November 29, 2007

Online Fundraising - How is Behavior Different?

With its relative ease of operation, low overhead costs, and the increasing role of the Internet replacing previously in-person transactions in our daily lives, online fundraising is now a major player in fundraising. While working on a recent project regarding various giving channels I asked myself this question:

How is online giving behavior different from offline?

While this might not satisfy any requirements as "breaking news" (it is nearly a year old), I found this study regarding online fundraising behavior incredibly informative.

Some interesting findings:
  • The Internet can serve as an effective acquisition source
  • Online donors tend to be younger and wealthier than offline donors
  • Online donors have lower renewal rates than offline donors
  • Multiple channel donors (online and phone or mail or personal solicitation) have higher revenue and retention rates

This article does a fantastic job summarizing the study, and I suggest you read it.

Online Fundraising on the Rise - Target Analysis Group and Donordigital Report finds

While the Internet, broadband networks and email have grown to be the new fundraising tools for non-profits over the past several years, their potential has not been reached - in terms of the amount of money raised and the number of organizations fundraising online.

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