New report says online fundraising needs more than 'donate now'

Fresource

June 2008

Back to Press coverage

A new report produced by nfpSynergy, suggests many charities overly rely on passive online fundraising tactics like "donate now" buttons that are, in isolation, a decade out of date; failing to proactively engage with habits, interests and lifestyles of the 21st Century donor.

The report highlights a widespread missed opportunity. Although extremely cost-effective - raising an average of around £10 for every £1 spent on direct costs - online fundraising currently has relatively low impact as a portion of total voluntary income, averaging just 2% per charity (compared with 27% from supporter development and retention; and 7% from major donors).

The full research "Passion, persistence & partnership: the secrets of earning more online", is produced by nfpSynergy, working with MissionFish and supported by the Institute of Fundraising.

The report has been published to mark the imminent relaunch of eBay for Charity, which has already raised over £5m for good causes. The new eBay for Charity platform is the result of a 12 month project, and will mean that every eBay user can donate to charity in a couple of clicks whenever they sell on eBay.

The report highlights a widespread missed opportunity. Although extremely cost-effective - raising an average of around £10 for every £1 spent on direct costs - online fundraising currently has relatively low impact as a portion of total voluntary income, averaging just 2% per charity (compared with 27% from supporter development and retention; and 7% from major donors). Moreover, larger charities - perhaps more able to invest in their websites and online functionality - are twice a likely as smaller ones (67% v 34%) to agree that income from the internet has grown strongly over the last 12 months.

MissionFish UK’s Chief Executive, Nick Aldridge, said: “In the last few years, charities of all sizes have become more confident and sophisticated in using the web to attract supporters. Many are exploring more innovative forms of e-commerce and integrated fundraising than were possible before the internet became mainstream. Meanwhile, charity staff are learning to engage the public in a deeper, more balanced dialogue, and are willing and able to explore partnerships with the big players online. An online strategy now involves far more than ‘click here to donate’. The web is teaming with possibilities, but charities - large and small - need passion, persistence and partnerships to effectively reap its rewards."

nfpSynergy’s Driver of Ideas, Joe Saxton, said: “Ten years ago, when the internet was shiny, new and fast-proliferating, many charities thought they could just sit back and watch the money roll in. Whilst they sat back, society – not least young, affluent professionals – did almost everything else online apart from click-and-donate. They paid bills, went shopping, bought cars, sought love – increasingly accessing the web where-ever and when-ever they wanted. And what a missed bounty of opportunity for those charities unwilling or unable to mirror and integrate with this lifestyle – complete with its blogs and social network spaces - first engaging with potential donors where their interests and habits lie and thereby, over time, subsequently motivating them to donate, whether on- or off-line.”

Back to Press coverage