Donations, record growth for crowdfunding in Italy

The culture of giving is expanding in Italy without limits, among all generations and in every possible way. But the positive surprise is the progressive rise of crowdfunding: in 2024, 23% of Internet users interviewed by Bva Doxa in collaboration with PayPal and Fondazione Rete del Dono, during the Donare 3.0 survey, used donation-based crowdfunding. This is the highest figure since the surveys were conducted in 2014. "Crowdfunding allows non-profit organizations both to reactivate the relationship with their community and to expand it to new donors - comments Valeria Vitali, founder of Rete del Dono, anticipating the results to Nòva 24 - Furthermore, organizations have improved digitalization and fundraising skills, so that when they run a campaign they can be truly effective".

Italy aligns itself with a positive international scenario for non-profit crowdfunding platforms. A market that is currently worth 293 million dollars and could reach one billion dollars in 2034, according to the forecasts of Global Market Insight. The analysis company highlights the contribution of the growth of digital payments, which have become easier and safer also thanks to mobile wallets, Upi (unified payments interface, an interface that can transfer funds between two bank accounts in real time) and Api that enable payment systems.

On the other hand, direct donations to associations fall to 58%, the worst figure in the last 11 years. "If it is true that the gift is a relationship and the donation is the object with which this relationship is designed, we must take note that crowdfunding is increasingly embedded in the relational dimension, especially for the new generations. Sharing, contact, participation are increasingly online, stimulated by the closest object, the smartphone. And then we must consider that crowdfunding is a powerful tool, it activates communities with really rapid reaction times, reaching enormous targets" explains Paolo Venturi, economist, director of Aiccon, a study center of the University of Bologna.

On the other hand, technological maturity - favored in recent years by the pandemic - is reflected in payment methods: digital with 43% of preferences, for the second consecutive year, has surpassed cash (36%, although it continues to be used, probably due to the effect of physical stalls on the street). Not only that: one in three donors has used the give checkout at least once, that is, the donation of a modest amount to a cause, in the final phase of a payment. "We launched this feature three years ago - explains Maria Teresa Minotti, country manager of PayPal Italy - For charities it has proved important not only for fundraising but also for getting in touch with new donors". The Give at Checkout program allows, at the time of payment, to donate one euro to one of the over 200 charities registered on the platform. From its launch at the end of 2021 to the end of 2024, PayPal customers have donated approximately 3.1 million euros. A success attributable to several factors. "First of all, the digital trend that continues apace. Secondly, PayPal is a brand that builds a context of trust and security for donations. Finally, donating one euro is a small gesture and therefore registers a greater propensity than donations of a larger amount". Furthermore, the growth, as obvious, of the use of devices such as smartphones and tablets (66%) persists while the use of PCs is decreasing (59%).

In this context, what strategies can third sector associations adopt to remain effective in fundraising? "The audience of future donors will be digital natives. The first thing is to do capacity building on everything that is crowdfunding - explains Venturi - And then understand that the donation is no longer just an act of liberal donation to a good cause but a participation mechanism".