The Potential of Using Digital Technologies in Fundraising

The Potential of Using Digital Technologies in Fundraising

The digital revolution has impacted every area of our lives. At the same time, these technologies also influenced fundraising and charity. Thanks to artificial intelligence, fundraising companies receive data on target groups, store and collect funds, process donation data, etc.

Statista says that the value of venture capital funds raised in the US has increased from $ 17.5 billion in 2004 to $ 74.5 billion in 2020.

Digitalization trends can have a positive impact on fundraising processes and Nonprofit Fundraising Online by making fundraising more transparent and safer. For example, the use of cryptocurrencies for fundraising eliminates financial intermediaries and promotes peer-to-peer networks. The pandemic has contributed to the shift in payment collection to the online world.

Online crowdfunding platforms have grown sharply over the past five years on the continents, with significant growth in Asia, the United States, and European markets. They work both nationally and in several jurisdictions. They transcend national boundaries and open up new opportunities for building new social links between causes and organizations with their sponsors, establishing a direct link between them and using the force

“Network effect” through its distribution through social networks. Civil crowdfunding

brings to life a more democratic, open access, and transparent community

engagement and offers new opportunities for small organizations that

limited resources for robust fundraising campaigns.

The potential for using technology for fundraising

Digital technologies for fundraising can use many tools: payment systems, platforms, applications, Internet technologies.

Forbes writes that social media also influences fundraising – for example, there is now the possibility that if a person gives a gift on another online channel or direct mail, you can determine if that person has seen one of your Facebook ads.

Machine learning

Machine learning adds a lot of value to fundraising. The use of machine learning is helping to improve the donor experience.

Crowdfunding sites help optimize communication between the donor of funds and the organization using chatbots that are available to communicate around the clock.


Digital communications also enable better interactions with existing supporters, volunteers, and beneficiaries. It helps build trust and demonstrates the work of your company.

Digital technology not only helps to demonstrate impact to the public and sponsors, but it can also help charities understand their impact through analytics.

Potential risks of digitalization of fundraising

While digital technology drives growth in all areas where it is applied, it also carries some risks. Such a product is a by-product of human intelligence. By its nature, a machine not only copies but reinforces bias, even unconscious ones.

Divisions into groups and assumptions

Donor profiling is standard for a fundraiser: you need to know which donor group to contact for a specific project. In the context of online platforms, profiling can lead to selection bias and asymmetry in donations to particular groups while excluding others.

Additional concerns that such profiling may cause when new technologies

used for fundraising, is that profiling can be performed by illegal

obtaining or sharing data, and that this could thus violate the right to

confidentiality and data protection.

Digital fraud

Through digitalization, anyone can create

crowdfunding calls to raise money for your business, and the vast majority of them

are honest and well-meaning. And this means that scammers are also capable of fundraising. Fake disease certificates or fake stories that people will dump funds on.

Data protection and confidentiality

Data protection and online privacy are essential for most users.

In practice, confidentiality also depends on

platform providers. The right to privacy of donors and recipients is a necessary feature of giving, and this should be true on the Internet as well. The leakage of data at places where information about you is collected is quite likely.


Digital technology can positively affect fundraising. Today we can see many successful examples of online fundraising: they are quickly disseminated and can raise an impressive amount of funds in a short time. However, there are still many questions in this area. There are several risks, scams, and data leaks that you cannot ignore. Suppose you are engaged in fundraising platforms or want to contact one of the existing ones. In that case, we recommend that you order business analysis services to check the forum and its fundraising methods to protect yourself and your money.

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About the Author: Barry Lachey

Barry Lachey is a Professional Editor at Zobuz. Previously He has also worked for Moxly Sports and Network Resources "Joe Joe." he is a graduate of the Kings College at the University of Thames Valley London. You can reach Barry via email or by phone.