Virtual donations are a hot topic these days. With many charities and non-profit organizations turning to online giving, it’s no surprise that people want to know more about the advantages of online donations. Virtual donations can be made by credit card or electronic funds transfer. We’ll discuss some of the benefits that make them such an attractive option for charitable organizations and donors alike.
How Effective Is Online Fundraising?
Virtual donations are a more effective way to raise money for your charity. One study found that online fundraising campaigns raised an average of 26% more, and another found the success rate was 58%. This is primarily because people who donate through virtual means are much less likely to withdraw their donation (known as “churn”), so there’s a higher probability that they will make multiple contributions over time.
Online donations allow donors and charities alike to see where every penny goes–it’s all laid out in black-and-white on the donor side. At the same time, nonprofits can look at which projects receive funding or what percentage of funds go into overhead expenses. No one has any questions about how their money is being spent when it’s all public information.
This increased transparency and openness is often a greater motivation for people to give, as well—knowing exactly how their money will be used inspires trust in the organization they’re supporting. Nonprofits can show donors where individual dollars are going on an interactive map or by using icons representing programs like clean water initiatives or disaster relief efforts.
This lets them see at a glance what effects each donation has and feel accomplished about contributing to something meaningful. By doing so, their involvement in the nonprofit’s mission is heightened.
Many people also prefer to give money online because it feels more time-saving, and they don’t have to go out and get cash for a check or mail anything in. It can be an immediate response when someone sees something that touches them—and instant gratification might make someone feel better about donating than if they had to wait until their next paycheck cleared.
With the right tools, it can be easy to give a $20 donation on the way home from work or while out and about with friends. Aside from donation websites, tools like Aplos can help streamline the process, making it easier for people to get involved in their favorite cause. More and more nonprofits are using this to collect donations and help people easily donate.
Another benefit of donating a virtual currency is that it can be used for things other than just giving money, like time or skills. For example, someone may use their donation as computer expertise if they don’t have any themselves. The uses are endless. With all these benefits combined, there’s no excuse not to make your next gift online.
Though physical donations also have their place in philanthropy, some people still prefer giving money that way, too. But for those who would rather not wait for the mail, this is an alternative option worth considering. Plus, the benefits are endless: from saving time to benefiting the environment, donating virtual currency is worth trying.
What Are the Benefits Of Online Donations?
Here’s a detailed breakdown of online donation benefits. Most nonprofit organizations choose these tools as efficient, convenient, and cost less.
- Convenience and Ease
First of all, online donations are much easier to process than in-person ones. More often than not, you will find organizations handling just a few types of currencies instead of dozens or even hundreds with physical cash transactions.
This way, they can save time by using automated teller machines or ATMs instead of counting money manually, which might be time-consuming and tedious work on their end.
Secondly, these tools are also cost-effective. For example, the ‘Text to Give’ feature enables people who cannot give their time but do have access to text messaging on their mobile phones to donate money. This way, they can raise funds without spending any extra cash on personnel or anyone else involved in the process of this type of transaction.
- Efficiency and Speed
The essential benefits digital donations offer are efficiency and speed when processing transactions for various organizations. Organizations have chosen online services because they require fewer staff members that might be costly at times, such as during natural disasters where other human resources might not always be available.
Donations are processed in a matter of minutes, hours, or days, and these organizations can then put their resources to use where they might be needed most around the world. The process is also more efficient because donors can donate from wherever they happen to be at any given time with just an Internet connection. This means less overhead processing costs for nonprofit organizations.
- Extended Reach of Nonprofits
Virtual donations offer non-profits the opportunity to reach a wider audience and earn more money than ever before. With virtual gifts, people who cannot give traditional financial donations can contribute in other ways, like donating their time or expertise for volunteer work. A study by Boston Consulting Group found that 46% of online donors said they would not have given at all if it weren’t for an online solicitation.
This means that these organizations can tap into new funding sources from individuals otherwise unwilling due to location, disability, age, or personal circumstances. Plus, with online gifts being so easy and quick, there are fewer overhead costs since no physical goods need to be shipped out, which means charities can put even more resources towards those in need worldwide.
More and more people are taking advantage of the convenience that online giving offers them. They can either make a one-time donation or sign up for regular monthly donations to be taken out automatically from their bank account.