India is a shining example of the explosive growth in Internet access, and with it, online transactions. Driven by an ever-increasing range of affordable smartphones, the Internet is reaching over 40 million new users per year. Internet penetration in India is expected to reach nearly 800 million by 2020, a rise of nearly 350 million from today’s figure, giving a boost to online transactions. Online, cashless transactions have soared in popularity, given a further push by demonetization and the Modi government’s vision of a Digital India. Well before demonetization, however, cashless payments increased 22% from October 2015 to October 2016, driven particularly by mobile banking and IMPS, which allows money transfers through SMS, and non-cash payments, in terms of value, are set to comprise 59% of all consumer payments by 2025.
In the same vein, NGOs and other non-profits have begun to capitalize on reaching donors through online means, to promote their causes as well as to launch campaigns and collect donations. In the United States, for example, the number of gifts collected online rose 13% from 2014 to 2015, and while online donations form a small portion of total gifts, they are increasing at a rapid rate, particularly as more and more millennials donate and refer doing so online. While overall giving in the United States grew 1% in 2016, online giving grew by nearly 8% in the same period. Besides, donating through mobile is popular, which form over a sixth of all online donations.
While an NGO can benefit immensely by connecting with donors online, there are a number of major hurdles most NGOs face, such as being able to obtain a suitable payment gateway. This is due to NGOs being deemed as high risk with a presumed low volume of transactions. The growth in online giving has given us many insights into how to maximize its potential in retaining current donors and attracting new ones, and it has been noticed that the loyalty factor between donors and charities is far greater if the donor makes a donation on the charity’s own website, as opposed to a generic fundraising platform, and the average gift received on the charity’s branded page is over Rs. 3,300 ($50) greater than the average gift received on a generic fundraising page. This has significant implications for developing payment gateways designed especially for NGOs; it clearly shows the need for the payment gateway to be incorporated on the website of the NGO itself. Yet, this is precisely the problem being faced by most NGOs in India, thereby limiting the effectiveness of online giving.
Today, there are many payment gateways available on the market, however, they do not explicitly focus on the needs of NGOs and are marketed widely towards every kind of business with an online presence, from matrimonial services to political parties to airlines. While they may, and do, offer a broad range of services and features, many such features which would greatly benefit an NGO are missed out. NGOs must look at payment gateways which not only provide a secure and convenient mechanism for donors to give but which also help them in meeting their unique legal requirements and clerical needs. For example, NGOs are required to record certain personal information of their donors and need to file donations by Indians differently from donations by foreigners. Besides, the payment gateway should automatically send out 80G receipts to donors, making the NGO’s work easier on the clerical front.
This means that an NGO should look for payment gateways offering such services as providing a richly detailed display of donation choices so the donor knows where his money is going, as well as instant 80G receipts and thank-you notes, which clearly differentiate the act of donating to a cause from any other general online transaction, be it paying bills or buying groceries. Moreover, NGOs need to be aware of their payment gateway’s cost structure. While some may seem irresistible with no setup costs, there are hidden costs involved in the form of technology integration costs, technology maintenance costs, server costs etc. In addition, you would have significant manpower costs in sending 80G receipts manually not to mention a poor customer experience. On the other hand, other payment gateways have very high setup and integration costs, which can be unaffordable even for medium-sized NGOs.
At DanaMojo, we recognize these unique requirements of an NGO and by developing a first of its kind payment gateway specially geared towards NGOs, we are revolutionizing how India gives. We provide a smart and intuitive payment platform which works for both NGOs and their donors; by creating a donor-friendly interface and providing dozens of online and offline payment options, we ensure that every NGO is able to greatly expand its network of supporters. We provide both online (credit card, debit card, net-banking, mobile wallets, EMI, UPI) and offline (cheque pickup facility in 350+ cities) modes for a collection of donations. We offer three plans, each with an easy-to-understand fee structure and no database/server costs. These plans comprise different setup fees and transaction fees and allow for NGOs to choose their ideal plan based on their needs and requirements.
We provide a quick and easy setup and integration process as well as a user-friendly dashboard page for NGOs providing a range of analytics, which complements our auto-separation of donations for Indian and foreign donors as well as instant 80G receipts to create the first-ever NGO-centric payments solution. Opportunities for sharing via social media and monthly campaign e-mailers ensure that your reach is hugely expanded. We invite you to join 350+ NGOs already live on our platform by registering with us on our website to learn more about our unique offers for you.
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