The giving culture is constantly changing, but in spite of the emergence of online giving tools, many nonprofit organizations continue to rely on traditional fundraising methods. Meanwhile, cash transactions have come to represent only 14% of the total number of transactions in the US, while checks count for 19% of payments.
Under these circumstances, it’s surprising to see that so many nonprofits are still collecting funds the old way. Why are charities so hesitant about digital giving tools? The mere resistance to change could be one of the reasons, but this reluctance towards online giving can also be explained by a lack of understanding of how online giving works and what its advantages are.
Here are the 5 most common online giving myths that many nonprofit leaders believe in without checking the facts:
1. “Online giving is too expensive”
Processing fees represent one of the biggest concerns for nonprofits considering online giving. “Why should we support these fees when we can receive all our gifts for free, without paying anything to third parties?”
True, there are some fees involved, but neglecting online donation opportunities means that in the end you will manage to raise less money.
Therefore, what do you prefer: having, for example, another $100 dollars minus $5, or having $0?
If you use an online fundraising platform like Fundlio, with just a few donations throughout the month you will be able to cover the affordable monthly subscription and still have enough funds to support your cause. You will also need to be aware of fees collected by payment processing services, which usually represent a small percentage of the donation.
2. “Online giving is only for people that’s technology savvy”
This myth goes hand in hand with “Only young people use the Internet”, but there’s nothing less true that that; did you know that more than half percent of seniors are online? Progress has made technology a lot more accessible to all categories of users, and companies design their products and services in a manner that makes them easy and enjoyable to use by anyone.
Did you need special guidance to learn how to use Facebook? Probably not, and the same will happen with an online donations platform – these services are intuitive and easy to understand no matter what your computer competence level is.
3. “But I have a cheaper solution like PayPal”
Most payment processing services that online fundraising platforms use have reasonable fees, very much comparable with those collected by PayPal (2.2% + $0.30). So why would you also pay a monthly subscription on top of that? Because it’s worth it!
With PayPal you can only receive money, and the rest of the fundraising campaign and the tools you need to implement are your own concern.
What online fundraising services offer you in exchange of monthly subscription fees are mobile-friendly fundraising websites, customized apps and donations websites, bank-level security for each transaction, and access to social media sharing and email marketing tools.
The best thing about these online giving services is that you will have all the tools you need to implement your fundraising campaign in one place, which helps you save effort and eventually money.
4. “But we don’t even have a website”
You don’t even need one! As mentioned previously, top-rated online giving services provide you with all the tools you need to start collecting funds on the Internet, including a mobile-friendly website! You can easily upload your logo, images, and information to match your organization’s brand.
Your website can be set up within minutes, and it will take you less than a couple of hours to add all the relevant information that will help you attract more support and donations.
5. “We’re not ready for online giving”
This counterargument is valid only if you simply do not want to collect more funds to sustain your cause.
And, what’s more, other nonprofit organizations promoting their cause to the same share of prospects as you are ready for online donations, and will take advantage of the opportunities that you ignore.
So, the question is: do you want to be an early adopter and make the best use of technology or do you prefer to reject innovation and the benefits it brings?
Are you ready to collect donations online and attract more donors?