Political fundraising
political fundraising - Even today, the most effective way for political
campaigns to raise money is still the 'old-fashioned' way - by making
calls and holding events. Personal contacts and solicitation are still
an integral part of the fundraising process and necessary for raising
money.
Online fundraising can be a good way to bring in campaign funds,
particularly if you want to target a wider audience and a greater
quantity of small donations. As technical barriers have dropped in
recent years, more and more local campaigns are raising money online.
Keep in mind that under no circumstances will the internet magically
bring in money. Your campaign website exists as a conduit through which
to raise money, not as a means unto itself. If your website is not
promoted or no one has an interest in your website (or your campaign for
that matter), slapping an online donation button onto a web page will
not do a thing for you.
Accepting online donations carries associated costs. Services that allow
you to accept online credit card contributions charge transaction fees
(typically between 3 - 8%) that are deducted off the top of any payment.
Some services also charge setup and recurring fees.
Regardless of how you raise money, your campaign is responsible for
complying with the law. For example, you may need to collect certain
information about your donors or have a legal limit on contributions.
Check your local laws and, if necessary, seek legal advice.
Below is a summary of a payment process for online donations:
After clicking a 'Donate Now' button on a website or link in a campaign
email, visitors enter their billing and other requested information on a
donation or contribution form. Then they submit their information to
start the payment process.
After submission, a payment gateway takes over. A payment gateway is a
service process that verifies and electronically moves funds. The
donor's credit card is electronically verified and charged. Then the
funds are deposited into a Merchant Account. This account may be in your
organization's name or in the name of the payment gateway vendor.
When the transaction is complete, the donor is shown a confirmation page
and sent an e-mail confirmation. At this point, a record of the
transaction becomes available for your reporting purposes - and the
donation process is complete!
Online payments can be accepted either through a third-party processor
or through an online merchant account. If you decide to pursue online
donations, you should establish your payment system early. Depending on
the requirements, you may need a campaign bank account in place and/or
verification of your organization's non-profit status.
