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15 Reason Your Organization Should Be Using Digital Giving

Hipster using a smart phone hands to dontae to a non profit, close up, vintage colorsWe are in a digital world where almost everybody is tech savvy, and if you aren’t using online digital donations you need to be. From education to dating, to shopping, and beyond, nearly all connections to the outside world can be made from a digital device. Today, over 4 billion the world’s population uses a mobile phone with many of them actually owning smartphones. For many, mobile devices are a primary access point to the online world. The use of paper checks is on a steep decline with many people preferring electronic payment methods and debit/credit cards.

The donors of today don’t live in a vacuum and operate by the same rules that this digital society operates by. The donors of today are more impulse-driven, always on the go, and always after amazing experiences. Ignoring the unique nature of today’s donor means potentially missing out on amazing opportunities for connecting with potential donors. The Internet, plastic money (credit and debit cards), and the mobile phone are all platforms today’s donor seeks to make his or her donations.

Digital giving refers to fundraising using digital technology, and it includes the following:

– Text Giving: Donating via text

– Online Giving: Donating via the Internet and a Website

– Giving Kiosk: Donating via an automated kiosk (like an ATM)

– Mobile App Giving: Donating via a mobile app

Digital giving is one area where nonprofits, churches and other donor dependent institutions have been lagging behind. Many donor dependent organizations still depend on traditional forms of giving often resulting in reduced giving since the society has since moved away from traditional payment methods such as checks and cash.

Digital giving has completely transformed how people give their gifts and has also led to increased giving. In fact, organizations that implement digital forms of giving have reported increases in giving by as much as 50+ percent. This is very good news for organizations that are struggling with reduced donations due to overdependence on traditional forms of donations.

Why Does Your Organization Need Digital Giving?

If you are an organization that still depends on traditional forms of giving and haven’t given much thought to digital giving, here are some reasons why you should consider changing your methods.

1. It Is A Growing Trend Not Likely To Disappear

Organizations should respond to digital giving in a positive way. Organizations are increasingly turning to digital contribution companies to help them fulfill their desire of offering digital giving options to their donors. The number of people that depend on digital giving to manage their finances is growing, and organizations need to do everything possible to ensure that their donors are generous and faithful givers. Digital is growing and is here to stay.

Charity, donation concept. Donate money with mobile phone. Online payment with smartphone. Business, finance. eps10 Vector illustration. Flat style.2. It Makes Giving Easier

The reality is that very few people actually write checks anymore. In fact, it is highly likely that many people only write checks when they are paying tithe at church or when donating to various organizations. A time is soon coming when people won’t be carrying cash but will be using other payment options such as debit cards. Digital contributions make giving easier since donors never have to worry about cash or checkbooks.

3. Payment Methods Are Evolving

It is no longer a surprise that card transactions have overtaken cash transactions regarding volume. Younger people also have a higher preference for card transactions over cash. For organizations, these are two trends that are hard to ignore. If your organization does not offer digital giving options, you are definitely missing out on donations from the younger generation, and you could be actually settling for a lesser volume of donations overall.

4. It Increases The Amount and Frequency Of Giving

One of the major benefits associated with the digital gift is the ability to set up recurring donations. The big numbers involved in the projects that organizations run are enough to discourage many people since they believe that the little they do is not enough to make a difference. However, if you are able to show people that giving a small, consistent amount can make a difference, that will help them see the bigger picture and realize that their contribution matters.

Recurring giving is done automatically meaning that you never have to worry about missed donations when the donor forgets or is unavailable. On the specified date, money is automatically deducted from the donor’s account and given to the organization. Research shows that donors that are set up for recurring giving give over 40 percent more.

In many cases, organizations that are faced with flat or declining giving and/or increased costs often ignore the value of encouraging and engaging small donors. However, organizations that connect and engage with regular donors even those that make small donations often see a higher level of consistency in giving.

5. It Is Safe

Depending on how you look at it, digital giving is much safer than traditional forms of giving such as cash donations. The problem with cash is that it tends to attract criminals who are looking to make some easy money. Digital giving is not faced with such problems because there is never any physical handling of money. On the other hand, people will argue that cybercriminals can easily steal donated funds through electronic systems. However, this is not a true representation of the situation since digital giving platforms are all very secure, specificity ours. We go to great lengths to make sure we have the same security that is required of banks and never had a security issue.

6. It Hedges Against Embezzlement

While every organization would like to believe that is immune to embezzlement, the reality is that is it still happens, and organizations are often swindled by less than honest workers. Every organization that has ever been swindled always believed that it could trust the team managing its finances completely until when it became a victim in an ever growing long list.

Digital giving involves money moving from the donor’s account directly to the organization with no middleman involved. This is probably the safest transaction that can ever take place involving money. Once the money reaches the organization, it is the responsibility of the organization to ensure that has proper systems in place to ensure that it is used properly.

Donate Today Concept

7. People Are Already Making Digital Financial Transactions

In the late 90’s there was a boom in e-commerce websites and while many believed it was a fad, the time has shown that it was a glimpse into the future. Today, brick and mortar stores cannot survive on their inventory alone. The rise in online shopping means that it is the consumer who is now in charge. Today, you can shop online for just about anything.

People are now already used to spending money online and have even become comfortable with it. Organizations should make it easy for them to give by digital giving options. People’s spending habits are also evolving and moving online, and as fewer people use cash and checks, it follows that people desire the ability to donate to their organizations of choice the same way they pay their bills or make purchases. Even though digital giving may be new to organizations, it is not new to givers.

8. It Is Easier On The Financial Department

Having volunteers is great and having a team for counting donations is also great, but mistakes can be made anytime people are involved. Counting envelopes, recording checks, and counting cash are just some of areas where errors will be made. With digital giving, the money goes from the donor directly to the organization and this makes it easier for the finance department to track gifts.

9. It Makes It Easier To Have The Giving Conversation

Nonprofits, churches and other donor-funded organizations depend on donations to survive and carry out their mandate. However, it is always uncomfortable to ask people to give their money. This makes many organization leaders avoid giving conversations altogether, and if they do touch the topic, they usually tread lightly.

Digital giving options make the giving conversation less confrontational and uncomfortable. All an organization has to do is write an article about the reasons and forms of digital giving, engage people using various media, and send a newsletter or email reminder. Organizations should not forget to include a link to their digital giving links in the conversation since it will be a great way to break the ice.

10. Convenience

The most important reason to adopt online giving is probably convenience. Digital giving is very convenient for donors since they can schedule their donations at any time during the week from the safety and comfort of their home or offices. Givers don’t have to worry about missing out on their commitment to the organization if they are unable to participate in organizational activities for whatever reason. Givers are also able to manage their budgets in a better way because they know the exact amount they will be committing to during the year.

11. Staying Ahead Of The ‘Slow’ Times Of Giving

Organizations always go through seasons where donations slow down. This period is usually around summer and other holidays. During these times, people are out of town, on vacation, or just busy. During the year, there is a time when the weather makes it impossible to get to the organization’s grounds to make their donations. Chances are, only a few givers who will make up the gift they missed since they couldn’t attend. Digital giving gets rid of such problems and makes giving easier regardless of the time of year.

12. It Encourages Younger Members To Give

Younger people don’t usually write checks and carry cash in their wallets. This means that organizations that only accept gifts in the form of cash or checks will enjoy fewer gifts from younger members. Younger members or millennials might not be the biggest demographic that donate to your organization currently, but they will soon be in a few years. Once this generation is the only one left that you can depend on for donations, you will have problems if you have not implemented digital giving options. Encourage giving by younger people by offering digital giving options.

13. It Increases Anonymity

Donating is something that brings the best and worst in people. Some people love showing off how much they give and will dramatically drop their cash or check in the donations box with the full knowledge that people are watching. On the other hand, other people prefer doing their giving anonymously and don’t like everybody knowing how much they are giving. With digital donations, anybody can give to an organization from the comfort of his or her home, and this will effectively ensure that people are not watching to see how much others give.

14. The Integrity Of Donor’s Card Data Is Maintained

For many people that make digital transactions, credit card fraud is a genuine concern. However, at Digigiv we offer a rigorous security system for the protecting donors’ data. On the Digigiv platform, payment card data is encrypted then stored securely; this is called a “token” and donors receive a donation receipt through email once they make their donation so that they know that their gift reached the target organization successfully.

15. It Is Affordable

The main reason why organizations are reluctant to offer digital donation options is that of the widespread myth that it is expensive. However, digital giving is surprisingly affordable organizations with us it can even be free to your organization. Because of this our service accessible for different sizes nonprofit or church whether you’re big or small. In addition, digital giving reduces the administrative costs of handling cash and checks meaning that organizations don’t have to spend too much to offer digital giving options.

Final Thoughts

If your organization does not currently offer digital giving options, we would love the chance to help supply with that service. Digital giving is something that people can use and has the power to increase contributions greatly. Even though the positive reasons for an organization to offer digital giving are many, people will always try to find drawbacks. Leaders of organizations should allay such fears by presenting the members and donors of the organization with reasons why digital giving is good such as the 15 provided here. Finally, they should find a reliable provider of digital giving solutions to implement it in their organizations.