Online Fundraising Tools Market Size, Share, Growth, And Industry Analysis by Type (Cloud based, On Premise) by Application (Youth Activities, Religious Organizations & Others) and Regional Forecast to 2027

Updated On: 15 May 2023

Report Overview

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The global online fundraising tools market size was USD 719.76 million in 2021. As per our research, the market is expected to reach USD 2284.27 million in 2027, exhibiting a CAGR of 21.23 % during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with online fundraising tools market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over. 

Online fundraising tools are software applications designed to help organizations and individuals raise money online through various channels, such as email campaigns, social media, crowdfunding platforms, and website donation forms. Online fundraising tools are essential for nonprofit organizations, charities, and other groups to raise funds and support their causes. With the rise of digital technology, online fundraising has become more accessible and convenient for donors, making it an increasingly popular way for organizations to solicit donations.

One of the main drivers of growth in the online fundraising tools market size is the increasing use of crowdfunding platforms. Crowdfunding has become a popular way for individuals and organizations to raise money for a wide range of purposes, from medical expenses and disaster relief to creative projects and business ventures. The market for online fundraising tools is highly competitive, with a large number of players ranging from small startups to established technology giants. Some of the key players in the market include GoFundMe, Kickstarter, Indiegogo, DonorsChoose, CrowdRise, Donately, Fundly, and GiveGab. These platforms offer a range of features, including customizable donation forms, peer-to-peer fundraising, social media integration, and analytics and reporting.

COVID-19 Impact: Pandemic Accelerated Adoption Of Online Fundraising Tools

The COVID-19 pandemic has had a significant impact on the online fundraising tools market, as many organizations and individuals have turned to online fundraising to support their causes and initiatives during a time of economic uncertainty. With social distancing measures in place and many in-person fundraising events canceled or postponed, online fundraising tools have become a critical lifeline for many organizations. The pandemic has also accelerated the adoption of new technologies in the online fundraising space, such as virtual fundraising events and livestreaming, and has highlighted the importance of mobile optimization and social media integration for reaching donors in a remote world. Despite some initial setbacks, the online fundraising tools market has shown resilience and adaptability in the face of the pandemic. 

Latest Trends

"The Growing Use Of Artificial Intelligence (AI) And Machine Learning (ML) To Improve Fundraising Efforts Is One Trend In The Market For Online Fundraising Tools"

One trend in the online fundraising tools market is the increasing use of artificial intelligence (AI) and machine learning (ML) to enhance fundraising efforts. Many online fundraising platforms are now incorporating AI and ML into their products to improve donor engagement, optimize donation forms, and predict donor behavior. New products and technologies related to this trend include AI-powered chatbots that can answer donor questions in real-time, predictive analytics tools that can identify which donors are most likely to give, and ML algorithms that can analyze data from past campaigns to inform future fundraising strategies.

Leading players in the online fundraising tools market, such as GoFundMe, Kickstarter, and Donately, are investing in AI and ML to enhance their products and stay competitive. For example, GoFundMe recently launched a new AI-powered fundraising coach feature that provides personalized advice to fundraisers based on their campaign goals and donor behavior. Kickstarter has also integrated AI into its platform to optimize its donation forms and improve donor conversion rates. Donately has invested in ML algorithms to predict donor behavior and provide fundraisers with personalized recommendations for improving their campaigns. 

SEGMENTATION

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• By type

Depending on online fundraising tools market given are types: Cloud based, On Premise. The ABC type will capture the maximum market share through 2027.

• By Application

The market is divided into ABC based on application. The global online fundraising tools market  players in cover segment like ABC will dominate the market share during 2021-2027.

Driving Factors

"The Rising Popularity Of Crowdfunding Is One Of The Causes Fueling The Expansion Of The Market For Online Fundraising Solutions"

One of the driving factors behind the online fundraising tools market growth is the increasing popularity of crowdfunding. Crowdfunding has become a popular way for individuals and organizations to raise money online, as it allows them to reach a large number of potential donors quickly and easily. Crowdfunding platforms like GoFundMe, Kickstarter, and Indiegogo have helped raise billions of dollars for a wide range of causes, from medical expenses and disaster relief to creative projects and business ventures. The convenience and accessibility of crowdfunding have made it a preferred fundraising method for many people, and the trend shows no signs of slowing down. This has created a growing demand for online fundraising tools that can help individuals and organizations maximize their crowdfunding efforts and reach their fundraising goals.

"The Growing Usage Of Social Media For Fundraising Is Another Element Fueling The Expansion Of The Market For Online Fundraising Tools"

Another driving factor behind the online fundraising tools market growth is the increasing use of social media for fundraising. Social media platforms like Facebook, Twitter, and Instagram have become powerful tools for raising awareness and funds for various causes, and they have made it easier for individuals and organizations to reach a wider audience than ever before. With the ability to share content, engage with followers, and collect donations directly from social media profiles, many fundraisers are turning to social media as their primary fundraising channel. This has created a growing demand for online fundraising tools that can integrate seamlessly with social media platforms and help fundraisers optimize their social media presence. Leading players in the online fundraising tools market are investing in social media integration and developing new tools that can help fundraisers create and share compelling content, track their progress, and engage with their supporters in real-time. As social media continues to play a key role in fundraising, the demand for online fundraising tools that can leverage this trend is likely to grow even further.

Restraining Factors

"The Problem Of Credibility And Trust Is One Of The Main Barriers To The Market For Internet Fundraising Tools"

One of the major restraining factors for the online fundraising tools market growth is the issue of trust and credibility. With so many online fundraising platforms and campaigns available, it can be difficult for donors to know which ones are legitimate and trustworthy. The rise of fraudulent and misleading fundraising campaigns has made donors more cautious about where they donate their money, which can affect the overall demand for online fundraising tools. Additionally, online fundraising platforms are often criticized for charging high fees and taking a percentage of the donations raised, which can be perceived as exploitative by some donors. As a result, online fundraising tools must work to build trust and credibility with their users, by implementing strong security measures, providing transparent fee structures, and offering robust customer support. The success of the online fundraising tools market depends on the ability of these platforms to address these concerns and provide a reliable and trustworthy fundraising experience for donors and fundraisers alike.

Regional Insights

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"North America Is Projected To Continue To Be A Significant Market For Online Fundraising Tools Because Of Its Developed Infrastructure And High Adoption Rate "

North America is currently the leading region in the online fundraising tools market. This can be attributed to the high level of adoption of online fundraising tools in the region, as well as the strong presence of leading players in the market. The United States, in particular, is a major contributor to the growth of the online fundraising tools market share in North America, with a large number of individuals and organizations using online platforms to raise funds for various causes. Additionally, the region's strong technological infrastructure and high internet penetration rate make it an ideal market for online fundraising tools. While other regions are expected to experience significant growth in the coming years, North America is likely to remain a key market for online fundraising tools due to its established infrastructure and high level of adoption. 

Europe is the second-leading region in the online fundraising tools market, with a significant market share. The region has seen a rapid growth in the adoption of online fundraising tools in recent years, as more individuals and organizations turn to online platforms to raise funds for various causes. The rise of crowdfunding, in particular, has played a key role in the growth of the online fundraising tools market share in Europe, with platforms like GoFundMe and JustGiving becoming popular among fundraisers. Additionally, the presence of a large number of non-profit organizations in the region has created a strong demand for online fundraising tools that can help these organizations maximize their fundraising efforts. While North America remains the largest market for online fundraising tools, Europe is expected to see continued growth in the coming years, driven by factors such as the rise of social media fundraising and the increasing use of mobile devices for online donations.

Key Industry Players

"Key Players Focus on Partnerships to Gain a Competitive Advantage "

Prominent market players are making collaborative efforts by partnering with other companies to stay ahead of the competition. Many companies are also investing in new product launches to expand their product portfolio. Mergers and acquisitions are also among the key strategies used by players to expand their product portfolios.

List of Market Players Profiled

• Fundly (U.S)
• Salsa (U.S)
• Donorbox (U.S)
• Bloomerang (U.S)
• Kickstarter (U.S)
• Virtuous Software, Inc. (U.S)
• OneCause (U.S)
• Aplos (U.S)
• Neon One (U.S)
• Qgiv (U.S)
• Double the Donation (360 MatchPro) (U.S)
• WeFunder (U.S)

Report Coverage

This research profiles a report with extensive studies that take into description the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by inspecting the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, and restraints. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.