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Advantages of Fundraising on the Internet

Disadvantages of Fundraising on the Internet

The Advantages of Fundraising on the Internet:

bulletIt is a new medium that non-profit organizations are already using.  Many charities are now using computers for desktop publishing and database management.  They already have the physical resources to use the Internet for Fundraising. 
 
bulletThe World Wide Web is rapidly growing and "pages" of hypertext can be browsed complete with pictures, graphics and even sound and video clips. 
 
bulletYour website can become a resource for recruiting volunteers, establishing memberships, distributing newsletters, collecting donations, providing chat rooms that for example can be used for 24hr real time counseling services, connecting people through bulletin boards and listservs.  See Fundraising Tactics for more info.
 
bullet If a non-profit organization has a newsletter or magazine, there is an opportunity to put these publications on-line, and if they have regular advertisers, they can be charged an Internet supplement to be put on your web site.
 
bullet An e-mail database can be used to nurture a strong, committed relationship between a non-profit organization and members.
 
bullet Instead of contacting people via the telephone or mail, organizations will be able to establish a relationship via an e-mail or through an interactive site. Personally, I think the telephone is more intrusive than e-mails because people check their e-mails when they want to and they are usually much more attentive.  You don't have to worry about calling at the wrong time.  You allow the recipient to decide when you can communicate your message.  
 
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The Internet is capable of reaching a wider audience
 

bulletThe Internet can help in finding potential grants. It will help you locate potential funders and does provide some more up-to-date information than even the most current written publication can.
 
bulletThe Internet can help in identifying new members and donors, as well as maintain and support existing ones
 
bulletCharities are also encouraged by the size of donations made on-line.

WAMU, a Washington public-radio station, held a brief year-end campaign, starting in the second week of December, using on-air spots to broadcast the station's Internet address and urge listeners to make a gift by December 31. The effort raised $20,500 on line, with an average gift of $106, compared with $85 from people who telephoned the station to make a gift.
 
bullet An advantage of on-line gifts is that they are generally made by credit card. Fund raisers don't have to worry whether donors will make good on pledges or remember to send in their check.
 
bulletYour site can be a demonstration of your organization's progressiveness
 

The Disadvantages of Fundraising on the Internet:

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Many charities, they say, cannot yet tell whether their on-line gifts are simply the result of Americans' growing fascination and comfort with on-line financial transactions and the strong economy that is causing all types of giving to soar -- or a sign that the Internet truly is building a bigger community of donors.
 

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While on-line fund raising has the potential to save non-profit groups big dollars in the long run, few charities are seeing real cost savings yet. Because on-line transactions still produce only a tiny share of gifts for most charities, the vast majority of non-profit groups are continuing to use on-line solicitations as a supplement, not a replacement.
 

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Few charities are doing enough to bring people to their Web sites -- or are providing compelling enough information to persuade visitors to give money and to do so repeatedly.
 

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Political candidates are doing well with e-mail solicitations but many of charities are reluctant to try that approach out of concern that they may offend some people.
 

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Non-profits are going to have the recurring costs of getting traffic to its site, whether you are talking about managing promotions with companies, buying or getting banner ads on other Internet sites, or getting print and TV ads."
 

bulletThe costs might all be worthwhile if charities start to see an increased share of their gifts coming from the Internet. But so far, even groups that have been the most successful say their on-line gifts are still only a small percentage of overall gifts.
 
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Its hard to get noticed among all the other web sites

 
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There is a possibility of failure due to unfamiliar technical breakdowns

 
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Must know the legal complexities associated with some aspects of online fundraising.

 

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This site was created by Rachel A. Broom, a student at Southern Illinois University at Edwardsville.  She is currently working towards her masters in public administration.  This page was last updated December 3, 2000 and is copyrighted.