It seems like we should start this post out with a bunch of new trendy buzzwords and a couple hashtags since we are going to be talking about the latest (and hippest) new fundraising methods... But instead, let’s just get right down to it. There are new fundraising tools and resources popping up all the time, and we should be taking advantage of new ways to bring funds into our organization. But it can be hard to keep up with it all.
Using both older and newer forms of fundraising in a complementary way can boost your donor engagement/overall funding and give you a significant advantage in the sector. So, since we covered traditional methods, it is time to cover some modern ones, too. Here are the 3 new fundraising tools we think you should consider using right now:
(Note: We have already gone over traditional fundraising methods and their effectiveness in a past blog post that you can find here.)
This has actually been around for a couple years now, and although most nonprofit professionals are at least acquainted with this fundraising tool, many have also admitted that they are still not confident about how it works and are not yet comfortable utilizing it.
Text-to-give (or text-to-donate) falls under the umbrella of mobile giving- a fairly novel fundraising system. This system of donating requires a text giving software to operate, but it reaches potential donors on a system they are very engaged with- their mobile phones. This creates an extremely simple way for individuals to donate- it is as simple as texting, which is almost as second nature as breathing for most of the younger generation.
If you are looking for a way to reach donors where they are- this is an option you should look into. For more information, check out this review from Double the Donation.
Crowdfunding is considered any effort to raise funds from donations from a large number of people. Although crowdfunding started as a means of attracting lots of small investments for entrepreneurs, it has grown wildly and now encompasses far more than just private start-ups. In fact, online crowdfunding is expected to be between a $90 and $96 billion dollar industry by 2025, according to a 2013 study conducted by World Bank.
This new fundraising tool in particular can greatly increase your organization’s reach, as your campaign can be easily shared through many different networks on social media. This means that the number of potential donors reached using this method can be astronomical and you can reach far more people than just the individuals that are already connected to your organization.
All online crowdfunding platforms charge a fee for collecting donations, but the amount varies from platform to platform and some do not allow the organization to collect its donations unless it hits a target amount. Use your due diligence and know that while this can be an extremely effective fundraising (and awareness tool), a lot of factors like the online platform you use will affect your ROI and total revenue.
For a list of good online crowdfunding platforms for nonprofits, check out this list.
Facebook has been expanding their fundraising resources for the past few years with new space for nonprofit organizations to raise funds directly on the social media platform. Individuals no longer have to leave Facebook to donate on an organization’s website.
And with the recent addition of the Fundraiser tool, individuals can even start their own fundraising campaigns for specific organizations (or even other individuals) that all of their friends and followers can see and donate to. With over 2.13 BILLION Facebook users worldwide, this opens a ton of doors for nonprofit organizations both large and small. With these new tools, your organization has the opportunity to increase its presence and reach even more potential donors.
Right now, Facebook does not even take out any fees for fundraisers for incorporated 501(c)3 nonprofits (although there are fees for funds raised for personal causes/individuals). Talk about a win for nonprofits!
What modern fundraising techniques are you currently using? Share below! And, as always, we appreciate any comments or questions you have! Let us know what topic you’d like to know more about.