Research Shows Most Charities Limit Online Donations Strategy
Released on = January 21, 2006, 4:07 pm
Press Release Author = Strateo Consulting Inc.
Industry = Small Business
Press Release Summary = Strateo Consulting Inc., a marketing and communications consulting firm based in Calgary, Canada conducted a random review of 75 websites of charitable organizations. They found that just over half are solciting donations online, but most have a very passive strategy for receiving donations.
Press Release Body = Strateo Consulting Inc., a marketing and communications consulting firm based in Calgary, Canada, recently conducted research into the strategies used by charities to solicit donations online. The company reviewed a random sample of 75 websites of charitable organizations.
Results of the Survey
Of the 75 organizations surveyed, 59% had some mechanism set up on their sites for receiving online donations. Within that 59%, 65% were using their own systems and 35% were using a third party for online processing of credit card payments. 35% of the organizations recognized at least some of their donors online. 30% had some form of collecting names and email addresses independent of online donations, like newsletter subscription sign up or requests for information. 28% had some form of specific strategy or incentive to encourage online donations, such as participation in a specific campaign, membership in a giving club or the offer of a plastic bracelet or pin.
Interpretation of These Results
Other research shows that Internet users represent a good target market for charities. According to www.worldinternetstats.com 68% of North Americans are using the Internet (we will focus on North America because we only review English language sites). Of these users, 89% of people with an annual household income of more than $75,000 are online and 88% of people with a college education are online. 78% of people aged 18 to 29 are online and 74% of people aged 30 to 49 are online. Users are more or less evenly split between rural and urban and male and female.
According to research done by the Pew Foundation that was released in November 2005, 18% of Internet users report having made a donation online, up from 11% when the last survey was done. This report can be found at www.pewinternet.org/pdfs/PIP_Katrina.DateMemo.pdf. This increase was attributed in part to the response to the relief efforts for Katrina victims. The urgency of this situation may have caused more people to donate online but it is logical to speculate that once the behavior is established, it may become easier for other charities to solicit online donations.
If Internet users represent a good target demographic, organizations that do not have an online donations strategy should develop one. Based on our research, only 30% have a strategy and of those 30%, only a few have what appears to be a well thought out strategy. Part of their strategy should be to design their sites in a way that targets the demographics of Internet users. Without a strategy, an online donations form or button is the equivalent of an online coin collection box. It is a very passive form of donation collection that is not likely to result in the opportunity to cultivate a relationship with the donor.