There are some awesome nonprofit crowdfunding platforms out there. I think it’s inspiring to see some of the amazing projects that are being funded via online crowdfunding portals and the innovative ways that nonprofits are using crowdfunding to connect with their supporter base.
The internet is making it easier for givers to connect with meaningful social projects in their community and for local organizations to engage their supporters where they spend the most time! Just this week, facebook announced the new “Donate Now” button for non-profit facebook pages so that 19 of the initial launch partners can collect money online easily from their user base.
The NonProfit Crowdfunding Explained guide is now on Amazon!
Having been in a co-ed community service organization in college for several years (Alpha Phi Omega), I find this progress in fundraising technology really exciting! At the same time, with a flurry of new platforms and websites, it can be a headache for social entrepreneurs to identify how they can use these new engagement channels and which tools are good for their org’s values and mission.
Below, I’ve answered a few commonly frequently asked questions below on this very topic. If you have any comments or more questions, please leave a comment below.
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You should check it out if you want to get more donations and you want to fast-track the entire process.
What is the difference between non-profit crowdfunding and peer to peer fundraising?
How would you use crowdfunding?
As a non-profit organization you would typically use crowdfunding to fund projects or new initiatives. The target audience for the fundraising campaign would be both your usual donor base and individuals around the web. For this type of campaign, you would need to actively market the fundraising campaign to your established supporter base and to potential new online supporters.
Typically, most crowdfunding campaigns consist of: a video pitch, a written pitch, and reward tiers. Reward tiers are perks or items that your donors or backers will have access to, should they pledge a certain amount of money. For example, if you are running a fundraiser for a new school in El Salvador, if they pledge $20, they may get a hand-written thank you from one of the students, along with the student’s photograph.
Benefits:
– You can access a larger audience than your usual donor base.
– You can attract media attention for your new endeavor, which will benefit your organization.
– You can offer “rewards” or “perks” that engage your supporters in the new project.
– You can more easily track fundraising patterns through the platform’s analytics and services like Bitly.
Drawbacks:
– You need to coordinate shipping rewards for individuals that pledge at various fundraising tiers.
– You need to spend time creating a marketing and PR strategy for the campaign and execute on it.
– You need to create a video and come up with reward ideas.
– You may risk public failure if your campaign doesn’t go well.
How would you use peer to peer fundraising?
Usually, as an organization, you would not use peer to peer fundraising to collect donations for a project or new initiative. However, you could use peer to peer fundraising platforms like these to empower your employees or supporter base to raise money for their cause.
For example, if you were organizing a marathon, some of your participants may want to raise money for charity via friends and family that would like to sponsor their effort. You could partner with a peer to peer fundraising platform to offer them an easy way to collect donations.
Benefits:
– Easy to use out of the box solution for empowering participants or supporters in your community to raise money from their friends and family.
– There is no marketing required to individuals on your part as an organization. It is up to the individuals using the peer to peer fundraising platform to market their own campaign to their local network.
– The individuals using the peer to peer fundraising platform do need not to overcome a credibility barrier, because their friends and family know them and their character.
Drawbacks:
– If your supporters are using peer to peer fundraising to raise money for your organization, you don’t directly have an effect on the outcome of funds raised. It’s your job to teach your supporters how to fundraise for you.
– You will only reach new donors through your existing donors, but it is more difficult to leverage the web to attract new donors that previously had no exposure to your organization.
– You will likely need to do a lot of hand-holding with your supporter base.
Is there any overlap?
Yes, I think there is some overlap. For example, the way that Ethan Whittington raised money for a Boston homeless man initially seems like it would be more of a peer to peer fundraising endeavor via gofundme, but it was picked up by the press and donations poured in across the internet. He ended up raising over $150,000.
Usually, for cause-related crowfunding campaigns like the one mentioned in the previous paragraph or “fund my life” kind of projects, the biggest barrier to receiving donations is that you need to convince backers why it is a worthy cause and why they should care. If you are able to, then like I mentioned before, you can access a larger audience than your usual donor base.
Which type of fundraising is best for my organization?
This really depends on a few things. First, if you are planning to make use of a peer to peer fundraising platform, then you need to ask if you have an established base of donors that would be willing to take the time to raise money from their friends and family for one of your initiatives. In my opinion, they would be more willing to if they were a part of the initiative, like a relay or a marathon, where the donations go to charity.
I find that the traditional form of crowdfunding (raising money from your own supporters and strangers) tends to work better when there is a defined project with objectives that will have a measurable impact. It’s not as good for raising X amount every X months for a particular charity. In this case, you may want to think of creating a specific fundraising page on your website, rather than having a project that is part of a larger external platform.
Pozible also launched as a new feature for their platform, which you could use to collect pledges on a recurring basis. You can learn more about subscription crowdfunding in this.
I’ve put together a new GUIDE that’s packed with science-backed nonprofit fundraising methods, resources, strategies, and killer marketing methods.
You should check it out if you want to get more donations and you want to fast-track the entire process.
Where can I learn more?
Leave a comment below with any questions or comments. Let me know about which resources this article is missing!
Be sure to check out:
5 Ways Non-Profits can use crowdfunding
How to Use Crowd-Funding Sites to Raise Money for Your Non-Profit via TheFundraisingAuthority
11 Flavors of Peer-to-Peer Fundraising via NPEngage
