A guide to using online fundraising platforms

By offering a convenient way for people to support causes they care about, online fundraising platforms have revolutionized how individuals can collectively drive change.

With online charity fundraising platforms, individuals, nonprofits, or organizations can launch campaigns to raise funds, whether for personal needs, community projects, or causes they are passionate about. Meanwhile, those looking to donate can browse through different fundraisers on the platform and choose the ones that resonate with them.

Ready to learn how to fundraise? Read on to learn how nonprofit online fundraising platforms typically work.

How to collect money for an online fundraiser

Collecting money for an online fundraising campaign will vary depending on the platform used and ways the person running the fundraiser wants to spread awareness. Some general steps someone could take may be:

1. Research an online fundraising platform relevant to the cause’s needs.
2. Create an account on the online fundraising platform and build a profile.
3. Set up the fundraiser by specifying fundraising goals, writing a compelling description of why others should support it, and adding engaging content such as personal stories, images, or videos.
4. Promote the fundraiser by sharing it on social media or sending the link to friends and family.
5. Provide donors with regular updates on the fundraiser’s progress and milestones reached.
6. Withdraw funds to a connected financial account, request to be mailed a check, or select an option for funds to go directly to an organization (if applicable and available).

Online fundraising sites and platforms

Online fundraising sites and platforms can serve as virtual hubs where individuals may create their own campaigns or contribute to a fundraiser.

Free online fundraising sites typically share common features designed to enhance the fundraising experience for both fundraiser creators and donors, such as:

• User-friendly interfaces that may allow people to browse through different types of fundraising initiatives
• Secure payment processing
• Social sharing tools to attract donors and garner support
• Progress tracking
• Donor recognition

Who can use online fundraising platforms?

Online fundraising platforms may make fundraising more accessible — typically, anyone can use them to start a fundraising campaign, not just nonprofits or registered charity organizations.

Whether it’s an individual needing help to pay off their medical bills or someone looking to raise money for their local animal shelter, online fundraising platforms can offer a versatile solution.

That said, it’s important for people looking to launch a fundraiser to conduct thorough research into different platforms — some online fundraising platforms for individuals may be different from popular online fundraising platforms for schools or other organizations.

Potential pros and cons of online fundraising platforms

Before creating a fundraiser, take the time to consider the potential pros and cons of using an online fundraising platform.

Potential benefits

Some of the potential upsides of an online fundraising platform for fundraiser creators and donors include:

• Data security. Online fundraising platforms often employ robust security measures to protect sensitive data.
• Efficient sharing tools. The platforms usually offer tools for promoting campaigns. Through social media integration and easy sharing options, fundraisers may be able attract more potential donors through these platforms.
• Effective management of funds. They typically have features such as real-time progress tracking and quick access to donation records. This transparency allows fundraiser creators to stay updated on the amount raised.
• Convenient online payments. Online fundraising platforms usually have integrations with online payment providers to help enable a seamless donation process and eliminate the need for physical cash handling.

Potential downsides

While online fundraising platforms can offer numerous benefits, it’s important to consider potential downsides, too. Some downsides could include:

• Transaction costs. Online fundraising platforms may charge fees for every donation received or for using the platform.
• Potential delay in receiving funds. Depending on the platform's policies and payment processing timelines, there may be a waiting period before collected funds are available for withdrawal or use.
• Potential low visibility. It’s possible that a fundraiser may not receive enough engagement to meet its goals.

Learn about the potential benefits of charitable giving.