Types of Donations
Donations are essential contributions made by an individual or organization to support a charitable cause. They play a vital role in helping charities fulfill their missions and make a positive impact on society. There are many types of donations like In-Kind, Legacy and Time and Skill but, Engage provides Monetary donations further divided into:
Why are Donations Important for a Charity?
Monetary donations are the lifeblood of charity organizations. They provide the necessary resources, flexibility, and stability required for charities to carry out their missions effectively and are of paramount importance for several reasons.
Financial Sustainability: Monetary donations provide the essential financial resources required for the charity's day-to-day operations, programs etc. These funds are crucial for covering expenses such as staff salaries, rent, utilities etc.
Flexibility: Unlike in-kind donations, which are limited to specific goods or services, monetary donations offer flexibility. Charities can allocate the funds to address their most pressing needs or invest them strategically in areas where they can have the greatest impact.
Responsiveness to Emergencies: In times of crises, such as natural disasters or humanitarian emergencies, monetary donations enable charities to respond swiftly. They can use these funds to provide immediate aid and support to affected communities
Now let's demonstrate each monetary donation type in detail with examples.
One-off Donations
A one-off donation, also known as a single donation, is a financial contribution made by an individual or organization to a charity or nonprofit on a single occasion, without any commitment to donate regularly. It is a one-time gesture of support that may be prompted by a specific event, campaign, or personal interest in the cause. To learn how to donate via a one-off donation in Engage, refer to the Create a Single Donation documentation.
Example
Alex is moved by a heartbreaking news story about a natural disaster affecting a community in another country. He decides to make a one-off donation of $100 to a reputable disaster relief organization to provide immediate aid and support.
Regular Giving Donations
Regular giving, also called monthly giving or recurring donations, is a commitment by an individual or entity to make ongoing contributions to a charity at regular intervals (e.g., monthly, quarterly, annually). These donations are pre-authorized and automatically deducted from the donor's chosen payment method. To learn how to create a regular giving in Engage, refer to the Create a Regular Giving documentation
Example
Sarah is passionate about animal welfare and wants to support her local animal shelter consistently. She signs up for regular giving and commits to donating $25 every month to help cover the shelter's operating expenses and care for the animals.
Anonymous Donations
An anonymous donation is a contribution made to a charity or nonprofit without revealing the identity of the donor. The donor chooses not to have their name or personal information associated with the gift publicly. To learn how to create an anonymous donation, refer to the Create an Anonymous Donation documentation.
Example
A generous individual donates a substantial amount of money to a cancer research organization but prefers to remain anonymous. The organization respects their wish and publicly acknowledges the anonymous donation without disclosing the donor's identity.