Internet Fundraising
July 10, 2008
Fundraising Web Sites
There are several web sites on which anyone can sign-up to conduct an online fundraiser. These web sites offer an easy way to accept donations via credit card. Some sites only host fundraisers for recognized nonprofit organizations or other 501(c)(3) tax-exempt entities.
A standard fundraiser hosting web site allows users to create their own introductory pages and identify the organization benefiting from the fundraiser. The web site then processes the cards and transfers the funds directly to the organization.
The fundraising web site that processes the credit card payments for your online fundraiser may deduct its own fees from the money you raise. Read the user agreement for the web site carefully before signing up. Also, be sure your fundraising budget includes these fees so they don’t cut into your profits.
Entirely Web-Based Fundraising
Some fundraising takes place on the web, from beginning to end. In this scenario, potential donors are contacted via e-mail and directed to a web site to make their donations. The e-mail serves as a marketing letter, and in addition to information about the cause and the fundraiser’s goals, fundraising e-mails have a link for submitting credit card donations. The budget for this type of fundraiser is very small, but as mentioned above, make sure to consider the fees associated with your hosting web site.
Personal Fundraising
It can be very convenient to use an online fundraising service for personal fundraising purposes. You can set up a family collection to pay for a reunion or anniversary party, to pay someone’s medical expenses, or even just to fly someone home for the holidays.
On many of these private fundraising web sites, the user sets a goal and a deadline, and if the goal is not met by the deadline, nobody is charged and the user is given the option to extend the deadline. Registration fees, credit card fees, and other additional charges associated with the hosting web site may be deducted from the funds you raise.
Online fundraising is also a great option when your potential donors are spread out geographically, as is often the case with large families. It allows you to collect instant donations from family members and friends ten states away, or even on the other side of the world.

