Crowdfunding Tools and Online Fundraising Basics
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crowdsourcing
crowdsourcing vs. crowdfunding:
- crowdsourcing - brainstorming at a larger networked level
- 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