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Faith Leaders 5min read

Why Online Donation Services for Nonprofits are so Popular

The World Wide Web opened to the public in the early 1990s. Now, people use it to shop, research, and communicate. They also use the internet to donate money to their favorite charities.

How much? In 2020 alone:

  • Online donations increased 32%
  • Monthly gifts grew 25%
  • Another fun fact: Nonprofit mobile audiences expanded by 26%

Today’s nonprofits and churches use the internet to raise funds. Online donation services can help them reach financial goals.

Why are Donors Important to Nonprofits?

For-profit companies sell goods and services to earn money. This helps them operate. But nonprofits and churches don’t have that option. Still, these groups need gifts and donations to operate. They receive those offerings from donors.

Donor gifts can vary. It might be a $5 contribution from a Facebook “birthday” appeal. Or a large corporate donation.

How does online technology help with this? It does two things. It offers convenience to donors. And, it makes it easier for nonprofit organizations to get funds.

How Does My Organization Benefit from Online Donation Platforms?

There are many ways in which nonprofits use online platforms to raise funds. Here are some examples.

Better Tracking

Donation apps connect to platforms. And those platforms help you track all gifts, down to the penny. The platforms also ensure secure transfers to bank accounts. They also create and send thank-you notes and other messages. This outreach helps nonprofits stay in touch with their donor base. The result is potential repeat donations.

Stronger Customization

A quality online donation platform helps you develop specific fundraising messaging and appeals. This means you can develop your own, personal content. Through this, you can explain your mission and purpose to a willing audience.

It also helps you stand out from other nonprofit groups. This is important in a competitive field. The app allows you to develop specific, unique information for your donor base.

More Appeal

Young adults want to support causes. They are very interested in connecting with groups and charities that match their own values.

This population group grew up with the internet. They went online as very young children. These days, most use a smartphone and/or tablet for a variety of purposes. A quality online platform tells them you are familiar with the latest technology. It also makes it more convenient for them to donate.

Does Online Giving Increase Donations?

An image of a finger indicating an upward trend of online donations

Now you know how online platforms can help your nonprofit’s fundraising efforts. You also understand how they can improve outreach. Technology also delivers your purpose and message.

But does this method of giving actually increase donation numbers? The answer is a qualified yes. Read on, to learn why.

More Contribution Options

At one time, contribution options were limited. Donors could give by mail. Or at fundraising events and galas. Today’s technology provides more ways for people to give.

They can use payment or transfer apps. Text messaging and social media are also popular for donations and outreach. One reason for the popularity is convenience. Contributors can donate any time, and from any place.

Online giving can also help churches. The days of the “collection plate” are over, as many people “attend” services online. They might be homebound, or ill. But they still want to participate in all worship aspects.

A quality online donor platform means virtual attendees can take part in giving. They can experience the church-going experience, even from a distance.

Increased Accountability

The internet makes giving more convenient. It also offers immediate information to donors.

Donors can access the group’s purpose. They can find out how the nonprofit benefits others. Also available are financial data, leadership, and other facts. Furthermore, an online platform tells donors how their gifts will be used. As a result, givers feel more comfortable with the nonprofit. It also increases the group’s trustworthiness.

Specially Designated “Giving Days”

There are now special holidays for giving, thanks to the internet. People are urged to give to worthy causes on these dates. In some cases, larger companies and wealthy individuals match contributions.

One such holiday is Giving Tuesday. This takes place during the holiday season and follows Black Friday and Cyber Monday. There are also state and regional holidays that follow this holiday giving practice. These include Give Miami Day, NH Gives, and North Texas Giving Day.

What is the Best Donation Platform for Nonprofits?

Think about the following for an online donation platform.

Software features. You should be able to customize your page and messages to your donors. The platform should also integrate with your company’s technology without any hiccups. This can help you better track gifts.

Ease of use. Your donors and staff should be able to understand and navigate the platform with ease. It should be convenient to use. The platform should also make it easier to upload photos, text, and your logo.

Fees and costs. Some platforms charge monthly subscription fees. Others (such as Givelify), don’t ask for anything upfront. Rather, they’ll take a percentage of the donation received, plus a small extra amount.

Security. Your online donation platform must be secure. You want to protect against breaches and hackers. You need to protect data. Ask about firewalls.

Fund transfers. The donation platform you use should easily transfer donations to your bank account. Transfers should be direct and timely. They should require little or no extra effort. For example, Givelify offers automatic, next-day transfers. The platform takes care of everything.

Bilingual components. Do you have an audience that speaks many languages? You might want to consider different language options. This could broaden your message’s reach. It could also boost gifts from other sources. Givelify provides both English and Spanish options.

The Importance of Online Giving

An online donor platform can help increase contributions. The technology makes giving convenient for your donors. It also helps direct your message. Finally, the technology helps share your mission.

To learn more, sign up for Givelify today, and get set up for mobile donations in just under 5 minutes.

About the Author

Giving Illustration

Luis Orozco is a contributing writer. His passions and expertise are nonprofit fundraising and development. He uses Givelify to support his local church and the social justice causes.

Luis Orozco