Evaluating Third Party Revenue Streams
Examples of third party revenue streams:
- Microdonations
- Crowdfunding
- Non-cash/in-kind gifts
- Fundraising widgets
- Fundraising events
- Merchandise sales and promotions
- Alternate checkout options/payment providers such as Pay Pal
- Mobile-focused solutions
- Text-to-donate
- Sources for matching gifts
- Social media platform apps and options
- Charity Portals (care2?, squidoo?, change.org?)
- Other websites that may incorporate an option to contribute or have a way to incorporate it, for example: Review Sites (Uservoice, Charity Navigator, Guidestar, Google+, Glassdoor)
Criteria and process for evaluating new revenue streams:
- Review any previous research completed
- Ensure that the donations will conform to (or can be made to conform to) our donation acceptance policy and the IRS's rules for a 501c3
- Determine if we are locked in with them in any way, like with a contract, commitment, minimums, etc.?
- Review privacy policy and confirm that donors information will be secured and not shared, in accordance with Vote Smart's privacy policy
- Confirm that Vote Smart would receive the following information about the donor or prospect in a timely fashion: donor's name, donor's contact info, gift amount (if applicable)
- Determine any fees, including transaction fees and compare them to our current card processing fees; inquire if there is a nonprofit discount
- Determine if there is integration with our current payment processor (cybersource) or other software we use, if applicable
- Weigh the costs and benefits of adding the new revenue stream.
- Does it expand our potential userbase?
- Does it make mobile donations easier?
- Will the contributions be restricted in some way?
- Will it take away from other sources of income?
- What is the expected rate of return of this particular service and of this type of service in general?
- Is this something worth actively promoting or is it better just to passively accept donations from this source due to its flaws?
- Identify if, where and how the third party service will be integrated into our websites, apps, social media accounts, and other online accounts. Confirm with IT that it would be possible and wise
- Get approval and implement
- Figure out how these donations may be integrated into our processes and document
Optimizing existing revenue streams:
- Do we have a profile with up-to-date, accurate, and reflecting us in the best light?
- Can we supplement text with additional (flattering) photos and a logo?
- Are we findable when you search for the terms "Center for National Independence In Politics" "Project Vote Smart" "Vote Smart" "VoteSmart" "votesmart.org" and can we add these terms if not?
- Is there a way to reduce fees that we have not yet explored?
- Are there other best practices for optimizing these donations that we have not yet done?
