Younger donors are all about convenience, and they’re not shy about using new tech to support their favorite causes. Using Tap to Pay and QR codes, nonprofits can craft seamless, interactive donation experiences that captivate younger donors and make giving easier than ever. A quick tap or scan, and they’re right where they need to be to contribute.

In partnership with Dynata, we surveyed 1,000 U.S.-based adults (18+) in February 2024 to uncover their thoughts and preferences around QR codes, Tap to Pay, and other digital donation methods.

You can take advantage of these new donation methods to streamline your donation process, deliver instant access to essential information, and foster transparency and connection with your supporters. It’s a surefire way to keep your organization relevant and ready for the future.

You can view and download the stand-alone .png version of the infographic here.

How have new donation methods impacted your fundraising? We invite you to share your thoughts and experiences on QR code usage for donations in the comments below.

The post The Power Of New Donation Methods In Connecting With The Next Generation appeared first on Bloomerang.

As a fundraising organization, you work day in and day out to inspire your donors to open their hearts and wallets for your cause. You spend time prospecting, building the relationship with intentional cultivation, and preparing for the actual ask.

When that time comes, you want the transition of funds to be as easy as possible for the donor. The easier it is for the donor to support your organization, the more donations your organization will receive.

Picture this: Your organization has worked tirelessly to prepare for your annual gala over the last three months. You and four other major gift officers are soliciting donations from your major donors throughout the event. The donor you’re working with is prepared to make a five-figure donation to your organization, but your card swiper isn’t working, and—not to add more pressure—another major gift officer is waiting for it. You’ll need to come back to that donor with a written pledge form and collect the donation later, and your colleague will need to do the same.

Not only was your donor unable to donate during their peak moment of inspiration, but it was a missed opportunity—for you and for your organization. That single technical issue you experienced at the gala could potentially trigger a domino effect:

• Reducing the number of solicitations you can make.
• Significantly decreasing the overall amount of funds your organization raises.
• Directly impacting the effectiveness of your mission.

It’s crucial to address these issues to maximize the success of your fundraising efforts.

When evaluating the donation process at your organization, always consider keeping the donor’s experience at the center. Using Bloomerang Tap to Pay in the Bloomerang Mobile App makes the donor experience at in-person events seamless: multiple donors can tap to donate on numerous devices at the same time. The donor just needs a WiFi-enabled card they can hold to your organization’s device to process the payment. The donor can even use their phone if they don’t have a credit card handy.

Contactless payments means there’s no need to handle anyone’s personal devices or for your donors to share their payment details, making this the most secure way to process donations in person.

But, the donor experience encompasses more than in-person events. And as fundraisers, we need to consider the full spectrum.

Does your online giving form encourage donors to set up recurring donations? Does the form offer an option to select the start date or the frequency of their recurring donation? How about managing that recurring donation?

Whether you’re ordering a pizza, booking your next vacation, or purchasing a prefabricated house on Amazon (yes, you really can do that), all of these actions have something in common: you can do them online—by yourself—at any time.

Most donors prefer to give online—regardless of their generation—with younger generations particularly influenced by social media posts. You can link these social media posts to your online campaign pages, cutting the time between receiving the appeal and donating versus other solicitation types like direct mail and personal asks.

When giving, donors today expect a personalized experience they can complete as quickly as purchasing on Amazon. Does your tool today adapt to meet your donors where they are—for example, with suggested donation amounts based on their likelihood to give? Personalize the experience by prepopulating their information? Or enable donors to skip the check-out and just give in two clicks—like they can on their favorite shopping apps?

Providing donors with the same ease to contribute to your cause can be just as simple. Online giving tools like Qgiv make it easy for your organization to create personalized experiences that make your donors feel like superheroes. Now, you can empower donors to give in seconds, creating their own logins to make future one-time gifts or set up and manage recurring donations.

Donors can manage payment methods, upgrade their giving, and download tax summaries independently. This not only gives donors a sense of ease and autonomy, but it significantly reduces administrative time for your organization to manage ongoing commitments and eliminates having to chase down a donor when a card expires or declines.

When your donors give through Bloomerang + Qgiv, they’ll have the tools to make donations the way they want.

Credit Card? Check.

ACH? Check.

Apple Pay? Check.

PayPal? Check.

Venmo? Check.

Tap to Pay? Check.

According to the Fundraising Effectiveness Project Q1 2023 report, the nonprofit sector is showing decreases in all areas: major donors, total dollars, and new donors. That means it’s more important than ever for giving to be easy, manageable, and flexible. Organizations like yours are already facing hardships when it comes to funding. Your giving tools don’t have to be one of them.

Are there any contactless payments that you would add to this list? 

The post Make Giving Easier For Your Donors In 2024 appeared first on Bloomerang.

The evolving landscape of philanthropy

Gone are the days when cash was king in the realm of donations. A significant 35% decrease in traditional cash donations since 2017 marks a pivotal change in donor behavior, shifting towards digital avenues for their philanthropic endeavors. This transition is fueled mainly by the digital revolution, which simplified transactions and made giving a seamless experience. It’s not just about convenience; it’s about connecting with a generation that relies on and values the integration of technology into all facets of their lives.

Millennials and Gen Z are leading this transformation. With a combined buying power exceeding $350 billion, their approach to philanthropy extends beyond financial contributions. They’re champions of online giving, using digital platforms to advocate, share, and crowdsource funds for causes they believe in. Their active engagement and preference for organizations that offer transparency and demonstrate real impact set them apart as the new driving force in charitable giving.

Digital wallets: Transforming philanthropic engagement

The increasing adoption of digital wallets and online payments represents more than just a technological advancement; for nonprofits, it signifies a shift in how donors express their generosity. Platforms like PayPal, Venmo, Apple Pay, and Google Pay have not only increased the likelihood of donations but encouraged more frequent contributions. The key lies in reducing transactional friction and making the act of giving as effortless as possible while ensuring donor security.

This shift towards digital payments mirrors broader consumer behavior, challenging nonprofits to adapt or risk becoming obsolete. By embracing these modern payment methods, organizations like yours can meet donors where they are, offering the convenience and security they’ve come to expect in all aspects of their digital lives.

The impact of social media and crowdfunding

Social media and crowdfunding platforms have had an undeniable influence on philanthropy. These tools have democratized giving, enabling individuals to support and amplify causes globally. The strength of these platforms lies in their ability to foster community, engagement, and rapid mobilization for causes, making every donor an integral part of a larger narrative. Moreover, they enhance transparency and trust, enabling organizations to build and steward long-term relationships with their supporters.

Adapting to stay relevant

To thrive in this new era, adapting to digital payment methods is not optional—it’s essential. Aligning with your donors’ expectations for convenience and security is crucial for attracting and retaining their support. More importantly, incorporating technology into the process of managing your donor relationships will deliver essential data insights, enabling your organization to customize its approaches and engage more successfully with your supporters.

Guidance for implementing modern digital payment options

Here’s a step-by-step guide to integrating modern, digital payment options into your fundraising strategies:

• Understand the impact. Recognize that adopting digital payment methods like digital wallets can significantly increase your donations. Statistics show that PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions can increase by over 32% with the availability of digital payment options.
• Enhance event fundraising. Incorporate contactless payment methods in your fundraising events to attract Millennial and Gen Z supporters. Options like Apple Pay or Google Pay make it easy for donors to contribute with a simple tap of their smartphones, enhancing their engagement and boosting donations​​.
• Select the right payment processor. Choose a payment processor that integrates digital wallets and offers contactless capabilities. Look for solutions tailored to nonprofits like yours that deliver lower fees, better support, and comprehensive features like donation forms, event tools, manual addition of offline donations, and transparent reporting for digital wallet transactions​​.
• Embrace mobile-friendly solutions. To attract and retain next-gen donors, prioritize mobile-friendly, digital payment options. This approach not only caters to modern donors’ preferences but also helps lower administrative costs, enabling you to allocate more funds to your mission​​.
• Ensure financial stability and growth. Adopting digital payment methods is crucial for your organization’s financial stability and growth. It’s not just about convenience; it’s about continuing to make a positive impact and moving your mission forward in the digital age​​.

By following these steps, your nonprofit can successfully implement modern digital payment options, enhance donor experience, increase donations, and stay relevant in today’s evolving fundraising landscape.

The last word

The future of giving is vibrant, driven by technological innovation and the changing preferences of donors. By understanding and embracing these shifts, your nonprofit can stay relevant while expanding its impact. By offering many ways to contribute to your cause, you can help your potential donors make every donation, no matter the size, part of a greater effort to make the world a better place. As we continue to navigate this new era of giving, the potential for positive change is boundless, limited only by our willingness to adapt and embrace the possibilities ahead.

The post The Future Of Giving: Strategies For Modern Philanthropy appeared first on Bloomerang.

One reason behind this transformation is the rise of Millennials and Generation Z as donors—who not only are generously contributing but also are driving a shift towards modern payment methods like contactless payments.

The generosity of Millennials and Gen Z: A shaping force

Millennials and Gen Z are not just the future of charitable giving; they are actively shaping it today. Together, they wield an impressive $350 billion in buying power—yes, you read that correctly! And, these cohorts are tech-savvy, deeply committed to making a difference with social causes, and hold a significant amount of generational wealth that they are eager to give back. 84% of Millennials give to charity, donating an annual average of $481 across more than 3 organizations, while 76% of Gen Zers give online. As these cohorts mobilize to support causes they believe in, they’re becoming highly-engaged advocates, sharing information on social media, and crowdfunding donations.

Digital wallets: The preferred choice for next-gen donors

Millennial and Gen Z donors today are looking for a giving experience that aligns with their online shopping habits. That means they expect to have access to modern payment methods and digital wallet options like PayPal, Venmo, Apple Pay, and GooglePay. Making these digital payment options available has been shown to reduce donor checkout friction, build trust, and increase unplanned gifts by 32% and repeat donations by 79%.

That’s especially important when considering appeals to next-gen donors. As of 2023, approximately two-thirds of Millennials and Gen Z individuals have embraced digital wallets. And 78% of Gen Zers would reconsider patronizing a business that doesn’t accept digital wallet payments. But there’s no need to be concerned about leaving potential donors behind as Gen Xers are also on board, with more than half reporting that they use digital wallets more than traditional payment methods.

Always be in a position to say “Yes” to potential gifts

One of the significant advantages of embracing modern payment methods like digital wallets is that you’re more likely to receive donations. PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions increase by over 32% when digital payment options are available. Moreover, repeat donations can surge by 76% when using PayPal.

Venmo, with more than 80 million users, offers a familiar and trusted platform for next-gen donors, who donate at more than twice the rate of non-Venmo users.

When donors find it effortless to contribute, they’re more likely to make a gift. By providing a seamless donor experience with multiple payment options, you’re more likely to see an increase in the generosity of your supporters.

Engaging next-gen donors at events using contactless payments

Fundraising events play a key role in nonprofit fundraising efforts. A significant number of attendees are often Millennials and Gen Z supporters. To cater to their tech-savvy preferences, consider integrating contactless payment methods like Bloomerang Tap to Pay. Your donors can easily contribute using Apple Pay or Google Pay with a simple tap of their smartphones. By offering a seamless way for next-gen donors to give while they’re inspired by your mission, you can boost donations.

Take advantage of next-gen payment options with Bloomerang

Digital wallets and Tap to Pay are now an integral part of Bloomerang Payments, the payment processor built exclusively for nonprofits. Deliver a better giving experience for your donors, with lower fees, better support, and no need to use a third-party provider. Bloomerang Digital Wallet options not only enhance the giving experience for donors but also make it easy for your organization to address next-gen giving preferences. Bloomerang Digital Wallet offers the ability for nonprofits to:

• Accept expanded payment options. Donors using Bloomerang fundraising tools, like donation forms, donation pages, events, and crowdfunding pages, will now see PayPal, Venmo, ApplePay, GooglePay, and Bloomerang Tap to Pay as convenient payment choices.
• Add offline donations. You can manually add offline donations processed through digital wallet platforms, including PayPal, Venmo, ApplePay, and GooglePay.
• Make the most of transparent reporting. Gain valuable insights into your fundraising efforts by tracking funds raised through digital wallet transactions.

Now’s the time to step into the future of giving

To stay relevant in today’s evolving fundraising landscape, it’s essential to adapt to the preferences of the donors of tomorrow. Consider embracing next-generation payment methods through Bloomerang Payments to:

• Effortlessly grow donations: Attract and engage new donors with mobile-friendly options.
• Save money for where it matters most: Streamline your operations and reduce administrative costs.
• Set up your organization for success: Stay ahead of the curve and build a strong donor base for the future.

Incorporating these modern payment methods isn’t just about convenience; it’s about securing your organization’s financial stability and ensuring you can continue to make a positive impact on the causes you’re passionate about. So, step into the future with Bloomerang Payments and watch your donations soar while you make giving a seamless and enjoyable experience for your donors. A bright future awaits.

The post Adopting Modern Payment Methods To Engage And Keep A New Generation Of Donors appeared first on Bloomerang.

This integration not only broadens your digital payment capabilities, but by offering a wider range of digital wallet options to enhance your fundraising strategy, it also expands contactless giving options, marking another step in adapting to modern donation preferences.

The rise of digital wallets in nonprofit fundraising

The past 24 months have witnessed a significant shift towards digital wallet adoption, accelerated by the COVID-19 pandemic’s impact on traditional donation methods. With 43% of the global population now using digital wallets, a number expected to reach 60% by 2026, it’s clear that nonprofits need to adapt to these changing donor preferences. Digital wallets like PayPal and Venmo offer speed, convenience, and trust, factors that are increasingly important to today’s donors.

Embracing change with Bloomerang Payments

Recognizing the escalating demand for PayPal and Venmo among donors, we’ve integrated these digital wallets into Bloomerang Payments. Why these platforms?

Integrating PayPal and Venmo into Bloomerang Payments is more than just adding payment options. It’s about enhancing the donor experience and meeting donors where they are.

For example, PayPal has been shown to help increase donation conversion by an average of 32%¹ and repeat donations by 79% (vs. typical checkout).² 52% of U.S. donors prefer PayPal for repeat donations because they trust it³, and 37% of PayPal users donate more when using this method.⁴

Venmo, with its significant user base, offers a familiar and trusted platform for next-gen donors, who donate 2x more than non-Venmo users.⁵

Expanding donor demographics with Venmo

While integrating PayPal and Venmo is primarily about helping to diversify digital wallet options for your donors, it also presents an opportunity to engage with Millennial and Gen Z donors. Venmo’s largest user age group is in the 25-34 range, so this addition provides another way for nonprofits to connect with a more digitally-savvy audience. And it aligns with the growing trend of younger individuals preferring mobile and online payment solutions for their transactions—including charitable giving.

Using PayPal and Venmo with Bloomerang

You can enable giving through PayPal and Venmo—as well as with Apple Pay and Google Pay—using Bloomerang Payments. You can include all of these payment options on mobile-friendly donation forms and pages, events, Text to Donate, and crowdfunding tools available through Bloomerang Online Giving Tools. Beyond consolidating donation reports and tracking digital wallet donations like Venmo on a donor’s profile, your nonprofit can boost fundraising this season by giving donors the option to pay processing fees.

Step into the future with Bloomerang Payments

Get ready to transform your fundraising strategy with Bloomerang Payments. By integrating PayPal and Venmo, along with offering contactless giving options, you’re not just keeping up with technology—you’re staying ahead of it. Embrace this opportunity to enhance donor satisfaction, streamline your donation process, and expand your donor base.

Join us on this innovative journey as we continue to support your efforts in raising more funds and adapting to the ever-evolving landscape of nonprofit fundraising. With Bloomerang Payments, you’re equipped to meet the future of giving—today.

^{1 Nielsen, commissioned by PayPal, April 2022. Nielsen Media Behavioral Panel of US with 590 Non-Profit desktop donation transactions from January 2021 to December 2021. *Checkout conversion measured from the point at which customer starts to pay for donation.}

^{2 Nielsen, commissioned by PayPal, April 2022. Nielsen Media Behavioral Panel of US with 590 Non-Profit desktop donation transactions from January 2021 to December 2021.}

^{3 Nielsen, commissioned by PayPal, April 2022. Nielsen Media Attitudinal Survey of US (January 2022) with 400 recent donations (past 3 months) to Non-Profit organizations, including 200 PayPal donations & 200 non-PayPal donations.‘Typical Checkout’ includes other mobile waller options, credit/debit cards, buy now/pay later, prepaid/gift cards, cryptocurrency, and more.}

^{4 Logica Research, Commissioned by PayPal, March23-April 2, 2021. Logica Research conducted an online survey averaged 10 minutes among a sample of 4,306 PayPal user respondents from four countries (U.S., Canada, Australia, and U.K.) who made a monetary donation to a non-profit PayPal merchant. N=1029.}

^{5 Edison Trends, commissioned by PayPal, April 2020 to March 2021. Edison Trends conducted a behavioral panel of email receipts from 306,939 US consumers and 3.4+ M purchases at a vertical level between Pay with Venmo and Non-Venmo users during a 12-month period.}

The post Introducing The New PayPal And Venmo Integration With Bloomerang Payments appeared first on Bloomerang.

Leveraging a secure payment solution throughout the donation process strengthens donor trust and allows them to use a convenient payment method. Credit card payments are donors’ preferred giving methods—63% of donors prefer to give online with a credit or debit card, followed by direct mail (16%), PayPal (10%), wire transfer (5%), cash (4%), digital wallet (1%), and text-to-give (1%).

In this guide, we’ll review the top credit card processing solutions for nonprofits and best practices for choosing the right platform. We’ll cover:

• The best nonprofit credit card processing solutions
• How to choose the right nonprofit credit card processor
• Nonprofit credit card processing: FAQs

Additional nonprofit credit card processing resources

Careful research is required to find the right credit card processing option that will serve your nonprofit’s long-term goals. If you need more support to find the right choice and understand how payment processing works in the context of your nonprofit’s fundraising efforts, start with these additional resources:

• What Is Nonprofit Payment Processing? Looking for more insight into the steps of nonprofit payment processing? Start with Kindful’s guide to the basic terms.
• 19 Incredibly Easy Online Fundraising Ideas and Expert Tips. A powerful payment processor will power your nonprofit’s online campaigns. Build well-rounded online fundraising initiatives with the help of this resource.
• 30 Best Practices to Optimize Your Nonprofit Donation Page. Your nonprofit’s online donation page should leverage a robust payment processor. Learn more about top features that will optimize your giving form.

The post The Top 8 Nonprofit Credit Card Processing Solutions for 2024 appeared first on Bloomerang.

Text-to-give is one of the easiest and fastest ways to raise donations via SMS messaging. However, many nonprofits don’t know where to start when it comes to implementing text-to-give campaigns.

This guide will explain how the process works and ways to optimize your campaigns to raise more from this channel. We’ll cover:

• Text-to-give: FAQs
• Pros and cons of text-to-give
• How to set up text-to-give 
• Best practices for an effective text-to-donate campaign
• 7 top text-to-give platforms

Additional text-to-give resources

With this guide, you should be ready to start a text-to-give or text-to-donate campaign ASAP! Choose an effective text-to-give platform and a catchy keyword, and start promoting your campaign across multiple marketing channels.

Looking for additional resources to help support your modern fundraising strategy? Start with these:

• 19 Incredibly Easy Online Fundraising Ideas and Expert Tips. Promoting your text-to-give option alongside your online fundraising campaigns is an effective way to raise more funds. Use this guide to plan an engaging online campaign.
• 30 Best Practices to Optimize Your Nonprofit Donation Page. Your mobile donation form should be simple and easy to use. Follow the tips in this guide to design a better giving page.
• 15 Top Online Fundraising Platforms to Ramp Up Donations. Your online fundraising platform will help keep all digital fundraising activities centralized. This resource highlights top options for nonprofits.

The post Text-to-Give: The Ultimate Guide to Mobile Fundraising appeared first on Bloomerang.

Welcome to Bloomerang Tap to Pay, a fresh way to boost your event fundraising and build stronger connections with your donors. In a world where cash is no longer king, our infographic will reveal the compelling numbers behind this shift. You’ll see why now’s the time to adopt Tap to Pay, as today’s donors are reaching for their smartphones and credit cards instead of cash. With Bloomerang Tap to Pay, we’re excited to help you tap into this new era of modern fundraising and offer your supporters a convenient, contactless way to contribute to your cause.

The numbers tell the story: Tap to Pay is an important new payment method that’s reshaping the way nonprofits like yours approach charitable giving. It’s not just about making transactions faster; it’s about meeting donors where they are and providing them with the convenience and security they expect. As the world shifts rapidly towards digital solutions, Bloomerang Tap to Pay ensures that your nonprofit stays ahead of the curve, increases revenue, and enhances donor engagement and retention. 

To tap into the next-gen of payment options, download the Bloomerang Mobile App from the App Store or Google Play and start tapping into the future of donations today!

How does your organization attract and engage next-gen donors? 

The post Tap Into The Future: Transforming Nonprofit Donations With Bloomerang Tap to Pay appeared first on Bloomerang.

One reason behind this transformation? The rise of Millennials and Generation Z as donors—who not only are generously contributing but also are driving a shift towards modern payment methods. Their giving patterns are shaping the future of fundraising for human services.

The generosity of Millennials and Gen Z in human services

Millennials and Gen Z are not just the future of charitable giving; they are actively influencing human services organizations today. Together, they wield an impressive $350 billion in buying power—yes, you read that correctly! And these cohorts are tech savvy and socially conscious, with deep commitments to causes like welfare, healthcare, housing, and disaster relief. And they hold a significant amount of generational wealth that they are eager to give back. 84% of Millennials give to charity, donating an annual average of $481 across more than three organizations, while 76% of Gen Zers give online. As these cohorts mobilize to support causes they believe in, they’re becoming highly-engaged advocates, sharing information on social media, and crowdfunding donations.

Digital wallets: Meeting the needs of human services supporters

Millennial and Gen Z donors today are looking for a giving experience that aligns with their online shopping habits. That means they expect to have access to modern payment methods and digital wallet options like Apple Pay and GooglePay. When Human Services organizations make digital payment options available, it’s been shown to reduce donor checkout friction, build trust, and increase unplanned gifts by 32% and repeat donations by 79%. 

That’s especially important when considering appeals to attract and retain next-gen donors. As of 2023, approximately two-thirds of Millennials and Gen Z individuals have embraced digital wallets. And if they find an organization that doesn’t accommodate these preferences? 78% of Gen Zers stop their support. No need to be concerned about leaving potential donors behind as Gen Xers are also on board, with more than half reporting that they prefer digital wallets over traditional payment methods.

Always be ready to say “yes”: Embracing modern payment solutions

One of the significant advantages of embracing modern payment methods like digital wallets is that you’re more likely to receive donations. PayPal users are almost four times more likely to donate when PayPal is accepted, and donation conversions increase by over 32% when digital payment options are available. Moreover, repeat donations can surge by 76% when using PayPal.

The ease of donation significantly affects donor behavior. When donors find it effortless to contribute, they’re more likely to make a gift. By providing a seamless donor experience with multiple payment options, you’re more likely to see an increase in the generosity of your supporters.

Contactless payments at human services events: Attract and retain next-gen donors

Fundraising events for human services—which often cater to vulnerable populations—play a key role in attracting a significant number of Millennial and Gen Z supporters. To cater to their tech-savvy preferences, consider integrating contactless payment methods like Bloomerang Tap to Pay. Your donors can easily contribute using Apple Pay or Google Pay with a simple tap of their smartphones and instantly support initiatives like homeless shelters, medical aid, or community programs. In this way, you enhance their engagement and boost donations while they’re invested in the spirit of your mission.

Bloomerang Payments for human services nonprofits

Bloomerang Payments, the payment processor built exclusively for nonprofits, now incorporates digital wallets and Tap to Pay. Make sure your organization is set to deliver a better giving experience for your donors, with lower fees, better support, and no need to use a third-party provider. Bloomerang digital wallet options not only enhance the giving experience for donors but also make it easy for your organization to meet the preferences of next-gen donors. Features include expanded payment options through tools like donation forms and events, manual additions of offline donations, and transparent reporting for digital wallet transactions

Now’s the time to step into the future of giving

To stay relevant in today’s evolving fundraising landscape, it’s essential to adapt to the preferences of the donors of tomorrow. Consider embracing next-generation payment methods through Bloomerang Payments to:

• Attract and retain next-gen donors with mobile-friendly, digital options.
• Maximize the funds you can allocate to supporting your mission with lower administrative costs.
• Stay ahead of the curve and build a strong donor base for the future.

Incorporating digital payment methods isn’t just about convenience; it’s about securing your organization’s financial stability and ensuring you can continue to make a positive impact and move your mission forward. So, step into the future with Bloomerang Payments and embrace the next generation of givers by delivering a seamless and enjoyable experience. A bright future awaits.

What are some strategies you use to attract and retain next-gen donors?

The post The Future Of Nonprofit Fundraising In Human Services: Embracing Next-Gen Payment Options To Attract And Retain Next-Gen Donors appeared first on Bloomerang.

In place at GoFundMe since 2017, The Tip amount is meant to support the platform itself, covering operational costs and enabling the platform to continue to deliver its services.

The platform adds 15% at checkout. Yes, you read that correctly, 15%. It’s the default amount they ask of donors to cover site fees. If the donor doesn’t want to tip 15%, it’s not obvious where to zero out the tip. Donors must opt out instead of opting in. Before implementing The Tip, GoFundMe charged the fundraiser a 5% fee. Both fees are in addition to a 2.9% + $0.30 transaction fee.

What tipping is not

Crowdsource Tipping is NOT the same as it appears in online donations where donors may opt to cover processing fees for your nonprofit organization. Rather than donating $40 and paying the additional $1.10 or so in fees to the card processing company, the donor contributes $41.10 and knows that your organization receives the full $40 they intended!

That sort of tipping is highly recommended by fundraisers and it has become more and more popular. Donors like it too since it offers transparency that their money actually goes toward your cause. In this case, tipping delivers peace of mind.

While statistics are hard to come by, many nonprofits have seen a high percentage of donors tipping on their donation forms. Giving donors the opportunity to cover your processing fees helps your bottom line—so there’s little risk to try it with your supporters, and a lot of probable benefit!

How does tipping work on crowdfunding and crowdsourcing platforms?

Here’s how “The Tip” model works:

1. Donor makes a donation: A person who wishes to support a particular fundraising campaign or cause on a platform like GoFundMe makes a primary donation, which goes directly to the campaign they’re supporting.
2. Optional tip: During the donation process, the platform may ask the donor if they want to add a tip. This tip is an additional—entirely optional—amount. Donors can choose to leave it at $0 or specify a different amount.
3. Use of the tip: The tip amount, if the donor chooses to leave it, goes to the platform itself to cover operating costs, including server maintenance, payment processing, customer support, and other expenses associated with hosting fundraising campaigns.

The idea behind “The Tip” model is to enable donors to contribute not only to the specific causes or campaigns they support but also to the sustainability of the crowdfunding platform itself. It’s presented as a voluntary way for donors to help ensure that the platform continues to serve both fundraisers and donors in the future.

THIS IS IMPORTANT: GoFundMe and similar sites are for-profit entities. Think about it: according to the most recent GoFundMe Year in Help, donations through the platform have raised $25 billion since 2010. 15% of $25 billion is $3.75 billion.

Is this cool, and are there alternatives?

Are GoFundMe tips a fair charge? The donor has the option to not tip after all. Or does asking for the tip manipulate donors into giving more because changing the default is not obvious, and appears not to be an option? Is it ethical to donate to a nonprofit while also giving an extra“gift” that doesn’t directly benefit the nonprofit, but contributes to a for-profit, potentially profitable, entity? Or is this giving justified because GoFundMe needs that much revenue to fully capitalize its platform and retain its market lead?

You have to decide what’s best for your nonprofit.

There are alternative crowdfunding and crowdsourcing platforms that also use a tip or optional contribution model. The following sites mimic the GoFundMe model, but with lower fees between 4 and 5%.

These platforms often give users the option to make an additional voluntary contribution on top of their primary donation or transaction to support the platform’s operations. Here are a few examples:

• Kickstarter, primarily known for crowdfunding creative projects, also includes an optional tip feature during the checkout process. Backers can choose to add a tip to their pledge to support Kickstarter.
• Indiegogo offers backers the option to “tip” the platform when making a contribution to a campaign to cover Indiegogo’s operational expenses.
• Patreon focuses on ongoing support for content creators, and offers a similar optional tip feature. Patrons can choose to tip to Patreon to support the platform in addition to their regular support for creators.
• Buy Me a Coffee enables supporters to “buy a coffee” for creators, and part of the contribution may go to the platform itself.
• Ko-fi (similar to Buy Me a Coffee) enables supporters to leave an optional tip for Ko-fi when making a contribution.

This list is not meant to be exhaustive. For a full analysis of the differences of these sites see Victoria Thomas’s blog post.

The use of optional tips or extra contributions is now common practice among crowdfunding and crowdsourcing platforms. It serves as a way to generate revenue to sustain the platform while keeping the primary fundraising or support activities for campaigns and creators free of additional fees. However, the ethics and implementation of such models can vary. Users or donors should be aware of the details and understand that they can opt out should they choose not to contribute a tip.

What do crowdsourcing and crowdfunding donors think of tipping? Stay tuned for a follow-up blog post on crowdfunding tipping.

Please share with us below your experiences with tipping.

The post GoFundMe Asks Donors To Tip Them! What’s Up With That? appeared first on Bloomerang.

This blog post compiles findings and insights from 100 donors and nonprofits, a decent sample size of participants spread throughout the U.S. While it’s not deep research it’s more than has been shared publicly to-date on this issue.

Donation-based crowdfunding—vs general commercial crowdfunding—aims to collect revenue through the Internet for charitable reasons (Choy and Schlagwein, 2016). Internet-based crowdfunding platforms allow the initiators to reach large numbers of people (Gerber et al., 2012). In general, a charitable crowdfunding project involves three parties: the project initiator, who launches a project to be funded; supporters, whose donations and sharing support the project; and platforms like GoFundMe that bring project initiators and supporters together (Liu et al., 2018).

Donor views

Here are some of the thoughts that both crowdfunding donors and the nonprofits who interact with them have shared with me:

1. Mixed attitudes: Donors have mixed attitudes towards tipping. Some donors appreciate the option to tip because they see it as a way to support their cause and ensure campaign organizers can maximize their donations. Others view tipping as an extra expense and prefer not to contribute beyond their primary donation.
2. Generosity and engagement: Some donors feel generous and will add a tip when they believe in the cause or campaign they’re supporting. They may also feel more engaged with the platform and the fundraising community when given the opportunity to contribute more.
3. Impact on giving: The presence of an optional tip doesn’t significantly deter donors from making contributions to campaigns they care about. Donors tend to focus more on the cause or project itself and its importance to them.
4. Transparency and trust: Transparency about where the tip money goes is crucial. Donors appreciate when platforms clearly state how they use tips to support the platform’s operations. This transparency helps build trust.
5. Sensitivity to amount: Donors may be more willing to add a small tip rather than a large one. They perceive smaller amounts as more manageable and less likely to impact the overall donation.
6. Segmentation: Donor attitudes vary based on age, income level, and familiarity with crowdfunding platforms. There’s a perception that younger donors may be more open to tipping, while older donors are not so inclined, but that conclusion requires further research.
7. Awareness and understanding: Not all donors may be aware of the tip option or fully understand its purpose. Increasing awareness and providing clear explanations may persuade more donors to tip. The fact that some crowdfunding platforms obscure the location of the function that enables the user to change the tip amount doesn’t help (see Transparency and trust, above). Further, the donors need to opt-out of tipping rather than opting-in!

Nonprofit views

Compared to traditional charitable giving, donation-based crowdfunding offers a set of advantages that nonprofits generally like:

• Crowdfunding reduces the coordination and transaction costs of donation collections (Choy and Schlagwein 2016).
• Donation-based crowdfunding tends to collect small amounts from large crowds instead of seeking large amounts from a small group of affluent donors (Lu et al. 2014).
• Crowdfunding initiators can easily broadcast their campaigns to a wider range of potential donors and establish social relationships with them (Liang and Turban 2011).
• There’s greater real-time interaction—including updates, comments, and live streams between donors and project initiators throughout the fundraising process (Kuppuswamy and Bayus 2017).
• Crowdfunding helps spread information to the public in new and effective ways (Lambert and Schwienbacher 2010), as in targeted advertising, which increases the probability of successful fundraising.
• Crowdfunding provides opportunities for wider geographical reach, potentially to non-local donors with no previous connections to the fundraisers (Agrawal et al. 2015), in a cost-effective manner.
• Advanced technology can significantly reduce coordination and transaction costs associated with fundraising by enabling timely online interactions, and cost-effective digital and mobile payment systems (Choy and Schlagwein 2016).
• Crowdfunding presents opportunities to tap into new donors who may be actively seeking to contribute (Gleasure and Feller 2016) and offers a lower threshold for their involvement and activism, by making it easy for supporters to share the campaign with their own networks.

It’s important to note that donor attitudes evolve over time, and the specific findings of surveys vary depending on the sample size, demographics, and the particular crowdfunding platform being studied.

As noted, crowdfunding platforms often collect data and feedback from users to refine their models and policies, and they use this feedback to influence how they implement tipping and other features. But the platforms don’t usually share that data publicly; rather it’s proprietary to the specific platform. This is a profound limitation and prevents learning in the fundraising field.

For the most current insights into donor attitudes and behaviors regarding tipping, stay on the lookout for new surveys and research conducted by crowdfunding platforms, academic institutions, or market research organizations when publicly available. Also, if you’re using a crowdfunding platform to raise funds, incorporate a survey mechanism to learn how your donors experience the platform. That custom data is the best way for you to craft an effective fundraising program.

Have donors shared their views on crowdfunding tipping with you? If so, let us know in the comments.

The post What Do Donors And Nonprofits Think Of Crowdfunding Tipping? appeared first on Bloomerang.

The COVID-19 pandemic decreased use of cash and checks and increased the use of contactless payments, like digital wallets. Additionally, with younger generations’ preference for digital wallets, nonprofits need to implement new fundraising technologies to streamline the donation experience, capture donations easily in any format, and enable donors to give when they’re inspired.

“We’re thrilled to be the first donor and volunteer management platform to deliver Tap to Pay to market–connecting nonprofits with the next generation of donors, making it easier for them to raise funds and engage with new donors,” said Dennis Fois, chief executive officer of Bloomerang. “Our 2023 Fundraising Planning and Climate Report found nonprofits’ staffing constraints is one of the most important factors in determining fundraising performance. Tap to Pay helps nonprofits to raise more, faster, at fundraising events to maximize their impact.” 

Using Tap to Pay, nonprofits can:

• Save time: Eliminate manual data entry and process donations faster to save time for both the nonprofit and the donor–a key pain point for payment processing. 

• Increase giving: Meet donors where they are and offer preferred payment methods so nonprofits never have to say “no” to a potential gift. 

• Strengthen relationships: Acknowledge and nurture donors and support their stewardship efforts more easily with data flowing automatically from the Bloomerang mobile app into the Bloomerang CRM.

Tammy Hammond, chief product officer at Bloomerang, said, “We know that for nonprofits, building relationships with donors often happens in person and in the moment. We are excited to bring Tap to Pay functionality to our customers to more easily and simply process donations and record the transactions from their mobile phone at the point of interaction.”

Built on the Bloomerang Donor Management platform and PCI-compliant Bloomerang Payments processor, Tap to Pay’s functionality supports donations through credit cards or digital wallets, including Apple Pay and Google Pay. It will be generally available for this year’s giving season and is free with Bloomerang Payments. Fundraisers can utilize Tap to Pay on any NFC-enabled Android device or iPhone XS and later using the Bloomerang mobile app.  

This latest innovation supports Bloomerang’s vision to deliver the fundraising platform of the future. Bloomerang recently launched Bloomerang Volunteer, following its acquisition of InitLive in March 2023, to expand nonprofits’ relationships with supporters. The integration of Bloomerang’s donor management platform and volunteer management platform offers a comprehensive view of supporter engagement in one place. 

Learn more about how Tap to Pay will enable nonprofits to save time, increase giving, and strengthen relationships, here.

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