If I ask, how can you raise funds online? Does crowdfunding come to mind first?
It’s totally natural, however, retail funding – setting up an online portal on your website – can be equally rewarding.
We recently hosted a workshop with Dhaval Udani, CEO of Danamojo – a platform that empowers over 900 NGOs to set up donation portals on their own websites for retail fundraising.
Dhaval was phenomenal and shared a wealth of information that we believe will truly help any early-stage social entrepreneur to kickstart their fundraising efforts in a cohesive and structured manner.
Excerpts from the workshop
We highlight the nuances that will help you decide which channel would work best for your organisation to raise funds.
- If you have a specific goal for our organisation to achieve within a time limit, like raising money for an event, crowdfunding is ideal.
- Crowdfunding works well when you have a volunteer/influencer network that can promote your cause and encourage others to give. It is also an effective tool while raising funds through your Board Members or staff.
- You should consider it as social fundraising rather than just a group of random people donating to your organisation. You will receive donations based on the strength of your social connections.
- Just because you created a campaign, people are not going to start donating. You have to promote it.
- Individuals are far more successful at fundraising than organizations. As a Founder/CEO, you need to activate your networks for your campaign to succeed.
- You could also lose a certain amount on crowdfunding (2% is the minimum fee right now)
Retail Fundraising Platform
- This channel can enable you to ask for a specific amount and probe donors to opt for monthly giving or annual donations.
- You can also share the link via reminders and updates to keep your network informed and engaged throughout the year.
- You can use your website link to encourage donors to give generously during spike periods such as festivals or birthdays without having to start a campaign.
- Retail fundraising enables your donors to give when it’s most comfortable for them and not just when your campaign is being run.
- You could get 25% more donations when you use retail funding through your own website as you access people’s ‘charity’ budgets rather than their ‘gift’ budgets.
- As campaigns are typically time-based, this may not work for steady long-term donations and would be particularly ill-suited for organizations that do not frequently host events.
- When you send your donor to a platform, you risk losing their interest as they are able to browse through many different causes or campaigns by different organizations. In this case, fundraising through your own website is preferable.
Push for fundraising more through email marketing than social media. People act on email while merely scroll/read on social. Social is a great tool for creating awareness.