Aug 6, 2013
Online payment solutions are becoming more important for nonprofits as cash use decreases. Shoppers in the United Kingdom made fewer purchases with cash while online transactions grew in 2012. Overall, purchases made on the Internet grew 5 percent last year, according to a recent survey from the British Retail Consortium. In addition to Internet transaction being easier than using cash, people are more confident in the online transaction process. Because of this major trend in the marketplace, a higher number of potential donors may expect to be able to make contributions online.
Nonprofits have a number of considerations to keep in mind when deciding to accept donations online. Some organizations may just be starting out while others seek to improve the conversion rate of their online donation form, The Nonprofit Times stated. In both cases, organizations need to carefully assess their needs because the software and technology provided by a payment processing company are what will help a nonprofit succeed online.
Once an organization begins offering an online donation form, it needs to ensure it is as simple as possible. The average number of clicks to enter credit card information can be more than 30, but users start to grow frustrated after 10, The NPT said.
How online donations can help charities
Data management should also be a top priority for nonprofits when considering implementing online transactions. Some payment processing providers offer integrated transaction and database solutions so staff members only have to enter information once. Although online payments can be more challenging for smaller nonprofits, this technology was not accessible to them at all a decade ago. Today, there are a variety of online payment processing solutions for organizations of all sizes.
Internet transactions give nonprofits better access to donor data, The NPT said. When contributors fill out the online donation form, organizations can capture their contact information and keep in touch with them. This may include communicating with previous contributors about new fundraising opportunities or inviting them to an annual auction.
People perform a higher number of daily functions online because of the convenience, and they are very comfortable in this sphere. Potential donors are likely to search a nonprofit's website before deciding to donate, and if they are captivated by a cause and the content on a page, they may want to make a contribution immediately. Because of the greater availability of payment processing solutions and the growing popularity of online transactions, nonprofits can gain an advantage by offering donors the option to give online.