence of online fundraising, it has become easier now than ever to smoothly conduct fundraisers on a wide scale. The internet and social media tools have promised nonprofits with a new and effective fundraising avenue.
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Many people argue that the share of online donations is small compared to the overall donations. This might be partially correct but that happens only because organizations are unaware of the several online avenues for fundraising and their multiple advantages. The concept of online fundraising is gradually making its way and nonprofits are hugely recognizing the convenience and efficiency it offers. Let’s look into some of the major benefits of online fundraising.
1. Reduced Costs
Online donations are turning out to be efficient financing tools for nonprofits or charitable ventures. Online funding definitely has a wider reach when compared with traditional funding methods like direct mail or phone solicitations and so on. Apart from promising a significant reach, online funding also offers a virtual but instantaneous flow of money. In today’s age, the donors can easily understand the process, provided that the administration and execution are properly done.
One major advantage of online fundraising is that it involves a much lower costs when compared to the traditional means like mail or in-person solicitation. Lower cost, for an organization, means the opportunity to focus and spend more on the other demanding and crucial areas. There are minimal administrative costs and even reduced conventional office costs. These administrative costs are taken care of through the online donor hub.
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2. Transparent and Trust-Building
Online fundraising is largely transparent and builds trust in donors. This is where the important role of the online fundraising platforms comes to play. The platform lets the donors understand in detail as to how their funds are being utilized. This becomes possible owing to the itemization of every single place the money goes.
When the donors are made aware and informed, their trust in the credibility of the nonprofit increases. The overall transparency pulls more number of prospective donors to contribute to your organization’s cause, which is what happens in peer-to-peer fundraising, an important type of online fundraisers.
3. Increased Rate of Donation
Statistics reveal that online donors are more likely to donate as compared to when donors are contacted through mail solicitation. In fact, just internet ad campaigns are often found to be generating a higher return on investment than the traditional methods. This is largely made possible by the busy donors. Busy donors are those who operate quite efficiently when they use the internet or the online medium. They are also more prone to donating to noble causes than the non-internet donors. Also, the younger generation is very comfortable being online. They do understand the concept of online crowdfunding and are driven towards contributing for a cause.
When people are giving something, even for charity or causes, they anticipate something in return. Now, in this case, it is receiving public acknowledgement for a donation made. The more the acknowledgement, the higher would be the rate of donation. Thanks to online fundraisers, a sincerely wide-scale acknowledgement is possible within a rather short span of time.
As a nonprofit, you can offer progress reports on particular donations made. Consequently, donors will be motivated to continue supporting that particular cause. Another good way is to showcase the names of the biggest donors on the platform’s hall of fame. Many such options are there to generate acknowledgement for your donors.
4. Ease of Access
Setting up a fundraising platform is simple and straightforward. Online fundraising puts forth fewer barriers to entry when compared to conventional or traditional fundraising. Organizations can use any social media platform like Facebook, Twitter or Instagram for the purpose. With these, they can drive enormous traffic to their crowdfunding website provided that the campaigns are executed well.
Thus, compared to conventional direct mail or in-person solicitation, online funding can reach a wider target market. In addition, donors are likely to search and find out about your online fundraising platform this way. Online donations are safe, reliable, quick and essentially convenient. Organizations can save time as they are not required to go through the elaborate process of writing checks and mailing them. They can simply fill in the information and get it sent with just the click of a button. Ease of access is a significant benefit of online fundraising.
Online fundraising is useful in many ways. Along with all the benefits mentioned here, it expands the donor reach within a short period of time and enables improvement in donor relations without much effort.