Online Giving is the Future of Fundraising

Accepting echecks for online giving is a cost effective method of accepting donations on line. Electronic check payment processing costs are much less than credit cards.

Therefore, a charity nets more money with echeck donations. Americans donate more than $300 billion dollars a year and the number of charaties using the internet for fund-raising is steadily increasing. Direct mail and telemarketing have become less effective and more expensive each year. The web has created a new channel for nonprofits with limited budgets to raise money.

Non-profit giving has become more personal than ever, thanks to the internet. Kiva.org, is a person-to-person microfinance site, whereby donors to become direct lenders to specific entrepreneurs in the developing world. UniversalGiving.org helps donors to contribute to causes in countries of their choice.

Global giving is also popular. A recent study by Campbell & Company of generational giving reports that people born after 1981 care about causes that make the world a better place, while those born earlier tend to focus on giving help closer to home. Social networking sites such as Facebook and MySpace are being used for fundraising. A “Causes” application on Facebook gives members the ability to recruit their friends to donate to charities.

In keeping with standard usage of the internet, 75% of people who give research online before they give, People also search for causes they like and how much of the donation actually goes to the recipients.

There are even ways to donate on the web without spending any money. GoodSearch.com allows donors to give to their favorite charities every time they conduct an online search on Yahoo which donates a penny per search. GoodShop.com donates a percentage of purchase made from more than 700 retailers.

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