# ChipIn offers free way to collect money online from social networks

- Link: https://fundraising.co.uk/2006/07/19/chipin-offers-free-way-collect-money-online-social-networks/
- Published: 2006-07-19T23:00:00+01:00
- Author: Howard Lake

**ChipIn is a US-based service, soft-launched in May 2006, that allows people and
their friends to collect money or chip in to a collection for a charity or other
project. Currently it does not charge for its services, whether you are an organiser,
participant, or recipient.**

ChipIn’s creators say that it “makes collecting money from your social network easy
by automating the time-consuming process of soliciting and collecting monetary contributions.”

The service is not aimed solely at charities and nonprofit organisations. Indeed,
most of the uses that the site suggests for its service are personal and individual,
such as a birthday or wedding present, sharing rent, splitting bills, office parties,
and group travel.

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To set up a ChipIn appeal you need to plan to ask at least three people via email,
and set a target of between $10 and $3,000. You need to select a closing date: appeals
can not just run and run.

You can choose whether you want to make your ChipIn private or public, and the site
now offers tools that enable users to add links to their ChipIn on their website
or blog.

## PayPal or a credit card

Participants can contribute to a ChipIn using PayPal or any major credit card, and
they are not required to register or provide any personal information to contribute.

ChipIn does not collect any funds until the event is successful, at which point 
it sends participants a “Thank You” email. If the event total is not reached in 
time you can choose to collect whatever money has been pledged or cancel the event/
appeal and not charge the contributors.

As such this is not a rival to the established online donation services offered 
by Justgiving, Bmycharity and Charities Aid Foundation. Given it’s US origins there
is for example no facility to add a Gift Aid declaration for donations to registered
charities.

However, it could prove a useful tool for organisations keen to exploit the possibilities
of social network giving. More importantly though it could help fundraisers think
through the essential elements of setting up an online appeal. In addition, as social
network sites such as MySpace, Bebo and SecondLife gain popularity and user numbers,
such a non-charity specific method of giving could prove popular and therefore another
channel for charities.

ChipIn is not unique. Its features are similar to those of dropcash and fundable.
org, for example, although the latter currently charges 8.9%. The UK’s .net magazine
featured ChipIn recently and gave it a 59% chance of survival. [Gift Hub](http://www.gifthub.org/2006/05/chipin.html)
described it as “Grassroots giving through technology. Nice idea”.

At the very least it qualifies as one of the small but growing number of fundraising
or giving-related “Web 2.0” services that UK Fundraising has been following and 
reporting on.

To find out how easy it is to set up a ChipIn we’ve created one for UK Fundraising:

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