Crowdfunding a nonprofit fundraising trend to watch
Many 501(c)(3) organizations have likely discovered that many of their constituents are savvy when it comes to the use of technology. Today, people use their smartphones, tablets and computers to complete a wide range of tasks, including making a donation to their favorite charity. As such, nonprofit fundraising is the latest activity that has gone digital.
A number of organizations have begun optimizing their websites in a way that allows people to make contributions online. The speed and convenience of this action is something that many constituents enjoy and nonprofit fundraising efforts can be made considerably easier simply by using this strategy.
As 2014 comes to a close, charitable organizations need to stay updated on the latest trends that will help them develop campaigns that will entice current supporters to continue giving, while also working to bring new constituents into the mix.
The importance of crowdfunding
A large number of nonprofits are in the process of developing crowdfunding strategies to increase contributions. Not only does this method attract a wide range of donors, but it can also be used to disseminate information about causes that constituents will be encouraged to support financially.
“Charities are seeing a twofold benefit from crowdfunding,” Bill Clerico, CEO of crowdfunding payment service provider WePay, told Business News Daily. “First, it’s proven to be an extremely efficient way to solicit and manage donations compared with other methods. Second, the additional social and viral potentials of crowdfunding campaigns can give smaller charities a cost-effective way to create awareness for their cause.”
In a separate report from Social Velocity, the overall growth and popularity of crowdfunding was highlighted as a trend to watch in 2015. Its emergence as an effective way to raise capital cannot be overlooked. Given the fact that people are already used to conducting financial transactions online, including making donations, nonprofit fundraising can be significantly bolstered through the use of crowdfunding strategies.
“Crowdfunding is here to stay. By 2025, the global crowdfunding market potential could be between $90 billion and $96 billion,” Clerico told Business News Daily, citing data from a World Bank study.
Given the enormous sums of money that is expected to flow through crowdfunding platforms, it makes sense for 501(c)(3) organizations to capitalize on this by working to draw some of those funds into their own coffers. While nonprofit fundraising as a whole is still rife with challenges, leveraging technology is certainly a way to make receiving donations an easier and more streamlined process.