Internet Fundraising and the NGO Sector in South Africa
Internet Fundraising and the NGO Sector in South Africa
Internet fundraising in support of the NGO sector in South Africa is gaining momentum.
Although only a small percentage of NGOs are actively involved in fundraising through the Internet, a number of factors will contribute to accelerated growth in the next few years. These include the growing number of South Africans with access to the Internet, a reduction in Internet costs, more NGOs with their own websites, the increasingly relevance 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.
According to Ted Hart, a leading US Internet fundraising expert, Internet fundraising in the United States reached approximately $10.44 billion in 2007, a 52% increase over 2006 estimates. This total represents slightly more than 50% of worldwide Internet fundraising. The growth in the US is the result of significant increases in Internet fundraising for both small and large organisations, creativity in strategy and the unprecedented use of the Internet by individuals for non-disaster and disaster support efforts.
To highlight the growing impact and value of Internet fundraising, 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 over the past two years.
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.
In South Africa, examples of charity portals are as follow:
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.
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