CrowdfundingJune 12th, 2013

Agenda

•Thoughts on crowdfunding

•Benefits and challenges for nonprofits

•Crowdfunding platforms

•Crowdfunding promotion tactics and best practices

What comes to mind when you hear

"crowdfunding"...?

Crowdfunding: Benefits and Challenges

BenefitsFor Nonprofits•Supporters are engaged in fundraising•Exposure and promotion•Network growth•Corporate attention•Feedback

For Donors•Due Diligence•Ease of Use•Relationships

Challenges

• Requires time and effort• Limited scope• Fees• Maintaining your org's reputation• Donor exhaustion

Crowdfunding: Platforms

The Basics•All or nothing model

•Self-Curated

•Artistic and creative projects

•Cost: 5% to Kickstarter and 5% to Amazon for credit card fees

•Average amount raised per campaign: $5,000

Stand-Out Features•Rewards

•Tools and resources for making a good promotional video

•Allowed multiple projects at once

•Ability to retry projects that fail

The Basics•Keep What You Raise Model

•Self-Curated

•Social good projects and events

•Nonprofits must be on Guidestar

•Integrated with Facebook and Twitter

•Cost: 5% to Crowdrise

o Three Charity Account Types

o Donors can choose to pay processing fees

•No deadlines

Stand-Out Features•Impact Points reward system

•Individual and Team fundraisers

The Basics•Options: Flexible or Fixed Funding

•Self-Curated

•One-click social media integration

•Cost: 4%-9% to Indiegogo + 3% credit card fee

o NPOs receive 25% off

•Average amount raised per campaign: $15,000

Stand-Out Features•Customizable campaign template

•Gogofactor: Algorithm that tracks level of campaign's activity, leading to a platform boost.

The Basics•Tipping Point Model

•Curated by a team

•Social good projects from both for-profits and nonprofits

•Goal met = 5% to Start Some Good + 3% credit card processing fee

•Goal unmet: Start Some Good takes nothing

Stand-Out Features•"Mobilizers" who act as consultants for site users

•Ability to have multiple projects

•No need to be a registered 501(c)3

•Tipping Model

The Basics•Keep What You Raise Model

•Curated by Razoo team

•501(c)3s only

o Individuals, teams, and corporations can fundraise on behalf of a 501(c)3

•Must be on the Razoo Foundation List

•Cost: 3% to Razoo

Stand-Out Features•Thank You Video Tool

•Widgets to embed on website

•Tool for tracking reports and donations through Razoo dashboard or iPhone app

The Basics•Tipping Point Model w/ flexible finish

•Curated by Ioby Project Support Managers

•Local and environmental project focus

•Screening: must submit an application

•Recipes for Change toolkit

•Cost: 3% for credit card processing

•Average amount raised per campaign: $980Stand-Out Features•Coaching on promotion

•Webinars provide support

•Opportunity to request volunteers

The Basics•Tipping Point Model

•Curated by Grassroots Team

•Local project focus

o Nonprofits, Social Ventures, and Individuals

•Must submit an application

•Cost: ZERO

Stand-Out Features•Support from Grassroots team including promotions and public relations guide

•Access to Groupon Merchant Center

•100% of donations received

Comparison of Key Traits

Kickstarter Crowdrise Indiegogo Start Some Good

Razoo Ioby Groupon Grassroots

Keep What You Raise * * *

Tipping Point * * * *All or

Nothing *Curated by

Team * * * *Self Curated

* * *

Crowdfunding: Promotional Tactics & Best Practices

New Donor Engagement Model

"In practice, it turns out, a person’s engagement with an organization is generally more continuous—and messy. It doesn’t stop and start with discrete levels, and with the broad range of activities available to potential supporters today, it’s actually preferable for people to be engaged on multiple levels."

Stanford Social Innovation- The Permanent Disruption of Social Media

Tips for Getting Started• Framing your projecto Set a specific and realistic goalo Set a deadlineo Attention grabbing project title with a

compelling storyo Ask yourself these questions

What are we going to achieve, if successful? How, specifically, will these funds be used? What date and time does the project begin

and end? How will the funder know their money has

been put to good use?o Follow up with your funders

Tips for Getting Started• Create an emotional and compelling pageo Tell an amazing storyo Use pictures and videoso Explain how much you need and why

Tips for Getting Started• Start with your own network

o COMMUNITY before AUDIENCE

Tips for Getting Started

• Convert volunteers into fundraiserso Just ask!o Make it easy

Provide training Create sample emails, tweets, posts

o Make it fun Offer rewards Create teams

o Celebrate accomplishments

Tips for Getting Started

• Publicize Your Campaigno Front Page of Your Websiteo Get Social- Facebook, Twitter, etc.o Challenge donors, post thank-you'so Reach out to local media o Eventso Cross-promote through influencerso Thunderclap

Questions