Crowd-funding online can be defined as multiple donors providing typically small amounts of funds individually to collectively accomplish a goal. Most non-profit organizations already have multiple means of raising donations to fund their general causes.
Crowd-funding is typically used by non-profits to fund a specific goal or purpose. For example, a non-profit medical clinic may desire to purchase a new device to test for a rare disease or to fix a roof damaged in a storm. To use their general funds may jeopardize their current functions. Online crowd-funding platforms may be used to describe the goal, the reasons why and help supporters spread the word about the campaign. The internet and social media allow for anyone to share vast amounts of information with anyone who is interested. Often campaigns for a specific project start as a tree with a few people who support the project and then tell their friends online. As the branches expand out, more and more interested parties are informed of the project.
A common misconception with crowd-funding is that the supporters will do all of the work. Crowdfunding is still a significant amount of work to organize and provide content that helps people become engaged in the campaign. That being said, online crowd-funding platforms often organically bring supporters who frequent the site and look for projects similar to your to support. There are several different platforms for crowd-funding, but a common theme of the popular online platforms is the reward system. Providing supporters with small tokens given in gratitude helps supporters show others they supported the project which also helps for future projects. Below are some of the basics of getting a campaign started.
The basics of starting a crowdfunding campaign:
- Find a specific project (something with a defined goal, defined benefits, defined deadline for completion)
- Create a plan for the campaign
- Budget funding necessary to reach goal (including online payment fees and platform fees)
- Timeline for funding and timeline for implementing the project once funding is received
- Rewards for supporters (common rewards for non-profit campaigns include shirts, bracelets, etc…)
- Content to help keep supporters involved (also use your current website to help SEO)
- Stories of how this project will help, could include examples of other similar projects
- Submit the project to an online platform (Each platform has separate rules on allowable projects)
- For specific project, consider popular sites like:
- Kickstarter – Fixed – Set goal amount, nothing is received if goal is not reached
- Indiegogo – offers 25% discount for verified 501(c)(3) organizations.
- Choose Funding Type
- Flexible – Any funding pledged is collected, regardless if goal is reached.
- Fixed – Set goal amount, nothing is received if goal is not reached
- For more general fundraising, consider sites like:
- Choose Funding Type
- For specific project, consider popular sites like:
- Involve supporters throughout the campaign (give them a reason to share the campaign with others)
- Collect successfully raised funds (most platforms take a fee, plus online merchant service fees)
- Send out rewards (this is a good way to thank supporters and get them involved in other ways)
- Complete project (Make sure changes to the project are communicated to supporters)
- Don’t forget to keep supporters involved during the progress of the project (update pictures online)
- Plan and prepare for the next project ( you now have supporters who may contribute again in the future)
Additional Information:
http://www.causevox.com/nonprofit-storytelling-crowdfunding/
http://www.thefundraisingauthority.com/internet-fundraising/crowd-funding-your-non-profit/
https://www.kickstarter.com/help/handbook/getting_started
http://go.indiegogo.com/playbook/life-cycle-phase/the-basics