When you picture someone making a donation, what comes to mind? Is it writing a check? Handing over cash? Or, if you’re like me, you thought of someone making an online donation via credit card. While that last one might be the most simple and seamless process for your donors in today’s age, there are more ways to give online that are less than traditional (and some a bit more modern).
ACH
ACH donations are not new. These type of payments have existed for decades, and allow donors to give directly from their bank account instead of credit card. But it is a highly underutilized method of accepting donations in the nonprofit sector despite having a huge benefit all other payment methods are missing.
At some point, every single credit card is either going to get lost, stolen, or expire. Every. Single. One. But bank accounts don’t change. It’s just a fact. So think about your recurring donor program. How often does a recurring donor drop off because their card expired and they don’t know? Or it becomes the path of least resistance for them to not renew their donation with their updated credit card. By offering your donors the ACH option, especially your recurring donors, you can extend the lifetime value of recurring donations.
ACH donations are 55% larger than credit card
Source: Classy.org
Digital Wallets
A digital wallet is an online payment tool, usually in the form of an app, that securely stores your financial information. That means, when making a payment, you don’t need to enter card information. You don’t need to have the card on you. Hell, you don’t even need your wallet. Hence the term, “digital wallet.” With a click of a button on your phone, or even waving your synced watch over a payment processing device, you can securely and safely make a payment.
If I’m being honest, this sounded scary to me when it first came on the scene. And I wasn’t the only one who felt this way. Even the big names, like Apple Pay and Google Pay, weren’t widely utilized for the first few years. But with the pandemic and safety concerns regarding touching devices in public, the use of digital wallets nearly quadrupled in the last year – in person and online.
Which leads me to ask, do you have digital wallets enabled on your donation forms?
You want the process to be as friction free as possible. If your donor has to get up to grab their wallet, they might put it on their mental “to do list” for later. But if they can press the same button, the same way they buy their groceries and impulse purchases, they are more likely to stay on the donation screen and complete the transaction.
Increase in mobile conversion rates with digital wallets enabled
Source: Classy.org
... and Venmo
I know I just said that digital wallets scared me. But one type of digital wallet made its way right into my heart (and the hearts of 52 million people in the US) – Venmo. I venmo my friends when they pay for my coffee. People venmo me as I sell my failed quarantine hobbies. It is trusted. It is widely used. It is more than just an app; it’s a verb. And while it has primarily been used as a peer-to-peer money transfer app, nonprofits are meeting their donors where they are and beginning to accept Venmo donations.
Cryptocurrency
Here is where we are really stepping outside the box. There are many nonprofits that were early adopters of accepting cryptocurrency donations (like United Way, which started in 2014), but it is still a relatively innovative method of fundraising. However, with 17% of American adults owning at least one share of cryptocurrency and 75% of people saying they want to learn more about it, it is a donation option nonprofits should consider.
Here are just a few of the unique benefits to accepting cryptocurrency donations:
Growing User Base
Its user base is growing exponentially each year. And those interested in cryptocurrency are general Gen Z or Millennials, and haven’t yet made their lifelong donor connection.
New Demographic
It opens you up to new audiences with a different demographic. Women generally give more, but more men are donating cryptocurrency.
Tax Deductible
It is tax deductible, and since it is classified as property instead of money, you don’t have to pay capital gains.
There are a few things to consider when accepting cryptocurrency donations, such as when you convert the cryptocurrency to USD and the program you use to accept them. But there are programs and professionals able to help you figure out how to add this opportunity to your website.
You also have to be prepared for some hesitation when you bring up this topic with your team. But hesitation is not a bad thing when it comes to new technology! While it can hinder your growth if you don’t explore new technology, it is irresponsible not to do your due diligence when venturing into something brand new. Do your research, talk to experts, and remember that everything was brand new at some point.
Donated in the form of cryptocurrency each year
Source: The Giving Block
What Now?
With all our talk about a seamless donation process and meeting your donors where they are, making sure your payment options are modern and diverse is a sure fire way to advance your fundraising goals, and your mission.
It will help you....
- Retain existing donors
- Attract new donors
- Increase donation size
- Decrease turnover in donors
- Secure your presence in a changing world
If you have questions about what donation methods are available to you or how to implement them on your website, Mittun is here to help. We do the research. We test results. We help nonprofits do more good in the world.