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Hidden Costs of Online Charities

Many nonprofit groups, in their push to get online for fundraising, do not realize the costs associated with the Internet.

"Some of them think this is going to be a kind of panacea for doing fundraising, and it's not necessarily that," says Russ Finkelstein, director of outreach at Action Without Borders.

Action Without Borders serves as a central reference point listing more than 21,000 nonprofit and charity organizations around the globe, providing links to information such as volunteer opportunities, jobs, and services. Finkelstein says that when the group started five years ago, there were plans to have physical community locations, but the Internet proved more useful in sharing information.

"[The Internet] has been essential to what we do in helping the nonprofit community, which tends to be back a little bit compared to other places--especially the for-profit and government sectors--in having technology," Finkelstein says. "Typically, there's a lack of resources and a lack of time, so whatever makes your job easier and whatever ways you can share resources are always useful."

Indeed, lack of resources is the biggest hurdle facing nonprofits: Many are very excited about the Internet and want to implement new technology, but simply do not have the money or technical knowledge to do so.

"We actually consider the nonprofit sector itself in a type of digital divide," says Alnisa Allgood, executive director of Nonprofit Tech, which helps nonprofits figure out how technology fits into the nonprofit's mission, what technology they need, and how to implement it.

Allgood says she sees many nonprofits that are behind the technology curve. But because the Internet can help nonprofits, organizations are continuing to place an online presence at the top of their wish lists, despite the problems they may face in implementing that technology. Some groups that have already made their way onto the Web are crafting big plans for their online futures and hoping to help other nonprofits get on the Internet as well.

"More and more people are coming online--this isn't going to go away, it's only going to get more pervasive," says Archer of the American Red Cross. She adds that the Red Cross is currently working on becoming more database driven, so a site visitor could quickly enter a zip code and find out where a local chapter is, how to donate blood, or get a disaster safety plan specific to the user's location.

"The nonprofits who start successfully integrating technology and start reaping benefits in terms of additional grants and corporate sponsorships are the nonprofits that are going to make the transition to the Internet world," Nonprofit Tech's Allgood says.

One Click at a Time

Nonprofit organizations are turning to Web surfers for support, offering everything from volunteer and job opportunities to one-click donations that are free to the user.

• Eactivism.com: With news and resources, this is an online community for activists.
  
  
• Netaid: It's not just about concerts; Net Aid also promotes poverty relief and human rights.
  
  
• Habitat for Humanity: Volunteers build affordable housing worldwide.
  
  
• 4 Goodness Sake, Peace for All.com, Webreleaf, Wedid.net: These click-to-donate sites support various causes.