Online giving is particularly cost-effective for charities. While it can cost $1.25 to raise a dollar from a new donor through direct mail and more than 63 cents through telemarketing, the cost per dollar of raising money online can be as little as 5 cents. (Sources: Fund-Raising Cost Effectiveness, by James Greenfield; Cost-Effectiveness of Nonprofit Telemarketing Campaigns, by Keating, Parsons and Roberts; and Network for Good.)
Online giving is important because of who is giving online: younger, more generous donors. Network for Good's study found that online givers are young (averaging 38 to 39 years old) and generous, giving several times more than offline donors on average. Network for Good's average gift size over the past five years has been $155.
If you're a nonprofit:
Get online now. It's cost-effective and efficient, and it allows you to reach a whole new generation of donors.
Ask for recurring gifts. Online givers are impulsive and give most often at times of crisis and at year-end, with little activity in between. They also may not like solicitation -- 20 percent of Network for Good's donors ask to be anonymous. That means it's important to ask for steady support and not just a one-time gift. Consider offering recurring giving as an option in the online donation checkout process and emphasize to donors its value to you.
Keep it simple. Online givers are in a hurry. They want to help quickly, so text-heavy appeals are not advisable. Leave the details to thank-you notes, when nonprofits can expound on the impact of donor gifts.
Use the long tail. Find people likely to support you where they are already congregating and seeking information online. Be sure your charity is listed in giving portals, accessible via search engines, and visible to passionate communities on social networking sites, blogs, etc.
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