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Popularity of Internet fund-raising grows
Internet shopping is changing for the better.
Companies like FundRaising.Com now make it possible for people to shop online and raise money for their favorite nonprofit group at the same time.
"I definitely think it is something that has potential," said Vickie Mabry, associate director of the Association of Fundraisers and Direct Sellers. "Everybody has their eye on it."
Fundraising is big business. The charitable fundraising industry brought in $190 billion last year. Nonprofits raised about $2 billion per year in product fundraising, according to the Association of Fund Raisers and Direct Sellers.
FundRaising.Com supplies groups with products and programs for fundraising. Established in 1991 by Dick Raddatz as Raddatz Marketing Companies. FundRaising.Com got its start by providing lollipops to nonprofit groups. The groups sell the candy, keeping a portion of the profit.
The company earned $3.3 million in sales last year and is projecting at least $8 million this year.
Lollipops are still FundRaising.Com’s biggest seller, but the Internet is quickly becoming a popular way for organizations to raise money. The company now offers an online shopping mall to help groups earn even more money.
Based in Cedarburg, Wis., the private, family-owned company recently opened its technology branch in Broomfield.
"This is a great area to build a technology team," said Rick Raddatz, the company’s chief technology officer and son of Dick Raddatz.
Rick came to Broomfield after working 11 years in Seattle for Microsoft Corp.
He recently doubled the technology staff by hiring FundRaising.Com’s second full-time developer, Rick previously used part-time contractors to help with the extra workload.
"I’m hoping to hire more," he said. The company’s forecast calls for 15 developers, Rick said.
Technology is an important part of staying ahead of the competition, Rick said.
Rick Raddatz registered the company’s domain name in 1995, and the site receives about 4 million hits a month.
The idea is simple. "People are going to shop online anyway --- they might as well go to FundRaising.Com and buy the same item while helping out their local group," said Lauralee Raddatz, vice president of sales and marketing for the company. Laurlee is Rick’s younger sister.
"I look at this as the future of fundraising, " Lauralee said.
When an item is purchased online, an affiliate fee is collected by the site used to link people to the online store. When people shop at any of the 140 stores offered by FundRaising.Com, 100 percent of the affiliate fee goes to their selected group. Other online fundraising sites usually give back 50 to 75 percent of that fee, according to Lauralee.
Soccer teams, churches and chess clubs throughout the country can earn money effortlessly. All they have to do is get people to shop on the site in their name.
"The top charities spend any where from 50 to 80 percent of every dollar they make just to get that dollar," Lauralee said. Online fundraising allows groups to make money without the added cost or effort, she said.
"I haven’t had any requests for anyone to do online fundraising," Broomfield High School athletic director Michelle Williams said.
Lauralee is aware it may take some time for the idea to catch on.
"Now it’s a matter of getting the word out," Lauralee said. "This school year will be the real test."
Schools and school groups account for 88 percent of all money raised through product fundraising, according to a May 1998 survey by the Association of Fund-raisers and Direct Sellers.
"The district has strict policies on fund raising," Broomfield High vice principal Craig Boccard said. Each team or group is allowed one fundraiser per year, Boccard said.
"I don’t think this would conflict," Williams said about online fundraising.
According to Monte Sutak, director of athletics and activities for the Boulder Valley School District, that rule is decided on a school-to-school basis.
Broomfield High’s athletic teams concentrate their fund raising efforts on selling entertainment books.
"The Internet won’t change everything…it’s just one more way to do things," Rick said.
BROOMFIELD ENTERPRISE , Broomfield, CO - December 7, 2000.
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