From Netscape to Now: The Evolution of Digital Fundraising

If you’ve ever looked at a nonprofit’s website and thought, “Well… that kinda makes me want to give them my money,” you’re not alone. Digital fundraising has come a long way—from the early days when “Donate Now” buttons were basically science experiments, to today, when a nonprofit without a strong digital presence is effectively fundraising with one hand tied behind its back.

In a recent episode of The Nonprofit Counsel Podcast, host May Harris sat down with Michael Stein, principal of Laguna Creek Consulting, to talk about what he’s seen across nearly four decades in the sector. Michael’s perspective is rare: he didn’t just witness digital fundraising take off—he helped build some of its earliest tools, including early donation pages for organizations like Rainforest Action Network and Greenpeace.

So what does someone who’s been in digital since the era of Netscape think nonprofits should focus on now? A lot, actually—but it all ties back to one idea: digital works best when it’s connected to everything else.

Nonprofit Digital Use Didn’t Start as a Strategy—It Started as Curiosity

Michael’s nonprofit work began right out of college in 1986, when the internet was barely a concept outside of tech circles. Fundraising at the time was dominated by direct mail, phone calls, and events. The web and email were intriguing… but unclear. There were no secure servers, no Google, and certainly no expectations that supporters would type their credit card number into a website and feel good about it.

And yet, once nonprofits started experimenting, something surprising happened: supporters loved it. People were eager to subscribe, engage, and (eventually) give online. The technology was raw, but the potential was obvious.

Fast forward to now, and digital is no longer “nice to have.” It’s essential.

Digital Can’t Live in a Silo

When May asked what Michael advises nonprofits today, his answer wasn’t “start a TikTok” or “use AI.” It was more foundational: invest in digital capacity—and wire it into the rest of the organization.

That wiring matters because fundraising isn’t one channel anymore. It’s many, happening at once, often to the same person. Often, it takes several “touches” to sway a donor into giving. A donor might:

• receive a direct mail letter,

• see a Facebook or LinkedIn ad,

• get an email reminder,

• scan a QR code,

• and then finally give through a donation page.

If those touchpoints aren’t coordinated, donors get a disjointed experience—and internal teams end up duplicating work or pulling in different directions. Michael sees this “silo problem” as one of the biggest ongoing challenges to growing organizations, even as tools have improved.

May added an important layer from her legal perspective: coordination isn’t just good marketing—it’s risk management. Messaging can unintentionally create restrictions on gifts, confuse finance teams booking revenue, or cause privacy issues if donor information is handled loosely. (It’s a good reminder that “digital strategy” touches governance, finance, operations, and compliance—not just comms.)

The Needle-Movers Are Surprisingly Simple

A question many nonprofit leaders ask is: What if we don’t have a big budget? Michael’s answer was encouraging. The biggest early wins for smaller organizations often come from getting organized with the right tools, not buying the fanciest system on the market.

He pointed to two core starting points:

A reliable email platform.

Tools like Mailchimp or Constant Contact can help a small nonprofit move from scattered spreadsheets to consistent outreach. Many now include CRM-like features, segmentation, event tools, and even text messaging add-ons—often for a manageable monthly cost.

A donation processing system that makes giving easy.

Some nonprofits still rely on PayPal, while others use platforms like Network for Good or integrated fundraising suites that combine email, donation pages, events, and campaigns into one dashboard.

The bigger theme: today’s tools are far more affordable and user-friendly, which has made digital fundraising accessible even to a three-person organization.

Donor Data: More Than Names and Gift Amounts

Once the infrastructure is in place, the next step is improving “donor hygiene”—what you track, how you track it, and how you use it responsibly.

Michael recommends capturing the basics (name, address, email, giving history), but also paying attention to donor behavior and context:

• Are they a monthly donor?

• Do they give through events, online appeals, or direct mail?

• What’s the largest gift they’ve made?

• What kinds of programs or issues do they respond to?

This is where digital fundraising becomes less about transactions and more about relationships. Data isn’t meant to replace stewardship—it’s meant to support it.

Donor Data: More Than Names and Gift Amounts

Michael is optimistic about what’s next, especially in three areas:

AI for prediction and personalization.

Not just writing copy (though that’s helpful), but identifying who is likely to become a monthly donor, who has capacity to give more, and how to prioritize outreach—especially powerful for small and mid-sized nonprofits that historically lacked access to this kind of modeling.

Digital advertising is becoming more accessible.

Many nonprofits have avoided paid ads because they seem expensive or complicated. But platforms and vendors are making it easier to run targeted campaigns and reach both new and existing supporters.

All-in-one platforms are getting better.

Tools keep improving—more integration, better segmentation, simpler interfaces—which reduces the “tech barrier” and helps nonprofits run cohesive campaigns without needing a full IT department.

May also flagged a critical caution for nonprofits using AI: protect donor data. If you’re using AI tools, be thoughtful about privacy, terms of service, and whether you’re using a paid, secure environment versus a free, public tool.

What Keeps Him Hopeful

For Michael, optimism comes from the constant evolution of the space—and the people in it. The nonprofit sector continues to attract talented professionals from marketing, tech, retail, and advertising, and those cross-industry skills keep pushing fundraising forward. He stays plugged in through conferences like AFP ICON and the Nonprofit Technology Conference, where new ideas and tools surface every year.

But his “north star” is simpler: deep respect for nonprofit staff, board members, and volunteers doing mission-driven work—often with limited resources—while still finding ways to innovate.

Digital fundraising will keep changing. The question is whether nonprofits are set up to change with it.