Why 'Give Now, Pay Later' Should Be In Your 2023-24 Budget
As the world becomes increasingly digitized, so too does the way donors give to charitable causes. One trend that has emerged loud and clear over the past few years is the popularity of donors using digital wallets for online giving.
Digital wallets, such as Apple Pay, PayPal, and Venmo have been around for a while. But, They're now extremely prevalent in the world of charitable giving. An RNL blog post from March 2022 proved that when donors have digital wallet payment options, they use them, as evidenced by Central Michigan University.
"Since we adopted PayPal, Venmo, and Apple Pay, 27 percent of our online gifts have resulted from this payment option. We only expect it to grow." – Bryan Griffin, Director of Annual Giving and Online Engagement, Central Michigan University (via RNL)
Certainly, the volume of gifts mobile wallet gifts has grown since that RNL report. But mobile wallets are growing in another way, too. For the first time, nonprofits and charitable organizations can expand their mobile wallet offerings for donors with Give Now, Pay Later (GNPL).
GNPL is extremely effective with donors. On top of the convenience of giving via a mobile wallet offering, it delivers immediate value back to donors both donors and nonprofits alike. With more time to pay, GNPL helps donors make a bigger impact on the cause they care about.
If another year passes without being able to address your donors’ needs, where are you? Make space for Give Now, Pay Later in your upcoming fiscal year budget.
Donors Love Digital Wallet Payment Options (And So Should Nonprofits)
Donors love using digital wallets to pay for online giving because they are quick and easy. This isn't just anecdotal evidence. Check out the data:
43% of donors have used a digital wallet to make a donation to a nonprofit organization.
Digital wallet donations can dramatically increase unplanned gifts by 79% for repeat donors and 32% for first-time donors. (Source: PayPal)
Digital wallet payment methods increase checkout conversion rates by as much as 3x.
When you expand your digital wallet to include Give Now, Pay Later, donors gain immediate and additional value. They no longer have to suffer the pain of making a gift in one lump sum during their next credit card billing cycle. This means donors have fewer giving barriers, more reasons to give, more reasons to give more, and more reasons to give within the time constraints of any fundraising campaign you may be running.
Additionally, you receive a donor's full gift immediately, don't have to worry about hard versus soft credits, and never have to commit resources to chase down pledges or accept losses.
Don't Risk Leaving Give Now, Pay Later from Your Budget
Looking ahead, it's clear that digital wallets will play an even bigger role in online giving in the coming years. In fact, 2024 is shaping up to be the "year of the digital wallet" in online giving. Nonprofits that fail to budget for GNPL in their mobile wallet offerings will fall behind and assume more risk than they realize.
3 Risks of Leaving GNPL out of your Budget:
Missed Donations If a nonprofit does not offer Give Now, Pay Later, can they effectively overcome the #1 donor objection ("Not now.")? GNPL empowers your fundraisers to give donors an option beyond trying again next year.
Decreased Donor Engagement Donors expect online donations to work like the digital consumer world that they live in. By failing to give them more time to pay for a gift and make a larger impact on the cause they care about, you're missing opportunities.
Poor or Stagnant Donor Retention It costs significantly more to acquire a new donor than it does to retain an existing donor. Give Now, Pay Later not only increases donor retention, but it also increases the likelihood that the donor will increase their annual gift, as well.
Digital wallets have proven to be a boon for fundraising operations during a decade of uncertainty. Innovations to the digital wallet, like Give Now, Pay Later help your organization fundraise more effectively and efficiently while delivering convenience and value directly back to donors themselves. As the world becomes increasingly digitized, be the fundraising leader who stays ahead of the curve to maximize your organization's mission.