Traditional fundraising tells us to seek large gifts from a smaller set of donors. The turnaround time for this process is lengthy and time-consuming.
Enter crowdfunding. Crowdfunding is a relatively new approach to fundraising that flips the traditional mindset. Instead of seeking large donations from small populations, crowdfunding seeks smaller donations from a large and diverse audience.
Whether your donors have $5 or $5000 to give, you can connect with them right where they are. Crowdfunding makes it easy to give to a cause the audience believes in. Your challenge will be to get them excited about your cause.
An Exciting Addition
While crowdfunding is an exciting new method, that doesn’t mean you should discard the traditional fundraising practices that have worked for decades. The key to a successful fundraising strategy is to create multiple streams of revenue into your organization. That may mean seeking out grant applications, major donors, and managing a crowdfunding campaign.
By diversifying your fundraising strategy, you are building a sustainable flow of capital into your organization. That’s money that keeps your worthy causes giving back to your community, without the fear of closing your doors because of one “no”. If you lose funding from one donor, you have additional income to fill the gap.
An effective crowdfunding campaign has three general goals:
(1) educate others about the work they are doing
(2) build engagement within a community, and
(3) increase the donations they bring in to support their efforts.
The real impact of crowdfunding is its shareability. Crowdfunding makes it possible for you to extend that network with the click of a button.
Traditional fundraising gives you access to a network of 10-50 new prospects for every donor. Crowdfunding offers access to hundreds or even thousands of potential donors with every share, for every donor. The potential is incredible.
Optimizing Your Practice
Of course, you can’t just throw up a donation page and expect money to start rolling in. There are considerations specific to a nonprofit that you’ll have to take into account. There are laws that regulate fundraising for nonprofits, and best practices for maximizing the impact of your campaign. You’ll also be competing with thousands of other crowdfunding campaigns. Learning to stand out from the rest of the ‘crowd’ is a daunting task.
Never fear! We’ll have tips on optimizing your crowdfunding methods next week! If you can’t wait that long, schedule your free consultation today!