Considering a credit card fundraiser? There are two types to choose from – an online signup referral program or an affinity credit card. Here are the differences and how to choose the right one for your group.
Credit Card Fundraising
The two credit card fundraising approaches are completely different. The first one pays you for referring supporters who sign up for any one of a variety of credit card offers. The second version pays you a small percentage of each expenditure made by a supporter using their affinity card.
Credit Card Signup Program
Doing a credit card fundraiser where you get paid for each application is all about convincing people to support your cause. I hate to be blunt, but if you can’t convince people to take action, then you will fail miserably at this fundraiser.
Why? Because it’s an online fundraiser. That means that their actions are outside your sphere of control. It’s not like you are standing on their front porch with your fundraising brochure and are asking them to fill it out while you wait.
Here, you are asking them to take the time to visit a specific web page that’s been set up and customized for your group. Once they take that action, they need to select a credit card offer that interests them and complete the application. Only then will your group earn a commission.
So, how do you convince people to take action?
First, you have to approach them in person. Too many people try to email a list of friends, relatives, and acquaintances about an online fundraiser. It doesn’t matter if it’s about a credit card offer, magazine subscriptions, or any other type of online fundraising. People will delete your emails, ignore them, or even worse, a spam filter will prevent them from ever reaching the intended recipient.
Second, you have to use a concise sales pitch. People make decisions emotionally and back them up with a rationalization. You have about thirty seconds to convince them to help you before a negative mindset forms. Here’s what you should say (obviously adjust the group and the reason to fit):
“My cheer group is doing a credit card fundraiser to cover our travel expenses. Can you help us out by signing up for a credit card because we have to charter a bus to go to Regionals?”
Third, you have to hand them a flyer with all the details, including the URL or website address of your credit card fundraiser. Otherwise, you’ll be doing way too much explaining.
And, it always helps to point out a favorite on the list of available credit card offers. Example: “This platinum card with 0% APR and no annual fees is a really great deal!”
Click here for more information on doing a credit card fundraiser.
Affinity Credit Card Fundraising
A good example of an affinity credit card fundraiser is the Target Take Charge of Education program. Target customers select a school to support and then every time they use their Target credit card, a small percentage of the sale goes to the school of their choice.
Donations total 1% of your purchases at Target and Target.com and 1/2% of purchases made everywhere else with your Target Visa. Checks are sent twice a year in March and September to the school principal.
Charity credit cards for your group
Many nonprofit groups arrange for customized affinity cards for group members. Most pay 1/2% to 1% of all transactions to the originating group.
In addition, nonprofit groups can earn a bonus every time a new member signs up for an affinity card. Sign up bonuses range from $25 up to $100 per approved application.
Credit Card Fundraiser Summary
Credit card fundraising requires salesmanship to get signups to your online fundraiser. Follow the tips in the article on what to say and how to say it.
Once you have yours set up, you can continue to use it to raise additional funds in the future.