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The death of cash is something we’ve all noticed in our everyday lives. Last year, the British Retail Consortium found that less than one in five transactions were paid for in this way. And while cash donations will likely still have a role to play for years to come, good causes are putting most of their effort into digital fundraising.
But before we get to the importance of digital fundraising, let’s start from the beginning. With a definition.
What is digital fundraising?
Digital fundraising is the process of raising money for charity online. This can be done by taking donations via a website, having digital fundraising pages for people to donate to, as well as running virtual events or giving people the opportunity to register for an event online.
Put simply, digital fundraising can be used to describe any fundraising activity for charities that is done online rather than in person.
Why is digital fundraising important?
More than ever, day to day tasks are carried out on people’s devices. Whether that’s for work, shopping or even watching films or TV shows. The charity sector is no different in that regard. While street or door to door fundraising is still a tactic used by some charities, the death of cash can make that challenging. Lots of us don’t carry money with us when we’re out and about and some may feel uneasy making a contactless payment to a stranger on the street.
By contrast, our Donor Pulse research shows us that 61% of all donations are done online. And roughly half do it directly through a charity’s website. It’s great to see that so many charities are already operating this way, as it really is pivotal for keeping up with the times and maximising fundraising.
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What are the benefits of digital fundraising?
While raising funds is obviously the main goal behind digital fundraising, it’s not the only benefit to operating this way.
#1 Ownership of data
Charities that take online donations through their own website will get a comprehensive overview of how their supporters are interacting with them. They can then store all that data in one dashboard in their chosen CRM, making it easier to plan, manage and analyse campaigns. Data empowers good causes to make informed decisions and tailor communications in a way that encourages repeat giving.
#2 Increasing reach
Fundraising in person takes plenty of time, effort and potentially significant resources too; whether that’s staff costs, direct mails or event activations. It also has a limit geographically. A charity’s website is always on and accessible – plus all the information a potential donor could need is there to help make a compelling case for a donation. It’s efficient, both in terms of effort and return on investment.
#3 Improving the supporter experience
Stopping someone in the street or knocking on their door asking them for a donation can be an unwanted experience. It can also be inconsistent depending on who is making the ask. The ability to register people for events, provide fundraising pages and take donations online through a website means good causes can create a smooth and consistent supporter journey. It also means donors can give at a time that suits them. If all aspects of digital fundraising are integrated into a charity website, it makes it easier to provide a great supporter experience from start to finish.
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Futureproofing fundraising
While there will always be a place for in-person fundraising, offering the ability to sign up for events, fundraise and donate online is crucial for charities to ensure they cater to everyone. And as we look to future generations, the reliance on devices to make donations will only increase. 57% of under 45s say they gave this way according to our research.
Online donations taken directly through a charity website are also found to be worth 24% more than those that redirect to a third party platform, showing that digital fundraising tech that is branded and built into the charity website is better trusted and drives better results.
You can learn more about Enthuse’s charity first approach to digital fundraising here.