Fractured Atlas & IndieGoGo - Spacetaker

Dianne Debicella, Fractured Atlas Danae Ringelmann, IndieGoGo March 10, 2011

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Agenda 1.  Overview of Fiscal Sponsorship & Crowdfunding

2.  Taking advantage of fiscal sponsorship program and the IndieGoGo platform

3.  Fundraising for artists and small arts organizations

4.  Tips on Successful Fundraising campaigns

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But first… Nice to meet you! •  Fractured Atlas & IndieGoGo •  Dianne Debicella and Danae Ringelmann

•  Fractured Atlas staff IndieGoGo Staff

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Who Is Fractured Atlas? Fractured Atlas is a non-profit organization that serves a national community of artists and arts organizations. Our programs and services facilitate the creation of art by offering vital support to the artists who produce it.

We help artists and arts organizations function more effectively as businesses by providing access to funding, healthcare, education, and more, all in a context that honors their individuality and independent spirit.

What is Fiscal Sponsorship? •  Fiscal sponsorship is a legal agreement between an artist or arts

organization and a 501(c)(3) charity (like Fractured Atlas)

•  It allows the sponsee to raise tax-deductible contributions through individuals and grants

•  Funds are given to the sponsor and are restricted to the specific purpose and use of the sponsee

•  Without getting tax exempt status, you can use fiscal sponsorship to solicit contributions from individuals and institutional funding agencies.

Benefits of the Fractured Atlas Fiscal Sponsorship Program •  Fundraising: having the ability to give your donors a tax-deductible

receipt for their contribution of cash (checks or credit card) or tangible items

•  Grants: having access to foundations that only allow tax-exempt charities to apply

•  Also, with FA fiscal sponsorship, you can gain access to:

•  IndieGoGo partnership – more on this in a few •  Nonprofit rates with vendors and companies who offer them •  Review of all grants and solicitation materials

Arts Fiscal Sponsors: Best Practices • All fiscal sponsors charge a fee, usually between 5 and 10%. FA's fee is 6%

• The sponsor provides oversight for the funds that are raised and how they are spent (May request receipts, invoices, contracts)

• Most sponsors, including FA, will never own any of your work, or any of the rights to it

• Many sponsors, including FA, will review grant proposals to make sure that they are appropriate and that the foundations are good matches

• All fiscal sponsors should have some sort of written agreement for the fiscal sponsorship arrangement

Who Can Use the FA Fiscal Sponsorship Program? •  Individuals and organizations with a US social security number or

Federal Tax ID (also called an EIN)

•  The individual or organization must have an artistic focus or strong arts component

•  Individuals must have a project in mind or ongoing work and creative development

•  Organizations that are waiting on their own 501c3 status, or who are not planning on filing for their own status

•  The potential sponsee must NOT have investors or commercial intent; they should be nonprofit and have a charitable purpose (But please pay yourself if you can!)

Applying for Fiscal Sponsorship

1.  Become a member of Fractured Atlas 2.  Carefully review the agreement, eligibility, benefits, and policies

and procedures 3.  Submit the application 4.  Deadline is the last day of the month, approvals are sent no

later than the 15th of the following month 5.  We do not judge the quality of your work and simply need to

see that it is artistic and nonprofit in nature

Post-Original Productions – Hulk Raised $239,396 through fiscal sponsorship

$69,396 of that through IndieGoGo

NEA Breakdown of Revenue

•  The 2007 NEA publication “How the U.S. Funds the Arts” provides a clear, statistical analysis of how arts organizations fund their operations and programs.

•  www.nea.gov

•  They surveyed both large and small arts organizations in a variety of disciplines and found that money is raised from the following sources in the following percentages:

How do the Arts Fund Operations? •  Earned Revenue 44% (e.g., ticket sales, selling your work)

•  Individuals 31% (e.g., your family, friends, and donating patrons)

•  Foundations 9% (e.g., The Puffin Foundation and The Rockefeller Foundation)

•  Governmental Sources 13% (e.g., your state arts council)

•  Corporations 3% (e.g., The Altria Group, Citibank, and Target)

Individuals

Donor recognition (thank you letters, invitation only events, newsletters, periodic company updates

Economics

Altruism/Personal Connection

Earn it, ask for it The creative economy is a social economy

Individual Appeal Letters

•  Write in simple, straightforward English •  Format your letter so it’s easy to read •  Ask for money, not support •  Give them a reason to send money now •  Use “I” and “you,” but mostly “you” •  Base the appeal on benefits and not needs •  Use online resources to search for examples of amazing

appeal letters.

Crowdfunding – what is it? •  Is the collective cooperation, attention and trust by people who

network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations. (from wikipedia)

•  Use an online community to solicit pledges

•  It uses word of mouth and wisdom of the crowd to generate interest and donations

•  Engages donors as part of a community of donors that provides transparency on who is giving and how much is being raised

IndieGoGo: quick overview •  Credit Card Contributions – People contribute to your project on

IndieGoGo via credit/debit cards. All funds raised for your project via IndieGoGo go directly to Fractured Atlas and are treated like online donations.

•  No Double Fees - Because your project is fiscally sponsored by Fractured Atlas, IndieGoGo is available at no additional charge.

•  Opt-in for IndieGoGo - To launch an IndieGoGo campaign that is integrated with your Fractured Atlas fiscal sponsorship, activate IndieGoGo in the Manage Fundraising Campaigns section of the Managed Sponsor Fund Page.

IndieGoGo is a funding platform for ideas.

Anyone with a project (creative, cause, or entrepreneurial)

can raise money, offer perks, and keep 100% ownership.

What is IndieGoGo?

What is it? People pooling their money

together to support an idea or effort initiated by a person or

organization

Complementary funding channel that helps you jumpstart funding,

marketing & distribution: all in one.

Crowdfunding

Funding

Distribution Marketing

Crowdfunding: Let’s Define

Involves? Personal pitch

Online community Proactive outreach

What it is

Sharing & Inviting

Telling

Goal & Deadline Driven

Audience-Building

Contributions

DIWO (Do It With Others)

What it is NOT

Advertising

Selling

Open-ended & Infinite

Audience-Buying

Just donations

DIY (Do It Yourself)

Sound It Out: shoot BY: Jeanie Finlay

Thank you!! Please visit our new page to see more and support our independent documentary

Crowdfunding: Let’s Define

1. Money That’s clear. You get funds to help you make your film.

2. Market Validation A Successful crowdfunding campaign shows that people want it to happen because they are voting with their wallet.

3. Marketing Authentic “Word of Mouth” marketing is most authentic. Takes multiple impressions before people act on a call to action.

4. Monetization Crowdfunding jumpstarts distribution (pre-sells) and allows you to monetize “outside your copyright” (via perks)

5. Mojo Let’s fans and followers participate in the exclusive world of filmmaking – a world they’ve always been locked out of.

Money is just ONE Benefit!

Hava Nagila, What Is It?

BY: Roberta Grossman IS CONNIE FRANCIS JEWISH?

Click on “GALLERY” below to find out!

5 Benefits of Crowdfunding

$10,635 RAISED

Satarii Star TECHNOLOGY

54 FUNDERS

Pre-sell Your Work Start selling your product before you even build it.

$21,837 RAISED

New Left Media JOURNALISM

363 FUNDERS

Gauge Interest & Demand When people vote with their wallets, you’re good to go.

Raise $ from Friends, Followers, Customers Let those who love your goods can now help you grow.

$13,412 RAISED

Emmy’s Organics FOOD

63 FUNDERS

$5,810 RAISED

Makepeace Brothers MUSIC

114 FUNDERS

Offer Unique Perks “Dancing lessons Brother Finian? Sign me up!”

$10,185 RAISED

Rebuilding Haiti CAUSE

55 FUNDERS

Engage strangers! Those who share your passion, can now take action.

$7,281 RAISED

Walking Audio Tour COMMUNITY

69 FUNDERS

Do It With Others and Have Fun! Project “for the people” brought to you “by the people.”

Faces of Success

1.  Post a Project

2.  Engage Audience Social media integration Campaign tools

3.  Get Funded

4.  Track Analytics

5.  Collect Money

6.  Fulfill Perks

How IndieGoGo Works

KEYS TO SUCCESS: 5 P’s

Pitch Clear Goals. Transparent. Personal. Right-size financial target & deadline.

Perks Unique. Creative. Not “copyable.” Pre-sell your work. Offer financial discounts & scarcity incentives (i.e. limit supply).

Promotion Start with core base (friends, fans & followers). Use email, facebook, twitter. Engage through UPDATES.

Partners Connect with influencers (bloggers, organizations, reporters, & facebook group/online forum leaders) whose readership/membership mirror your target audience.

Personal!

Start Immediately There is no fee or application process to post a project.

Keep Your Funds You keep all the money raise (after fees), even if you don't meet your funding goal. 4% fee when you reach goal (9% if don’t).

PayPal Integration & Flexibility Contributors can pay via their PayPal accounts or credit cards (no PayPal account required!) All you need is a bank account to get started.

Campaign Analytics and Info Analytics dashboard shows who is referring people and dollars contributed. Fulfillment dashboard keeps track of contact information and perks owed.

INDIEGOGO BENEFITS

International No restrictions on locations for campaigns. Currently IndieGoGo is in over 130 countries.

Fiscal Sponsorship Integrate fiscal sponsorship with your crowd- funding campaign via our Fractured Atlas & SF Film Society partnerships. No double fees.

Customer Service We have a 24-hour response policy for any questions. Every campaign gets a FREE 1-on-1 Coaching Call pre-campaign launch.

Strong Partnerships MTV New Media partnered with IndieGoGo to source new projects. Every campaign on IndieGoGo is eligible for MTV selection.

Fr. Atlas & IndieGoGo Partnership

IndieGoGo

Fundraising X X X Fiscal Sponsorship X X

Campaign Tools X X Social Media Integration X X

Analytics X X

Fees 6% 9% 6%

Single platform solution integrating fiscal sponsorship with audience-building, engagement and crowdfunding tools

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Save 9%

Partnership Benefits   Single platform solution to streamline fundraising

  Tax deductions for contributions on IndieGoGo

  Integrated social media and community management/

tracking tools

  Automatic IndieGoGo pitch page creation upon opt-in

  Cost savings: No double service fees & no processing fees

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How It Works Set-Up

1.  Fractured Atlas Projects opt-in to IndieGoGo tool from FracturedAtlas.com 2.  IndieGoGo campaigns are automatically started 3.  Project owners receive instructions on how to complete and promote their

IndieGoGo campaign 4.  All Fractured Atlas campaigns on IndieGoGo receive a Fractured Atlas

badge

Fundraising & Disbursement 1.  All funds contributed to on IndieGoGo are deposited to Fractured Atlas 2.  For each contribution, IndieGoGo issues a confirmation receipt to the

project owner and contributor, and Fractured Atlas issues a tax receipt to the contributor

3.  Fractured Atlas disburses the funds to the project per project’s request.

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How to Opt-In

Login into Fractured Atlas & go to Managed Sponsor Fund page

Go to Your “Managed Fundraising Campaigns” section

Activate IndieGoGo in the External Tools section New to IndieGoGo? Click: “Create a new IndieGoGo Campaign” Already on IndieGoGo? Click” Connect my IndieGoGo Account”

Step 1

Step 2

Step 3

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Projects With Fractured Atlas Fiscal Sponsorship

Become a member of Fractured Atlas

Apply for Fiscal Sponsorship

Once accepted, follow the steps above

Step 1

Step 2

Step 3

Projects Without Fractured Atlas Fiscal Sponsorship

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How to Get Started on IndieGoGo

Receive set-up emails: 1. Welcome message with login details 2. Fractured Atlas opt-in confirmation

Head to your project’s campaign page: 1. In your Welcome message, clink the link to activate your IndieGoGo account and login. 2. Click on your name in the login area to be taken to your individual profile 3. Click EDIT MY PROFILE to fill in your personal info and your picture 4. Click DONE EDITING to return to your individual profile page 5. Click on your project listed in the “PROJECTS I’M ON” area

Step 4

Step 5

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Projects New to IndieGoGo

Step 4

Projects Already on IndieGoGo Receive Fractured Atlas opt-in confirmation email

Return to your Project Page Step 5

How To Create Campaign

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Click EDIT in the upper right

Update INFO & TEAM Set Appearance to “Hidden” in Info section to remain in DRAFT mode Set Appearance to “Visible” in Info section to go LIVE to public

Complete FUNDING section Set Funding Goal, Deadline & Use of Funds Determine Perks

Complete GALLERY and EVENTS sections (optional)

Step 6

Step 7a

Projects New to IndieGoGo

Step 6

Projects Already on IndieGoGo Step 7

Step 7b

Click EDIT in the upper right

Fill in Non-Deductible Portion for each of your Perks

Step 7c

How To Launch a Campaign

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Click on VIEW

Launch an email campaign Use your Gmail, Yahoo, Hotmail Invite Tool Include your GoGoWidget in any email campaign your do

Use Social Media Facebook Twitter MySpace YouTube

Reach out to Influencers with followers Bloggers Organizations Press

Step 9

Step 10

All Projects

Step 11

Step 8

How To Track your Campaign

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Click on DASHBOARD

Review your ANALYTICS Track which fans are driving the most traffic and dollars to your campaign

Step 12

All Projects

Step 14

Step 13

Click on FULFILLMENT tab Export your contributor details (perks, amounts, emails, addresses) to fulfill PERKS

How To Get Paid

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Return to Fractured Atlas and your Managed Sponsor Fund Page

Request a Fund Release

Step 15

All Projects

Step 16

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TIPS & RESOURCES

DIWO Live No restrictions on locations for campaigns. Currently IndieGoGo is in over 130 countries.

1-on-1 Coaching Calls Every campaign can sign-up to have a 1-on-1 Coaching Call with one of our campaign experts.

DIWO Download Blog to help people run a successful campaign. http://www.indiegogo.com/blog You’ll find:

•  Tips •  Insights •  Case studies •  6Q interview series w/ successes

Tips http://www.indiegogo.com/blog/tips

"10 Places to Promote Your IndieGoGo Project ONLINE“ http://www.indiegogo.com/blog/2010/09/10-places-to-promote-your- indiegogo-project-online.html

"10 Places to Promote Your IndieGoGo Project OFFLINE“ http://www.indiegogo.com/blog/2010/09/10-ways-to-promote-your- indiegogo-project-off-line.html

"Reaching the Media: Smart Tactics for Getting Your Project into the News“ http://www.indiegogo.com/blog/2010/10/reaching-the-media-smart- tactics-for-getting-your-project-into-the-news.html

Insights http://www.indiegogo.com/blog/insights

“IndieGoGo Insight: More Team Members Means More Money“ http://www.indiegogo.com/blog/2010/10/diwo-tactics-using-your-whole- team.html

6Q http://www.indiegogo.com/blog/6Q

“6Q with Jeanie Finley of Sound it Out“ http://www.indiegogo.com/blog/2010/11/6q-with-jeanie-finlay-of-sound-it- out.html

Helpful Resources

Fractured Atlas Support support@fracturedatlas.org

GoGoSupport support@indiegogo.com

Keys to Crowdfunding Success http://www.indiegogo.com/blog/2010/01/keys-to-crowdfunding-success-on-indiegogo.html

5 Benefits of Crowdfunding http://www.indiegogo.com/blog/2010/01/benefits-of-crowdfunding.html

Things I Relearned While Crowdfunding (Insightful customer blog!) http://ventriloqui.posterous.com/things-reaffirmed-to-me-while-crowdfunding

Audience-Building 101 http://www.indiegogo.com/blog/2009/06/audiencebuilding-101-stepbystep-guide-from-indiegogo.html

Additional Resources

•  Chronicle of Philanthropy: www.philanthropy.com

•  Philanthropy News Digest: www.fdncenter.org/pnd •  Wikipedia on 501(c)(3): www.en.wikipedia.org/wiki/

501(c)(3) •  IRS Website on Exempt Organizations: www.irs.gov/

eo

Our Staff is Here to Help •  Call us at 212-277-8020 •  Email us at support@fracturedatlas.org •  Tara, Theresa, and Brittany answer the phones, process

donations and mail fund release checks •  Kara processes donations, deals with text approvals and

answers many questions •  Juliana and I review grants, provide fundraising

consultations, and develop the program

Check out the FA webinars offered monthly online: 1.  Introduction to Fiscal Sponsorship 2.  Orientation for Newly Accepted Fiscally Sponsored Projects 3.  Overview of Individual Donors and Online Campaigns 4.  Proposals and Grants for Fiscally Sponsored Projects

For more information on these webinars visit www.fracturedatlas.org/site/fiscal and check out the schedule under “Upcoming Info Sessions”

Please email us at support@fracturedatlas.org for all questions.

Keys To Success 4 P’s How to Set Your Funding Goal How to Set your Deadline Importance of Updates

More On How IndieGoGo Works Steps to Launch Optimized Funding User Experience How Sharing Works How to Track Your Analytics How to Check Your Funds’ Status How to Fulfill Perks

MTV New Media Partnership

Appendix

How To Set Your Funding Goal 1. Breakdown your total funding need into specific “Use of Funds” chunks (i.e. budget items)

2. Assess the size of your community •  Email list •  Facebook friends •  Twitter friends •  Audience reach through influencers •  Audience reach through press

Helpful Tips

IndieGoGo Blog www.indiegogo.com/blog/tips

“Value of Transparency & Specificity in Raising Money”

3.  Set a Goal to cover one or a few budget items at a time, knowing your community will grow over time and multiple campaigns.

•  IMPORTANT: You DO NOT need to raise 100% of budget in one campaign. You can launch multiple campaigns if needed.

•  KEEP MONEY: On IndieGoGo you keep the money you raise whether you reach goal or not.

How To Set Your Funding Goal

Pitch Clear Goals. Transparent. Personal. Right-size financial target & deadline.

Perks Unique. Creative. Not “copyable.” Pre-sell your work. Offer financial discounts & scarcity incentives (i.e. limit supply).

Promotion Start with core base (friends, fans & followers). Use email, facebook, twitter. Engage through UPDATES.

Partners Connect with influencers (bloggers, organizations, reporters, & facebook group/online forum leaders) whose readership/membership mirror your target audience.

Personal!

Keys to Success: 5 P’s

Campaign one Specific Use of Funds: To cover costume and FX costs

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Campaign two Specific Use of Funds: To cover editing, post- Production & distribution

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Multiple Campaigns

Pick a Deadline that: 1. Gives you time to reach your target audiences

•  Just friends, family & followers? 30 days is probably fine

•  Plans for influencers & press? Allow 2- 3 months for activity

3. Ends right after a major milestone so there’s urgency to fund NOW

•  Fundraising party •  Screening / premiere •  Principle photography launch

Insight: On IndieGoGo campaigns that set a funding deadline between 60 and 70 days raise, on average, 141% more money than shorter or longer campaigns

IndieGoGo: Campaigns are 1 to 120 days

Helpful Tips

IndieGoGo Blog www.indiegogo.com/blog/insights

“IndieGoGo Insight: More Time Doesn’t Always Mean More Money”

How To Set Your Deadline

Pick a Milestone: Antoinette chose the deadline to be the day she had to leave for Africa where she was going to complete her photo project

Sweet Spot: Campaigns between 60 and 70 days raise, on average, 141% more money than shorter or longer campaigns

Deadlines: Aim for 60-70 days

Frequent & Creative Updates 1. Advantages of Updates

•  Build trust •  Builds community •  Builds GoGoFactor

2. When To Use Updates •  To celebrate success •  To keep people posted on progress •  To inform on news/events relevant to topic •  To share press & other news •  To post images & videos

3. How Updates Work •  Automatic emails •  Gallery Archive

Insight Campaigns that send 11 or more updates raise 137% more money than campaigns that don’t.

Helpful Tips

IndieGoGo Blog www.indiegogo.com/blog

“How To Use Updates on IndieGoGo”

“IndieGoGo Insight: Campaigns that send 11 or more updates raise 137% more

money”

How to Communicate with Funders

Celebrate Success Recognize key milestones

Thank funders publicly – big and small

Automatic Email All updates are aggregated from the day and packaged into one email to all funders

Updates

Share Progress Preview perks

Ask questions & engage funders

Gallery Archive: All video & images Shared in updates get archived in the Gallery.

Updates

Inform & Give Free Info You’re an expert! People appreciate it when they’re kept informed of relevant info & news. Getting free stuff / info makes people more likely to want to help when asked.

Share Your Press Press is exciting & validates to funders that they’re a part of something super cool. It gives them another reason to share with more friends too!

Updates

1

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Create a Campaign. Successful campaigns start with a great idea. Post a campaign and make your pitch. Share your vision, and answer the question: “why should I care?”

Make Some Noise! Tell people about it. Share. Update. Inspire.

Set Your Goal & Deadline. Think smartly about how much money you need to raise, how it will be used and how long it will take to reach your goal. (Note, You don’t need to raise 100% of your funding need in one campaign. You can launch multiple subsequent campaigns.)

Updates

Sharing Made Easy Funders are mobilized into

promoters instantly.

Enhance Contributions Most people prefer to be above average. So IndieGoGo helps

them, and you benefit from higher contributions.

Data is Power All sharing activity is tracked &

given to you so you know who is driving referrals & dollars to your

campaign.

Optimized Funding User Exper.

Share From the Campaign Page People don’t have to wait to fund to be prompted to share.

FAN SHARE TOOLS

CAMPAIGN TEAM SHARE

TOOLS

Share via Widgets You and anyone can share your widget on their website or blog. No coding required.

Gmail/Yahoo Invites As campaign owners, you and team members can import & invite any/all your gmail & yahoo contacts seamlessly TOO!

More on Sharing

HOW TO TRACK YOUR CAMPAIGN

CAPTURE REFERRAL & FUNDING DATA

TRACK YOUR CAMPAIGNERS’

SHARE RESULTS

“Kaleena referred 4 people who then contributed $226”

DASHBOARD: Your Campaign Title

HOW TO CHECK YOUR FUNDS STATUS

CHECK CONTRIBUTOR

DETAILS

CHECK YOUR CONRIBUTED

FUNDS’ STATUS

DASHBOARD: Your Campaign Title

HOW TO FULFILL YOUR PERKS EXPORT

YOUR DATA

VIEW YOUR PERK FULFILLMENT DATA

NAMES, EMAILS & ADDRESS INFO

HIDDEN FOR CONFIDENTIALITY

DASHBOARD: Your Campaign Title

MTV NEW MEDIA

Get Discovered by MTV New Media Create a campaign. The greater the DIWO

The greater the consideration

Monthly Selections Each month, IndieGoGo shares a selection of projects with MTV New Media that meet their

criteria.

Target Content Web series, documentaries, features, shorts for

online, VOD, Mobile, DTV & DTO