This article was previously published by TechSoup and is reprinted with permission.

After introducing the concept of digital fundraising, providing a round-up of traditional fundraising tools that support the integration of digital technology, and exploring strategies for enhancing generational giving with PayPal Giving Fund Canada, our Digital Fundraising 101 series continues today with a look at some of the most exciting new tools that are facilitating a shift toward digital first fundraising.

What is digital first fundraising? 

At its simplest, digital first fundraising, also known as digitally native fundraising, is the practice of pivoting to online-based platforms and digital tools to secure new and recurring donations by supporters. This doesn’t mean that traditional means of fundraising are no longer contemplated but that digital outreach is prioritized over other strategies. 

Why is digital first the future of fundraising? 

A number of social and generational shifts are radically changing the landscape of giving. Some of these are: 

  • AGE: We know from extensive reporting that the way generations give is no longer what it used to be a few years ago––or even how it used to be pre-pandemic. 

  • MONEY: Most of us no longer use cash as our primary payment method, relying instead on digital wallet and online banking transactions. As Canadian online platform TipTap points out, “the use of cash is declining each year and 71% of people prefer touchless payments over cash.”

  • TIME: Our ability to focus is changing, too. As journalist Johann Hari remarks, “we are living in a serious attention crisis.” Screens, platforms and our multitasking habits are all contributing factors to a generalized decline in attention span. This means that prospective donors want to have options for giving that are quick, frictionless, and embedded in the platforms they already use. 

  • COSTS: The climate and energy crises are driving up prices for raw materials such as paper, meaning that traditional fundraising avenues are now more costly to already cash-strapped nonprofits. Many digital fundraising tools, on the other hand, are free or significantly cheaper than traditional avenues––and unlock greater returns on investments, too!

Five emerging digital fundraising tools

In response to the shifts and pressures described above, a number of organizations have recently introduced a suite of innovative and promising technologies that help nonprofits find the financial support they need to continue their important work. While some of these features may not yet be available to Canadian nonprofits or all types of social impact organizations, we are featuring them in our round-up to help your organization think creatively about the potential of embracing a ‘digital first’ strategy (and to keep them in mind for when they will be!) 

1. Social media fundraisers:

With the rise of donate buttons and social storefronts, nonprofits have seen a significant increase not only in donations but in community growth. Consider these numbers: 71% of nonprofits worldwide agree that social media is effective for online fundraising. Why? Because social media drives 57% of traffic to fundraising campaign pages, and 87% of donors who first donate from a social referral source make their second donation from a social referral source. In other words, social media is a powerful (and cost-effective!) ally that offers endless possibilities for updating and customizing fundraising campaigns. In addition, analytics dashboards such as Facebook pixel are an excellent way for organizations to see the number of people who visit their website from social media accounts, allowing for the more precise targeting of future campaigns. 

Here are some ideas to get you started integrating social media into your fundraising strategy: 

a. DONATE BUTTONS: You can add these to your profile on Instagram, Facebook and even YouTube. This is a great option for reaching younger generations.

b. DONATE STICKERS: Stickers can be added to your Stories, Reels and Live Streams (more on that below) on Instagram and TikTok, for example. 

c. SOCIAL STOREFRONTS: If your organization has merchandising, gift cards, even tickets or other items for sale, consider adding a shop on your social media profile or opening a dedicated e-store.

2. Livestreams:

Another cost-effective option for nonprofits with a social media presence is to organize periodic livestreams on platforms such as Facebook, Instagram, and TikTok. On Instagram, for example, nonprofits themselves or hosts who support their cause can add a donate button to the bottom of their video to raise money during a live event. Hosts can keep track of donations and virtually “wave” at supporters to offer thanks. When someone donates, they also receive special access to an “I Donated” sticker for a limited period, enhancing visibility beyond the duration of the event. According to Meta, all money raised goes to the nonprofit, and there is no limit to how many times a supporter can donate in a live video. (For reference, they can donate between $5-2.500 each time in the US, and up to €250 every 31 days in the EU.)

3. Third-party donate buttons:

In addition to social media-driven fundraising, nonprofits interested in expanding giving channels can consider a number of third-party platforms that provide donate buttons that can be embedded on their websites, newsletter campaigns, and other online communications streams. Depending on need and location, there are buttons for matching donations, setting up recurring donations, or setting up a text-to-give donation drive.

4. Contactless donations:

Canadian company TipTap has been revolutionizing the donation space with technology that enables people to make real-time donations by means of tap payment. Organizations have several options for placing their touchless pad on shop counters, floor stands, wall posters, collection buckets (great for collecting both cash and digital donations), and even lanyards and selfie sticks! Because of its portable size, organizations can also get creative and place the pad on themed surfaces––some examples the company provides are firefighter boots, animal displays, and canoe paddles. So far, many organizations such as the Canadian Red Cross, HotDocs Film Festival, Heart & Stroke Foundation, Salvation Army, and Tim Hortons Foundation Campshave ventured into cashless donations using this option.

5. Crypto and stock donations

Until now, giving stock has been a cumbersome and offline process for many donors. The latest in a series of innovative offerings by FundraiseUp, the stock giving tool is seamlessly integrated into their existing donation checkout experience, making it easy for donors to dynamically switch between standard currency and stock donation modes, or to initiate donations from dedicated stock donation checkouts. With the market for crypto expected to significantly grow in the years to come, the organization has also introduced a tool that enables crypto giving, allowing organizations “to capture gifts worth 142 times more than standard currency donations.”

Pro Tip: In case you missed it, watch our webinar with FundraiseUp titled Leveraging Modern Technology in the Nonprofit Space to Increase Giving or visit their page to learn more about the platform’s extensive features!