While many of us were hunkered down at home during the last eighteen months, the pandemic did not put an end to philanthropic activity. When organizations could not fundraise through their traditional channels like charitable walks and runs, dance competitions, casino nights, and other in-person events, they pivoted to digital platforms, where they were not only able to carry on their work but also learned first-hand about the opportunities and efficiencies that a digital component can offer.

Just as people have become more comfortable with video conferencing and conducting financial transactions via mobile apps, they are now more willing to participate in fundraising events through a digital platform. Recognizing that this is not a short-lived trend, smart institutions are layering a digital piece into their fundraising and event planning, embracing a hybrid approach that combines digital with traditional efforts.

For several years now, digital fundraising has been a significant tool on college campuses across North America. Today's "digital native" students have made digital platforms the "go to" for sororities, fraternities, and Panhellenic Councils, generating millions of dollars for their philanthropic efforts. Healthcare organizations, educational institutions, and national charities also have come to rely heavily on digital fundraising.

Increased opportunity for nimble data management and substantial gain in resources

For institutions with growing philanthropic goals, digital platforms are integral to scaling their efforts. Using them intelligently creates a savings in both back-end costs and expenditures in time and money for personnel by automatically tracking revenue, tax receipts, and data related to donor stewardship. Disseminating messaging via email and social media expands a campaign's reach to potential donors and dramatically boosts dollar amounts raised.

To maximize those benefits, it's critical to choose the right digital platform. Some social media platforms enable basic fundraising activity, but do not help collect data, provide transparency, allow users to build customized events, or develop the donor relationship. Other online platforms are quite robust, but difficult to use, as they require substantial training and, oftentimes, familiarity with computer coding. Cost is also important, since most nonprofits need to limit expenses. Planning an event today without considering technology options creates missed opportunities, but digital platforms are only effective at facilitating fundraising goals when they are easy to use and cost-effective.

Beyond fundraising, digital platforms can also make it easy to plan and manage events, with readily available features for event ticketing, sponsorship, and merchandise sales. Using customer relationship management (CRM) integrations and commonly accepted payment processing partners make for a seamless experience when planning and executing an event. A recent report found that organizations that moved to a digital or hybridized platform were able to raise 230 percent more money than those using only traditional methods. Despite the hardships caused by the pandemic, online giving accelerated at record rates in 2020. An analysis of Canadian charitable giving noted that 1.1 million people donated more than $480 million to charities over that period.

The nuances of hybrid fundraising campaigns

There are a variety of components hybrid fundraising campaigns can offer that solely in-person campaigns lack, as well as a variety of additional avenues for revenue generation. Livestreaming in-person events such as a 5K run/walk to a wider audience can create possibilities like real-time tally boards that encourage viewers to contribute "in the moment" to beat the donations of other teams.

Sponsorship opportunities are also important to fundraising, as donations of items and services help lower costs, while financial support enables organizations to reach monetary goals faster. Digital platforms can offer event sponsors a multitude of additional points for interaction and promotion that blend traditional methods with innovative ideas, such as themed, limited-time campaigns during a particular event. Imagine how much more money might be raised if a sponsor of a live-streamed baseball game offered to match donations made during the third inning. In addition, digital events can offer sponsors opportunities to reach donors at different times, such as pre-event, post-event, or year-round, and for different lengths of time. Similarly, digital platforms enable organizations to raise more money by offering event participants opportunities to purchase merchandise at any time before, during, or after the event.

As pandemic restrictions are lifted and people resume participating in events in person, savvy organizations will continue to utilize online platforms to enhance their fundraising efforts. Combined with traditional methods, digital capabilities open up myriad possibilities for creativity and for accessing additional revenue streams. As organizations evolve their strategies, digital platforms will provide the functionality that supports an organization's new goals, whether campaigns are in-person or online.

Cliff Feldstein is CEO of CrowdChange, a fundraising platform provider based in Toronto.