Online fundraising CAN be effective, but it’s a lot more complicated than it appears.
It’s more than just posting a page then waiting for people to show up and click the “Donate Now” button.
To successfully raise money online, you need a compelling reason for someone to give (“help us provide scholarships to 5 kids who otherwise couldn’t go to school”), a tool to raise money, and a plan for driving traffic to your site.
Probably the most confusing part is choosing the tool.
It’s like walking into Home Depot to buy a hammer. Who knew there’s a whole aisle of hammers?
To make it simpler, I’m sharing some of the tools that I and some of my clients have used (and liked).
Let’s start with online donation processing.
Online donation processing
Before you can raise money online, you need a mechanism to accept the donation and deposit the money into your bank account.
None are 100% free – they all cost something, though that amount varies.
Paypal is probably the most common and it works, though it may not have all the bells and whistles of some other sites. It’s easy to get started with and you can customize to a point (this is where I’m not a fan).
Bloomerang is a powerful donor-tracking software and offers an online giving option, too. I love that it puts everything in ONE place, all fully integrated. It lets you choose from Stripe or Moolah to facilitate online transactions, monthly gifts, or EFT donations.
Kindful is another powerful donor-tracking software that facilitates online giving as a built-in feature. You can customize your donation pages so they look like part of your website (makes the donor experience smooth!) and there’s a peer-to-peer fundraising tool, too.
FirstGiving empowers individuals to raise money for causes easily and provides non-profits with fundraising campaign management tools. I’ve used FirstGiving to raise money through team-style fundraising and it works well.
FirstGiving provides online peer-to-peer fundraising tools to manage events, grassroots campaigns, direct donations and donor communications. Non-profits can sign up for accounts and receive donations weekly, less a 7.5% fee per donation (includes 2.5% credit card processing fee). Non-profits can also let their supporters know that anyone can create fundraising pages on behalf of the organization.
For donors, the site provides individuals with the tools to raise money or donate to a cause. Donors can choose to cover the fees normally passed on as a transaction fee to the non-profit.
Qgiv provides non-profits with branded donation pages, mobile and text-giving capabilities, plus options for on-site donations. Donors can make donations, set up recurring payments, register for events or make tributes to loved ones. Non-profits can create and customize branded donation and event registration pages. Qgiv’s pages are responsive for mobile device access, and non-profits can set up text giving, detailed reports, recurring donations and take on-site donations using Qgiv’s Virtual Terminal. Qgiv offers a month-to-month service with no monthly fee and no annual commitment. Get started for as little as 3.95% plus $0.30 per transaction.
DonorsChoose is a cool platform for classrooms where teachers post a project and people commit to giving. When a project reaches its funding goal, the company purchases all related classroom materials and ships the items to the school. They close the loop by providing photos of each project taking place with a cost report showing how donations were spent. Donors can donate to the classroom project of their choice and then invite social network friends, fans and followers to join their efforts. Projects less than $400 have the best chance of being funded.
Raising money through crowdfunding has become popular and it can work if you have lots of connections to leverage. It’s definitely not a “build it and they will come” model.
Technically, crowdfunding is raising money in small amounts from lots of people to fund your project.
You’ve probably heard of companies or bands raising funds for a project on Kickstarter or Indiegogo, but those aren’t really meant for nonprofit fundraising.
There are lots of crowdfunding platforms out there (I just mentioned a couple). Here are some of our favorites.
GiveGab. Our client Draft Gratitude has consistently used GiveGab to raise money for their projects. The giving pages are easy to set up and look good. The tool is robust and has lots of features to help make fundraising easier. The fee is $59/month plus a 4% processing fee.
GivingGrid. One of our favorites, particularly for animal rescue, is GivingGrid. The tool is easy to use (I’ve set up a campaign myself), free to the nonprofit, and fun for the user because when they give, they get to upload a photo into a box on the grid. Here’s a sample GivingGrid from the Humane Society of Southeast Missouri:
Tips for Best Practice
Of course, online fundraising is still donor-based fundraising. You need a message that resonates with people and touches their hearts (not just “please give”).
A thank-you page is an awesome idea and gives the donor immediate gratitude for their donation. Adding a warm thank-you video on this page will make the donor feel really good about giving, and that’s what this is all about.
Finally, make sure the thank-you email/receipt is warm and personalized (and you can include video there, too). Your donor will be super clear that their gift was received and that you appreciate it.
Integrate the donations with your donor-tracking software so you can keep up with donation history (this will make your life EASIER later!).
The biggest thing you need to know about online fundraising campaigns is that they’re like a party and you’re the host. It’s up to you to keep the snacks and entertainment coming so that people don’t get bored and leave. That means you have to update people, tell more stories, and give them a reason to care & share.
Follow these tips and you’ll be on your way to strong donor relationships and more future online giving!