Have you got someone worth celebrating? A colleague that’s leaving for a new job? Finally retiring? Or heading off to begin their parental leave? Whatever the occasion, a group collection for a gift is needed.                                                  

But with a group collection comes the dreaded coordination, monitoring who has given what and those awkward conversations to remind that one guy who hasn't contributed (again!).

So now you’re trying to figure out the best way to collect money for a gift? That’s where we come in! Our handy guide will show you the 5 things to consider when collecting money for a gift, as well as exploring the online tools available for collecting the funds, and lastly outlining why online collections are the best choice!
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How to collect money for a gift (Online)

When it comes to how to collect money for a gift, most people are looking for the easiest and most convenient way to do this. Typically this means using some sort of online service where money is sent or transferred digitally.

Collecting money for a gift online is typically favored due to its ease of use, and the fact that almost everyone has online banking. It is also easier to share around, monitor contributions, and eventually spend!

The three most common ways to collect money for a gift online include bank transfer, payment link and online collection service.

Online Collection

The easiest way to collect money for a group gift is an online collection website.

Online collections for a group gift are designed to take the hassle out of collecting money for a gift. With an online collection, a virtual collection pot is created that each member can contribute to and typically leave a message.

People can be invited via text, email or socials and reminders to contribute can be easily sent the same way. The amount of money collected is easy to keep a track of and simply managed as you can see who has contributed and who hasn’t. This avoids the hassle of worrying about your own bank balance or misplacing the cash.

Pros:

+ Often includes an ecard for signatures

+ Simple to track collection total and monitor who has contributed

Cons:

- Can take 24 - 48 hours for collected funds to be withdrawn and deposited

- Transaction fees may apply

Bank Transfer

Bank transfer is simple and tends to suit everyone as they have online banking on their smartphones, meaning funds can be sent over in seconds!

All that is required is the person who is responsible for collecting the funds bank details, including their name, routing number and account number. Then just a few taps and the money is sent!

However, bank transfers pose the same issue as cash - keeping track of the funds. Yes, depending on which bank you use, you can see who sent what and keep an eye on it. But, when the gift funds mix in with your bank balance, it can be tricky to ensure the funds remain untouched.

But unlike cash, a bank transfer does make buying gifts online considerably easier.

Pros:

+ Everyone has - or can have - access to online banking

+ Money can be sent over in seconds

Cons:

- Difficult to keep funds separate from personal bank balance

- Managing who has sent funds can be difficult if transfers are mixed in with regular transactions

Payment Link

Payment links are another method of collecting money online that’s worth considering.

A payment link is a URL, button or QR code that can be opened via internet browser, text portal, social media platform or email. The link will take the recipient to a page where they are simply requested to pay a specific amount of money, which can be done in a matter of minutes.

However, payment links are something which have been designed with businesses in mind and aren’t typically used for personal banking purposes. They are also time sensitive, so the recipient of the link or code must pay within this time frame or the link becomes invalid and a new one is required.

Pros:

+ Gives contributors a set time in which to send their money

+ A fast and direct way for people to pay (ideal for crowdfunding)

Cons:

- Used predominantly by businesses

- Transaction fees may apply
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How to collect money for a gift (Offline)

Once you have taken yourself through the 5 step process outlined above, you may now be questioning how to collect money for a gift. As we briefly mentioned, you can either consider collecting money online or offline.

Firstly we are going to explore offline collection methods. Of which there are only two, cash or our newly coined term “gift kitty”.

Cash:

Whether it’s an envelope that’s passed around, a subtle jar on your desk that people put money in, or straight up just handing you over the cash as and when, cash is a classic way of collecting money for a gift.

It does what it says on the tin! Each member of your gifting group gives you an agreed amount of cash to contribute towards a group gift.

However, with cash comes the difficulty of keeping track of the cash. You have to take note of who gave you what when, and even worse if someone decided to give you it in coins.

Additionally, cash has another major drawback; you can’t spend hard cash on the internet. If your group gives you cash for a gift that you have to give online, you then have the hassle of depositing that cash into an account to then use online.

Pros:

+ Cash can be spent in-store with ease

+ Cash can be easily counted by hand

Cons:

- Difficult to keep track of who has contributed what

- Not everyone carries cash

Gift Kitty

Ok, granted we did make this one up ourselves (patent pending), but it makes sense and we know that people do it.

A gift kitty is an alternative to collecting money for a gift whereby instead of each member of the group contributing money, they each buy an item of an agreed value.

Take a retirement celebration for example; someone buys fancy alcohol, another buys a sentimental photo frame, another buys a book with a list of hobbies and so on.

Pros:

+ No one is responsible for collecting or managing money

+ No one person has to buy a gift as it is collectively purchased

Cons:

- Defeats the purpose of a group gift

- Must ensure no duplicate gifts, coordinating who buys what can be tricky
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5 things to consider when you collect money for a gift

1. What are your gift ideas?

Once you have established that there is someone to celebrate and confirmed what it is that you are celebrating, you have to think of gift ideas.

If you struggle to come up with ideas, consider talking to their closest friends or family to get an idea of what would be a good gift. Perhaps there is a gift that is perfectly suited to the occasion, such as a book of hobbies for your retiring colleague?

It’s essential to establish what gift you are collecting money for - even if it’s a gift card, as this helps you set a target amount and those contributing know what they are giving money towards.

2. How will you share the collection?

The second step in the process of how to collect money for a gift, typically includes thinking about who you are going to share the collection with and how you plan to go about it.

Are you going to send an email to your entire contact list minus the recipient? Is it a small collection that you’ll only send to a tight-knit group of colleagues via text? Or will a little brown envelope just make its way around and people can contribute what they want?

No matter who or how you choose to share your collection, the key is to ensure you share it enough times so that you raise the desired amount to get them the gift they deserve.

3. How will friends contribute?

Now that you have decided how you are going to share your collection and who you are sharing it with, you must decide how you want people to contribute.

The options available to you include both offline collections, including passing around a brown envelope or jar to receive some cash donations. Or online collection options such as bank transfer, payment links or using an online collection platform.

We’ll explain each method of contribution in greater detail later in our article, exploring their pros and cons, how they work and who they are best suited to.

4. How do you plan on keeping track of the funds?

Before the money starts rolling in, you must figure out how you will keep a track of each contribution.

Will you have a paper list of names that people can sign to say they contributed and how much? Are you able to monitor who has sent what if you choose bank transfer? Do you want to keep things anonymous so that there’s no pressure or obligation for people to give a set amount?

Whatever method of contribution you choose for everyone, you must also find a seamless way of keeping track so that there’s no disputes over people who have or haven’t contributed.

5. How will you update everyone on the collections progress?

As you collect money for a gift you will want to keep your contributors updated with how the group collection is going.

Will you create a group chat? An email chain? Or tell people in passing what the current total of the collection is?

Of course you will have a deadline for contributions, which is typically in line with the event you are celebrating. Therefore, your updates can also include a nudge to those who have not yet contributed as the deadline looms closer.          

Once you have taken yourself through each of the above steps you are ready to begin collecting money for a group gift.
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Why should I collect money for a gift online?

We understand that as an online group collection service we may appear to be a little biased in our argument. So, to make things fair we’re simply going to outline all the general reasons as to why you should collect money for a gift online.
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• Safe and secure: Due to industry standards, online collections should be protected and secure, meaning no data or information will be shared or compromised.
• Convenience: Once created they are simple to use and do the work for you. Your collection runs in the background totalling up the funds and tracking who’s contributed, without you having to worry about a thing.
• Anyone, anywhere can contribute: Anyone living or working anywhere in the world can contribute to the collection, perfect for those who work remotely or those with global teams or family abroad.
• Virtual invites: Simply send an email or text with an invitation to contribute. Plus, with an invite list sent simultaneously you don’t need to keep track of who you’ve asked and who you’ve not.
• Scheduled reminders: Even better, online collections allow you to send online reminders. So you can virtually nudge those who haven’t contributed yet without having to face them awkwardly at the coffee machine.
• Less responsibility: You have no responsibility other than monitoring your total and then withdrawing the funds or sending the collection. There is no need to remember who paid what, keep a note of cash or separate anything in your personal bank account.
• Online spending: Having all of your funds online allows you to spend online, either withdrawing funds, transferring them to a gift card or sending them to the recipient.
• Suitable for every occasion: Online collections can be used for everything from birthdays to babies, retirements to random thank-yous, especially if your online collection service provides ecards too!

It’s worth noting that each online collection pot provides a different service and not all benefits apply - especially those relating to e-gift cards or physical gift cards. For example, crowdfunding giant GoFunMme operates on a charitable basis only, and Monzo banks have a split funds feature but don’t offer group collections.

There are a few online group collection services that host similar features to Givetastic, but we’ll leave the ball in your court to discover who they are for yourself!

What occasions can I collect money for online?

When it comes to finding a way to collect money for a gift, there are a number of factors to take into consideration. Factors such as security, fees and what occasions the collection pot caters for.

Each group collection service caters to a variety of different occasions. For example, with our group cards and group collections, Givetastic can help you to celebrate birthdays, new babies, retirements, thank you's, weddings or anniversaries, and any other milestone worth celebrating.

These occasions seem to be pretty standard across each service, with only slight variations depending on who you go for. Of course, as standard, a group online collection can be suitable for every occasion if all you want to do is collect money for a gift.
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How to collect money for a gift online with Givetastic

Sold on the idea of collecting money for a gift online? Then create a group card or collection with Givetastic!

It’s easy to get started with us. You simply select a group card or group collection, assign an occasion to your collection, choose a card design, write a message, and then send off your invites.

You can send unlimited invites and receive unlimited card signatures or contributions, with no obligation for your group to sign or contribute, the choice is theirs!

Our pricing is straightforward too. You only pay for the delivery of a group card or pay a small tip with each contribution to cover our fees!