Trends in online giving

(DECEMBER 2007)

In the US, Americans increasingly prefer to make charitable donations online. According to The ePhilanthropy Foundation (www.ephilanthropy.org), total online giving in the US reached approximately $6.87 billion in 2006, a 51 percent increase over 2005 estimates. This figure represents slightly more than half of all worldwide online giving, estimated to be $13.2 billion by the Foundation.

A dramatic rise in online donations was also documented by The Chronicle of Philanthropy (www.philanthropy.com) which reports that electronic gifts to 187 of the largest US charities grew by 37 percent from $880.7 million in 2005 to $1.2 billion in 2006.

Online giving solutions are not only desirable and convenient for donors, but also save time and resources for nonprofits by streamlining many aspects of administering donations. However, as many in the philanthropic world are quick to note, having a convenient, online donation solution is just the beginning. Fundraising programs are still needed to drive donors to nonprofit web sites.

Tracking New Trends
As reported this summer in the Wall Street Journal, “Young donors and volunteers, snubbing traditional appeals such as direct mail and phone calls, are satisfying their philanthropic urges on the Internet. They’re increasingly turning to blogs and social-networking web sites, such as MySpace and Facebook, to spread the word about – and raise funds for – their favorite nonprofits and causes. They’re sending Web-based fund-raising pitches to their friends and families, encouraging them, in turn, to forward the appeals to their own contacts.”⁽¹⁾

Several social-networking sites have created tools to allow nonprofits and donors to create online communities or virtual foundations, and blogs are used increasingly to promote favorite causes and issues.

As with just about everything on the Internet, the possibilities seem endless for e-philanthropy. The following websites offer resources to assist nonprofits in developing online giving, or offer donors the ability to research charities online:

Resources:
CAFAmerica: www.cafamerica.org    
ePhilanthropy: www.ephilanthropy.org
The Center on Philanthropy at Indiana University: www.philanthropy.iupui.edu
Charity Channel: www.charitychannel.com
The Chronicle of Philanthropy: www.philanthropy.com
American Association of Fundraising Counsel: www.aafrc.org
Free Management Library: www.managementhelp.org

(1) “A New Generation Reinvents Philanthropy,” by Rachel Emma Silverman, August 21, 2007, page D1.