Nonprofits do poor job of fundraising online.

• Position: YOUR LIFE

Charities are creating significant barriers to potential donors making online contributions, according to the first Online Fundraising Scorecard, a study by Dunham+Company (a global consulting firm specializing in nonprofit fundraising and marketing) and Next After (a fundraising think tank). The study gives most nonprofits a failing or mediocre grade when scored against tested and proven online best practices. This comes at a time when many charities still are struggling to recover from the Great Recession of 2007-09. Of the 151 organizations that were part of the study, 127 scored 75% or below.

"Research has shown that online giving represents only about six percent of total charitable gifts, but this study uncovers the fact that charities put up unnecessary roadblocks to donors giving online," explains Rick Dunham, president and CEO of Dunham+Company and a member of the boards of The Giving Institute and Giving USA.

"This new data, combined with research already showing that more than two-thirds of online transactions are being abandoned, makes us believe there are millions--if not billions--of dollars being left on the table. Virtually every charity could improve the online giving experience for its donors."

The study examined 46 key indicators in four...