5 Basics of Crowdfunding
Written by Ashish Singh, Global Giving
Getting crowdfunding right isn’t easy, but we’ve broken it down to its basics to make your crowdfunding experience easier.
Crowdfunding is the practice of raising small amounts of money from a large number of people. Crowdfunding is not a new idea, but has become extremely popular over the past two decades with the creation of online crowdfunding. With online crowdfunding nonprofits can:
- Build their reach and raise awareness for their cause
- Create an online supporter base,
- Access more flexible funding.
Before you start, it is important you choose the right platform for your organisation to join. Some platforms are donation based where people give money and do not expect anything in return. Other platforms are rewards based, where donors give money to your cause, but expect something in return, e.g. merchandise. You should also consider the reach and reputation of the platform — and what returns you get from putting your campaign on there. Most importantly, you should consider what fees your organisation has to pay on the platform and what features it is providing you with in return.
Once you have chosen what platform to use, it’s now time to post a project. Your project is a specific programme/activity that you have a plan of action for, and need a set amount of money to carry out. When posting your project on the platform there are some basic ways you can make yours stand out more:
A common misconception is that by simply putting your project on a crowdfunding platform you will start receiving loads of donations. However, you can’t just join a crow- you have to create some noise first within your close network that you can rely on to support your cause. They can be:
You should consider the different types of value that they can bring to your organisation, such as:
By building up a stronger base network, it becomes easier to reach the outside world. So no matter how small you are, you can easily expand your organisation’s reach.
To achieve your crowdfunding goal, you need to communicate your project in a way that engages donors. To do this, you should talk about your passion and be authentic to your cause, so donors can feel what you feel about the project. It is vital that donors clearly understand why you are fundraising. You can do this in multiple ways:
Individuals are more likely to be drawn in to donate by other by individuals, so a good way to authentically engage donors is to include a personal connection in the story.
Remember to engage your current crowd to access a wider network on the right platform that suits your nonprofits needs. If you follow these tips, you can start your crowdfunding campaign with confidence.
GlobalGiving invites charities and community groups to join GlobalGiving’s platform via the September Accelerator programme, a digital fundraising training programme that provides digital fundraising training and entry in to a crowdfunding campaign to raise £4,000 for a chosen project. Graduates of the programme become permanent partners on the GlobalGiving platform and will gain access to additional corporate funding and training opportunities.
Originally published at https://digitalagenda.io.
