Online fundraising is one of the easiest and most popular ways of fundraising and has many advantages compared to traditional fundraising. Many nonprofits are shifting to online fundraising platforms in order to simplify the donation process and accept online donations.
Given below are some benefits of an online fundraising platform.
1. Cost – Effective
Many people underestimate how much it costs to host a fundraising event. You have to spend money on sponsorship mails, printing and stationery along with banquet charges, management expenses, legal charges and staff payments.
It can be quite expensive, especially for small nonprofits who don’t have the sufficient funds for hosting a physical fundraising event. Instead of printing campaigns which can cost you thousands of dollars, fundraising platforms make use of email marketing services which are way cheaper than sending physical mail.
While most fundraising platforms charge platform fees, there are some platforms which only charge payment processing fees without any platform fees. Regardless of this, when you compare the cost of physical fundraising events with online fundraising platforms, the latter is way more cost-effective.
2. Ability To Reach A Large Number Of People
There are no physical limitations for online fundraising platforms like physical fundraising events. Anyone from around the world can make a donation or join your mission as long as they have a device with internet access.
Pledges can also be made online easily. A fundraising platform even allows donors to fundraise on the nonprofit’s behalf by setting up individual donation pages which link back to the main fundraising page.
You can also make use of social media and email marketing to keep in touch with your donors.
3. Easy Data Analyzation
You get immediate access to your data with the help of data analytics tools since online fundraising platforms automate the donation process.
Nonprofits can easily track their funds and get real time reports. This eliminates any possibility of error. You can review statistics, data and other details to see whether your fundraising campaign is performing the way you want it to.
There is no need to waste time on manually entering data into spreadsheets. This also reduces a lot of organizational and overhead costs which are generally associated with physical fundraising events.
4. Increased Donations
Statistics show that people are more likely to make donations online instead of sending them through mail.
Online fundraising methods like peer to peer fundraising and crowdfunding generate better results than conventional methods of fundraising. Furthermore, online donations can be made faster and easier compared to physical donations.
People who are busy are more likely to donate to nonprofits if they have an online donation option. It is important that the fundraising platform website is responsive and the donation process is simple so that it doesn’t take much of the donor’s time.
5. Variety Of Features
Fundraising platforms come with many features which you can use to create opportunities for donor interaction by holding virtual events, live auctions along with peer to peer fundraising and crowdfunding.
Not all fundraising platforms are the same. Nonprofits can choose their fundraising platform according to the features they want. For example nonprofits who want to hold online events and auctions might choose a different fundraising platform from a nonprofit who wants a simple platform just to accept online donations.
Small and new nonprofits can make use of free fundraising platforms which don’t charge platform fees.
If your nonprofit wants to raise funds for an important cause, choose a good fundraising platform which is within its budget. Do thorough research on the best fundraising platforms before you choose one.