In a long and slow conversation, Eric Pratum says whether you realise or not almost every business(brand/nonprofit) is an online business. “They might not have a website but they will have a Facebook page. They might not think that they were doing business online but they are online already. Like I said earlier online fundraising is anything that happens online and has an impact on fundraising.”
In a recent LinkedIn post-Justin Wheeler, CEO of Funraise and nonprofit tech evangelist listed down four reasons why nonprofits can’t ignore online fundraising.
If you don't have online donors, you are being lazy and stubborn. If you don't have online donors, your donor base is not diverse enough. Too many nonprofits rely on 20% of their donors to drive 80% of their revenue. This is a recipe for disaster.
According to the latest 2020 Global Trends in Giving Report, more than 50% of the participants opted for online donations.
55% of donors worldwide prefer to give online with a credit or debit card. 12% prefer to give by bank/wire transfer, 10% by direct/post mail, 10% via PayPal, 8% in cash, 2% via a digital wallet, 2% by text-to-give, and 1% by mobile money.
The comprehensive report by Funraise is based on 13,468 donors and 1,817 non-donors worldwide. Talking specifically about Asia’s (28 countries and 1998 donors) giving trends, people prefer to give online with a credit or debit card. But at the same time cash(13%) is also the most preferred way.
52% of donors in Asia prefer to give online with a credit or debit card, up from 51% in 2018. 13% prefer bank/wire transfer, up from 9% in 2018. 8% prefer PayPal, down from 13% in 2018.
Social media and email
Donors prefer social media and email as communication channels and also the means to get them for future donations. The report states that 32% of donors in Asia say that social media is the communication tool that most inspires them to give. Email(22%) and Website(20%) are subsequent preferred communication tools for Asians.
The ones who have been inspired to give by social media have shown support for Facebook and Instagram fundraising tools. Though nascent both the platforms are growing in Asia. This isn’t a surprise considering Facebook’s stronghold in Asia and the significant push of the fundraising tools in a COVID-19 world.
In fact, the Facebook family holds all the top preferred social media sites for giving by Asian donors. The trust for giving to these platforms also show a positive trend in the near future.
11% donate through Facebook Fundraising Tools. Of those, 86% say they are likely to give through Facebook Fundraising Tools again. 9% donate through Instagram Fundraising Tools. Of those, 83% say they are likely to give through Instagram Fundraising Tools again.
Email plays a significant role when it comes to recurring donations.
The report shares that 49% are enrolled in a recurring giving program, of which 81% give monthly.
It is a no-brainer that effective nonprofit communication strategies build donor confidence. The report highlights the same: 41% of donors prefer regular email communication and 31% regular social media communication method most likely to inspire repeat donations:
Of those inspired to give by email, share that 36% of nonprofit should email updates quarterly and 33% monthly.
Interestingly 93% of donors in Asia say that NGOs must invest financial resources in digital communications in order to stay relevant.
Globally this is common feedback from donors but at the same time, nonprofits don’t agree. 82% say that NGOs effectively keep them updated on their programs.
Communication is the challenge and also the key to success. Depends on how you look at it.