How Online Political Donations Work For Campaigns

The internet has changed the way we communicate, the way we shop, and even the way political candidates reach and influence voters.

Raising money online is a relatively inexpensive form of fundraising. Today, online donations can be made effortlessly from a desktop or laptop computer, tablet, or even a mobile phone. It allows political campaigns to reach out to more people than they would be able to otherwise. However, some candidates are unsure if raising money online is worth the effort or if their campaign is large enough to accept digital donations.

Below is a brief overview discussing how the online donation process works and how to get started. We will also discuss the benefits of online fundraising for local candidates.

The anatomy of an online donation

Below is a summary of the payment process for online donations:

After clicking the “Donate Now” button or link, visitors enter their billing information and other requested information into a web form. Then they submit their information to start the payment process.
After submission, a payment gateway takes over. The payment gateway is a service process responsible for verifying and electronically moving funds. The donor’s credit card is electronically verified and then charged. This is performed through a payment processor, discussed below.
When the payment transaction is complete, the donor is shown a confirmation page and sent an email confirmation. At this point, a record of the transaction becomes available for reporting purposes, and the donation process is complete.
After a period of time, the money is transferred from the payment processor to the bank account of the recipient organization.

Now that you know how the process works, here’s what you’ll need to get started:

What third party payment processors do

Third party payment processors provide a simple and relatively inexpensive way to accept payments online without the extra cost and obligation of a merchant account. Most services are free to set up, and include a variety of tools such as forms, social media widgets and data tracking. They charge a small percentage of the transaction as a payment fee.

Your organization will need to verify its non-profit status and bank account information before it can begin using a payment vendor. Because of this, you’ll want to set up your account early to give time to be verified. Be prepared to offer additional documentation about yourself as a candidate and your organization.

Donation platform selection

When picking a payment processor, consider using one that is tailored for political campaigns or non-profit organizations. Also, look for these critical factors:

Transaction Fees: Lower transaction fees mean more of your donors’ contributions go directly to your campaign.
Integration: Ensure it works smoothly with your website and social media. Some platforms allow for embedded website forms; others require that you link out to the processor’s form.
Recurring Donations: Check if the service supports recurring contributions for steady income throughout the season.
Reporting and Analytics: Look for processors that offer robust financial reporting tools. This should simplify your treasurer’s workload.

See the article below for recommendations on choosing a platform that is best for you.

Related: Comparing Political Donation Platforms – Our Recommendations

Why should local candidates accept donations online?

Money is the lifeblood of any political campaign, but up until recently campaigning online has been a difficult task. That’s changed. Here are several reasons why political candidates up and down the ballot need to raise money online.

Online fundraising is easy to start. If you’ve gone through the paperwork and requirements just to run for office, setting up an online fundraising program will be easy. You’ll need a campaign bank account to take donations, an online fundraising system, and a prospect list. If you have your bank account and prospect list, then it’s just a matter of choosing how you will take donations online.
Online fundraising is easy to set up. Most online donation platforms are easy to set up, with customizable donation pages, widgets, tracking and more. These features are easy to add to your website or social media accounts.
You can reach out through multiple channels. You can use social media, email, texting and even offline methods to drive supporters to either your primary donation page or specific pages set up to track different sources.
You opponent will use digital channels to raise money. Most political candidates today are using the internet to organize, raise money, and get the word out about their candidates. If you are not leveraging online opportunities, you can be sure that your political opponents will.

It’s like the New York Lotto – You gotta be in it to win it!

Most individual political contributions are for small-dollar amounts. By providing an easy-to-use and convenient donation system, you are more likely to receive more donations.

There are a lot of scary elements to campaign finance, but setting up online donation tools should not be one of them. Your campaign treasurer will find it easier to track digital receipts and keep records from online sources than checks and cash from offline contributors.

Create your online pitch to donors

Your campaign website will need a designated donation page. Mention why and how a donor’s gift will make a difference. It may be to help spread the word, or it might be a targeted effort to pay for specific items, like another brochure mailing or advertising effort. Write 2-3 lines of content as to why you need donations; this way, potential donors can understand the reason behind your request.

Your political donation form should be front and center. At this point, there is no need to go into great detail about your campaign, and at no point should the donor be distracted with links or information about other giving opportunities.

Conclusion

The web alone won’t solve your money needs. A local candidate still needs to canvass, make phone calls and hold fundraising events. However, the web can give you additional means through which to raise money. Take advantage of the opportunity!

Online Candidate websites can be integrated with Raise the Money, Anedot, ActBlue, WinRed, and other online fundraising platforms.