Crowdfunding non-profit

The Blog — Crowdfunding for non-profits

imageNon-profits are the original crowdfunders. The first time someone went door-to-door asking for contributions, or collected donations on a street corner, they were essentially crowdfunding, by collecting numerous smaller contributions to fund social impact projects that couldn’t otherwise get off the ground.

So non-profits should be naturals at using the new generation of fundraising platforms which have been given the crowdfunding label. But many are hesitant about giving it a go, put off by a fear of failure or a lack of understanding about what’s involved. Hopefully this blog post can help encourage more to make use of this great opportunity!

At StartSomeGood, we’ve hosted scores of successful non-profit crowdfunding campaigns and are passionate about helping non-profits (and for-profit social enterprises) take advantage of crowdfunding to raise the funds and rally the community you need to make a difference.

We wanted to share some advice and answer some common questions from non-profits looking to take the leap.

How is crowdfunding different to other fundraising activities?

imageNon-profits were crowdfunding before it was cool – before the term was even coined. The underlying dynamic of many people pooling their contributions to make impact on a social problem they care about still remains. What today’s version of crowdfunding offers you is improved game dynamics, greater transparency and the additional momentum of social media.

Crowdfunding projects are:

  • Shareable: just one click and your cause is in front of a community you’ve never connected with before, as your current supporters reach out to their family and friends
  • Tangible: the project page gives you the opportunity to set a concrete goal and give backers the sense that they can really make it happen.
  • Personal: your project video enables you to talk one-on-one with your backers, to share your emotional connection with the work you’re doing.
  • Rewarding: crowdfunding gives you the opportunity to overcome ‘donor fatigue’ by offering genuinely exciting, covetable rewards that make your campaign more fun than guilt-inducing.
  • Transparent: by making your progress towards your goal completely transparent you inspire greater attention and participation from your supporters. By making the tipping point goal all-or-nothing you leverage game dynamics which make people more likely to give.

Pro-tip: It’s easy to define your crowdfunding campaign when you’re engaged in discreet projects such as pilot programs or once-off infrastructure creation. But non-profits are often doing long-term, ongoing work, so it can seem difficult to create a tangible project to crowdfund. Consider how you could reframe ongoing activities as discreet “chunks”. For example, you could aim to fund your operations for a particular time period, expand to an additional location or hire a new much-needed member of staff. Then try to quantify the impact of the changes you can make with the additional funds you’re seeking.

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Wiley Crowdfunding: A Guide to Raising Capital on the Internet (Bloomberg Financial)
Book (Wiley)

Fundable indiegogo kickstarter

by Acumagnet

Here are your chances to make a fast cool million.
Make 3 bogus but plausible programs that get people ecited. Raise as much money as possible.
Collect money and leave country.
I got screwed on prosper, and those same people, with bad credit, go to crowdfunding websites with even less to prove about their viability except for some crazy idea on how to make money.
There are already people getting screwed on these crowdfunding sites. It would be nice to have a website monitoring this and compiling the stories.

Odyssey Business Class Airline Venture Looks to the Crowd for Funding  — Crowdfund Insider
Hoping to become the next big thing in England's airports, Odyssey Airline Limited has launched an equity crowdfunding campaign on Crowdcube.

Adams Media The Everything Guide to Crowdfunding: Learn how to use social media for small-business funding
Book (Adams Media)
Sean Akers The Secrets of Crowdfunding: A Step-by-Step Guide to Getting the Most From Your Kickstarter Campaign
Book (Sean Akers)
CROWDFUNDING: The Complete Guide to Using Kickstarter, Indiegogo, and Other Crowdfunding Sources
eBooks ()
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