making the crowdfunding experiment work for your organization
TRANSCRIPT
Making the Crowdfunding Experiment Work for Your Organization
Presented by GOODcorpsSource: Conde Nast Collection
Agenda
1. Introductions
2. Trends in Online Fundraising
3. Crowdfunding Overview
4. Crowdfunding Checklist
5. Campaign Brainstorm
GOODcorps partners with leading organizations to imagine bold opportunities that align goals
with social impact. We mix management consulting with design thinking.
One of the most important cultural shifts created by the rise of the internet is the ability for individuals to connect with
each other; publish, share and find information without institutions as an intermediary.
Source: https://www.flickr.com/photos/liz-grace/5078868809/
At GOODcorps, we believe that this cultural shift has created a huge opportunity and an urgent need for institutions to facilitate direct
connection among the individuals they serve.
Source: R. Jordan N. Sanchez via Unsplash
Today, we’ll talk about emerging trends in online fundraising and how you can add
crowdfunding to your toolkit
Source: Startup Stock Photos
Trends in Online Fundraising
There are many emerging trends in online fundraising but one size does not fit allWhat are the differences? What is right for you?
Online Fundraising
Prize-based Fundraising
Auction-based Fundraising
Gimmick Challenges
Crowdfunding
Online FundraisingOnline fundraising simply means using the web to raise money for your organization. This can include websites, email campaigns, search engine optimization and social media.
What are the benefits?
What are the leading platforms and examples?
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Prize-based FundraisingPrize-based fundraising uses large incentives to attract donors to participate in online raffles. These prizes can include physical items but most common are unique experiences.
What are the benefits?●
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What are the leading platforms and examples?●●
Auction-based FundraisingSimilar to prize-based fundraising, auction-based fundraising uses large incentives to drive donations. Donors can win items and experiences through online, public auctions (not raffles).
What are the benefits?
What are the leading platforms and examples?●
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Gimmick ChallengesGimmick fundraising can come in a variety of forms. An initial donor will perform a public stunt or action to raise funds for a cause. This can either be done in teams or individually.
What are the benefits?●●●
What are the leading platforms and examples?●●
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Crowdfunding Overview
Models of CrowdfundingThe practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet. Crowdfunding can connect donors to beneficiaries without institutions as intermediaries
Reward Based Donor Based Lender Based
Investor Based Cause Based
There are crowdfunding sites for every flavor of fundraising with roughly 500+ crowdfunding
platforms used worldwide.
Evolution of CrowdfundingCrowdfunding has grown exponentially since 2009, and ‘social causes' capture a healthy slice of the pie.
Total $M raised % of total funds raised
Within the nonprofit world, peer-to-peer fundraising grew by 60% from the prior year.
In 2013, people raised $5.1B through crowdfunding around the world.
Benefits of CrowdfundingCrowdfunding is…...a new fundraising tool for time-bound, narrowly scoped projects...a possible avenue to non-government and foundation dollars...an opportunity to activate members, supporters, and smaller donors across the globe...a chance to increase brand visibility in new channels, media...a feedback tool to assess interest in a new concept, product or service
Crowdfunding is not a fundraising panacea.Crowdfunding is not ideal for funding general operations.
Choosing a Platform: Existing vs. BespokeThe exponential growth of crowdfunding means that there are over 500 platforms to choose from. What are the pros and cons of using or acquiring an existing platform?
Pros of Existing Platforms Cons of Existing Platforms
● Lower cost ● Tested platform● Potential built-in community● Ideal for pilot testing before
committing to bespoke platform
● Integration with existing systems ● Lack of full customization ● Full access to data ● Product functionality not aligned
to crowdfunding strategy
Choosing a Platform: Functionality ConsiderationsWhat should I be looking for in a crowdfunding site?
● Look and Feel - can you feature your organizational branding?● Ease of Use - can you set up a page on your own?● Payment Processing - how does this integrate with your systems?● Fees - is a premium worth it?● Marketing and Social Media Capabilities - is it easy to share? Video is a must!● Example Case Studies - do leading organizations use this site?
Crowdfunding Checklist
Crowdfunding Success Factors
MATCH EFFORTS TO THE SIZE OF YOUR ASK
The bigger the ask, the more efforts you will need to put in. Be prepared to handhold at each step of the process.
SHARE AN AUTHENTIC STORY
The “reward” to investing is the individual connection the donor will feel to the recipient.
To facilitate this connection beneficiaries should communicate how this experience enables and empowers them.
CREATE FEEDBACK LOOPS
Donors want to see the impact their investment make in the lives of beneficiaries.
Have a plan about how to report back to donors and vividly show the impact of their investment.
COMMUNICATE BEFORE THE ASK
Putting a campaign online does not lead to viral support.
You’ll need to spread the word, get some traction from your own donors and then you may receive unexpected support.
ENSURE THAT PROJECT ASKS ARE APPEALING TO DONORS
There are several key features that make projects appealing to donors: ● Media-rich projects where
beneficiaries can share photos, videos and personal stories
● Attainable requests; people are more likely to donate to <$30k projects
● Projects that quickly gain momentum; try to lock in early supporters before launch
DONOR COMMUNITY
Donors want to feel like they are a part of a community, including but beyond the connection they have with supported projects.
Setup channels to keep donors engaged between investments and create a ladder that allows them to expand their contributions over time.
Crowdfunding Success Factors Cont.
Campaign Brainstorm
Campaign Brainstorm ExerciseLet’s do a quick exercise to brainstorm how you might plan and execute a crowdfunding campaign:
1. What kind of online fundraising is right for your organization? (Online, Prize, Auction, Gimmick, Crowdfunding)
2. What is your goal? What impact will result from this campaign?
3. What assets do you have for this campaign?
4. Who are you targeting? What kind of experience do you want to create for the donors? How are you engaging with donors throughout and after the campaign?
5. What are the stories you will tell?
Sources
1. http://www.crowdsourcing.org/editorial/2013cf-the-crowdfunding-industry-report/251072. http://www.causevox.com/resources/3. https://nonprofitquarterly.org/philanthropy/22399-crowdfunding-for-nonprofits-experimentation-mandatory.html?gclid=CP6qvuO5j8UCFWZo7AodXmgAWQ4. http://markedpoint.com/2013/07/15/crowdfunding-the-six-success-factors/5. https://thenounproject.com/