The digital era offers innovative ways to engage donors and mobilise funds. For charity trustees, understanding and harnessing modern digital fundraising techniques is not just a novel strategy; it’s an essential move to ensure your charity’s resilience and growth. In what ways can a forward-thinking charity use these latest techniques to its financial advantage and at what cost?
Crowdfunding: Uniting Communities for a Cause
Platforms like JustGiving, GoFundMe, and Kickstarter have revolutionised how charities raise funds. Crowdfunding allows you to present your cause to a global audience, rallying both loyal supporters and newfound advocates.
Financial Implications: Most platforms charge a small fee, either as a percentage of funds raised or as a flat rate. Ensure you factor these costs into your campaign goals.
Virtual Events: Fundraising Beyond Physical Boundaries
Whether it’s a virtual marathon, an online concert, or a digital quiz night, virtual events can attract a wider audience without the overheads of venue hire and logistics.
Financial Implications: While initial technology setup costs might be incurred, potential savings in operational expenses can boost net fundraising returns.
Social Media Fundraising: Leveraging Virality
Platforms like Facebook and Instagram now allow charities to add donation buttons directly to posts, tapping into impulse giving and the power of viral campaigns.
Financial Implications: Ensure clarity in how these platforms handle funds, any associated fees, and the speed of fund transfer to your charity’s account.
Contactless Donations: The Tap-and-Go Revolution
Physical donation boxes are evolving. Modern variants come equipped with contactless payment options, catering to a cashless society and boosting impulse donations.
Financial Implications: Investment in contactless devices and understanding transaction fees is essential, however, the ease of giving can often justify the initial outlay.
Monthly Subscription Models: Predictable and Recurring Revenue
Inspired by subscription services like Netflix, charities are inviting donors to become regular supporters, providing a steady stream of income.
Financial Implications: Digital platforms that manage recurring payments might charge transaction or service fees. Balancing these with the stability of regular funds is key.
Digital Merchandising: Boost Brand and Raise Funds
From branded pin badges to eco-friendly tote bags, online charity shops can both raise funds and amplify your charity’s presence.
Financial Implications: Factor in manufacturing, storage, and delivery costs. Utilise print-on-demand services to reduce unsold stock risks.
Embracing digital channels offers charities unparalleled opportunities to reach broader audiences and diversify income streams. However, with these possibilities come new financial considerations. Trustees must strike a balance between investing in digital channels and ensuring transparency, accountability, and cost-effectiveness.
For advice on how your charity can best utilise digital fundraising, reach out to our team at UHY Ross Brooke. Together, we can craft a digital fundraising strategy that amplifies your impact without compromising fiscal responsibility.