by Kemper Barkhurst - Jun 21
I recently set up an online donation form for Rio Grande Community Farm, a nonprofit organization where I serve as board member and volunteer. This PayPal donation form was static and made me wonder about the other ways in which nonprofits can raise money with online technologies. After a little research, I found a few new tricks by which nonprofits can connect and accept donations from their supporters. These methods extend beyond just online payments or joining a social network. Check out the new ways nonprofits can collect donations from a mobile device, a text message campaign (SMS), and even social networks.
Credit Card Donations with Square
One of those emerging services is Square, a payment system that processes credit cards from a mobile device. This type of system will allow a nonprofit to accept on-the-spot donations. Imagine that your organization is tabling at an event and instead of having to rent a credit card terminal or go through a cumbersome paper-filled process, you grab your smart phone and accept a donation and email the receipt on the spot. There is a low transaction fee associated with each payment and is something that nearly any size, smart phone-equipped nonprofit can get started using fairly quickly once the service is fully launched. The only missing piece would be getting those donors automatically into a mailing list or in a CRM so you can follow up with them of the great work they are supporting (by the way, we can help with that).
SMS Donations with mGive
Another way that nonprofits can raise money is through text message donations. A service such as mGive and a well crafted campaign can open new fundraising opportunities. For a fee, nonprofits can receive text donations in increments of $5 or $10 to a designated number. This donation is then charged to the supporter's cell phone bill, so money can be collected without credit cards or cash payments. mGive isn't for all nonprofits, however; service fees range from $400-1,500/month in addition to a fee for each transaction. A free account for contact list building can get a smaller nonprofit started with SMS. This account also allows outgoing messages for a per-message fee. Outside of the free account, it might be difficult to make back the investment without a large media campaign. There are some successes, though, as mGive processed over $37M within three weeks for Haiti. This is a good testimonial to the power of a well-crafted campaign.
Donations from Twitter and Facebook
Yielding a return on investment into social media networks is very important. Services like TwitPay and Causes allow you to turn these social networks into a direct fundraising mechanism. Nonprofits can now reach the crowds in social networks.
TwitPay and RT2Give
TwitPay, as the name suggests, works with Twitter. Their RT2Give service provides a quick way for getting supporters to donate. So not only do your supporters promote your cause through their tweets, they are just one step away from donating to your cause with a simple confirmation response. Currently a nonprofit must submit a request to access this service. It is recommended that you have at least 1,000 followers or work with a partner that can provide enough exposure.
Causes on Facebook
Causes is an application on Facebook that allows members to support their favorite causes. They can spread their support through their network by joining a cause. They can also quickly get to a donation page where they can show that support. There are currently over 20 million members of this Facebook app. To get started with Causes, a nonprofit can join as a partner or start immediately by adding a cause within the Facebook app. As usual, there is a transaction fee for each payment from your supporters.
Overall, these are all great and dynamic new ways in which a nonprofit can begin more actively connecting and hopefully receiving funding from their supporters. I plan to spend a little time in the next few months experimenting with these services with the farm. It will be interesting to see how a nonprofit can more directly connect with their supporters to keep them engaged.





Comments
Another-even better solution
We are currently looking for charities to be involved in the first of our ongoing monthly fundraising processes. There is absolutely no cost to the charity or worthy cause. We handle it all for you including the collection of donations. Check out and website and please contact me. I need at least 3 groups ready to go by August 1
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We are experimenting with
We are experimenting with tools offered by mPowergiving.com for text2give, etc. Thanks for your insights and referrals. We are finding that fitting a very speciifc cause and ask to an audience means everything to success, especially when you're not raising support for a disaster of some kind. Any thoughts on this?
The Power of Interactive Story
Mike, it may sound trite or "markety," but I believe when people feel they are playing an important role in something great and pivotal, they have no trouble donating. Part of the success of the Haiti response regarding SMS was about people being together and using their cell phones together--it was a way for them to connect to this response and feel like they were part of something great.
This power of story and playing a role applies to non-disaster support as well. The challenge is to communicate urgency not based on time, but based on long-term impact. Keeping families together, uniting fathers and sons, mothers and daughters... these are powerful stories that I feel we all want to get involved in.
You're absolutely right: "fitting a very specific cause and ask to an audience means everything." Finding ways to show how they're going to play a role is everything.
I'd be very interested to see
I'd be very interested to see any statistics about the success rate of these alternative methods. So far online credit card payments have worked best for us. It kind of seems that people on facebook or on the road are usually far away from thinking about buying/spending. The only cause which I know gets a lot from billboards is the car donations one because that's where you get the most car owners - on the road.
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