In an effort to cut overhead costs and better target donors, nonprofits are venturing into the world of technology. In an industry where raising a dollar from a new donor can cost a nonprofit $1.20 to $1.50, the internet provides opportunities to focus more on distributing funds raised, and less on covering administrative costs.

Convio, a company specializing in the development of software for nonprofits is planning on signing up a few charter charities to test its new web service. The service can help nonprofits target donors, develop relationships and keep them regularly updated on the status of the charity without incurring the internal paper and mailing costs.

While donors can often be extremely generous in the checks they write to a nonprofit, concerns still abound regarding what the charity is spending just to keep the donor in the know. The plan is for nonprofits to maintain RSVP lists for fundraisers, send out event reminders and take on-line contributions as well as tracking those contributions without the additional administrative costs.

Convio maintains that purchasing their service is cheaper than bringing on new staff to keep up with administration activities.