Internet Fundraising and the NGO Sector in South Africa
Wednesday, December 10, 2008 - 07:44
Internet fundraising in support of the NGO sector in South Africa is gaining momentum.
Although only a small percentage of local NGOs are actively involved in fundraising through the Internet and mobile phones, a number of factors will contribute to accelerated growth in this area over the next few years. These include the growing number of South Africans with access to the Internet, the fact that most South Africans already own a mobile phone, the ongoing reduction in Internet costs, more NGOs with their own websites, the increasingly relevance and popularity of social networking platforms, a growing middle class and a significant expatriate community with an interest in supporting good causes back home.
Access to the Internet remains the single biggest challenge in getting more NGOs and individual funders interested and engaged in Internet fundraising.
According to the Internet Access in South Africa 2008 study, the Internet user base in South Africa has seen its highest rate of growth since 2001 during the past year, increasing by 12.5% to 4,5 million users. This is mainly the result of a significant uptake of broadband offerings by small businesses, which alone accounted for half of the growth in the market, mainly through ADSL connections. At the same time, the market as a whole has seen a continued shift from dial-up connections to broadband, with growth in both ADSL and 3G at more than 50%. These statistics are very encouraging in nurturing Internet fundraising in South Africa.
Internet fundraising is already an established fundraising practise in North America and Europe, contributing an increasing percentage of the overall funding raised by non-profit groups. Approximately 13 million Americans made donations online after hurricanes Katrina and Rita, while Barack Obama raised millions of dollars through the Internet during the US presidential campaign in 2008.
According to Ted Hart, a leading US fundraising expert, global Internet fundraising generated more than $29 billion in 2008. Similarly, the recent earthquake in Haiti marked a turning point in the development of mobile giving. According to mGive, the company that worked with the American Red Cross to set up a SMS donation campaign in the wake of the disaster, more than 2.5 million people texted $10 pledges to Haiti relief in the week immediately following the earthquake. And this was just one of many mobile giving campaigns that were created to help fund relief efforts.
BackaBuddy / Easigiving
Doit4charity
For the Cause
GivenGain
Greater Good South Africa
ISISA
The Trust
What I Want
These portals provide an important starting point for NGOs interested in Internet fundraising as very little investment or expertise is required.
Having an online presence is a necessity in today's fundraising environment. The challenge, however, is for NGOs in South Africa not to introduce Internet fundraising as a stand-alone activity or to replace existing fundraising activities, but to approach it as an integral part of their overall fundraising strategy.
Related articles:
Internet Fundraising Trends 2008
The Future of Philanthropy: Giving 2.0
The State of Fundraising On-line: Results of a Giving USA Survey
Online millions for greater good
If you are involved in Internet fundraising and have an experience to share with NGO Pulse readers, please forward the information to SANGONeT.
The 6th Annual SANGONeT “ICTs for Civil Society” Conference will focus on “Fundraising in the Digital World”.
The two-day event will be held from 1-2 September 2010 in Johannesburg, followed by one-day seminars in Durban on 3 September 2010 and Cape Town on 6 September 2010.
For more information about these events, click here.
Although only a small percentage of local NGOs are actively involved in fundraising through the Internet and mobile phones, a number of factors will contribute to accelerated growth in this area over the next few years. These include the growing number of South Africans with access to the Internet, the fact that most South Africans already own a mobile phone, the ongoing reduction in Internet costs, more NGOs with their own websites, the increasingly relevance and popularity of social networking platforms, a growing middle class and a significant expatriate community with an interest in supporting good causes back home.
Access to the Internet remains the single biggest challenge in getting more NGOs and individual funders interested and engaged in Internet fundraising.
According to the Internet Access in South Africa 2008 study, the Internet user base in South Africa has seen its highest rate of growth since 2001 during the past year, increasing by 12.5% to 4,5 million users. This is mainly the result of a significant uptake of broadband offerings by small businesses, which alone accounted for half of the growth in the market, mainly through ADSL connections. At the same time, the market as a whole has seen a continued shift from dial-up connections to broadband, with growth in both ADSL and 3G at more than 50%. These statistics are very encouraging in nurturing Internet fundraising in South Africa.
Internet fundraising is already an established fundraising practise in North America and Europe, contributing an increasing percentage of the overall funding raised by non-profit groups. Approximately 13 million Americans made donations online after hurricanes Katrina and Rita, while Barack Obama raised millions of dollars through the Internet during the US presidential campaign in 2008.
According to Ted Hart, a leading US fundraising expert, global Internet fundraising generated more than $29 billion in 2008. Similarly, the recent earthquake in Haiti marked a turning point in the development of mobile giving. According to mGive, the company that worked with the American Red Cross to set up a SMS donation campaign in the wake of the disaster, more than 2.5 million people texted $10 pledges to Haiti relief in the week immediately following the earthquake. And this was just one of many mobile giving campaigns that were created to help fund relief efforts.
The challenge for NGOs, fundraisers and other development stakeholders in South Africa is to ensure that they are prepared to embrace and maximise the opportunities presented by a fast changing digital world.
Internet fundraising usually takes two forms. NGOs either install a “donate” button on their websites or NGOs are listed on a “charity” portal, providing potential funders with NGO choices or causes to donate to.
BackaBuddy / Easigiving
Doit4charity
For the Cause
GivenGain
Greater Good South Africa
ISISA
The Trust
What I Want
These portals provide an important starting point for NGOs interested in Internet fundraising as very little investment or expertise is required.
Having an online presence is a necessity in today's fundraising environment. The challenge, however, is for NGOs in South Africa not to introduce Internet fundraising as a stand-alone activity or to replace existing fundraising activities, but to approach it as an integral part of their overall fundraising strategy.
Related articles:
Internet Fundraising Trends 2008
The Future of Philanthropy: Giving 2.0
The State of Fundraising On-line: Results of a Giving USA Survey
Online millions for greater good
If you are involved in Internet fundraising and have an experience to share with NGO Pulse readers, please forward the information to SANGONeT.
The 6th Annual SANGONeT “ICTs for Civil Society” Conference will focus on “Fundraising in the Digital World”.
The two-day event will be held from 1-2 September 2010 in Johannesburg, followed by one-day seminars in Durban on 3 September 2010 and Cape Town on 6 September 2010.
For more information about these events, click here.
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