Great Fundraising Organizations, by Alan Clayton. Book cover.

YouTube to introduce tip jar to video channels

Howard Lake | 5 July 2014 | News

YouTube is to add a ‘tip-jar’-like function to video channels to enable viewers to make donations to their favourite channels and content. This can happen “at any time, for any reason”, according to YouTube’s YouTubecreator blog.
The announcement was made by new YouTube CEO Susan Wojcicki at the VidCon online video conference in Anaheim, California. She described the facility as “fan funding”, one of several new facilities that would be added to YouTube.
The facility will enable viewers to donate an amount between $1 and $500.
It seems that the online tip jar is more appropriate for artists, musicians and other creatives than charities’ video channels. Charities that are members of YouTube’s Nonprofit Program do after all have an online giving mechanism already. So perhaps it will be of most interest to fundraisers at arts and culture organisations.

YouTube as crowdfunding channel?

The introduction has led some to suggest that YouTube might be attempting to compete directly with crowdfunding services such as Kickstarter and Indiegogo. Indeed, the YouTube Creator blog compared its new service in those terms:

“Your fans aren’t just watching your videos, they’re also helping support your channel through services like KickStarterIndieGogoPatreon and more. We’ll be adding another option for you, where fans will be able to contribute money to support your channel at any time, for any reason”. 

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In fact, the tip-jar is more reminiscent of the model employed by crowdfunding site Patreon, in that it lets users reward creatives on a regular basis for new content, unlike the one-off campaigns with a target of the other crowdfunding sites.
That said, there is far more to crowdfunding than simply a transaction mechanism. In addition, YouTube is introducing interactive cards for those who use third party crowdfunding sites like Kickstarter. These will generate a direct link to fundraising pages.

Staged roll-out

The facility is currently being trialled with a small number of YouTube channels on desktop and Android. None of them are run by charities. YouTube is inviting other channel owners to sign up to trial the tip jar, but it is only open to channels and viewers in USA, Mexico, Japan and Australia.
 
Photo: tip jar by Rob Hyron on Shutterstock.com
 

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