Online Fundraising – A Major Source of Revenue
Posted on March 24, 2021
Online fundraising is a way through which nonprofit organizations raise money via the internet. It usually involves an online donation page and can include mobile giving or peer-to-peer fundraising, among others.
With an overall growth of 4.1% over the past year in online giving, 2021 has been the 6th consecutive year of growth for nonprofits dealing in online fundraising.
How is Online Fundraising the Major Source of Revenue?
Online Fundraising has its own pros when it comes to becoming the major source of revenue. Let’s discuss the same in detail.
1. Online Fundraising is for All Nonprofit Sizes
Contrary to the popular belief that shares how only bigger organizations have the chance to grow exponentially via online fundraising, it is quite the opposite in reality. Not just this but according to the yearly reports, small, medium, and large organizations grew their online giving by a stellar margin, thus reiterating how fundraising is apt for all nonprofits, whatever be their size. In fact, small organizations showed the greatest increase in online giving.
Because every type of nonprofit has ended up growing through online fundraising, the overall revenue it generates is humongous. No wonder it has fast grown up to be the major source of revenue.
2. Online Fundraising is for All Ages
According to the most recent data, the average donor in the United States is 64 years old and makes 2 charitable gifts a year. We see a shift here as younger donors are now actively engaging with nonprofits that have successfully tapped into online marketing.
Creating a strong online presence is, thus, of the utmost importance for any nonprofit so it can attract a younger, more tech-savvy audience.
Gone are the days when online fundraising used to only connect the supporters with a cause. It has successfully leveled up and now connects a person to another.
For Example, Barbells for Boobs, an organization raising money for breast cancer showcases the pictures and progress of fundraisers on their website. It’s their way of being authentic, thereby driving more funding.
Online fundraising has, therefore, nothing to do with age since anybody can be an active donor. However, it has everything to do with equipping the prospects with the right tools. Once they are empowered in this domain, they will not only support the cause but will also bring more contributors.
For example: When the organization Sing 4 America launched a campaign that was easy to follow, it activated 90% of their fundraising community. That’s the power of devising powerful campaigns. Besides this, 56 was the average age of the contributors that came forward to help.
Because age doesn’t matter here, the number of people who can come forward for the donations increases manifold and so do the contributions. This makes online fundraising a great revenue booster.
3.Online Fundraising is for All Sectors
According to the Giving USA report, all nonprofit subsectors have been witnessing year-over-year growth in online giving.
Most nonprofit subsectors even witnessed a greater increase in online fundraising receipts compared with overall giving.
Whatever be the sector – arts, culture, finance, education, etc. online fundraising works equally well in every domain, with slight fluctuations every now and then.
Some Facts About Online Fundraising
- More than a third of overall charitable giving happens in the last three months of the year, and around 30% of annual online gifts are made in December.
- Average gift sizes increase by as much as 50% in the last few days of the year.
- Female donors are more likely to donate because of social media marketing, while male donors are more likely to give because of email messages.
- Overall online revenue generated from online fundraising increased by 23% over the past year, up from 15%.
- Online donations to environmental and human rights-related missions grew the most, 34% and 37% respectively.
- Online donation pages had an average conversion rate of 8% on mobile devices last year, but the number of transactions completed through mobile devices increased by 50%.
- The number of donations completed through desktop browsers decreased by 10%.
Where Does Bulk of Revenue Come From For Nonprofit Funding Sources?
Nonprofit organizations demand tapping into newer ways of raising revenue every year. This is because they constantly need to try things out to reach their goal while keeping the cause intact.
While the themes on which the organization works varies with each passing year and so do the donors, what doesn’t change much is the source of funding.
4 ways that make online fundraising generate the biggest revenue.
Fees for Service
Whenever the word ‘nonprofit’ is uttered, a picture of donors offering their donations is conjured. However, what most of us fail to realize is that there indeed is a certain amount of income that comes from the fees that they charge for their services or from the sale of products.
Statistics show that the funds garnered from the service fees account for about 48% of the total revenue for nonprofit organizations.
2. Charitable Contributions
There are no two ways about nonprofits receiving funding from myriad sources. But the highest percentage of funding comes from individual charitable contributions.
Giving USA Report 2018 shows that in 2017, the total charitable contributions made in the United States were roughly $410.02 billion, whereby 71 percent of this amount was from individual contributors.
3. Corporate Philanthropy
Corporate philanthropy has become the talk of the town and a crucial aspect of nonprofit organizations. Consequently, these organizations are continuously making corporate partnerships that help in cause-related marketing and sponsorships.
Even companies motivate their employees to make donations. Thus, the nonprofits that connect with some companies are bound to benefit.
4. Government Grants
Nonprofit organizations receive their funds from all government levels, provided their cause is genuine. This results in easy media access, higher education, and public education.
Not only this, the expenses for the programs, events, and workshops that are conducted by the nonprofit organizations are covered by the government, especially when it comes to healthcare and human service.
How Can Your Nonprofit Organization Generate More Revenue?
1. Go Digital. Go Mobile-Friendly
Even though digital marketing is quick. Digital funding takes time. So even if you let yourself dive into the pool of digitalization, you’ll have to give funding some time. Take small steps. Create a website. Drive traffic. Build an email list.
2. Make Online Donations Easy
How? With the right software! You can create a fundraising page for your event attendees upon signup, personalize their pages, customize the CTA options, and more.
This is where iConnectX comes into play. It gives all nonprofits a platform to hold virtual events.
Besides this, when you have the right software, your physical event doesn’t need to be limited by geographical boundaries. You can easily expand participation beyond a city, a state, a nation, and more.
Fundraising software also opens the door for your event to raise “gifts on the go.” A mobile responsive landing page allows a donor to instantly connect with your cause and make a payment.
This can, thus, help increase the revenue of your nonprofit organization by leaps and bounds.
If you’re tempted to try out the industry’s best fundraising software, don’t forget to get in touch with iConnectX through a call or live chat.
We’d love to run you through it.