It's hard to find a silver lining in natural disasters. But the cataclysms of the past year or so - starting with the Asian tsunami - have been a boon to online fundraising. Half of the $2 billion given to charities for victims of hurricanes Katrina and Rita, for example, was collected through Web sites. What's more, these credit card contributions go further than those generated by direct mail or telemarketing. "It's analogous to an impulse purchase," explains Bill Strathmann, CEO of Network for Good, a clearinghouse for nonprofits on the Web. "People give more online, and it costs less to handle that money." Another plus: If you can't pay off your gift immediately, at least you can feel good about the debt. - Joanna Pearlstein
How Much Charities
Raised Online
(in millions)
1999: $192
2000: $525
2001: $1,025
2002: $1,435
2003: $1,900
2004: $3,000
Average Donation:
Online vs. Direct Mail
Easter Seals online: $57
Easter Seals direct mail: $12
NARAL Pro-Choice America online: $50
NARAL Pro-Choice America direct mail: $26
American Red Cross Disaster Fundraising
2001 9/11 terrorist attacks:
Total raised (in millions): $1,078
% received online: 3%
2004 Asian tsunami:
Total raised (in millions): $568
% received online: 28%
2005 Hurricane Katrina:
Total raised (in millions): $1,670
% received online: 24%
2005 South Asian earthquake:
Total raised (in millions): $8.3
% received online: 51%
The Cost of Raising $1
$1.25: From a new donor via direct mail
$0.25: From an existing donor via direct mail
$0.63: Via tele-marketing
$0.07: Online
Sources: American Red Cross; The Chronicle of Philanthropy; Craver, Matthews, Smith, & Co. and Kintera; Network for Good
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