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Home » Fundraising » How Online Political Donations Work
How Online Political Donations Work

How Online Political Donations Work

The internet has changed the way we do things. It has changed the way we communicate, the way we shop, and even the way political candidates reach and influence voters.

Online political fundraising has been around for many years now. Its growth has been made possible by advances in technology and social media platforms such as Facebook and Twitter. Today, online donations can be done effortlessly from a desktop or laptop computer, tablet, or even a mobile phone.

There are many benefits to raising money online. It is a relatively inexpensive form of fundraising, and it allows candidates to reach out to more people than they would be able to otherwise. However, some candidates are unsure if raising money online is worth the effort – or if their campaign is large enough to accept digital donations.

Below is a brief overview discussing how the online donation process works and how to get started. We will also discuss the benefits of online fundraising for local candidates.

The anatomy of an online donation

Below is a summary of a payment process for online donations:

  • After clicking a “Donate Now” button or link, visitors enter their billing and other requested information into a web form. Then they submit their information to start the payment process.
  • After submission, a payment gateway takes over. The payment gateway is a service process responsible for verifying and electronically moving funds. The donor’s credit card is electronically verified and then charged. This is performed through a payment processor, discussed below.
  • When the payment transaction is complete, the donor is shown a confirmation page and sent an e-mail confirmation. At this point, a record of the transaction becomes available for reporting purposes – and the donation process is complete.
  • After a period of time, the money is transferred from the payment processor to the bank account of the recipient organization.

Now that you know how the online giving process works, here is what you’ll need to get started…

What third party payment processors do

Third party payment processors provide a simple and relatively inexpensive way to accept payments online without the extra cost and obligation of a merchant account. Most services are free to set up, and include a variety of tools such as forms, social media widgets and data tracking. They charge a small percentage of the transaction as a payment fee.

Your campaign organization will need to verify its non-profit status and bank account information before it can begin using a payment vendor. Because of this, you’ll want to set up your account early to give time to be verified. Be prepared to offer additional proof about yourself as a candidate and your organization.

Related: Comparing Political Donation Platforms – Our Recommendations

Why should local candidates accept donations online?

Money is the lifeblood of any political campaign, but up until recently campaigning online has been a difficult task. That’s changed. Here are several reasons why political candidates up and down the ballot need to raise money online.

  • Online fundraising is easy to start. If you’ve gone through the paperwork and requirements just to run for office, setting up an online fundraising program raising political donations onlinewill be easy. You’ll need a campaign bank account to take donations, an online fundraising system, and a prospect list. If you have your bank account and prospect list, then it’s just a matter of choosing how you will take donations online.
  • Online fundraising is easy to set up. Most online donation platforms are easy to set up, with customizable donation pages, widgets, tracking and more. These features are easy to add to your website or social media accounts.
  • You can reach out through multiple channels. You can use social media, email, texting and even offline methods to drive supporters to either your primary donation page or specific pages set up to track different sources.
  • You opponent will use online channels to raise money. Most political candidates today are using the internet to organize, raise money, and get the word out about their candidates. If you are not leveraging online opportunities, you can be sure that your political opponents will.

It’s like the New York Lotto – You gotta be in it to win it!

Most individual political contributions are for small-dollar amounts. By providing an easy to use and convenient donation system, you are more likely to receive more donations.

There are a lot of scary elements to campaign finance, but setting up online donation tools should not be one of them. Your campaign treasurer will find it easier to track digital receipts and keep records from online sources than checks and cash from offline contributors.

Related: Comparing Political Donation Platforms – Our Recommendations

Create your online pitch to donors

Your campaign website will need a designated donation page. Mention why and how a donor’s gift will make a difference. It may be to help spread the word, or it might be a targeted effort to pay for specific items, like another brochure mailing or advertising effort. Write 2-3 lines of content as to why you need donations – this way potential donors can understand the reason behind it.

Your political donation form should be front and center. At this point, there is no need to go into great detail about your campaign, and at no point should the donor be distracted with links or information about other giving opportunities.

Conclusion

The web alone won’t solve your money needs. A local candidate still needs to canvass, make phone calls and hold fundraising events. However, the web can give you additional means through which to raise money. Take advantage of it!

Online Candidate websites can be integrated with Raise the Money, Anedot, and other online fundraising services. Learn more about our affordable political websites.


Further Reading

  • Overcoming Online Fundraising Naysayers
    Overcoming Online Fundraising Naysayers
  • Raising Seed Money For Your Political Campaign
    Raising Seed Money For Your Political Campaign
  • 9 Tips For Better Online Fundraising
    9 Tips For Better Online Fundraising
« The Worst Advice We’ve Heard About Online Campaigning
9 Tips For Better Online Fundraising »

Tags: general campaign tips, political donations

 

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