In the United States, nonprofit organizations brought in around $1.9 trillion in 2008. That number dropped by billions in 2009, and is expected to drop even further in 2010. Because of the loss of funds, many nonprofits are having to cut employees or cancel programs. Some even have to close down.
This will harm the U.S. economy further. Consider the numbers: nonprofit organizations employ nearly 10% of our workforce. If many of these people are let go, our unemployment troubles will worsen. It is projected that nearly a million nonprofit jobs will have been lost by 2013.
Clearly, this economic climate has resulted in nonprofits looking for new ways to raise revenue. Bake sales, charity auctions, and golf tournaments aren't sufficient any more. Many nonprofits now turn to the Internet, and are using a new technique called online fundraising.
Online fundraising is simple and easy. It uses a system where nonprofit organizations can receive a portion of a consumer's total purchase at sites including Apple, BestBuy, Eastbay, Expedia, and others every time they shop online.
Nonprofits have raised millions of dollars, in large part via online fundraising, in the past few years. Their success has lead to increasing popularity of course. Another reason why this form of fundraising is so popular is that it is free.
There is no set up fee or up front cost to online fundraising. All that is needed is some time. The nonprofit organization registers and fills out a form at an online fundraising site. Then, anyone who shops at sponsor stores has the option of having a portion of their purchase go to that nonprofit or another that is registered at the same site.
The nonprofits are not the only ones who benefit from this arrangement. Consumers also benefit, by getting special online discounts, or sometimes getting free shipping when contributing to online fundraising.
As you might imagine, online fundraising has greatly increased the revenue that nonprofits can make Ð and this is very important considering how donations have fallen off in recent years. Many nonprofits encourage their supporters to purchase as much as they can online to make their purchases count.
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