Why Fiscal Sponsors Need to Support Online Fundraising for Projects
While fiscal sponsorship organizations don’t usually make decisions for their projects directly, they need to provide critical support and oversight for those fledgling nonprofits’ operations. Offering effective tools for fundraising is one of the most important ways sponsors can support the missions of their projects.
The unique nature of online fundraising
Online fundraising must be an area of special focus, due to its increasing use and the many ways in which projects can raise money digitally. Research from M+R, a nonprofit-focused public relations and communications group, found substantial growth in online revenue for nonprofits over the past several years. For complete context, it’s important to recognize that online revenue grew only slightly in 2018, rising just 1% percent. However, that modest increase marks the end of more than a decade of double-digit online revenue growth for nonprofits. By way of comparison, growth in 2017 reached 23%.
For projects just starting out in the nonprofit world, online fundraising is one of the most effective ways to begin receiving the donations that fuel their day-to-day operations and their overall missions. Whether they focus on a local issue or a worldwide concern, projects can use online fundraising to reach supporters no matter where they’re located and provide a variety of convenient options for contributing.
Effective online fundraising options are critical for projects.
Why sponsors need to support online outreach and donations
One of the reasons why online fundraising has proven so valuable for nonprofits is the wide range of avenues for attracting contributions. A digital format facilitates everything from single donations to membership program, events and text-to-give drives, streamlining the giving process to a few clicks and taps of the keyboard on any internet-connected device. When projects have a full range of digital fundraising options at their disposal – even if they don’t use all of them – they have the ability to tailor campaigns and drive overall fundraising efforts.
The inexperience of projects and the stewardship role of sponsors means that a truly successful arrangement for providing online donation tools addresses two foundational concerns:
- Access to a variety of fundraising options.
- Quick, dependable data and analysis that both the project and the sponsor can access for management and oversight purposes.
With the right platform, a strong fiscal sponsorship organization can address these two key considerations successfully. That means fulfilling the most important elements of the agreement between sponsors and projects, namely providing the necessary resources for success and overseeing their actions without regular or active interference into their operations.
Addressing concerns that are so specific to the relationship between fiscal sponsors and their projects requires specialized tools designed specifically for such situations. With a project management platform designed precisely with the needs of both types of organizations in mind, it’s that much easier to offer projects access to the fundraising tools they need and oversee that aspect of operations.
To learn more about how WeDidIt can support your efforts to nurture and grow your projects, get in touch with Allegiance today.