'Wired wealthy' giving more online

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."