E-enabled Micro-philanthropy Adds Up In a Big Way

Please select the best answer for the following question. What pattern in fundraising is adding up to the biggest gains for philanthropic organizations?
a) Big donors contributing $1K or more
b) E-enabled micro-philanthropy,
c) Robin Hood and his band of Merry Men

The correct answer is b. E-enabled micro-philanthropy is a technical term  that simply means online giving by many people in small amounts.  For example, the Obama campaign raised 150 million last September, but the average contribution amount was $86 according to Obama aid, Dan Pfeiffer.

One way that e-enabled micro-philanthropy is conducted is through person-to-person fundraising. “Person-to-person fundraising” refers to the social media tools that permit individuals to raise money on behalf of nonprofits, independent projects or specific outcomes. Some examples of this include:

1) fundraising pages – FirstGiving

2) fundraising widgets – ChipIn or SixDegrees

3) fundraising applications for social networks – Causes or Change.org on Facebook

After the NonProfit Technology Conference in New Orleans, there has been debate as to whether peer-to-peer fundraising is dead or not.  Much of this dissension is due to the failure of fundraising applications for social networks, namely the Causes application on Facebook.  Its not all bad news though, and the numbers are adding up for those organizations that choose to use the e-enabled micro-philanthropy.  According to ePhilanthropy Foundation, a Washington, D.C.-based, nonprofit research and education organization, online giving has increased to more than $4.5 billion in 2005 from $250 million in 2000.   Since 2003 the charitable flow in Great Britain, due to JustGiving’s online donation site, has increased from approximately £2 million to an expected level of over £70 million in 2006.

In response to a blog entitled “A Fortelling of the Birth of Peer-to-Peer Fundraising”, a woman named Stacey Monk tells a story that demonstrates that e-enabled micro-philanthropy is adding up in a big way.

“I too have read of the supposed demise of peer-to-peer fundraising and, from where I sit, it couldn’t be more clear: e-enabled micro-philanthropy works. So far, fundraising primarily through online tools has enabled Epic Change, my very new organization, to raise nearly $40,000. While we’ve had about five “outlier” gifts over $1K from founders and ardent supporters, we’ve also had over 350 individuals from various economic backgrounds “pitch in” smaller contributions. During America’s Giving Challenge, for example, our average gift was $25.34.”

Online giving has made its mark.  Is micro-philanthropy changing the rules of fundraising once again?