For parent-led school groups and nonprofit organizations, finding innovative ways to raise funds is a must. That’s where passive fundraising comes in. If you don’t already have a passive fundraising stream as part of your fundraising strategy, you’re missing out on a low-effort way to raise money.
Passive fundraising is a unique fundraising approach that generates donations through everyday activities your supporters are already doing.
Unlike traditional fundraising methods that require direct outreach, events, or heavy participation from your supporters, passive fundraising lets people contribute to their favorite causes through actions like shopping or dining. It’s also a great way for organizations to engage supporters who may not have the time or resources to participate in traditional fundraising activities.
Passive fundraising programs like Shop to Give allow supporters to shop or dine with participating merchants who contribute a portion of the transaction price to the supporter’s chosen charity. The amount a merchant contributes can vary, but it is generally a percentage of the online or in-person purchase.
You may wonder what merchants get out of participating in passive fundraising programs. It’s simple. They are able to connect with consumers and foster brand loyalty by showing they share and support the same socially-conscious values.
Ultimately, passive fundraising can help organizations reach a wider audience while diversifying their donation streams and creating a sustainable fundraising channel throughout the year.
Passive fundraising is a low maintenance way for nonprofit organizations to raise a steady stream of funds throughout the year. Organizations that partner with programs that facilitate passive fundraising report significant increases in their funds raised.
Plus, once a program is set up, it requires little ongoing effort to run which means resources can be directed to other fundraising and management responsibilities.
For supporters, passive fundraising programs are an easy way to make a difference with everyday actions and maximize their giving. That reinforcement helps keep them engaged and active with your organization. Passive fundraising is particularly appealing to the socially-conscious consumers of the Millennial and Gen Z cohorts, as they tend to prioritize convenience and meaningful connection.
The fastest, easiest way to put a passive fundraising program in place is to find a partner or platform that has an established charitable giving program for nonprofit organizations. Using a partner that has a wide network of participating merchants is important, as is its ability to offer a seamless and effortless user experience.
Once you’ve found your partner program for passive fundraising, it’s up to you to promote it to your supporters through all your communication channels including your website, social media, and email newsletters. It’s important to clearly communicate how the program you've selected for passive fundraising works and the impact donations will have.
Ultimately, passive fundraising is a sustainable and smart solution that can help fundraising organizations create a consistent, low-effort revenue stream that can make all the difference in fulfilling their mission and goals.
