Let’s do a deep dive and examine the differences between conventional fundraising techniques and virtual (digital) fundraising strategies.
Fundraising plays a crucial role in enabling non-profits to enhance their resources, develop extracurricular activities, and facility maintenance. This blog examines both conventional and digital fundraising approaches, highlighting their respective benefits and drawbacks. Conventional methods, such as bake sales and car washes, foster personal engagement and community participation; however, they may be labor-intensive and restricted in their outreach. Let’s take a close look at the pros and cons of both approaches: conventional vs virtual fundraising.
CONVENTIONAL FUNDRAISING
Conventional fundraising methods include:
–Events: Galas, auctions, and charity runs.
–Direct Mail: Letters or brochures sent to potential donors.
–Telephone Campaigns: Calling potential donors to solicit funds.
–Face-to-Face Solicitation: In-person requests for donations, often involving personal connections.
Examples of popular conventional Fundraisers:
Order-Takers and Brochure programs: Katydids candy, Cookie dough, Virginia Diner Nuts, …
Direct sellers: Chocolate bars, Smencils, lollipops, Restaurant.com gift cards, …
ADVANTAGES
PERSONAL TOUCH: Conventional fundraising allows for direct interaction with supporters. The personalised approach will boost sales and improve conversion.
Fundraising events such as cookie dough bake sales, a Katydids brochure campaign, and Trivia nights let children, parents, and volunteers to interact directly with their community, cultivating a sense of unity and belonging.
COMMUNITY CENTRIC: Conventional fundraisers, to meet their financial objective, frequently necessitate the participation of a large portion of the non-profit organisation (if not all), whether it be a school, sports team, or a local church. Such involvement can result in more engagement and support from educators, family members, and even local businesses. Events like spaghetti diners and movie nights bring the community together to support a local non-profit organization, meet new people, and have great time.
HISTORY OF SUCCESS: Conventional and traditional approaches of fundraising have a long history of success. Since using these fundraisers for so long, non-profit organizations of all shapes and sizes have honed their strategies to boost revenue through experience and supporter retention. Because these tactics are well-known and have a proven track record, they are simpler to implement and yield more consistent and predictable outcomes
IMMEDIATE FEEDBACK: Direct communication—whether via phone or in person—can provide immediate responses to questions and comments, allowing supporters to decide quickly.
COMMUNICATION: Gaining supporters and promoting the cause require open, honest, and transparent communication. Children benefit from this experience by developing their social and communication skills. Children frequently hold fundraisers in their local neighborhoods, where they interact with neighbors from social circles, businesses, and residences. These exchanges support the deconstruction of barriers and strengthening of social bonds. These experiences can have a significant impact on young people’s ability to communicate and interact with others, as well as their sense of confidence in public.
NETWORKING OPPORTUNITIES: Events, such as bake fest, can help in building relationships with supporters or sponsors.
DRAWBACKS
LOGISTICS: Carrying out the conventional fundraiser takes considerable time, working on the strategy, working out the logistic, meeting and conveying the information to each volunteer, finding the best locations, and approaching each supporter individually. Conventional fundraisers frequently take a lot of time and can be demanding and stressful tasks to carry out for any non-profit fundraising endeavour.
SCALABILITY: For many conventional fundraising events to be successful, volunteer participation is essential. Finding and managing a large volunteer base can be challenging, particularly for smaller non-profit organizations and schools that do not always have a PTA and a less active parent communities. The necessity for volunteers in conventional fundraisers may make them less scalable for many non-profit groups.
SPECIFIC AND LIMITED RANGE: Events and direct mail have geographical and logistical limitations. The donor base for a typical event fundraiser is usually restricted to members of the local community. This restriction can make it difficult for non-profits to raise significant sums of money, particularly for those in smaller or less wealthy communities.
VIRTUAL FUNDRAISING
The way that many non-profits choose to go about meeting their specific financial needs has been transformed by online and virtual fundraising techniques. Because they are easily accessible and simple to use, online strategies have grown in popularity in recent years. Email marketing, social media campaigns, virtual events, and online crowdfunding are some of the most popular online fundraisers.
Virtual fundraising methods include:
- Crowdfunding Platforms: Websites like GoFundMe or Kickstarter.
- Social Media Campaigns: Using platforms like Facebook, Twitter, or Instagram to reach potential donors.
- Email Campaigns: Sending donation requests and updates through email.
- Online Auctions and Virtual Events: Hosting events online where participants can bid or donate.
ADVANTAGES
REACH: Online fundraising strategies can rapidly expand the potential supporter base by reaching a much wider audience. Nonprofits can ask friends, family, and even alumni who live far away for support through online platforms and social media. Increased awareness of the non-profit’s needs and larger contribution amounts may arise from this wider reach.
ECONOMICAL: A small to no initial investment is required to get started for a large number of online platforms that offer fundraising solutions, making this option an affordable technique. Non-profits with limited funding consider virtual or social media fundraisers because of their affordability.
FASTER & EASIER: In general, managing digital fundraisers is less complicated than traditional event planning. Many parts of the fundraising process, including tracking progress, sending thank-you notes, and collecting donations, are automated by online platforms. Volunteers, non-profit, or school employees have less work to do thanks to this automation, freeing them up to concentrate on other important duties.
DATA TRACKING: Easier to track donations and analyze campaign performance through digital tools in real-time.
ENGAGEMENT: Interactive elements like social media sharing and online communities can sometimes enhance engagement.
DRAWBACKS
INTERNET ACCESS & KNOWLEDGE: While virtual online fundraising campaigns are generally easy to set up, some basic knowledge is required. Basic internet skills and access are needed for everything from setup to monitoring the fundraiser’s progress until it is finished.
TRUST: Some supporters feel more at ease making payments in person than they do through internet transactions, even though the many will find it convenient to transact online. This might reduce the quantity of funding that a nonprofit organization gets.
LIMITED PAYMENT METHODS: Virtual fundraisers are often limited to payment methods like credit card, bank e-transfers, and online transfer funds applications like PayPal, while conventional fundraisers can easily integrate an online payment feature into their campaign with “Scan to Pay” applications, to their cash and check payment methods.
FRAUD RISK: Stronger security measures are necessary due to the increased risk of online fraud and scams.
CYBERFATIGUE & ONLINE COMPETITION: Potential donors run the risk of developing digital fatigue due to the growing frequency of online activities. The high competition online can make it challenging to stand out. Fundraisers are often overlooked by potential supporters due to their constant exposure to online campaigns and solicitations. Decreased engagement and donations may result from this. Fundraising coordinators need to be aware of this and devise strategies to maintain the relevance and interest of their digital fundraisers without worrying about re-engaging supporters who have not replied.
HYBRID FUNDRAISING APPROACH
The best of both worlds can be achieved by combining traditional and digital fundraising techniques. A hybrid strategy takes into account the varying preferences of the audience while optimizing reach and engagement.
A nonprofit organization might, for instance, start a cookie dough fundraiser and run an online campaign at the same time, or they could just make a Facebook event promoting the cookie dough fundraiser. By using this strategy, the campaign will reach its maximum audience and provide all of the preferred payment options and communication channels for your supporters.
IN CONCLUSION…
CHOOSING THE RIGHT APPROACH
The campaign’s objectives, target market, and available funds are often the deciding factors when deciding between traditional and online fundraising. A hybrid approach that incorporates aspects of online and traditional methods is found to be effective by many organizations. To increase reach and engagement, an organization might, for instance, simultaneously conduct an online campaign and host a physical event.
