The Association of Fundraising Professionals recently provided a stimulating appraisal on the state of Online Fundraising in 2008.  For nonprofits that still think this area isn’t as important as the more traditional forms of fundraising, the article points out:

• While online monies are still under 4% of the $300 billion donated annually, the online portion has increased 50% over the last decade.
• More older constituents (those with the resources to give) are getting comfortable online
• Many like to combine offline and online giving – nonprofits will get better results by integrating both types of campaigns
• Social networking is worth looking at, but it’s important to first focus on the basics: an effective website, getting potential and current consitutents to visit (and keep coming back to) your website and using email effectively.

To my surprise, slightly more than half of Americans were still on dial-up Internet access in 2007, so it’s still important to build your web site so a high speed connection is not a must.

For those organizations that are still trying to figure out how to optimize online fundraising – start by realizing that it’s no longer an option and it must be planned together with other development activities.  Give constituents many ways to help your organization (and tell them how their contributions make a difference in supporting your mission).