What is Online Fundraising? A Digital Way Nonprofits Can Increase Support

Online fundraising has become a popular option for organizations since it allows access to a wider donor base that can support their mission regardless of location. In this article, we will cover online fundraising methods, tools, and some quick tips to get your nonprofit started!

How Do Organizations Collect Donations Online?

Online fundraising opens the door to a range of creative ways to connect with potential donors. Some popular touchpoints include:

• Website donation pages: A supporter’s first touchpoint with an organization is often its website. And a well-designed donation page is key. Make sure it’s visually appealing, easy to navigate, and optimized for both desktop and mobile users.

• Social media: Platforms like Facebook, Instagram, and TikTok have the unique power to reach people who might not have heard of an organization’s cause. A single campaign, post, or story has the potential to go viral, bringing awareness to a cause or organization.

• Crowdfunding and peer-to-peer fundraising: Crowdfunding allows organizations to collect a high volume of small donations through third-party-hosted campaigns. Peer-to-peer (P2P) fundraising encourages existing supporters to set up their own pages, gathering donations from their personal networks on behalf of the organization.

• Email campaigns: Email remains a cornerstone of online fundraising. Regular updates, personalized appeals, and segmented lists can help build lasting relationships with donors and drive consistent contributions.

• Text-to-give: This method allows donors to contribute directly from their phones. Organizations collect numbers through opt-ins or promote text keywords on social media and at events. It’s an easy way to engage supporters instantly and combine with other campaign types.

• Virtual events: Online musical performances, virtual auctions, and live-streamed events allow organizations to engage donors remotely. These events can incorporate donation prompts, live chats, and real-time impact updates, creating an interactive experience for supporters.

Each method offers unique ways to reach donors where they already spend their time online.

Want to learn which methods are helping organizations the most? Read Blackbaud’s recent report from The Resilient Nonprofit that highlights fundraising giving trends and outcomes.

Five Benefits of Online Fundraising—Other Than Convenience

The most well known advantage of online fundraising is that it’s convenient for donors to give since they can do it anywhere at any time. It’s also how donors prefer to support. In fact, 70% of donors prefer online giving as their donation modality. But here are five more reasons to consider increasing online fundraising efforts.

Lower Campaign Costs

Online fundraising typically has lower overhead costs compared to in-person events. Digital campaigns eliminate expenses related to venues, printed materials, and travel, enabling nonprofits to allocate more funds directly to their cause. An exception would be digital paid ad campaigns, where expenses run high based on the organization’s ad budget.

Real-Time Tracking and Analytics

Online platforms often provide real-time insights into donation progress, engagement, and donor demographics. Organizations can use this data to adjust their strategies in real-time, optimizing campaigns for better results.

Recurring Donation Options

Many online platforms, such as Blackbaud’s Donation Forms, allow donors to set up recurring gifts, turning one-time contributors into ongoing supporters, thus improving donor retention. Recurring donations can provide nonprofits with steady income, improving long-term financial stability.

Cross-Platform Opportunities

Online fundraising offers the ability to engage and re-engage supporters across various platforms, maximizing reach and interaction. Campaigns can start on a dedicated fundraising page, be shared on social media, and followed up through email or text, creating multiple touchpoints for supporters.

Connection with Younger Audiences

Millennials and Gen Z are highly receptive to digital giving and are more likely to engage with causes they see online. By adopting online fundraising as a key path to generating financial support, organizations can appeal to a younger, tech-savvy donor base that prefers to support causes digitally. But don’t think that younger audiences are the only ones donating online! While younger donors do make up a large portion of those giving via online methods, all generations of supporters use online donation forms to contribute to their favorite charitable causes!

Online Fundraising Tools and Software

There are many tools available to make fundraising more effective and efficient for nonprofits. Consider the following resources to see what might be a good fit for your organization.

• Crowdfunding and peer-to-peer platforms: Enable nonprofits to share their mission, set goals, and encourage donations through community-driven campaigns on third-party sites or supporters’ social media.
• Donor management systems (DMS)/constituent relationship management systems (CRM): Tools like Blackbaud Raiser’s Edge NXT ®  track donor data, segment lists, personalize outreach, improve retention, and so much more.
• Donation processing solutions: Secure payment platforms like Blackbaud Merchant Services™  offer credit, debit, and ACH options, streamlining transactions and securely handling donor data.
• Virtual event platforms: Used for hosting online fundraisers, like webinars or live streams, with features for ticketing, in-event donations, and audience engagement.
• Email marketing tools: Automation tools that help nonprofits send and track personalized messages, keeping donors informed and engaged.
• Matching gift platforms: Software that assists nonprofits in finding corporate matching gift opportunities to potentially double or triple donations.
• Donation pages: Customizable donation forms allow nonprofits to capture data and offer one-time or recurring gift options directly on their website.

Get Creative: Online Fundraising Campaign Ideas

Peer-to-Peer Fundraising Challenge

This is a classic online fundraising route for nonprofits! Not only does P2P fundraising garner potential new supporters, but it is also a great opportunity to recognize those who are regular advocates for your organization. Invite supporters to create their own fundraising pages to leverage personal followers, friends, and family. Set a collective goal and encourage friendly competition by featuring a leaderboard or highlighting top donor pages.

Matching Gift Campaign

Partner with a donor or corporate sponsor to match contributions dollar-for-dollar up to a certain amount. Promote the campaign as a limited-time opportunity to double the impact of every donation, creating urgency and motivating more people to give!

Behind-the-Scenes

What unique aspects of your organization’s work do supporters rarely get to see? Host a virtual fundraising event that offers a behind-the-scenes look into your operations! Whether it’s showing your team in action or sharing exclusive insights, a virtual tour lets supporters connect with your mission in an authentic and exciting way.  Just ensure that the experience feels valuable and matches the level of their donation.

Social Media Challenges

There is no shortage of fun social media challenges (think the ALS bucket challenge) to engage supporters and promote awareness and giving. Consider utilizing your Facebook, Instagram, and TikTok with fun challenges, hashtags, and the like to drive interest in your cause.

Virtual Auction

Host an online auction where people can bid on donated items, experiences, or services. This can include anything from merchandise, art pieces, restaurant meals, golf outings, and gift cards. Promote the auction on social media and offer bidding updates to keep interest high.

Virtual Walk or Run

Don’t have the space to host an in-person run? Host a virtual walkathon or race that people can join from anywhere! Participants register, track their own distance or time, and can share updates on social media. Create fundraising incentives for participants to reach different milestones and encourage friendly competition. Double down by using peer-to-peer fundraising pages to drive revenue.

Live Stream Fundraising Event

Host a live event like a Q&A, concert, or auction and encourage viewers to donate during the stream. Platforms like Facebook Live, Instagram Live, or YouTube are great for engaging directly with your audience in real time, and you can set donation goals or match donations live for added engagement.

Google Ads

Forget billboards: tap into the power of Google Ads! Through the Google Ad Grant Program, nonprofits can raise funds and awareness for their causes, attract donors, and recruit volunteers through paid ads in the world’s most popular search engine.

Text-to-Give Campaign

Set up a text-to-give option, allowing supporters to easily donate via text message. Make sure to share the campaign number widely, encouraging people to contribute with a quick and easy text donation. This works well in conjunction with other campaigns, like live streaming events.

E-card Campaign

Digital e-cards are a perfect way to create engaging, personalized communication campaigns with donors for special circumstances such as donation requests, holiday greetings,  year-end giving, event invitations, product offerings, thank you’s, and more. E-cards can add meaning to a donation and help supporters feel more valued in the process.

Virtual Class or Workshop

Connect supporters more deeply to your organization and each other by hosting a relevant online class or workshop. This fee-based event can attract new and old supporters and create more engagement and interest in the work of an organization.

Virtual Raffle

Hold an online raffle with enticing prizes, like gift cards, experiences, or unique items donated by partners. Every donation counts as an entry, with the option for larger donations to receive additional entries. Publicize the raffle through email and social media to maximize reach.

Merchandise Sales

Everyone loves to rep their favorite sports team, city, or National Park,. Make your charitable organization one of them. Offer clothing, gift items, and more via an online store easily linked to your website and your social media pages.

Email Giving Chain

Kick off a giving chain by asking supporters to donate a small amount and then forward the message or tag others to do the same. This creates a ripple effect, helping the campaign spread organically and encouraging small donations from a wide base.

Themed Giving Days

Choose a specific day with a theme related to your cause (think Giving Tuesday but customized to your mission) and encourage donations to celebrate the event. The focused theme can attract both new and existing donors who connect with your cause.

Have an idea in mind, but want to make sure you execute it properly? Check out our seven tips for fundraising success.

Online Fundraising Success Story: The ALS Ice Bucket Challenge

After exploring many creative ideas, we wanted to quickly mention one of the most famous online fundraising campaigns as a reminder that even fun campaign ideas can still make a serious impact.

You might remember The ALS Ice Bucket Challenge. It was a viral social media campaign in 2014 aimed at raising awareness and funds for amyotrophic lateral sclerosis (ALS), also known as Lou Gehrig’s disease.

Participants poured a bucket of ice water over themselves, recorded it on video, posted it to their social media platforms, and challenged others to do the same or donate to ALS research. The campaign quickly gained traction, attracting participation from celebrities, athletes, and public figures.

These videos received over 10 billion views and ultimately raised over $115 million for the ALS Association, significantly boosting global awareness of the disease and funding new research initiatives to find a cure.

This type of widespread impact is only made possible with an online community.

So, How Can Blackbaud Help?

Investing in the right fundraising software can change the game for your nonprofit and Blackbaud is here to help. As the world’s leader in fundraising software, Blackbaud can integrate all of the tools organizations need to roll out efficient, effective, and successful fundraising strategies. Request a demo here to get started.