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Social media can be a powerful tool for raising funds online. HOWEVER, do not think that putting a "Donate Here" button on your website is going to magically result in a flood of cash. Nonprofits that are able to successfully leverage social media for fundraising are able to do so because they've first focused on using social media to develop credibility, relationships and good will among their stakeholders.
Don't even THINK of starting with online fundraising as your first foray into social media though. That's a tactic that's doomed to failure.
That said, when you FIRST pay attention to social media strategies like listening, storytelling, building awareness and building community, online fundraising can become a natural part of the mix.
A Few Good Tools for Online Distributed Fundraising - this is when you let your supporters do the work for you.