The way that people donate to nonprofits is changing. The days of a donor sitting down and writing a check are fading. Donors today are using digital giving methods – donating online or via their phones. To keep up with and benefit from this trend, your nonprofit needs to embrace digital giving.
What is Digital Giving?
Put simply, digital giving is the ability to make a one-time or recurring donation via digital payment. Digital giving can be made via credit, debit card, or electronic bank withdrawal. It can be done from your nonprofit’s website or mobile phone app, or by texting from a mobile phone. It’s giving that’s not done in person, but rather digitally at the donor’s convenience.
Why Your Nonprofit Needs Digital Giving
Statistics don’t lie. In 2019, where overall giving grew 4.1% over the previous year, online giving increased by 12.1% — three times the overall rate. Growth in recurring donations was even stronger, with online monthly giving revenue growing by 40% year over year.
While it’s true that younger donors are more comfortable with online giving, digital giving is popular with donors of all ages. According to the 2018 Global Trends in Giving Report, 55% of Millennial and GenX donors prefer to give online, as do 54% of Baby Boomers.
Why is digital giving becoming so popular? There are several reasons why.
First, people aren’t using cash or checks as much as they used to. Fewer and fewer people pay their monthly bills by check; most pay online or via electronic bank withdrawal. In fact, many younger people don’t even have checkbooks. Providing alternative ways to donate is essential.
Handling physical payment is also a hassle for nonprofit organizations. Physical payments can be lost or stolen, and it all has to be manually counted, entered, and deposited. That’s a lot of labor.
On the other hand, digital giving is fast and easy – for both donors and nonprofit staff. Donating via the web is as easy as entering payment information and clicking an onscreen button. Donating via text or mobile app is just as easy.
Donors can also give digitally at any time, from anywhere. When they see your message on social media or email it’s easy to sit down at a computer or pull out a phone to make a donation. Donations can be more spontaneous.
Because digital giving is so much easier, many nonprofits find that their donations increase when they offer digital options. Remember – the easier something is to do, the more likely people will do it.
Digital giving also makes life easier for nonprofit staff. Digital donations are automatically recorded into the organization’s bank account and credited to the correct donor and account. Donor and giving reports are easily generated.
In addition, by encouraging recurring digital donations, the donation stream becomes more predictable, which makes budgeting easier. Digital giving also helps increase donor retention.
In short, if your nonprofit doesn’t offer digital giving, it’s missing out.
Different Ways to Give Digitally
There are several different ways that nonprofits can offer digital giving to their donors:
- Online giving, via the organization’s website
- Mobile giving, via text-to-give options or mobile apps
- On-premise giving, via computerized giving kiosks or tablets at fundraising events
The more digital giving options your nonprofit offers, the more likely your donors will be to give.
How Your Nonprofit Can Get the Most Out of Digital Giving
When your nonprofit organization implements digital giving, take these tips to maximize potential donations.
Make It Easy
The most important thing to do when implementing digital giving solutions is to make it easy for donors to give. Make it easy for them to give from home or from their mobile devices. Don’t make them jump through hoops to register or require them to provide unnecessary information. Make sure that links to online giving are prominent on your organization’s website – make it as easy as clicking a button or link from your site’s home page. And, above all, make it easy for donors of all ages to understand and use.
Incorporate Your Brand
Make sure that your digital giving options look and feel like the rest of your organization’s website, events, and other activities. That includes branding the digital giving pages with your logo and organization color scheme.
Encourage Recurring Giving
Another way to make digital giving easy is to encourage donors to sign up for recurring giving. Recurring giving, with a one-time sign up, not only takes the chore out of regular giving but guarantees your organization a steady and predictable donation stream.
Make Sure Donors Understand the Benefits of Digital Giving
When your nonprofit first moves to digital giving you may need to “sell” current donors on why they should do it. Stress the benefits to them – it takes less time to do, they don’t have to write checks, they can give from the convenience of their own phone or computer. If they understand why it’s a good thing, they’ll be more likely to do it.
Learn More About Digital Giving
To learn more about how digital giving can benefit your nonprofit organization, contact the experts at GIVE BACK GATEWAY today. We can help you get your nonprofit’s leadership and donors on board with this better way to give.