E-COMMERCE DISRUPTIVE INNOVATIONS IN CHARITY AND NON-PROFIT FUND RAISING

Philanthropic fund raising has evolved into a major business activity. Traditional models utilize one-on-one contact, direct mail, and telephone bank fund raising. The transaction costs of these models are extremely high often representing more than 50% of contributed funds. Nor are these methods very effective. The high transaction costs and limited effectiveness offer a comfortable cost umbrella for e-philanthropy, web based fund raising systems. Many business models have evolved into a set of opportunities that promises to disrupt traditional fund raising models. Our purpose in this paper is to examine the disruptive potential of e-philanthropy. We will propose value propositions and architecture of processes appropriate for web based non-profit fund raising. We will classify, compare, and evaluate various business models that promise to change the nature of philanthropic fund raising.