Fundraising isn’t what it used to be. The days of walkathons, pledge drives, and charity auctions aren’t gone, but they’re no longer the only way to rally support. Technology has completely reshaped how nonprofits connect with donors, engage with competitors, scale campaigns, and drive impact.
At the forefront of this shift is Colossal, a top nationally registered professional fundraising company. It partners with nonprofits to design competition-based campaigns, leveraging digital tools to expand reach, introduce gamification, heighten community support, and create scalable fundraising models.
CEO Mary Hagen sums it up: “The trends that are driving the shift toward tech-enabled fundraising are simply reach and scalability, which were both not possible before digital transformation, especially at the rate we see now.”
So, what’s fueling this transformation? How are competition-based digital campaigns changing donor engagement? And how can nonprofits and for-profit businesses work together to make giving even bigger and more impactful than ever?
Digital Fundraising: Bigger, Faster, and More Scalable
One of the biggest advantages of digital fundraising? Scale. Traditional methods only go as far as physical presence allows. Digital campaigns, on the other hand, can reach millions at the click of a button. For example, on it’s first year running, Colossal’s 2024 Baby Of The Year competition raised more than $24 million for Jessica Alba’s Baby2Baby. And through its annual Fab Over 40 competition Colossal has raised more than $25M for The National Breast Cancer Foundation since 2021.
Hagen puts it into perspective: “Look at Girl Scout cookies, a hugely viral fundraising mechanism. Each Girl Scout troop standing outside of Safeway can only reach those who choose to shop at that specific store on that specific day, which is very limiting, no matter how big that effort is. Digital transformation has played a huge part in what Colossal does to reach hundreds of millions with our messaging.”
It’s a game-changer: Turning Fundraising Into an Experience. Online campaigns, social media, and mobile-friendly donation platforms are making it easier than ever for nonprofits to engage supporters globally.
Fundraising used to be straightforward—charity asks, donor gives. But now? It’s an experience — one that you can choose and control how to partake in. And one of the biggest trends making that happen is this digital transformation that allows for gamelike elements.
People love a challenge. They crave competition, rewards, and the thrill of being part of something bigger. Gamification taps into that, turning donations into interactive, engaging moments rather than passive transactions. Colossal makes it even more worthwhile for participants because the company leverages platforms like YouTube, Instagram, and internal messaging boards available to only competitors, teaching them how to best position themselves on social platforms, how to garner local media attention, and how to get their fans to vote (aka donate!) Giving people authority over the way they WANT to compete and donate is a very enticing opportunity.
Colossal has built its entire fundraising model around this principle. Their approach ensures that every participant—whether a donor, competitor or corporate partner—gets something out of the experience. As Hagen explains:
“Our goal is that any form of participation in our competitions is a win-win-win scenario. This applies to competitors having fun while participating, donors being entertained and feeling fulfilled by their experience (while also helping us make an impact), or our partners benefiting from the campaign’s virality. We want people to have fun with it and to have a positive takeaway from their involvement.”
The impact? When giving feels good, people do more of it. And when people enjoy something, they share it—driving even more engagement and reach.
The Power of For-Profit and Nonprofit Collaboration
Another major shift in philanthropy is the increasing synergy between nonprofits and for-profits. More than ever, businesses are looking to integrate social impact into their brands, and nonprofits can benefit from these partnerships.
Hagen sees this as a major opportunity. “For-profit businesses incorporating some kind of social impact into their messaging, marketing, or customer value propositions are becoming more popular and demanded by the market,” she says. “One of the most effective ways for nonprofits to benefit from for-profit companies’ marketing abilities is to partner in a commercial co-venture (i.e., a for-profit retail business can sell t-shirts and give a portion of proceeds to the charity).”
Of course, these partnerships come with legal hurdles—some states require registration for commercial co-ventures. That’s where Colossal steps in.
“The most effective way at this time for nonprofits to benefit from the scalability of for-profits is a partnership with Colossal,” Hagen explains. “Colossal is a professional fundraising company, which means we are registered nationwide to solicit donations on behalf of another nationwide registered charity legally.”
By handling the legal and logistical complexities of digital fundraising, Colossal allows nonprofits to scale their efforts while benefiting from the marketing power of for-profit brands.
Challenges in Digital Fundraising: Compliance and Trust
But digital fundraising isn’t without challenges. Two of the biggest? Compliance and donor trust.
Hagen highlights compliance as a major roadblock: “One of the biggest challenges is compliance. To accept donations from anywhere or deliver a receipt for a tax deduction, you must be a registered 501(c)(3) nonprofit. As a donor, to get a tax deduction, the charity must be registered in your state. This means that to do digital fundraising, charities must expand their registrations nationwide. This is an incredibly time-consuming and costly process that most charities do not have the resources for, especially when it comes to nationwide registration.”
It’s a logistical nightmare for smaller organizations. Without proper registration, nonprofits may be unable to accept donations across state lines or issue tax receipts—major roadblocks for expanding fundraising reach.
That’s where companies like Colossal play a crucial role. Handling compliance requirements allows nonprofits to focus on their mission while ensuring everything is legally above board.
What’s Next for Digital Philanthropy?
The future of philanthropy is being shaped by technology, changing donor expectations, and new ways of giving. While AI, blockchain, and other emerging tools may boost transparency and efficiency, digital engagement is the real driver of change.
Giving is no longer just about clicking “donate” and moving on. People want to feel connected—to a cause, a community, and an experience that goes beyond a simple transaction.
Gamification, brand partnerships, and viral social campaigns are redefining how people support causes. At the same time, consumers are increasingly looking for businesses to align with meaningful initiatives, making social impact a key part of brand identity.
For nonprofits, keeping up with these digital trends isn’t optional—it’s essential. The organizations that embrace technology, engage supporters in new ways, and build smart collaborations with for-profits will be the ones driving the future of philanthropy.
As Colossal continues to push the boundaries of digital fundraising, one thing is clear: the way we give is evolving and happening fast.
