How organizations of every size can raise money online.
by Scott Steinberg F
or cash-strapped organizations looking to boost their fi nancial outlook, crowdfunding - a.k.a. online fund- raising - may just be the hottest new invention since
the annual donor’s event. A form of sponsorship drive through which associations and
non-profi ts can raise money by posting promotions online and gar- nering pledges from everyday internet users, interest in the fi eld is quickly skyrocketing. With over one million campaigns (over 80% of which raised more than $25,000) successfully funded to the tune of $2.8 billion in 2012, it’s easy to see why the industry doubled in size from the year prior. Letting entities of any size raise aware- ness and similarly expand their potential pool of contributors the world over, suddenly, individuals at every level have the power to enhance the bottom line by several orders of magnitude. Looking to tap into the phenomenon to turbo-charge your own fundraising drive and/or special occasion? Here’s how to better connect with potential benefactors, and send its potential skyrocketing.
How does crowdfunding work? In actuality, four forms of crowdfunding exist across the over 525 online services now catering to every fi eld from hospitality to real estate and academia - a full list of which can be found at www.
crowdsourcing.org.
Thanks to growing public awareness, lending- (loans are provided in exchange for interest payments) and equity-based models (involving the sale of ownership in businesses) continue to grow in prominence. However, donation-based sites like Crowdrise,
Causes.com and CauseVox as well as reward-based sites including Kickstarter, IndieGogo and RocketHub (wherein merchandise, collectibles, and unique life experiences are traded for contributions) look to provide the most promising outlets for non-profi ts today.
In all cases, organizations can post pitches in the form of video, audio, text and/or photo snippets alongside various pledge tiers and - if incentives are provided - award associated benefi ts in exchange for each level of contribution. Viewers are then given the option to contribute via credit card, PayPal or alternate online payment solutions, thereby helping support the cause.
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Creating a successful campaign Admittedly, crowdfunding sounds easy on the surface: Just post a pitch for a promising new venture and watch the dollars roll in. But with so many worthy causes now competing for attention, it’s imperative you also pair initiatives with extensive promotional support - visibility is becoming increasingly crucial. Top tips when building a campaign include as follows:
• Conduct extensive research - Study both successful and failed campaigns to see what worked and didn’t.
• Be singular and arresting - Stand out at a glance and quickly explain what sets you apart.
• Perfect your elevator pitch - Clearly explain what you’re offer- ing, how funds will be utilized and the reason that projects need to happen now - including why you’re the right organization to pull them off.
• Know who your core audience is - Understand how to reach them online and how to keep their attention: Campaigns run 30-45 days on average, necessitating ongoing marketing and PR efforts to keep interest levels high - crowdfunding is a marathon, not a sprint.
• Secure support in advance - Reach out to your community and secure strategic partnerships up-front: Start seeding interest amongst thought leaders, infl uencers and potential donors long before hitting the launch button.
• Prepare assets prior to launch - Stockpile promotional content (video snippets, surprise rewards, testimonials from community thought leaders, promotional photos, etc.) in advance, as cam- paigns require constant work and upkeep - mid-session isn’t the time to be dealing with distractions.
• Offer compelling incentives - From unique giveaways to one-of- a-kind collector’s items or singular life experiences (be the guest of honor at our local gala!), incentivize donors to pledge by pro- viding valuable returns at every tier.
Likewise, real-world events and programs can also be a powerful driver of interest in campaigns, helping grow support and awareness amongst the public and media.
Coupling virtual and real-world events Many organizations make the mistake of concentrating all their
MIDWEST MEETINGS SPRING 2013
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