Crowdfunding Tools and Online Fundraising Basics

crowdsourcing

crowdsourcing vs. crowdfunding:

1. crowdsourcing - brainstorming at a larger networked level
2. crowdfunding - funding at a crowdsourcing level = a lot of people giving a

little bit of money

how to be successful:

• works well for events and conferences, pre-sell on platform
• good for phased (stages of one big project i.e. filmmaking) or defined
• projects vs. generic fundraising i.e. overhead, operational costs, etc.
• provide tiered level of rewards/acknowledgement i.e. at $10 you get xxxx
• $25 you get xxxx
• keep rewards low cost
• shorter campaigns, generally under 45 days
• focus on networked vs. self promotion - relationship building, online connectivity, good email list, good social media
• nonprofits are used to working in an environment of scarcity but be generous, spend time building relationships by sharing and promoting

sister/ally organizations

• add to donor database but also keep your communications w/ them relevant to crowdfunding project/keep it in the platform
• use videos
• send updates
• thank donors!!!!

platforms:

• platforms automatically collect name, email, etc but can also donate anonymously
• approx 280 platforms across all currencies
• additional platforms facilitate in-kind donations i.e. volunteers, refreshments, monitors for an event
• platforms + credit card service charges, lower end 5% and upper end of 10%
• some platforms charge immediately, some hold credit card info before charging
• platforms have little or no oversight in terms of accountability re: funds usage

Popular platforms

• indigogo - get whatever you raise, service charge around 12%
• kickstarter - all or nothing, you reach goal and funded or you don't get
• any funds
• rockethub
• razoo

successful examples:

• obama campaign 2008, most donations < $100 bucks for bucksbuck shot injuries