Analysis: Online Fundraising

Fundraising on the Internet is an important topic for quite some time. Aid agencies have discovered online marketing for fundraising and gained a growing number of online donations through that way. The need for donations on current disasters can be made public quickly and cost-efficiently to a large audience via the Internet. Online fundraising is due to the relatively small financial outlay attractive for small foundations and associations and thus it is already worth to attract small donations. Likewise, aid agencies can attract on the Internet new groups of donors, to which they lacked access to date.

In particular, for Non-Profit Organizations the Internet opens up profitable ways to gain donations cost-effectively or even for free. The search engine Google for example, offers through its Grants Program the possibility to advertise to relevant search queries for free.

But with the growing success of online fundraising, competition is also growing. Especially at Christmas and on current disasters, the rivalry is very high. Then it is difficult for aid agencies to place their concerns prominently online. In these cases, it is important to understand the logic of each advertising channel and to combine them meaningfully in order to recruit donors still cost-effectively.

Together with Kindernothilfe the metapeople group has been working for over four years to successfully win internet donors for children in need. Our study highlights the special features of online fundraising, especially for non-profit organizations and shows how donations can be raised cost-effectively online due to a meaningful performance marketing mix.