A leading researcher says charities need to adapt their techniques to prevent being ousted by online sites like Givealittle.
In the past month New Zealanders donated $1.5 million through the site.
Jason Krupp from the New Zealand Initiative says donors are attracted online because it cuts out the middle man.
"One of the appeals of this is that you know that your money is going to specific cause, that the money isn't being absorbed in say running a large charity," he told the Paul Henry programme.
"We've seen some pretty egregious cases where some large charities, a vast portion of the funding that went to them, went to running organisation. Only a trickle ended up going to the cause at the other end."
Around $35 million has been donated to Givealittle since it began seven years ago.
Watch the video for the full interview with Jason Krupp.
