Monday, Jun 20 2016
Micro-donations, amounts ranging from $1 to $3 dollars, might be small (hence the name) but they can make a big impact on your organization. I am sure you are wondering why anyone would come to your website giving portal and give a $1. Truth is, they probably won’t, but if they found your story while browsing on their phone, they might be moved enough to give a quick $1 donation. After donating they might even share it with their friends.
That is the premise behind Spotfund, a new online giving platform that focuses on micro-donations. Spotfund is a mobile-first platform, which means it operates via mobile devices, there is no website portal. In order to use Spotfund it must be downloaded from the Apple app store. Currently, it is only available for iOS.
At launch, the platform had approximately 360 US based 501(c)(3) nonprofits, but it has plans to add more. How it works from the nonprofit side, each nonprofit creates a story, which potential donors will read via the app. These stories have “spottags”, which help track the story and encourage sharing.
App users read the story and if it moves them, they can give a micro-donation right from the app. Donors are encouraged to share the stories that move them via Facebook or Twitter. There are other features in Spotfund that “gamify” the giving process, such as an impact score. The impact score sums the app users total amount given for the month. The app also shows how much cash was raised overall for the campaigns they shared.
Spotfund sends donors a monthly itemized receipt showing all their donations for the month. Spotfund currently charges a 5% convenience fee, as well as a credit card processing fee, which is deducted from each user donation.
Micro-donations, amounts ranging from $1 to $3 dollars, might be small (hence the name) but they can make a big impact on your organization.