june 2015 toronto net tuesday: crowdfunding

Crowdfunding Guide for Nonprofits and Charitable Organizations

Christopher Charlesworth Email: [email protected] Twitter: @hivewireCA

© 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on

June 9, 2015

© 2014, All rights reserved HiveWire Inc. 2

About Us

Christopher Charlesworth Co-Founder

Asier Ania Co-Founder

Kris Olafson CTO

Moira Klein-‐Swormink Finance

Arthur Prevot Data Scientist

Crowdfunding Guidebook: bit.ly/ESDCstrategyguide

Consulting and Workshops


Workshops •  Over 45 workshops to date •  Government, non-‐profit and chari?es,

corporate •  Crowdfunding strategy development

Consulting •  Individual campaign consul?ng •  Rapid Campaign Audit •  Campaign De-‐Risking

Analytics •  Custom research •  Reports •  Trend iden?fica?on and analysis •  Innova?on surfacing

Platforms •  Build custom crowdfunding

plaSorms •  Tailor features to strategic objec?ves

of client


What is: Crowdsourcing ?

CrowdFunding: Fund something

~$300 M in funding in 2012

CrowdWisdom: Solve a Problem 75% of people in the crowd

already knew the solu?on.

CrowdVoAng: Select something

Very basic and employed by many sites

CrowdLabour: Complete tasks Millions or workers

comple?ng simple tasks

CrowdCreaAon: Create something Army of graphic

designers at your service

CrowdAdvocacy: Support something People-‐powered poli?cs to

decision making.

The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people - Wikipedia

5 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on

Stakeholder Engagement Process:

•  Stakeholder Registra?on •  Stakeholder Discussion Guide •  Workshop •  Survey

List of Nonprofits consulted: 1.  Halifax Tool Library 2.  Community Canoe 3.  Cul?vateTO 4.  RegentParkFocus 5.  Not far from the tree 6.  FaceValue 7.  WindFest 8.  Henry Vanderspek (project with

Photographers Without Borders) 9.  African Women Ac?ng 10.  Canadian Arab Ins?tute 11.  Youth Climate Report 12.  City Seed Farms 13.  Dreamweavers 14.  Our Horizon 15.  Match Interna?onal 16.  Steele Family Founda?on

March 16, 2015 Workshop (in-‐person and live streamed)


VS.

à The Focus of the publication is on the two most relevant forms of crowdfunding for nonprofits and charities


Industry Statistics & Data



à Our data has shown that nonprofits and charitable participation in crowdfunding continues to grow rapidly.



à Nonprofits and charities from all sectors are using crowdfunding



à Participation is Canada wide, although concentrated in BC, Ontario and QC


Key Factors of Success


Building Your Campaign

à Participation is Canada wide, although concentrated in Ontario and Quebec

Why People Back Your Campaign •  Shared passion •  Solidarity •  Tax deduc?on •  Emo?onal connec?on •  Par?cipa?on •  Kindred Spirits •  Entertainment •  En?cing Rewards


Rewards

à Campaigns with rewards are clearly more successful


Rewards: Metrics of Success

à Data was analyzed to demonstrate best practice, and included in multiple infographics throughout the document


Marketing Your Campaign

à We build the document to lead the audience through critical steps

Planning Your Marketing Campaign •  Why Plan? •  Get Organized Preparing Your Networks •  Gather •  Assess •  Build •  Engage •  Communica?ons Plan

Conducting Your Campaign •  Work in Advance •  Using Tools •  Coordinate Your Messaging Optimizing Your Marketing •  Market Segmenta?on •  Social Media •  Customer Service •  Tes?ng


Referral links were included


Reward fulfillment -‐ If you’ve included rewards in your campaign you should get started right away in gekng them out the door. Thank you messages -‐ Remember to thank the donors to your campaign, backers, supporters, and of course any volunteers. Managing expectaAons -‐ If you have any hiccups in reward fulfillment or execu?on of your project, we encourage you to be as transparent as possible. Nurture new relaAonships -‐ Those that have that backed your campaign represent an important new connec?on that you should foster, in the hope of turning them into future: backers, partners, clients, champions, volunteers, employees, sponsors, etc.


Lessons Learned

•  “We underes9mated the 9me commitment involved.” •  “We didn’t test our campaign adequately.” •  “No one wanted a t-‐shirt for $200.” •  “We didn’t realize how important having a video was.” •  “We didn’t conduct enough planning.” •  “We learned that pushing to launch our campaign in 9me for our event

was not more important than being ready to crowdfund.” •  “We didn’t factor in the 9me and costs (such as shipping) of the rewards

properly.” •  “We didn’t no+fy our en+re organiza+on or stakeholders properly.”

à There is a clear need for education about crowdfunding within the nonprofit and charitable sectors


Fact Sheets

à Practical tools and tips were provided on comprehensive fact sheets

New Crowdfunding Rules


ParAcipaAng JurisdicAons: •  Bri?sh Columbia •  Saskatchewan •  Manitoba •  Quebec •  New Brunswick •  Nova Sco?a

Restric?ons: Cap of $250K per raise, max $500K in calendar year.

à Equity Crowdfunding Approved in Canada

Case Studies – Value Creation is King


Case Study

•  Rooerdam, Netherlands •  Crowdfunded wooden pedestrian bridge •  Will span 350 meters, 17K individual wooden planks •  Can inscribe name or any text of funders choice •  Length of bridge determined by number of planks

purchased. •  Construc?on has started

Stats:


Goal: ~ €425 000 Raised: > €100,000 People: > 1,000 Platform: I Make Rotterdam

Source: hop://en.imakerooerdam.nl/

•  Urban Innovation is happening •  Novel method for engagement •  No public money

The Luchtsingel

215 Spadina Ave, Suite 400, Toronto, ON

Canada M5T 2C7

[email protected] [email protected]

Thank you.

Workshops Workshops Presentations

Data Speaking Engagements

Analytics

Seminars

Platform Development Consulting

Workshops Workshops

Data

Analytics

Seminars

Platform Development Consulting Data

Presentations

bit.ly/ESDCstrategyguide

june 2015 toronto net tuesday: crowdfunding

Government & Nonprofit

relevant forms of crowdfunding

charitable participation

campaign participation

canada wide

large group of people

founder asierania

onandanalysis innova

ngsimpletasks crowdcreaaon