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Posted on June 20, 2005 Online Giving on the Rise, Study Finds Online donations to the biggest U.S. charities grew 63 percent last year from 2003, a study from the Chronicle of Philanthropy reveals, with the value of Internet fundraising underscored by the tsunami relief effort and Howard Dean's presidential campaign, USA Today reports. The Chronicle surveyed 164 groups, including Doctors Without Borders USA and the National Multiple Sclerosis Society. Together, they raised $166.2 million online. This was less than 1 percent of the total raised by most of the charities, but Chronicle editor Stacy Palmer said the big growth from 2003 will spur more online fundraising as donors grow more comfortable with e-charity. However, some of the rise might have been driven by strong donor reaction to media coverage of the tsunami, said Jeff Patrick, president of Common Knowledge, a technology consultant to charities; he added that growth this year might ease without a similar high-profile disaster. According to Palmer, nonprofits have been slow to adopt more robust Web sites and other technology that could speed fundraising because they fear spending precious dollars on tools that won't deliver promised benefits. That's changing as technology proves its worth, gaining attention from startup vendors such as Auctionpay, which is creating technology to help charities, including the American Cancer Society, make fundraising easier both online and off; and from venture-capital firms that are investing in technology startups focused on the nonprofit sector. While few big technology vendors market directly to nonprofits, many — including Microsoft, Cisco Systems, and Intuit — donate or sell software and hardware at a big discount to TechSoup Stock, the San Francisco nonprofit, which then gives the tech supplies to qualifying charities. "We really seem at a stage where growth is happening in a fairly spectacular way," said Palmer. Hopkins, Jim. “E-charity Sees an Increase in Online Giving.” USA Today 6/14/05. Primary Subject: Philanthropy and Voluntarism Secondary Subject(s): Science/Technology Location(s): National FC007831

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