A guest post by Korri Piper of ShopRaise
Imagine launching another new fundraiser for your nonprofit’s cause without having to invest in event promotion or ask donors to give more out of their own pockets. Passive fundraising can make that dream a reality!
ShopRaise’s passive fundraising guide points out that there are still a few active steps you must take to make these campaigns successful, such as thanking participants and marketing—but this is a small effort compared to other fundraising activities. Plus, these low-hassle initiatives offer a high return on investment as small contributions add up over time.
Let’s unpack a few ways that passive fundraising can boost your nonprofit’s revenue.
Provides a steady revenue stream
Because passive fundraisers can be run year-round, they create a dependable stream of revenue that supplements income from your other campaigns. For example, donors can continue participating in your shopping fundraiser every time they make an online purchase, even if you also host a one-time virtual or in-person event.
With this steady source of income, your nonprofit can:
- Increase its financial sustainability: Passive fundraisers allow nonprofits to collect donations fairly steadily. This way, you can predict your income more easily and stabilize your financial health.
- Reduce the pressure to fundraise: When your nonprofit needs funds, you might be scrambling to find a successful fundraising idea. Passive fundraisers provide a steady source of income to sustain your operations without constantly planning new campaigns.
- Use resources efficiently: Generating income passively enables your nonprofit to allocate its resources to mission-critical activities. For example, a matching gifts tool that automates match requests can double the donations you already receive, providing more income that your nonprofit can use to develop its programs or improve community outreach.
Plus, when you host passive fundraisers alongside your other campaigns, you’ll receive funds from a variety of sources. This way, your nonprofit can recover quickly in case a funding source falls through or you incur higher expenses than expected.
Increases donor engagement
Donor data collection, segmentation strategies, and personalization likely describe your nonprofit’s donor engagement plan. In addition to these strategies, passive fundraising offers a unique way to catch their attention and keep them interested in giving.
Let’s take a look at the ways passive campaigns lead to increased engagement using the example of a shopping fundraiser:
- They make giving convenient: Passive fundraisers allow donors to contribute without altering their regular routines. With a shopping fundraiser, donors can participate simply by downloading an app or browser extension and making purchases online as usual. This makes donors more willing to participate in your fundraiser.
- They deepen donor involvement: Since they require such little effort, passive fundraisers ease your donors into increasing amounts of support. Using our example of shopping fundraisers, supporters connect with your organization first by shopping for your cause. Over time, their small contributions will keep your mission top-of-mind and can encourage them to explore other involvement opportunities, especially if you thank them for their contributions.
- They create a sense of community: By helping donors give in easy ways, passive fundraisers let supporters feel like a part of your nonprofit’s community. Donors can serve the common goal of contributing to your mission through everyday activities, such as shopping online.
Passive fundraisers don’t just increase engagement—they also help you engage more donors. The low commitment of these campaigns makes them accessible to a wider range of donors. This way, your nonprofit can raise more by reaching more donors.
Keeps fundraising costs to a minimum
The saying “You have to spend money to make money” is often true for nonprofit fundraising—most campaigns are an investment. Whether you pay for a venue, tech support, or an omnichannel marketing campaign, the costs can quickly add up.
Passive fundraisers, on the other hand, are designed to generate funds with little to no direct expense. They’re highly cost-effective and help you raise more by spending less. Here’s how:
- They minimize upfront costs: Setting up a passive fundraiser requires little to no upfront spending, depending on the type of fundraiser you run. Also, many of these fundraisers, like gift card campaigns, raise unrestricted revenue that you can put toward any area of your budget.
- They have lower administrative costs: Since passive fundraisers run themselves, most of their processes are automated. This means less spending on staffing, volunteer coordination, or other administrative costs. Some passive fundraising platforms will even provide marketing support, so you can save money on promoting your campaign as well.
- They offer a high return on investment (ROI): Reduced costs and continuous funding make passive campaigns a lucrative fundraising method. Although individual contributions from passive fundraisers are usually small, they add up over time to make a significant difference for your mission.
Before starting a passive fundraiser, create a plan for how you’ll use the revenue from those campaigns. With a designated purpose for your passive fundraising income, you can focus instead on allocating your resources where needed to fund your initiatives and overhead expenses.
Getting Attention calls digital fundraising “one of the most effective ways to…meet supporters where they are.” This is the key to passive fundraising! Your nonprofit can boost its revenue by making donations easy for both you and your supporters. When you consider the ways it can boost your nonprofit’s revenue, passive fundraising is a no-brainer!
Korri Piper, Sales and Marketing Consultant & Director of Vendor Relationships at ShopRaise
Relationship director, project manager, writer and general life enthusiast. Let me tell you how online shopping can solve the world’s problems.