Much like a nonprofit organization, successful crowdfunding campaigns have had one major thing in common, “improving the world as we know it”.
Kickstarter and Indiegogo have funded and marketed innovative ideas such as Oculus Rift, Pebble Watches, and Ouya over the past few years. The idea that you have to “have money to make money” is becoming an idea of the past; now, all you need is a good idea, a clear voice about your product or service and the will to make it happen.
Why does using crowdfunding work well for nonprofit organizations?
Nonprofit organizations exist because either one person or a group of people have an idea of how to change the world, a plan of how to do it and had either the time / money / energy resources to get started. Where we see most nonprofits struggling is in their financial capabilities due to lack of grants, contributors and stakeholders. Banks limit their loans for nonprofit to a few grand, acquiring a grants is nearly impossible, and acquiring stakeholders who believe in your organization can be a challenge. Since acquiring capital from traditional resources is challenging, modern nonprofit organizations are turning to crowdfunding and crowd capitalism as a more efficient way to raise capital, with the added bonus of raising awareness toward their cause. Crowdfunding works will for nonprofits because the publicity that comes along with a successful campaign is enough to fuel the organization and spread awareness of their cause.
What are the different platforms for raising money online?
Razoo – Raise Money for Anything
Razoo is a easy to use crowdfunding website built with the idea of raising money for a cause. Users can view organizations and projects by category such as: education; animals; music; arts; and more, then read about the project and make a donation in a matter of seconds. Creating a cause in Razoo is easy and only requires a few clicks to get started. Razoo’s rates are a 4.9% Platform Fee, and a 2.0% + $0.30 Credit Card Fee. https://www.razoo.com/
Causes – Get Involved
Causes.com gives users a way to follow trustworthy nonprofit organizations and their projects. The website features a social media “feed” style homepage where you can see the projects the organizations you follow are working on. Users have the ability to subscribe to recurring donations and keep billing available for quick donations. https://www.causes.com/
Start Some Good – Dream Big, Raise Funds, Do Good.
Startsomegood.com is a social euntreprenuer site set up in a way that will be familiar to users of Kickstarter.com. Many users of Start Some Good like their service because of an exceptional customer support hotline. The site is relatively new, but is growing fast and has been featured by many online publications such as: Forbes, The Gaurdian and ABC. http://startsomegood.com/
For a list of more Crowdfunding for Nonprofit websites, visit: http://www.crowdcrux.com/top-10-crowdfunding-sites-for-nonprofits/
Steps to Starting a Crowdfunding for Nonprofits Campaign:
Step 1: Know what you are getting into.
Understand that managing a crowdfunding campaign is not like posting a status to Facebook. It is a lot of work. Plan on putting in the preparation and developing a campaign long before you post it online.
Step 2: Have a plan.
Consult with a financial adviser (something we do here at Covington+ Associates.. ah hem..) to help you set realistic goals for your projects accounting for the different variable that will correlate with the project. Take a look at your organizations marketing plan to determine who it is that you want to reach and what messages have worked well for those audiences in the past.
Step 3: Determine the correct platform for your campaign.
Much like how Facebook, Twitter, and LinkedIn are all used in different ways and for different purposes, crowdfunding sites differ on their audience, frequency of users, engagement, and also rate of pay. Some nonprofit crowdfunding sites may be more of a niche market for your organization, however, if your message has the mass appeal and has a clean and concise execution plan, it may be more suitable to place on a major site like Kickstarter. However, “crowdfundingacademy.com” does not recommend using more than one platform at a time. (View Post)
Step 4: Dont be afraid to ask for help once the campaign has started.
Our motto is “Focus on your mission. We’ll help you reach your vision” means that you should spend time doing what you do best, and let us or another professional consulting agency handle all of the details. Many times campaign holders are way over their heads before they even click “submit”, but it is never too late to ask for help.
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