Maybe you’ve heard of the World’s Best Travel Jacket, made by BauBax. Or you’ve played a heated round of Exploding Kittens with the family during the holidays. Or maybe you’ve been rewatching that Veronica Mars movie. While each of these highly divergent things is interesting in its own way, what ties them together is that they were all started by crowdfunding. Interested supporters on Kickstarter donated $9,192,055 to bring the amazing jacket to market, $8,782,571 to launch the irreverent board game into the world, and $5,702,153 to bring back a beloved TV character.
So what exactly is crowdfunding? It’s the practice of financing a project by raising small sums of money from a large number of donors, typically through online sites. At Wanna Pixel, we’re here to help you better understand your nonprofit’s technology needs so you can take your nonprofit to the next level. And fundraising, donations, and donor management are crucial parts of that effort.
Aside from Kickstarter, GoFundMe is another of the best-known crowdfunding sites, with billions of dollars raised since its inception in 2008. Campaigns here are often launched to support personal projects associated with covering medical bills and recovering from national disasters or tragedies. One of its largest crowdfunding campaigns came in the wake of 2017’s Hurricane Harvey, which pummeled the Houston area. Crowdfunding efforts raised $41.6 million to help Texans in desperate need.
Crowdfunding sites are not limited to business or personal projects. They host campaigns for the nonprofit sector as well. Here are a few examples of how crowdfunding sites can help your nonprofit:
Attracting New Donors
Crowdfunding can impact the way your nonprofit does its fundraising. Crowdfunding campaigns typically suggest small donations, which can appeal to a broader number of people. This approach lowers the barrier to participation, allowing more new donors to come onboard and learn about your nonprofit’s work.
And once they’ve committed funds to your nonprofit, they might become loyal donors who continue to support your organization’s work over the long term.
Crowdfunding can reach an audience that you might not reach on your own. And because people who contribute to your nonprofit often share information about it, it’s an easy and efficient way to get more “eyes” on your organization’s work. Crowdfunding can serve as an easy place to start the relationship between a potential donor and your nonprofit.
Increase Number of Donations
Since nonprofit crowdfunding often involves targeted campaigns, the sense of urgency around your efforts can generate focused attention and therefore an increase in donations. When you present the problem your nonprofit is trying to address and demonstrate the need in clear and specific terms, donors can respond to that urgent call with increased enthusiasm.
Because crowdfunding sites provide tools to make sharing easy and fast, it can increase the number of donations coming in as word of your nonprofit spreads.
Keep in mind storytelling best practices so that you create clear and compelling reasons why a visitor to your site should donate. With the right motivation, you can turn a curious supporter into a lifelong donor to your nonprofit.
Raise Your Profile
Crowdfunding websites make it easy for you to connect with your donors. Make sure you include ways these donors can share your organization’s name and website, so they’re able to tell the world about the good work your nonprofit is doing. Take stock of popular social media platforms, and include buttons and links that will allow your donors to share ways friends and family members can help support your nonprofit too.
While crowdfunding is a fast and efficient way to raise donations, nonprofits should know that most all crowdfunding platforms charge fees. And these fees vary depending on what service you use. Make sure to read the fine print before you sign up.
Fundraising comes with a long list of regulations you should be aware of. Before you solicit donations, you should become familiar with state laws. Most states require charitable nonprofits to register with the state before doing any fundraising there. Read more about crowdfunding campaigns for nonprofits before you get started.
Also, if you’re interested in the new Text-To-Give trend, check out this article by our friends at Wild Apricot – The Ultimate Guide To Text-To-Give Fundraising
Have more questions? Our Wanna Pixel team is ready to help. Contact us today and let us help you get started on taking your nonprofit to the next level.
- Top 5 Crowdfunding Platforms Compared - November 16, 2018
- What Is Crowdfunding and How Can It Help Your Nonprofit? - September 20, 2018
- Is Your Nonprofit’s Outdated Website Costing You Donors? - September 6, 2018