Donations, record growth for crowdfunding in Italy

The culture of giving is expanding in Italy unchecked, among all generations and with every possible modality. But it is the progressive rise of crowdfunding that is the positive surprise: 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 have been conducted, since 2014. "Crowdfunding allows non-profit organisations both to reactivate the relationship with their community and to extend it to new donors," comments Valeria Vitali, founder of Rete del Dono, anticipating the results to Nòva 24. "In addition, organisations have improved their digitalisation and fundraising skills, so that when they campaign they can be really effective.

Italy is aligning itself with a positive international scenario for non-profit crowdfunding platforms. A market that is currently worth $293 million and could reach $1 billion by 2034, according to forecasts by Global Market Insight. The analysis company emphasises the contribution of the growth of digital payments, which have become easier and safer thanks to mobile wallets, Upi (unified payments interface, an interface that can transfer funds between two bank accounts in real time) and Api enabling payment systems.

In contrast, direct donation to associations falls 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 drawn, we must take note that crowdfunding is increasingly embedded in the relational dimension, especially for the new generations. Sharing, contact, participation are increasingly taking place online, stimulated by the nearest object, the smartphone. And then we have to consider that crowdfunding is a powerful tool, it activates communities with really fast reaction times, reaching enormous targets,' explains Paolo Venturi, economist, director of Aiccon, the study centre of the University of Bologna.

On the other hand, the technological maturity - favoured in recent years by the pandemic - is reflected in the payment methods: the digital one with 43% of the preferences, for the second year in a row, has surpassed cash (36%, although it continues to be used, probably due to physical stalls in the street). Not only that: one in three donors used at least once the give checkout, i.e. the donation of a modest amount to a cause, in the final stage of a payment. "We launched this feature three years ago," explains Maria Teresa Minotti, country manager of PayPal Italy. "For charities, it has proven to be important not only for fundraising but also for getting in touch with new donors. The Give at Checkout programme allows, at the time of payment, to donate one euro to one of the more than 200 charities registered on the platform. From launch at the end of 2021 to the end of 2024, PayPal customers donated around 3.1 million euros. A success attributable to several factors. "Firstly, the digital trend that continues at a good pace. Secondly, PayPal is a brand that builds an environment of trust and security for donating. Finally, donating one euro is a small gesture and therefore has a higher propensity than donations of a larger amount". In addition, the use of devices such as smartphones and tablets continues to grow (66%), while the use of PCs (59%) declines.

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 all that is crowdfunding,' explains Venturi, 'and then understand that donation is no longer just an act of liberal disbursement for a good cause, but a mechanism of participation.