By: Hampton Pearson , Stephanie Dhue,
During the 2012 holiday season, the growth in online giving outpaced the growth in e-commerce. This season promises to grow even further. One reason is crowdfunding.Blackbaud, which offers technology for fundraising, estimates crowdfunding campaigns made up about 10 percent of online donations, bringing in $2.4 billion to charities for all of last year.
Small charities are using websites likeFundly, Indiegogo and Causevox to raise money for a wide variety of causes. Crowdfunding solicits small amounts of money from a large number of individuals to finance a project by leveraging social media sites like Facebook, Twitter and LinkedIn to reach out to networks of friends, family and colleagues.
While it makes up a small slice of the $300 billion in total charitable contributions, crowdfunding has the potential to increase giving. Nonprofits see it as a good way to engage the younger crowd who want to feel their donation is making an impact.