In the for-profit world, businesses must adapt to and capitalize on new strategies for generating revenue — especially those made possible by the internet — if they want to achieve success.
Imagine a clothing company, for instance, trying to grow their business without a web store or social media. You’d wonder why they weren’t taking advantage of such useful tools.
In the nonprofit world, however, there isn’t always the same expectation when it comes to fundraising, with lots of organizations focusing on old-school efforts like direct mail and events. But that doesn’t really make sense: As the world changes, so do the ways that people give. Nonprofits that are unable to keep up risk their ability to make an impact.
As the following stats make clear, the time is right for nonprofits across sectors to start focusing on online fundraising.
Here are 3 online fundraising stats every nonprofit should know
1. Online giving grew 12.1% in 2017 compared to 2016.
In 2017, about 7.6% of overall fundraising revenue was raised online. That means, at least for the time being, traditional fundraising strategies are still critically important. However, 12% YoY growth is absolutely noteworthy, and suggests that donors are amenable to a digital approach. As more and more nonprofits improve their online approach — and as more and more donors get used to the idea of giving via the internet — the YoY number is likely to grow exponentially. Which is to say: The sooner your organization can deploy a digital fundraising strategy, the higher the chance it will be seen as innovative.
A few other things worth noting:
- 12% is merely an average. For some sectors, including arts and culture and the environment, the number is higher.
- 21% of online giving transactions were made using a mobile device, suggesting that society’s increasing reliance on mobile web usage is reflected in the nonprofit world, too.
2. The average campaign social share brings in $13.
When it comes to online fundraising, social media is clearly a key component — specifically the ability for users to share campaigns on behalf of their favorite organizations. According to data from CrowdRise, “the average campaign visitor… who shares [a] campaign page on social brings in an average of $13 per share.” And that’s just a visitor sharing the page. When an organizer shares their own campaign on social media, the average amount generated per share goes up to $43. Not bad for the simple click of a button.
For nonprofits trying to stretch resources as far as possible, the ability to create so much potential funding in so little time could be a game changer.
3. 30% of Gen Z has already donated to an organization.
Generation Z directly follows the Millennial generation and is comprised of individuals born between the late-90s and mid-2000s — meaning the oldest members of this cohort are only in their early 20s. When you consider that most people that age don’t exactly have a ton of extra cash burning a hole in their pockets, the fact that 30% of Gen Z has already donated to an organization is pretty remarkable. It says that these young people are ready to prioritize causes they believe in.
Nonprofits that develop messaging inclusive of Generation Z, then, will build rapport with a passionate group whose ability to contribute to causes will only increase as they get older. And how does Gen Z want to be reached? That’s right: Online.
Of course, there’s another advantage of online fundraising that we haven’t mentioned: Data. Data that, if leveraged properly, can be turned into valuable insights. Check out our latest on-demand webinar for more: