Thinking about Crowdfunding a goal?
Crowdfunding is the gathering of funds and money from contributors online to account for a mission or initiative. Crowdfunding can be an influential tool across social media. Non-profit organizations use it for quickly assisting in the well being of people at the time of natural disaster, to fund a particular one off goal or sometimes its real goal is about simply raising awareness. For instance, the organizations used this tool to combat outburst of malaria in Africa, to open the school in Afghanistan and build a sloth sanctuary in Costa Rica.
Wise use of crowdfunding by non-profits helps build significant engagement, and lets people know their work, spreads the message about their mission, and provides promotion to donors to enhance the overall funding and influence and allows them to become ambassadors by sharing the message.
What are the benefits of crowdfunding?
In addition to the obvious benefit of crowdfunding that is fundraising, it also provides many other benefits for instance relationship with audiences who are interested in your project and care about your mission. Crowdfunding may have the following advantages:
• Promotion of the project or mission
• Outreach to potential and new contributors
• Real-time feedback and reviews
• Market authentication
• Exposure to your community
Therefore we can conclude that the strong support from audiences helps promote the project and raise it to the top with quickly of peoples fundraising agenda.
What nonprofits need to know?
Raising money through crowdfunding for any social reason or non-profit campaign can be a big challenge. There is a need to continuously add new tools and new funding options to improve their impact.
Crowdfunding has an ability to outreach a variety of audiences as compared to the usual audience of non-profit. Online crowdfunding takes place through websites like ours here on Fundc3, Kickstarter or Indiegogo that enable sponsors to upload details of the mission and even photos of the projects to attract investors.
The online crowdfunded project can be shared on social media platforms and can be easily linked with given portals. In contrast to online crowdfunding, live crowdfunding has features like live event where non-profit member speak to the gathering and tell about their mission and project.
The audience at the gathering initiates donations just like an auction setting. Non-profits make use of both online and live crowdfunding to take advantage of. Both of these types of crowdfunding enables the donors and investors to inquire or ask the question and offer feedback, discussion and relationship building among investors and organizations.
In addition, both models are inspiring and compelling for the new donors who may have not invested in your project yet. But still, there is some information to examine like the price of crowdfunding technology, the level of information about the donor is collected and shared with the non-profits organization and the registration of fundraising regulations that crowdfunding can promote.
What non-profits need to know regarding online crowdfunding?
There are some important things about online crowdfunding that non-profits need to know. Some of the social media platforms are specifically designed for creative projects and some are specially made for non-profits who are interested in utilizing crowdfunding for fundraising.
In addition, different crowdfunding platforms cost different fees. Some of them charge more if the mission accomplished its goal and some other don’t charge even a single dollar and keep it free but also don’t permit the non-profits to gather donations until attaining the targeted money. Most of the crowdfunding websites charge a baseline fee and the fee vary greatly from one crowdfunding website to others.
How to start a crowdfunding campaign?
It doesn’t matter you are starting a brand new organization or promoting the existing one, you can start a crowdfunding campaign at any time in your work. But it is essential to put considerable time and effort into the campaign and set achievable goals. An effective and successful campaign requires a lot of preparation. Non-profits can do some homework through:
• Trying some free resources like Fundc3 guides and cause handbook.
• Talking to some other non-profits that have a history of successful crowdfunding campaigns
• Making a draft of a campaign and sharing it to the team members at crowdfunding organizations like ours and projects to get feedback prior to moving online.
If you are thinking about launching a fundraising campaign using crowdsourcing then drop us an email and we’ll let share some ideas.