In an increasingly digital world, associations and NGOs have adapted their fundraising strategies and now offer online donation platforms.
As a result, they face the same conversion and customer journey challenges as e-tailers. In a gloomy economic context, where the average donation has dropped by 9 euros in one year (1), it is unthinkable to lose a donation due to abandonment or payment failure.
How can the new bank transfer solutions boost the number of donations and the amount raised?
In this article, find out how these new payment methods are helping associations and NGOs to collect more donations online and secure payments from major donors.
The challenges of online conversion
Today's donation collection websites face challenges similar to those faced by e-commerce platforms. To maximize donations, it's essential to make the checkout process as seamless as possible. Donors need to be able to make a donation quickly, securely and with a minimum of friction.
However, payment can be an obstacle to a successful conversion for a number of reasons.
Limits on credit card donations
Donations made by bank card are limited by ceilings, which can be a major disincentive for donors wishing to make large donations. In a context where many daily transactions are made by bankcard, these limits are in place to protect consumers against fraud, but they can also limit the generosity of donors.
While the average donation in France is €191 (1), there are many deviations from the average. High-income individuals and companies make donations of several thousand euros, which are generally impossible to collect by credit card.
In addition, the end of the year is propitious for an increase in donations in terms of both volume and value. Companies and taxpayers have until December 31 to reduce the amount of tax they pay. This essential tax advantage boosts the amount of donations, and obliges associations and NGOs to offer payment methods adapted to major donors.
Transfers and cheques: asynchronous payments
The most common alternatives to credit card payment are bank transfer or cheque. But these payment methods are far from perfect. Because they are asynchronous, they interrupt the online donation process.
As a result, donors may promise to make a donation but fail to follow through. Ideally, it's best to allow donors to pay without delay, to avoid forgetting or dropping out.
Moreover, for associations and NGOs, payments by cheque and "traditional" bank transfers remain complex to process. Accounting teams have to manually punch in each donation to identify the donor and issue the tax receipt. In a sector marked by strong seasonality, with a peak in donations at the end of the year, reconciliation can quickly generate a bottleneck that's difficult to manage. A nightmare for operational teams, who find themselves under pressure!
Payment by bank transfer: an essential lever for increasing donations
New money transfer solutions such as Fintecture enable donors to make online donations without being limited by their credit card limits. Donations are made by bank transfer, without intermediaries, offering greater flexibility in terms of amount.
What's more, payment is seamless, with a smooth customer experience similar to that of an online CB payment.
The Immediate Transfer offers several advantages to associations and NGOs:
- Increased average donation: Donors are no longer restricted by card limits, which means they can make larger donations. The average Fintecture donation is now 3 times higher than the average credit card basket.
- Improved conversion: unlike traditional bank transfers, Fintecture's Immediate Transfer offers seamless payment without IBAN entry. It is based on a transfer payment initiation system that enables donors to make a donation without having to set up the transfer from their online bank. Payment is made online via a secure connection to the donor's bank.
Simplified integration with iRaiser
Fintecture, an iRaiser partner
iRaiserthe French and European leader in online fundraising for associations, has integrated the Fintecture Immediate Transfer into its fundraising platform.
Complementing traditional payment methods, it offers a particularly suitable alternative for large donations.
The payment process is simple:
- Donors select their bank on the donation platform
- They are redirected to their online banking area, where they log in using their usual login and password.
- View the transfer: everything is pre-entered (association IBAN, amount, reference)
- It validates the transfer and secures the operation via strong authentication (code to be entered, fingerprint or FaceID).
That's all there is to it. The association receives immediate payment confirmation and the funds within 24 hours.
Test the payment process by doing a good deed!
Make a donation to an association by paying Fintecture: select the Instant transfer option.
> See the list of partner associations and NGOs
Average donations on the rise!
The activation of Fintecture transfers in addition to credit cards has had a significant impact on the increase in online donations.
Currently, over 110 associations offer payment by Immediate Transfer. The average donation via Fintecture is €670 (with a record amount of €50,000!). Transfers remain the preferred method of payment for major donors, a key issue for associations.
Fintecture transfers are part of the industry's digitalization drive. For example, the Ligue contre le cancer reports a 13% increase in online donations, regardless of payment method. Fintecture transfers play a significant role in this increase, with a rise of 38%.
Between January and November 2023, Fintecture had already collected over 10,000 donations, 30% of which came from donors who had already used our money transfer solution. Associations and NGOs benefit from a network of payers who appreciate the ease of payment offered by Fintecture!
How do I activate Fintecture on the iRaiser platform?
For associations and NGOs wishing to offer Fintecture transfers, no technical integration is required , as the solution is pre-integrated into the iRaiser platform.
To activate this new payment method, simply contact your iRaiser representative. You'll be able to collect your first donations with Fintecture within a few working days.
In a nutshell
This year, more than ever, conversion is at the heart of the concerns of associations and NGOs. To increase not only the number of donations, but also their amount, it is essential to offer fluid payment solutions that enable high donations to be collected.
With this in mind, iRaiser has integrated the Fintecture Immediate Transfer. An invaluable asset for ensuring that the causes supported by associations and NGOs receive the financial support they need to pursue their mission.
