The economy is slowly coming back, but it may be a long time before it gets all the way back to an acceptable level for most people. Deep cuts in government spending have crippled programs that have left no segment of our society unaffected. Private nonprofit organizations are struggling as well. Large numbers of once consistent donors can no longer afford to make their monthly or even annual contributions. Philanthropists from every corner of the globe are seeking out new ways to increase donations without begging too much from an already strained donor base.
In the past few months, several companies have taken advantage of the popular “Daily Deal” online business model and tweaked it just slightly to provide nonprofit organizations with a new avenue to raise their much needed revenue. To understand how these companies and programs can benefit nonprofit organizations, we first must understand exactly how they work for an average individual.
The foundation for the program is the offer to buy goods or services through the system. An individual enrolls in a program to receive a chance to purchase a deal via email every morning for a business in that person’s geographical area. There is no obligation and membership is free. These offers can be for restaurants, hair salons, car washes, golf, or just about anything else that can be imagined. With the deal being presented to thousands of people, the business is able to offer whatever it is at fifty to ninety percent off of normal retail price. Sometimes there are restrictions, but the offers are so good that consumers rush to take advantage. They purchase the deal through the system and then print out a voucher to take into the business. While businesses can be hit by offering such a drastic discount, they gain the opportunity to expose more customers to their restaurant, store, etc.. The theory is that the new customers will either buy more than what is covered by the voucher, or they will return multiple times in the future creating more revenue.
So how do these companies incorporate nonprofit fund raising? The first thing the nonprofit must do is to enroll in the program. The next step is for the nonprofit to notify its donors and contributors that it is in the program. The nonprofit will have a personalized link to email to everyone and put on its website. The donors and contributors are informed that through their voluntary enrollment in the program, a portion of every purchase they make will be donated to that nonprofit. The donors and contributors are also encouraged to tell their friends or anyone else about the program. Everyone who signs up will be grouped under that nonprofit organization. Whenever any of them make a purchase through the system, a portion will be donated to that nonprofit organization. There are no geographical restrictions. With deals being launched in multiple cities, it is possible that a customer buying a car wash voucher in Florida will actually be benefiting a nonprofit in Oregon. With the nonprofit organization’s group growing exponentially over time, there is a potential for huge donations down the road.
Those are the basics of this system. With multiple companies currently implementing these programs, some of the details, such as how much the business receives, or the percentage of proceeds going to the nonprofit, may vary. Enrollment is always free. The only time any money changes hands is when a deal is purchased through the secure internet site. There is no real downside for anyone involved. Businesses get much needed exposure with no upfront cost. Consumers have access to great savings with the peace of mind of knowing that with any purchase they make, a percentage of the proceeds will go to benefit a nonprofit organization. The nonprofit organizations benefit from generating much needed revenue with no cost and no monthly maintenance.