Is Crowdfunding Right For My Nonprofit?
With the explosion of crowdfunding as a viable option for nonprofits, and successful crowdfunding campaigns being written in the media,it seems every nonprofit is wondering if this fundraising phenomenon is right for them. If you’re just hearing about crowdfunding, we’ve outlined the basics for you here.
Crowdfunding can be a new exciting way to engage your donors , spread the word about your organization, and raise crucial funding fast, but first you'll need to ask yourself a few questions to make sure it's the right fit.
Does crowdfunding fit into my organization's philosophy toward fundraising?
The most important question to ask when looking into any new opportunity for your organization, it's important to make sure it fits with your organization.. The nature of crowdfunding is to create a campaign with a focused and measurable goal. Here are a few ways to make crowdfunding work for you, regardless of your standard operating procedure for fundraising.
- Build crowdfunding into your capital campaign
- Crowdfund for a specific project or program.
- Peer-to-peer fundraising for an event
If you traditionally put on Galas and send out a snail mail campaign, you're likely missing out on a TON of new donors who would like to be invested in your mission. Create a crowdfunding campaign to show your fundraising momentum and give your champion donors an easy way to share your mission with their friends and family.
These specific projects lend themselves perfectly to a crowdfunding campaign because they show your donors exactly how their support makes an impact. Most nonprofits' biggest concern is how a crowdfunding campaign could negatively affect donor fatigue. Specific projects take donor fatigue out of the equation. Different donors will care about different projects, and you'll see the donors who care about this project step up in a big way.
Have a fun-run in your future? or how about a big volunteer day? Use peer-to-peer fundraising to turn the participants into fundraisers for you. Blow your goal out of the water be turning it into a contest with a fun prize for whoever raises the most. That prize could be something as simple as the opportunity to throw a pie in the ED's face.
Have you evaluated the costs against the benefits?
The costs of crowdfunding with Gladitood are very simple. We apply a small 5% fee to all donations, and there’s an additional 2.9% credit card fee. With that said, there is absolutely no upfront setup cost, and over 50% of donors choose to cover those fees for your nonprofit. Now that you understand the basic costs, you need to consider the resources it will take your organization to run a successful crowdfunding campaign.
Crowdfunding is definitely a cost-efficient way to fundraise - 92% of the money raised goes directly to the project you’re fundraising for. In addition to being cost-efficient, crowdfunding is the only fundraiser that knows no bounds. With the right preparation and a compelling story, your fundraiser can reach donors in all corners of the world, which brings us to the next question you should ask yourself.
Can you promote the crowdfunding campaign to your network?
The biggest myth in crowdfunding is "If you build it, they will come." You'll need to make sure you have the resources to push your campaign out to your network and garner support for your campaign. You should also make sure you have the resources to properly follow up with donors after your crowdfunding campaign ends and include them in your long term fundraising strategy.
Think crowdfunding is right for you?
Crowdfunding is an incredible tool to engage your current donors and capture new donors online. The best campaigns will spread your mission and encourage supporters to invest in the success of your organization.
Ready to take the plunge?