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You’ve added a donation button to your Web site. That means you can sit-back, relax and watch Seinfeld reruns while the money flows into your organization. Right?

Wrong.

“Online donations are something that a lot of organizations really want to do, but there is, unfortunately, really complicated stuff that you need to understand to effectively make choices,” said Laura Quinn, director of Idealware, a Portland, Maine nonprofit that provides software reviews for other nonprofits.

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Nonprofits need some technical savvy to ensure they choose the right tools for them -- whether it’s an integrated, multi-faceted tool or simply a donation button. But heading down the cheapest route now might not be the best solution in the long run. “So while you might not have wasted a lot of money on the software, you in fact have really accomplished nothing and wasted an opportunity,” said Quinn.

Quinn reminds nonprofits that online fundraising is complicated – but knowing the nuts and bolts will help you when building your online fundraising presence:

• Donation forms – Some vendor Web sites allow customizable forms to match your site’s design. Others can include features like tribute gifts, space to customize a donation, employer matching and more that can expand giving opportunities.
• Payment types – Decide how much you need from a payment processor. Credit card donations should be allowed from all major companies. If your nonprofit receives a significant amount of international donations, look at a provider that will accommodate those transactions.
• Merchant accounts – Smaller organizations could choose to use a vendor’s merchant account to save money. Organizations receiving a high donation volume might need their own merchant account so the money is received faster and the organization’s name appears on the credit card bill.
• After the donation – You might have snagged a donation, but your work isn’t over. Make sure that the donor receives a follow-up email thanking them with their tax-deductible information. Your organization should analyze donation reports to keep track of donations and how to improve.

And ask about the fee structure of an online fundraising tool before you jump in. Hidden costs can bump up the price, so keep these fees in mind:

• Start-up – Up-front fees for the service
• Monthly – Fee to use the service every month
• Gateway – If you have your own merchant account, you might have to pay a gateway provider a monthly fee
• Merchant Account – Monthly transaction fee for organizations using their own merchant account
• Discount Rate – A credit card’s transaction fees
• Transaction – A fee paid per donation that can be a flat fee, percentage or a combination of the two, depending on what your organization chooses.

Visit www.idealware.org for the “Donate Now: Selecting an Online Donation Tool” full report or to sign up for a Webinar session.

 

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This article is from NPT TechnoBuzz, a publication of The NonProfit Times.

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