'Wired wealthy' giving more online

Wealthy donors may be more open to online relationships than charities may realize.
APR 02, 2008
Wealthy donors may be more open to online relationships than charities may realize, making an organization's presence on the Internet even more important in reaching this market. Donors are making larger dollar gifts more often online and plan to increase that use in the future, researchers found. In a recently released survey of more than 3,443 donors from 23 non-profit organizations, 51% said they preferred giving online and 46% said they would increase their online donating in the next five years. The study was conducted by Convio Inc., an Austin, Texas-based software and service provider for non-profit organizations, in partnership with Sea Change Strategies of Washington and Edge Research Inc. of Arlington, Va. Respondents were individuals who donate a minimum of $1,000 annually to a single cause and gave on average $10,896 to various charities each year, with a median gift of $4,500. The so-called "wired wealthy" included 57% with an annual income of $100,000 or higher, and 27% with more than $200,000. Respondents use the Internet an average of 18 hours per week. Many charities may be missing out if they do not accept donations online or have a compelling website, said Vinay Bhagat, founder and chief strategy officer for Convio. Two-thirds of the respondents said they visited a non-profit website before donating. "It's important that the site is compelling and easy to navigate," Mr. Bhagat said Only 8% of those surveyed said they were inspired by the organization's website, and 7% said they felt more connected. "There truly is an inspiration gap between what people want from non-profits in terms of their online experience and what they are getting," Mr. Bhagat said. Donors also turn to the Internet to learn about the organization. "It's overwhelming proof that the Internet as it relates to charitable giving is such a significant force," said Yale Levey, managing director Next Generation Wealth Planning LLC of Roseland, N.J., which has $65 million in assets under management, and board member of the International Association of Advisors in Philanthropy in Rocky Hill, Conn. "It shows that the Internet has enormous potential for charities to increase their leverage by going in a non-traditional way. If you can show them online that you are investing it wisely, donors gravitate to that."

Latest News

Advisor moves: LPL nabs Cetera teams in California, Texas
Advisor moves: LPL nabs Cetera teams in California, Texas

Meanwhile in Florida, Raymond James welcomed a multigenerational advisor group from Stifel, while Merrill reeled in Morgan Stanley advisors in the Chicago North and Nashville markets.

UBS sees 2.2% decline in advisor headcount during the past 12 months
UBS sees 2.2% decline in advisor headcount during the past 12 months

But management remains focused on UBS advisors’ ability to reel in new assets.

VanEck partners with Allocate to expand private markets access
VanEck partners with Allocate to expand private markets access

VanEck is leaning on Allocate's operating platform to bring a private markets offering to financial advisors in weeks, not months.

Carson Group welcomes $1.76B Wells Fargo team in New Hampshire expansion
Carson Group welcomes $1.76B Wells Fargo team in New Hampshire expansion

The Omaha-based RIA's second Hanover office deepens its US expansion as industry dealmaking hits a record clip in 2026.

CAIS, Arch raise fresh capital as advisors lean into private markets
CAIS, Arch raise fresh capital as advisors lean into private markets

The two alternative-investment platforms' new financing – coming from Blue Owl, Carlyle, Franklin Templeton and other big-name backers – signals deepening advisor demand for private-market access.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income