Online Fundraising

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Sargeant (2008) estimates that around 5 percent of total giving by individuals in the United States is presently done online. Hart (2009) offers a similar estimate for 2008: a total of $ 14.64 billion in the United States and $ 29 billion worldwide donated online. The percentage of income generated for specifi c organizations varies widely, however, because some do little or no fundraising online whereas others have made a significant investment and are beginning to reap the reward. The analysis fi rm Target Analytics, for example, collates data from a number of its clients, including the Alzheimer ’ s Association, Amnesty International, and CARE. They have shown that approximately 9 percent of donors to these organizations give online, accounting for a median of 11 percent of all the revenue raised in 2008 (Target Analytics, 2009). Their data also indicate that the percentage of newly acquired donors who are recruited online (rather than from other media) has grown dramatically in the past four years. In 2004 the percentage of new donors recruited online to these organizations stood at 3 percent of their total; in 2008 it was reported to be 16 percent. The percentage of new revenue accounted for by new online support grew from 6 percent to 27 percent in the same period. In
plain English, the significance of the Internet as a source of revenue is growing rapidly.

The same study also sheds light on the behavior of online donors. They begin their support at much higher levels of giving than donors recruited through other channels, and they give much larger gifts when they renew or reactivate in subsequent years. Target Analytics ’ study data are reproduced. The success of the Internet as a fundraising channel is not surprising but it is relatively new. Charities discovered the opportunities of the
Internet in earnest only following the September 11, 2001, tragedies and the wave of giving that resulted. The fi rst Web site designs for most charities were typically nothing more than an online version of offline materials and content; articles were printed online just as they were offl ine. Some charities even prepared content that matched word - for - word what was distributed in their direct mail campaigns.

These early Web sites refl ected a charitable Internet that sought to talk at people. In the years following September 11, 2001, the online charitable world grew quickly and by mid - decade deployed a wide variety
of interactive strategies. These advanced Web tools and services allowed users to generate content themselves, create communities, and connect with people around the world.

In particular, we examine Web site strategy and how to drive traffi c to nonprofi t sites by employing elements
of an electronic fundraising (e - fundraising) mix, including search engine optimization and online public relations. We begin, however, by exploring the wider topic of electronic philanthropy (e - philanthropy) and how nonprofi ts can use the Internet for much more than just asking for money.


Web Site Strategy
A thorough examination of Web site design is beyond the scope of this text, but there are many excellent books that can provide guidance for an organization looking to create or develop its online presence (see,
for example, Beaird, 2007; McNeil, 2008; Lloyd, 2008; Bates and Massey, 2008). A brief consideration here of Web site strategy is warranted, however, because nonprofi ts need to think through the forms that content can take, the categories of activity they will embrace, and how these elements might enhance or support fundraising. As we shall see, these decisions are pivotal in designing an approach that will build successful relationships and raise funds.


Michael Dell (1999), speaking at the Detroit Economic Club on November 1, 1999, defi ned several principles or concepts necessary for successful Internet businesses. Much of what he suggested is now standard practice and in some cases has been taken much further than he might have imagined. According to Dell, an effective online presence includes the following three key elements, and an organization that is able to integrate all of them into a single strategy will likely succeed online:

  1. Content. Good sites act as a hub for all categories of information on a topic. Thus, nonprofi ts need to bring their information online by posting forms, manuals, documents, briefings, annual reports — in short, anything that might add value for one or more groups of stakeholders.
  2. Commerce. The ultimate goal of a Web presence, as Dell saw it, was to deepen relationships, so from his perspective sites should encourage “ transactions ” in the broadest sense of the term. These could be purchases or donations but could also include any interactions an individual might have with an organization. If sites are to raise funds successfully, they must be “ sticky ” and give people a reason to stay and engage with the nonprofi t and its work.
  3. Community. The final stage is developing an online community. Community can be built through discussions, forums, “ ask the expert ” pages, and blogs, and by leveraging opportunities to engage in or support social networking. The American Cancer Society, for example, has one of the fi nest online communities; it provides information for patients, relatives, survivors, and caregivers. Users can also interact with the organization to fi nd help in their local community, to learn about the cancer experiences of others, and to share their own experiences.

More recently, Sargeant, West, and Jay (2007) have explored empirically those aspects of site design that drive fundraising performance.
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