The Effects of Internet Contributions on Non-profit Organizations

As more of our day to day lives become intertwined with the Internet, the way people spend money is skewing increasingly to online marketplaces. This includes donations to non-profit organizations. According to the Blackbaud Index of Online Giving, a survey of thousands of non-profits of various sizes, online donations have increased steadily since 2008. Even in the lean summer months, small organizations see an average of 5% higher fundraising numbers from online sources compared to the previous year, while medium to large organizations enjoy between 20% and 30% increases.

A Growing Revenue Stream

Online contributions to non-profit organizations have grown by hundreds of millions of dollars every year since 2008. Even in the recession economy, people online have given more and in larger donations with each passing season. The average online donation amount has jumped from $68 in 2008 to $92 in 2010. This resulted in a $500 million increase in donations. As time passes, the Internet is a source of revenue non-profits simply can’t ignore. So, why does Internet-based giving work so well?

Ease of Contribution

Purely electronic giving allows the donor to contribute to an organization with minimal hassle. The donor can give from the comfort of home and on his or her own time. The speed of the contribution process also broadens the appeal of giving. It’s a few simple clicks versus the many steps of mailing a check.<?p>

Donation at the Point of Education

Internet donation systems allow non-profits to solicit contributions at the same time and in the same place as where they raise awareness about their causes. This eliminates the gap between receiving the information that encourages potential donors to contribute and the first opportunity to make a contribution.

The Benefit of Opt-In Marketing

The potential donor who seeks out an organization is far more likely to contribute than the potential donor who is cold-called or approached in person. Internet donation systems are inherently opt-in systems, providing the donor with a sense of agency in the act of contributing.