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Fundraising Platforms vs. Traditional Fundraising Methods: Pros and Cons

By Whit Hunter

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As the fundraising arena becomes more diverse and competitive, understanding each method's unique advantages and limitations has become a priority. 

Whether you are experienced at fundraising or a newcomer to the world of philanthropy — this blog will help you gain insights to make ‌smarter decisions about which approach aligns best with your goals. 

We will compare traditional and digital fundraising methods like door-to-door campaigns, events, and phone calls versus the revolutionary rise of online fundraising platforms. 

We aim to show how these contrasting techniques cater to diverse audiences and fundraising goals to help you raise the maximum sum for your next campaign.  

What is Traditional Fundraising?

Traditional fundraising refers to raising funds or financial support for a cause through conventional and established methods. 

Remember those bake sales at your school, where you’d see all those delicious homemade treats enticing you to chip in a few bucks? Or those charity car washes on a sunny Saturday, where you’d get your car squeaky clean and donate to a worthy cause simultaneously? 

That’s ‌traditional fundraising in action! It’s been around for ages and continues to deliver results. 

It’s all about organizing events, campaigns, and activities in your community to rally support and donations. Personal connections and face-to-face interactions are often significant when going the traditional way. 

What is Online Fundraising? 

Online fundraising is ‌modern-day fundraising with a digital twist. Instead of hitting the streets with flyers and bake sales, you take your fundraising efforts to the Internet. It’s a much quicker way to reach a broader audience, connect with potential donors worldwide, and make the most of the internet’s power. 

With online fundraising, you can set up your campaign on various dedicated fundraising platforms like BetterWorld — which serves as the online hub where people can easily donate with just a few clicks. 

The options you get from this method of fundraising are vast. And the best part is the built-in tools to help track your progress, engage with supporters, and check updates on your campaign's success. 

It’s like having a whole team of fundraising experts at your fingertips.

Pros of Traditional Fundraising Methods

1. Larger and More Significant Contributions

A big advantage of traditional fundraising methods is that they open the doors to larger and more significant contributions. You can develop a deeper connection with potential donors when you engage with them face-to-face and interact with them personally.

This allows you to create stronger emotional bonds, which often leads to substantial donations. It also brings the opportunity for word-of-mouth marketing and peer influence. Donors who see others giving generously may feel more inclined to match those contributions. 

2. Engaging and Memorable Experience For Donors

Regarding experience, nothing beats the traditional way of fundraising. The aroma of freshly baked cookies, the colorful banners, the cheerful crowd, and the volunteers make each event memorable for the donors. 

Donors also get to interact with the organizers and beneficiaries, strengthening a deeper bond to the cause. It leaves a lasting impression, making them feel valued and appreciated for contributing to something meaningful.

3. Community Involvement

Traditional fundraising events carry with them a sense of community and togetherness. It brings together people from all walks of life, creating a feeling of solidarity that everybody contributes to a common goal. 

These events spark new collaborations, initiatives, and support networks within the community. 

4. Tried and True Method

The tried and tested nature of traditional fundraising lies in its familiarity. People know what to expect from such events and show up in big numbers when they believe in the cause. 

Alongside raising funds, this method has proven effective by building incredible networks and relationships.

Cons of Traditional Fundraising Methods

1. Expensive Investment Costs

The traditional way of raising funds can be quite pricey. The cost of renting, printing, and organizing each physical event can add up to a big sum. Plus, the money spent on overhead costs could have been directed toward the cause itself. 

These additional expenses can eat into the funds you’re trying to raise, making it less efficient than digital alternatives. 

2. Requires Significant Time and Energy

Planning events, gathering volunteers, and going door to door for donations takes some serious effort. If you are going for the traditional way of fundraising, you should be prepared to put in a lot of time and energy. 

It can be challenging to balance fundraising activities with other responsibilities such as work commitments etc. 

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  • Video Integration — boost the buzz around your online fundraising campaign

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  • One-Click Checkout — our system will automatically charge the lucky winner

  • Text Message Notifications — keep your bidders engaged with text message notifications

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Pros of Fundraising Platforms

1. Easy to Reach a Large Audience

Since the power of the internet knows no boundaries, your reach to potential donors is also limitless. This method allows your campaign to reach different cities, countries, and continents. 

You can also opt for targeted marketing, such as tailoring your campaign message to resonate with your ideal audience – which will ultimately increase the chances for you to reach the people who genuinely care about your cause. 

2. Cost-effective and Efficient

With online fundraising, you don’t need to worry about renting event space or printing flyers. You can create a compelling online campaign at little to no cost, which is a huge win for smaller organizations or individuals on a tight budget. 

And let's not forget the security and peace of mind that comes with it. 

Reputable fundraising platforms like BetterWorld, take the security of your donors’ information seriously. We are always working to ensure that ‌transactions are secure and private — building trust with your supporters and confidence in contributing to your cause. 

3. Great to Raise Awareness

When you create your fundraising campaign page, it becomes a central hub where you can share the story behind your case. People connect better with stories. 

Use compelling visuals, videos, graphics, and heartfelt narratives to captivate your audience. But the real magic happens when you integrate your campaign with social media, which brings us to… 

4. Easy Integration With Social Media

Social media can help spread the word about your cause. With billions of active users, you can instantly tap into the vast audience when you share your fundraising campaign on platforms like Facebook, Instagram, Tiktok, and Twitter. 

Using the correct strategies and plans, your campaign can go viral! This way, you reach a massive audience in a short period. With real-time updates, you can stay connected to your supporters and ensure they engage with your story. 

5. Transparency

Fundraising platforms provide a clear and comprehensive overview of your campaign. This makes it easy for ‌donors to see exactly where their money goes. 

These platforms also offer real-time updates on your campaign’s progress. Donors can see how much has been raised, how far you are from reaching your goal, and the impact their contributions are making. 

This level of transparency builds trust and confidence in your cause, making donors more eager to join your journey.

6. Customer Support

Fundraising platforms always strive to make their support accessible and responsive for their users. 

They provide multiple options like email support, live chat, phone support, an online help center, and resources containing articles, FAQs, and various other guides for your help. 

Many platforms offer onboarding support to help users set up their campaigns and navigate the platform’s features effectively. This helps the user in starting their fundraising journey on the right foot. 

Cons of Fundraising Platforms

1. Restrictions Imposed by Platforms

Different fundraising platforms may have restrictions or specific rules on the type of campaigns you can run. These restrictions can affect your campaign’s reach and impact the total amount of funds raised. 

The most common issues faced are:

  • Additional platform and tools fee
  • Limited social media integration
  • Minimum and maximum fundraising goals
  • Complex payment processes

Unlike BetterWorld, which offers easy integration, seamless payments with just a few clicks, and no limits on your fundraising goals. We are 100% free for non-profits with no additional charges, so you keep more of the funds you raise!

2. Lack of Personal Connections and Trust-building Opportunities

Another potential challenge of online fundraising is building strong and meaningful relationships with donors. With the lack of personal interaction, it is hard to establish a genuine human connection and convey the sincerity of your cause. 

To overcome this issue, BetterWorld allows you to incorporate videos into your campaign to showcase and enhance the impact of your work. With virtual events and webinars, you can interact with your supporters, express your gratitude, and share more about your mission. 

To add a personal touch, you can even send them personalized text messages to update them on ‌progress. 

Sending a heartfelt thank you message after the donation can also prove to go a long way in creating a positive donor experience. 

Conclusion

While both approaches have their strengths and weaknesses, it is clear that fundraising platforms have emerged as a powerful force in fundraising. You still need to put up your best efforts to get your desired results because the digital space may be vast, but competition for attention is fierce. 

BetterWorld offers a user-friendly interface to provide a smooth and hassle-free experience to help you reach a global audience, raise awareness like wildfire, and offer convenience at the click of a button.   

If you want to expand your reach and amplify your fundraising impact, try BetterWorld!

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Whit Hunter
AUTHOR

About Whit Hunter

Whit Hunter is the co-founder of BetterWorld, the free, easy-to-use online fundraising platform. His passion for empowering nonprofits and tech expertise have shaped BetterWorld’s mission to make fundraising more accessible and efficient.

Whit's innovative vision has helped countless organizations raise more funds and reach their goals, driving BetterWorld’s ongoing success.

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