For the Non-Profit CEO: Start Accepting Donations Electronically

by / ⠀Startup Advice / December 9, 2012

Non-profits seeking an easy and efficient way to collect donations might want to consider setting up electronic or online options. The Internet is already used for everything from shopping and paying bills to communicating with loved ones, so why not use this great online tool for collecting electronic donations too, to save everyone time and money. Here are some of the many reasons why CEOs may want to consider accepting donations electronically at their non-profits.

1.)     Receive Money Faster

Online giving is important because the funds become available more quickly than when checks need to be processed or people pledge donations. Sometimes pledges remain outstanding because they are forgotten about or because the donor just doesn’t take the time to mail in the check or visit the non-profit’s office.  This is why online giving makes it easier for the donor to transfer money to the organization. This increases the organization’s cash flow, which helps to fulfill end-of-year projections and goals, and makes it easier for the non-profit to transfer money to its different accounts.

2.)     Communicate with Donors

Donors appreciate when giving money to their favorite non-profits is easy. Online donations offer a chance to contribute in the memory of someone or send a special note. Online donations also give non-profits the chance to capture people’s contact information, which is important when developing future campaigns or inviting people to fundraisers.

3.)     Save Time

Not only does the donor save time, but he also helps the non-profit save time. Instead of having to call existing donors every year, the non-profit can simply send them a link via email and invite them to make a donation again. With online donations, donors find it easy to transfer money without writing/mailing a check and the non-profit saves time in collecting important contact information, processing donations, and keeping up with documentation.

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4.)     Lure in New Supporters

Often, people see an advertisement, blog, article, or link to a non-profit and are interested but don’t take the time to write and mail in a check. If a person sees a non-profit’s link online and wants to make a donation, he or she may donate right then and there, while giving the non-profit a way to lure in new donors.

5.)     Use Social Media

Having an electronic way to donate makes it easier to use social networking websites for fundraising campaigns. People can share links to non-profits and create word-of-mouth buzz. Non-profits that build their brand on social networking sites increase their opportunity to receive both large and small donations.

6.)     Accept Donations 24/7

By opening up online donations, a non-profit gives people the chance to donate no matter the day or time, even on holidays. This makes it easier to collect funds not only locally but also from people around the world. All anyone needs is an Internet connection and bank account or credit card, and donations can be processed.

7.)     Streamline Accounting

Accepting donations electronically makes it easier to keep up with accounting. Since everything is electronic, spreadsheets and databases are easier to update. Saving time in the office makes it easier to focus on more important tasks such as thanking donors for their time, developing innovative fundraising campaigns, and building the image of the non-profit.

8.)     Save Money on Supplies

Often non-profits have to send out reminders or collection letters. Donating directly to a website saves money for the non-profit by eliminating postage and cutting down on office supplies and mailing manpower. No checks are lost in the mail when non-profits accept donations online.

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9.)     Help People Budget

Donors can start giving on a quarterly basis thanks to electronic donations. Automatic transfers can be set up, so it’s easier to transfer money to non-profits. This helps donors keep track of their donations so tax season is easier to manage.

Accepting donations electronically will help CEOs at non-profits see donations increase because it becomes easier for people to support their organization’s mission. Plus, iInvesting in electronic giving options saves everyone time and energy. Over time, non-profits will see not only increases in giving but also in new donors.  This gives CEOs the opportunity to build their organization’s brand or image and donors the opportunity to support the non-profit’s unique programs.

Kristen Graminga is Chief Marketing Officer for BluePay, a credit card processing firm, and also serves on its Board of Directors. She has more than 15 years experience in the bankcard industry in direct sales, sales management and marketing.

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About The Author

Matt Wilson

Matt Wilson is Co-Founder of Under30Experiences, a travel company for young people ages 21-35. He is the original Co-founder of Under30CEO (Acquired 2016). Matt is the Host of the Live Different Podcast and has 50+ Five Star iTunes Ratings on Health, Fitness, Business and Travel. He brings a unique, uncensored approach to his interviews and writing. His work is published on, Forbes, Inc. Magazine, Huffington Post, Reuters, and many others. Matt hosts yoga and fitness retreats in his free time and buys all his food from an organic farm in the jungle of Costa Rica where he lives. He is a shareholder of the Green Bay Packers.


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