Online Fundraising for NGO in India: Concept and Benefits

The term “Online Fundraising for NGO in India” denotes a process of accumulating or receiving funds in the form of donations from both individuals and business entities. Further, it shall be relevant to note that the process of online fundraising not only assists in collecting funds for NGOs but ensures the structure for a new company and the running of the existing company as well.

In this blog, we will discuss the concept and benefits of Online Fundraising for NGO in India.

Concept of Online Fundraising

The term “Online Fundraising” signifies a way by which non government organizations or NGOs raise money and donations by using the internet. Further, it usually comprises of an online donation page and can cover mobile giving, peer-to-peer fundraising services, and more.

Also, this concept not only allows donors to give donations in a quick, easy, and secured manner but permits NGOs to collect donations as well, that, too, from anywhere in the country or around the world.

Concept of NGO

The term NGO or Non Governmental Organization means a unit that works independently without any government aid. Further, these units work towards the aim of public welfare, social agenda, wildlife protection, environment care, child education, etc. Also, these units can operate at different levels, together with a wide range of agendas.

However, it shall be relevant to state that these entities need to acquire NGO Registration to get recognition in the eyes of the law. Further, the profits earned by these entities can be utilised only for the decided agendas and objectives. That means they are not eligible to distribute dividends to its members.

Need for Online Fundraising for NGO

The reasons why online fundraising is significant nowadays are as follows:

1. Holds up the Capital Projects;
2. Offers Funds and Operating Expenses for Several Programs;
3. Promotes both Start-ups and Existing Companies;
4. Ensures Funding from Investors;
5. Assists NGOs in Achieving Goals;

Benefits of Online Fundraising for NGO in India

The benefits of Online Fundraising in India are as follows:

For Non Government Organizations

The benefits of Online Fundraising for NGO in India are as follows:

Collect Donations from Anywhere

Although it might seem like a simple benefit, however, it shall be considerate to note that online fundraising permits NGOs to raise money and funds both across the country and around the world.

Collect Donor Details

By way of online fundraising, NGOs or non governmental organizations are able to gather different types of details from their loyal supporters and contributors.

Cost Effective Manner of Raising Funds

It shall be considerate to note that online fundraising is one of the most lucrative and cost-effective manners to raise money and funds from donors. In this mechanism, the donation page provider will probablywither collect a percentage or portion of each donation or will charge a flat fee per contribution.

Enhances Viability and Awareness

Online Fundraising assists NGOs in enhancing their viability and awareness. Further, this concept encourages donors to give a contribution by providing them access and information on the official website.

For Donors

The benefits of Online Fundraising for donors are as follows:

Easy Access

With the help of online fundraising, donors can now provide donations and contributions in an easy and quick manner. Further, for online fundraising, the donor just needs to have adequate internet access, together with the knowledge of the donation page.

Secures Personal Information

Now, the donors need not to worry about the loss of their personal information, as with the adequate safety measures, such as PCI Compliance and Encryption, the information and details submitted, are well secured.

Set up Recurring Donations

In the past, the donors who wanted to contribute to the organization on a regular basis needed to mail in a check every month or year. However, with the facility of online fundraising, donors can now easily set up recurring donations that can automatically be made on a regular basis.

Provides Donation Information

Donors who want to contribute to an NGO or non governmental organisation can now access information about the NGO and donations made in a simple, easy, and hassle free manner.

Factors to Consider Before Online Fundraising for NGO in India

The factors to consider before online fundraising for NGO in India are as follows:

1. Accurate Legal Structure;
2. Proper Market Analysis;
3. Identify Market Competition;
4. Growth Factor;
5. Create a Business Model;
6. Build Investor’s Trust;
7. Capitalization of Equity;
8. Create a Good Network;
9. Research on Potential Investors;

Best Practices for Online Fundraising in India

The best practices for online in India are as follows:

1. Keep the Form Simple;
2. Make use of Consistent Branding;
3. Minimize the Information Required;
4. Comprises of Images;
5. Offers Recurring Donations;
6. Suggests Different Giving Levels;

Documents Required for Online Fundraising for NGO in India

The documents required for online fundraising for NGO in India are as follows:

1. Section 12A Registration Certificate;
2. Section 80G Certificate;
3. FCRA Registration Certificate (in the case of foreign funds);

Difference Between Fundraising and Crowdfunding

The key differences between the concept of Fundraising and Crowdfunding are as follows:

Online Fundraising	Crowdfunding
Online Fundraising denotes a process of raising financial support or contribution to various causes or initiatives.	Crowd funding is the process of funding a project by collecting or gathering funds or money from several individuals.
In Fundraising, all the activities and operations, starting from marketing to branding and carrying out the initiative, have been done offline. However, it shall be pertinent to note that every fundraising campaign, whether it is online or offline, needs both ingenious and skillful implementation.	The concept of Crowd Funding was used to be difficult and tough in its initial time, as there were no proper online platforms on which an organization can create an initiative to attract the public towards it.
Fundraising comes from those individuals who believe in common cause and action.	Crowd funding is a part of Online Fundraising

Conclusion

In a nutshell, the internet has not only become a prominent part of our lives but assist NGOs as well to keep with the ongoing trend. As a result, online fundraising forms automation into the process to save time and money.

Further, it helps to track the real time of the incoming funds, together with the clear picture of fundraising efforts. Moreover, it reduces the chances of human error by eliminating manual entry. Therefore, the main aim behind the implementation of the concept of online fundraising is to reduce friction and ease out the process of providing contributions for donors.

Lastly, in case of any other doubt or dilemma, reach out to Swarit Advisors, our experts are there to provide you end to end assistance regarding the concept of online fundraising and NGO Registration.

Also, Read: How Is Nidhi Company Different From NBFC: A Complete Guide