Why You Should Get Into Online Fundraising Now

Fundraising is the process by which an individual or a group makes the effort of collecting contributions to a specific cause.  Back in the day, fundraising was done through events, direct mailing and face-to-face solicitations.  However, with the advent of technology, the Internet and the many tools that we have today, fundraising was elevated to online fundraising.

Online fundraising is rapidly becoming popular these days because almost everyone around the world is hooked up to the Internet.  You can easily set up a website, post a status on a social networking site, upload photos or other graphics, and many more ways to show that you have an announcement that you need to raise money for a certain cause, and watch the donations pour in through your friends, colleagues, family and other people that you may not know from other places around the world who may support your endeavors.

Fundraising online is something that has taken the world by storm.  Charity events and non-profit organizations have taken this route to be able to connect to their patrons and other more people who are aware of their causes to make a contribution.  We have seen many tragedies in various parts of the world and we have all seen various calls to raise money online for them.

There are a few good things about fundraising with the use of the Internet.

Your supporters, donors and patrons can easily become aware of your cause.  They can donate immediately through their online bank accounts or other secure means of transferring money while the information about the cause is still lingering in their minds.

In the same way, the organization who has organized the fundraising effort will almost immediately receive the funds and will also be able to establish immediate communication with the donors to thank them for their efforts.  With this, the funds can also be immediately used for emergency situations, when necessary.

Being able to do online fundraising will also help you to instantly have analysis on the fundraising behavior of your donors and patrons.  You can extract information such as effective marketing strategies, optimal website navigation design to facilitate quick donations, and the best call to action method that will help keep the issue lingering in their awareness.  Having a website to be able to receive your donations and make an announcement will also enable you to centralize all information and data gathering efforts such as names and contact details of the people who have contributed to your cause.  You will need this to be able to show them gratitude for their contributions.

It is highly important that your cause is always genuine and all the funds will go to where you intend them to be.  Be transparent with your actions as an organization or individual who solicits funds from others because this is a good cause for the society and it should never be tainted with any harmful motive.  There are various free online fundraising tools provided by a company, such as Piryx, who can help you with how to raise money online for your heartfelt cause.

Fundraising improving, but gain less than hoped

In addition to getting to know their donors, local organizations that said their fundraising is holding steady or increasing said they’ve been trying to help their donors get to know the charities better.

Easter Seals Arc increased its fundraising in part through a focused endowment campaign, Arc Foundation Executive Director William Andreas said. A small, committed group of donors gave more than $500,000.

And when government support was cut, Easter Seals Arc appealed to its patrons, who in turned stepped up to help to bridge the gap, Andreas said.

If you have some neat, new and exciting visions of the future, donors want to make an impact, he said.

Kay Ostrum, executive director of American Red Cross of Northeast Indiana, said she has optimism for her organization’s fundraising development. But that doesn’t mean it hasn’t been a difficult time.

Holding steady is good, but when the need increases, you really need to grow, Ostrum said. We are going to focus on individual donors and educating the public.

In the local American Red Cross case, that involves more outreach stressing what the organization accomplishes within potential donors own backyards. People donate to Red Cross when there is a major disaster, such as the recent earthquake and tsunami in Japan, she said.

But they don’t always realize the local chapter does its own work, more than just the omnipresent blood drives, and must conduct its own fundraising.

It provides food and shelter to families after floods and tornadoes, and in northeast Indiana, assists families after house fires an average of every three days, Ostrum said.

Focusing on public education has been enlightening; Ostrum has encountered the misconception that the 130-year-old American Red Cross is a government agency.

Despite its success, the chapter has faced shortfalls in some areas. Foundations have taken a major hit, and because the American Red Cross is supported by some foundations, that hurt is passed on in the form of fewer and smaller grants.  And it relies heavily on the fees it takes in for providing training to businesses, such as disaster-preparedness and first aid. As the recession took its toll, many businesses cut back.

The Nonprofit Research Collaborative survey showed smaller organizations – those with expenditures below $1 million – didn't make the same gains or even hold steady as well as larger ones.

ARCH, northeastern Indiana's non-profit historic preservation organization, would be classified as a small organization by those terms.

Executive Director Angie Quinn said her organization suffered from the decrease in grants available last year but managed to keep sponsorships steady for the events it holds to raise money.

That came in part by recognizing many local businesses are hurting, too. Quinn said ARCH asked for smaller amounts of money for sponsorships and also tried to provide the sponsors with greater visibility by including their logos on signs and event paraphernalia.

They feel like they get more from it, she said.

aturner @ jg.net