Web Donations, Blogs Mark Trend

When Vinay Bhagat started Convio, an Austin, Texas-based software maker that specializes in e-commerce and CRM solutions for nonprofit organizations in 1999, things were much different. By his estimates, only about 15 percent of nonprofit and charitable organizations had Web sites, and few of those had the capability to take donations via the Internet, despite being in the height of the so-called Internet boom. The market was clearly lagging behind the times.

No longer, Bhagat says. When the deadly tsunami struck the day after Christmas, devastating a dozen South Asian and African countries and taking more than 200,000 lives, an outpouring of online donations and Web marketing quickly created a worldwide relief effort never before seen. It is, perhaps, the best example yet of how the Internet can be a powerful, unifying force in today's world. Some reports have put the total of global donations at $5 billion. At press time, nearly one month after the natural disaster struck, several news reports claimed that U.S. private donations, including corporate contributions from such IT leaders as Cisco, Dell and Microsoft, were approaching a total of $400 million; that number would eclipse the $350 million in aid provided by the U.S. federal government.

Bhagat, co-founder and chief strategy officer (CSO) of Convio, says the vast majority of Americans are making donations via the Internet. "There has been a shift in the acceptance of the Internet to make donations, rather than relying on traditional methods, such as telethons," Bhagat says. "The relief effort has gained a lot of momentum on the Web, and there are campaigns everywhere you click. The marketing has become ubiquitous."

Nothing illustrates the trend in the United States better than the titan of e-commerce, Amazon.com. The e-tailer teamed up with the American Red Cross in the aftermath of the disaster and created a donation site within Amazon.com, devoting a portion of its massive e-commerce system to handle the outpouring of online contributions. In less than two weeks, Amazon.com has received more than $14 million, while the American Red Cross reportedly has collected nearly $150 million.

Unicef has also seen record-breaking online contributions; within 10 days of the tsunami, the charity had received $20 million in donations on its U.S. Web site; only $1 million came from the organization's 800 telephone number. In addition, one of Convio's clients, nonprofit group Action Against Hunger (AAH), saw nearly a 100 percent increase in online contributions in the week following the tsunami. Bhagat says groups such as AAH have begun using savvy Web-marketing solutions and e-mail campaigns to raise awareness, which has led to the exponential growth in online donations.

Unfortunately, the growth of Internet contributions also has led to a spike in malicious activity. The FBI, along with security vendors such as Symantec and McAfee, have reported a number of Internet viruses and scams masquerading as legitimate e-mail related to relief efforts. Still, the Internet has become a pivotal tool in relief efforts, and even Web logs, or blogs, are playing a role. Numerous personal blogs have emerged internationally following the tsunami. Some local sites based in Indonesia feature photos and personal information of missing friends or family members, while other blogs act as ad-hoc news sources with video and firsthand accounts of both the disaster, and the rescue and relief efforts. Google, which has a "Ways To Help With Tsunami Relief" feature on its home site, also has a link to the "Tsunami Help Blog," a site that provides information on missing persons, news updates, donations and volunteer efforts.

"The blog phenomenon is amazing," Bhagat says. "The Internet has had a truly significant, all-around impact on the relief effort."