Years ago, fundraising was more limited due to the fact that technology simply didn’t provide the wide range of options it does today. Now, nonprofits can reach donors through a large number of channels, ranging from social media to emails for fundraising, to their website, as well as more traditional payment methods such as in-person or by phone.
The growth of online fundraising platforms, which are tools designed specifically for fundraising in a digital world, is a key piece of this puzzle. These platforms provide communication and interaction tools to reach donors, allow them to give digitally and help organizations share their needs so donors know where support is needed.
Table of Contents
- Importance of Fundraising for Nonprofits
- Criteria for Selecting a Fundraising Platform
- Top 5 Fundraising Platforms Overview
- Tips for Using Fundraising Platforms Effectively
- Case Studies or Success Stories
- 100+ Free Fundraising Tools for Nonprofits
- Frequently Asked Questions
Importance of Fundraising for Nonprofits
Fundraising is the lifeblood of nonprofits, with research from the National Council of Nonprofits showing that individual donations account for 72 percent of charitable giving. It brings in the necessary support to power their mission and allows them to help those they serve. It can be challenging at times because there is a growing number of nonprofits that support great causes and are all vying for donor dollars, while donors have a limited amount they can give even though they may feel strongly about a wide range of causes.
Fundraising allows nonprofits to host events, give items to those in need, meet the needs of a wide range of people and also to pay staff and administrative costs that help keep them running.
Criteria for Selecting a Fundraising Platform
Online fundraising platforms are not one-size-fits-all. Each offers different payment options, has strengths and weaknesses and varies in its level to which users can customize it to their own needs. Here are a few criteria to use in choosing the right fundraising platform for your organization.
User-friendly interface
One of the main reasons potential donors choose not to give or to give to a different nonprofit or cause is difficulty in using an organization’s donation platform. The easier a platform is to use, the more likely a person is to give. If they have to navigate a complex process with multiple steps and feel like a tech expert to complete it, odds are they won’t give and will instead support another cause that has a simpler giving process.
Payment processing options
Nonprofit organizations have several payment options for processing donation payments. They can choose credit card, which is one of the most common donation methods and relies on processors such as Stripe, PayPal, Square or another payment processor. Nonprofits can also choose ACH/Direct Debit
ACH (Automated Clearing House) payments, which allow direct bank-to-bank transfers. Digital wallets like Apple Pay and Google Pay are also viable options.
Fees and pricing structure
Most payment processors charge a combination of a percentage of the transaction amount and a flat fee per transaction, i.e. 2.9% + $0.30 per transaction. Some processors offer discounted rates for registered nonprofits, with a lower percentage for qualified or registered nonprofits. Fees typically range from 2-3 percent of the donation amount and the total fees are typically 5-6 percent of the donation amount.
Different payment methods may have varying fee structures, with credit cards typically having the standard percentage plus flat fee structure and ACH/Bank often have lower fees. ACH fees tend to be 0.8% all the up to 2%.
Customer service and support
The level of customer support varies from platform to platform. Trusted providers, such as Vanco, offer 24/7 live support to answer customer questions and help them work through any challenges they face in navigating the donation process. Many users, especially older ones who aren’t as comfortable with technology, have questions and need a helping hand as they learn the process and get comfortable with it. Platforms that provide a higher level of support help nonprofits increase donations by removing technological barriers.
Integration with other tools and platforms
In addition to a giving platform, nonprofits use a wide range of other software and tools to manage information and run their operations. When choosing an online giving platform, it’s key to look at what integrations it offers and how well it will work with your existing software. The better the integrations, the easier life will be for everyone using it.
Top 5 Fundraising Platforms Overview
Brief introduction to each platform
While there are quite a few online fundraising platforms out there, a few have established themselves as respected leaders in the space. Here are the top five, including their key features, pros and cons and the types of campaigns for which they work best.
Vanco
Key features
- Online Giving [Y / N] - Yes
- Giving and Engagement App [Y / N] - Yes
- Text-to-Give [Y / N] - Yes
- Giving Kiosks/Portable Card Reader [Y / N] - Yes
- Event Ticketing and Management [Y / N] - Yes
- ChMS Integrations [Y / N] - Yes
Pros and cons
Pros
- Built for churches
- Storytelling Includes member engagement solutions
- Integrates with more than 60 ChMS for easier fund reconciliation and reporting
- Free 24/7 customer service
- Best for recurring donations
Cons
- No email marketing mass communication tool
- No donor management (while Vanco can help you identify different points in a donor's giving journey such as when someone has given for the first time, Vanco can't tell you more about the donors on a broader sense, like who's married, who's been baptized, etc.)
- No fully customizable mobile app – while there are some light customization capabilities within the Vanco Mobile app itself, it's not fully customizable.
GoFundMe Charity
Key features
- Customizable campaigns.
- Registration and ticketing tools
- Advanced data reporting.
- Integration with CRM tools
- Enhanced social media sharing
Pros and cons
Pros
- Can be used for various causes, from personal needs to business funding and charitable
- Strong security measures in place, including encryption technology and a dedicated trust and safety team.
- Allows for easy sharing of stories and updates, as well as thanking donors directly through the site.
- Creating a fundraiser is free
Cons
- Fees can be higher for small non-profits compared to other platforms
- There are restrictions on how much you can customize your fundraising page
- Users report coming across fraudulent campaigns on the platform
- Better suited for personal appeals and specific causes rather than general organizational funding or operating expenses
GiveLively
Key features
- Customizable donation forms
- Embeddable widgets
- Dedicated donation pages
- Peer-to-peer fundraising software
- Text-to-donate functionality
Pros and cons
Pros
- Free for nonprofits: GiveLively offers its core fundraising features for free to nonprofits, with no platform fees.
- Digital wallet support
- Easy setup
- Mobile-friendly design
- Integration with Salesforce
- Best for event fundraising
Cons
- Limited integrations
- Application process required
- Not an all-in-one solution
- Limitations on customization
Classy
Key features
- Customizable fundraising campaigns
- Comprehensive event management
- Peer-to-peer fundraising software
- Recurring donations
- Crowdfunding capabilities
Pros and cons
Pros
- Customization of campaigns, donation forms and branding
- Mobile optimization
- Multiple payment options
- Data insights.
- Supporter engagement
- Best for larger nonprofits
Cons
- Pricing structure
- Steep learning curve.
- Add-on costs
- Limited flexibility for very specific needs: While highly customizable, organizations with very unique fundraising models might find some limitations.
Fundly
Key features
- Customizable campaigns
- Visual storytelling
- Allows extensive customization of fundraising pages
- All pages and forms are mobile-responsive
Pros and cons
Pros
- User-friendly interface
- Multiple payment options
- Social media integration
- Emphasizes photos and videos on campaign pages
- Allows organizers to offer rewards for different donation amounts
- No minimum fundraising requirement
- Provides access to Fundly Connect, a database of volunteer opportunities
- Best for community-driven campaigns
Cons
- Higher fees - 4.9-percent platform fee per transaction for payment processing
- Less name recognition
- Limited support
- Not be ideal for very large fundraising campaigns.
- Potential for fee accumulation
- Less specialized
Tips for Using Fundraising Platforms Effectively
How to promote your campaign
Marketing your campaign is vital to its success. People can’t give if they don’t know you’re looking for donations, so make sure to use all your social media and communication resources to get the word out. Each social media platform is geared toward a different demographic, so be sure to research the best ones to focus on based on your target audience.
Fundraising event emails are also a great tool and provide a more long-form option, as well as sharing news about your campaign in-person at events.
Engaging your supporters
Your supporters need to feel like they have agency in your organization and its fundraising efforts. It’s important to communicate clearly with them, be transparent about your fundraising efforts and explain why you’re looking to raise money. Not only do you want them to give, but you want them to help spread the word by sharing your posts and updates on their own feeds.
Setting realistic fundraising goals
While every nonprofit would love to raise millions of dollars with every campaign, setting realistic goals is wise. Identify what you’re raising money for, determine how much you need to raise and then establish benchmarks that are within reach based on your organization’s past fundraising efforts, your current base of support and other similar organizations and their fundraising campaigns. While it’s nice to see a big number with lots of zeroes after it on a poster on the wall, setting a realistic mark for the money you need to provide holiday meals for families in need, put a laptop in the hands of every student in a class or host a memorable summer carnival for an underprivileged group of kids is the way to go.
Case Studies or Success Stories
1. Vanco
St. Cloud Cathedral High School in Minnesota used Vanco to build and host its annual charity golf outing to raise funds for the school and its athletic programs. With Vanco’s tools, the school was able to customize its event setup in a way that worked best for attendees and for the first time in the history of the event, it sold out. The school raised $16,000, providing valuable support for programs and making the golf outing its most successful to date.
2. GoFundMe Charity
An example of a nonprofit that has effectively used GoFundMe Charity is The Karam Foundation, which focuses on providing education and support to Syrian refugees, helping them rebuild their lives after fleeing conflict. The foundation highlighted the story of a young refugee who was able to attend school thanks to the foundation's support. TKF shared compelling personal stories and the direct impact of donations.
3. GiveLively
The Tenement Museum is a well-established nonprofit in New York City that used GiveLively during the pandemic, which forced the museum to shut its doors. It launched a 'Help The Tenement Museum Survive' campaign and a 2020 virtual gala using GiveLively's platform and brought in over $500,000, contributing to a total of more than $680,000 processed for the museum by GiveLively. The Tenement Museum promotes a society that embraces and values the role of immigration in the American identity.
4. Classy
The V Foundation, inspired by the late college basketball coach Jim Valvano’s battle against cancer, has successfully leveraged Classy's platform to enhance its fundraising efforts and improve donor engagement. The foundation uses Classy to deliver a unified giving experience for their donors and the platform has helped it exceed donor expectations and increase retention with its customized campaigns, integrations, and embedded donation forms.
5. Fundly
Run for Reading is a crowdfunding campaign for the Team First Book chapter in North Carolina and the organization ran a campaign to raise enough money to provide new books to children and schools in lower income neighborhoods. By using the platform’s update capabilities to keep donors informed, sharing images of children being helped and establishing multiple giving levels, the campaign exceeded its goal of $8,000 and reached the mark with more than a month remaining.
Lessons learned from their experiences
While each of these online fundraising platforms is different, collectively they teach us valuable lessons about picking the right platform for your needs. Find the right option for the size and resources of your nonprofit, as well as the one that has the features and tools for the specific type of campaign you’re running. Do your research before choosing a platform and ask as many questions as needed to determine what you’ll need in order to reach your goals.
Understand the pricing plan and different tiers within each platform so there are no surprises once you’re up and running. Lastly, pick a platform that is easy for your staff and supporters to use and which offers reliable support in the event you have questions or need assistance.
100+ Free Fundraising Tools for Nonprofits that Inspire Unprecedented Generosity!
We've put together 100+ pro tools and templates that are guaranteed to boost your nonprofit's fundraising- no guesswork, no fluff. Here's what's inside:
- Word-for-word fundraising scripts that turn "no" into "yes"
- Fundraising letter, email, and thank you templates for every situation
- Event planning and evaluation tools including checklists, reports, evaluations, surveys, and more
- Plug-and-play sponsorship proposals and templates sponsors can't resist
- Free design materials that make your events look professional
- Donation Receipt Templates for every type of contribution
- 7 AI bots to handle repetitive tasks and save you hours
The only question left: Are you ready to turn the chaos into success?
Act Now!
Frequently Asked Questions
What is the most popular fundraising platform for nonprofits?
Because each platform caters to a specific size and type of nonprofit, there isn’t a single, definitive answer for this question. Each of the five options discussed in this post – GoFundMe, Vanco, Classy, GiveLively and Fundly – has a strong following in the nonprofit community and which one an organization prefers depends on the size of their operation and the types of campaigns they run.
How do crowdfunding platforms help nonprofit fundraising?
Crowdfunding platforms bring together supporters of a cause of organization in one place, uniting them behind a shared mission. They can help to rally and motivate while also giving a nonprofit a place to share its story, explain who it’s looking to help – and how – and serve as a location for updates on how the project is going.
Which fundraising platforms offer mobile donation features?
Nearly all fundraising platforms offer mobile donation features, as most nonprofits need to reach well beyond the potential donor base they could have with traditional giving tools. To ensure a fundraising platform has mobile tools to meet your needs, be sure to research it thoroughly before making a final decision.
How secure are online fundraising platforms for donors?
The security of an online fundraising platform is based on several factors. One is encryption, with reputable platforms using strong encryption methods to protect sensitive data like personal information and financial details during transmission and storage. Another is payment security, with platforms often partnering with trusted payment processors that are PCI DSS compliant to handle financial transactions securely. A third key point is authentication measures, with many platforms utilizing multi-factor authentication and strong password policies to prevent unauthorized access to donor accounts.
Is there a cost-effective platform for small nonprofits?
Of the options detailed in this post, Vanco and GoLively are more geared toward smaller nonprofits than the other three. These options allow organizations without a large pool of resources to still run effective fundraising campaigns that effectively reach donors and help nonprofits accomplish their goals for raising support.
What features should a good fundraising platform have?
A good fundraising platform, regardless of the size of the organizations it serves, should include the following:
- Strong security measures
- Customizable donation forms and pages
- Multiple payment options
- Donor management tools
- Reporting and analytics
- Integration capabilities
- Event management features
- Peer-to-peer fundraising tools
- Recurring donation options
- Social media integration
Can fundraising platforms integrate with CRM systems?
Yes, a good fundraising platform can integrate with CRM systems, but not all platforms do so. As you research platforms, be sure to check that a potential platform has integrations with the CRM your organization uses.
How do recurring donations work on digital platforms?
Donors can choose to set up recurring donations, choosing specific intervals or frequencies for their gifts. Once they set up recurring giving, their chosen nonprofit continues to receive gifts at those scheduled times for as long as the donor keeps their recurring gift set up. This allows organizations to have reliable sources of income and plan better, knowing more of what they have coming to them in terms of regular support.
Are there platforms that support event-based fundraising?
Yes, there are platforms that support event-based fundraising. While the best fit will depend on the type of event, including size and scope, options include Vanco, OneCause, Eventgroove, Classy, Handbid and GiveLively.
What’s the best way to choose a platform for a new nonprofit?
Choose a platform for a new nonprofit by conducting thorough research and planning into what the organization is looking to accomplish, how it will operate, who it wants to help and the target demographics for supporters. Once you have a clear framework in place, research fundraising platforms that cater to that type of organization. Contact potential options directly to ask questions and be sure you also reach out to existing nonprofits that are similar to the one you want to start to ask what platform they use and what they recommend.
Ready to boost your nonprofit's fundraising efforts? Explore these top platforms today and discover the best fit for your campaign needs.
5 Minutes to Fundraiser Success: The No-Hassle, Risk-Free Event Management Option for Nonprofits
Imagine setting up your next fundraising event in just five minutes. That’s what Vanco does for you—no learning curve, just a quick setup and an easy, intuitive system. You can try it risk-free and discover what thousands of nonprofits already know: event management doesn’t have to be a chore.
