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Online Fundraising for Nonprofit Organizations: A Primer By Michael Stein   The following article is an excerpt. To read the full version, log on to www.michaelstein.net. There you will find a number of articles addressing the Internet needs of nonprofits. See "Online Fundraising Resources" for information on Michael Stein. The boom in online fundraising services on the Internet today offers some promising opportunities for nonprofits to do outreach and build their Internet presence. Online fundraising should be considered an essential component of your nonprofit's Internet presence. By using the online medium you are reaching out to new audiences and constituencies, introducing them to your issues and campaigns, and asking them to support you. Online fundraising should be closely coordinated with your organization's strategic plan and your overall fundraising message. It is not enough to simply put up a "donate now" button and hope for contributions to come in. Online fundraising yields few results if it is unplanned and not part of an overall fundraising strategy. When working on online fundraising, Internet staff should work closely with the organization's fundraising and development staff to coordinate efforts. Charity Portals The first strategy I recommend is that you get your nonprofit listed with all the charity portals on the Web today. Charity portals are Web sites that offer a directory of nonprofits. Their job is to attract lots of traffic to their site and encourage visitors to make contributions to the nonprofits listed. Often your listing is free, and the portal accepts secure credit card contributions on your behalf. Some charge a fee when you get a contribution, but usually there are no monthly charges. These portals make their money either from advertising on their site or through the fees they charge the nonprofit. Examples of charity portals include www.Helping.org, www.Charitableway.com, www.4charity.com, www.GreaterGood.com, www.AllCharities.com, www.eGrants.org, and www.GiveForChange.com. Individuals interested in donating to charities often use charity portals to help them with their research, so it's important that you be listed and that your listing be up-to-date. Donate Button and Donor Management The second strategy that I recommend is that you have a DONATE button on your own Web site. You can either use the donation service of one of the charity portals mentioned above, or you can contract with a vendor to set one up for you. Using a charity portal is by far an easier and cheaper process, but you'll have less control over the branding of the pages and the various administrative and notification tools that accompany the service. Online donor relationship management services have evolved that are typically more costly, but they'll build a fully customized system that meets your exact needs. Examples of online donor relationship management services are www.seeUthere.com , www.Entango.com, www.LocalVoice.com, www.DonorNet.com, and www.Acteva.com. Charity Malls Your third strategy might be to work with a charity mall, which is an online fundraising service that returns a commission to your organization when your members or supporters make online shopping purchases through their network of online stores. Not all nonprofits are comfortable working with charity malls. Some feel that it's akin to a form of advertising or corporate sponsorship or that it supports consumerism, which may not mix well with your organization's mission. Your staff and/or Board should debate the issue and develop a policy. Examples of charity malls are www.iGive.com, www.GreaterGood.com, www.4charity.com, www.SchoolPop.com, www.iReachOut.com, and www.ShopForChange.com. Ultimately, no matter what strategy you adopt, it's important to remember that online fundraising is another important way to build relationships with your members, potential members, and constituents.
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Fundraising & Grants.... Online Fundraising for Nonprofits (November, 2005) IT Fundraising for Nonprofits (March, 2005) Evaluating Donor Management Software (May, 2004) Grantwriting for Technology Workshop Opens UWNYC's 2003 Fall Tech Event Season (October, 2003) Grant Writing for Dummies: New Software to Help Ease the Pain (April, 2002) Online Fundraising for Nonprofit Organizations: A Primer (January, 2001) Online Fundraising Resources (January, 2001) Globix Technology Grants help Nonprofits Realize Operating Efficiencies (November, 2000) New Web Site Facilitates Quality Program and Evaluation Planning (March, 2000) Researching High-Tech Corporation Philanthropy (March, 2000) Online Database Connects Computer Donors and Recipients (December, 1999) Other Articles of Interest.... Nonprofits Benefit from ePayments Technology (April, 2001) The Nonprofit Web Site: Tips for Attracting and Retaining Visitors (April, 2001) Covering Web Site Costs and Online Fund Development (January, 2001) TechSoup - Free Lunch for Tech-Hungry Nonprofits (July, 2000) Developing a Technology Plan: Key to Getting Needed Funds (October, 1999) Distance Learning & Training can be Low-Key, Low-Tech, & Low-Budget (October, 1999) Stretch your Technology Budget - Take Advantage of Product Donations (June, 1999) FAQs and Beyond: Free Eduation and Training for Nonprofits, Part II (December, 1998) The Road to Resources is Paved with Information (December, 1998) |
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