Piryx, a white-label fundraising platform that helps automate online political contributions is reporting record amounts of money raised in this quarter for political candidates. Piryx says that money raised will exceed $4 billion this political cycle
Piryx attributes the surge in online contributions to the strength of Barack Obama’s online campaign that first showed the power of online fundraising in 2008. Many of the current fundraising efforts are being driven by anti-establishment, insurgent candidacy led by tea party candidates.
The startup deduced the $4 billion data point be evaluating how many political organizations have an online fundraising presence (600K organizations, candidates, political groups), the average donation size ($130) and the average number of donors that contribute to a campaign online (50 donors per campaign). Piryx declined to give us the exact amount its technology has helped raise for political candidates but did say that it was in the “double digit millions” for the 2010 elections.
Piryx also estimates that the $4 billion raised in the 2010 election cycle will be twice the amount given in the previous election cycle in 2008. According to a Pew report, 8% of Americans gave to political organizations from August 2007 to August 2008. Of those donations, 15% were online. With an average online donation of $130, the amount given to political campaigns online during that time was $1.05 billion. Piryx estimates that another $1 billion was raised from August to November.
It may be a stretch to assert that online fundraising to double at this point but it will certainly match what was raised in the 2008 cycle. Piryx has accumulated these estimates and data from its own market and other fundraising campaigns. The startup declined to give us an exact number but said “thousands of candidates in the US” are using the platform to raise money online.
According to the report, some candidates are receiving nearly 30 donations a minute. Piryx is also also predicting that more than 30 million donors will make online contributions to political
campaigns this election cycle. The top states for political giving in order are Texas, California, South Carolina, Florida and New York.
It’s not surprising that fundraising is surpassing the last cycle, considering the primaries that took place a few weeks ago and the upcoming fall elections that will take place this year. And the 2008 elections showed us the power of building an online presence when raising money. Plus with a residential election, I’m sure that the 2012 election cycle will prove to set higher online fundraising records.