Looking for a way to find another source for donations and increase your social media interactions? If you haven't already heard of crowdfunding, it might be time to give it a try for your nonprofit. Crowdfunding is a means to collectively source a project or idea, and has become increasingly popular among nonprofit organizations to supplement existing donations campaigns and reach out to a different audience.
Organizations like charity : water, Livestrong, Fair Trade USA, Movember, and more, all have successfully used crowdfunding campaigns to raise money for their causes while simultaneously expanding their networks of supporters.
While various crowdfunding companies exist, and each have their pros and cons, here is a run-through of some of our top picks:
- Razoo- over $250 million raised for personal causes and nonprofits; offers "Giving Day" campaigns and widgets to install on your site; costs to nonprofits: 4.9% plus 2.0% + 30 cent fee per donation
- Crowdrise- offers "Impact Points" to redeem rewards for active donors; receive donations through Network for Good or WePay; costs to nonprofits: 5% plus 2.9% + 30 cents per donation
- Kickstarter- over $1 billion raised for creative projects; projects don't receive funding if they don't meet their goal amount; receive funds through Amazon Payments; costs to nonprofits: 5% plus 3-5% per donation
- IndieGoGo- over $56 million raised to diffuse individual ideas and raise funds; offers professional data-drive advice for your campaign; costs to nonprofits: 6.75% plus 4.0 % + 30 cents per donation
- CauseVox- average campaign raises over $12,000; offers custom site template and widgets; receive donations directly without merchant account; costs to nonprofits: 5% (2.5% until $5,000 raised) + 3-5% per donation
- GoFundMe- over $570 million raised for personal causes and nonprofits; less socially-media oriented than other platforms; receive donations through WePay or FirstGiving; costs to nonprofits: 5% + 4.5% + 30 cents per donation
With the holiday season quickly approaching, you should consider starting a crowdfunding campaign as part of your year-end strategy. The #GivingTuesday (December 2nd) campaign (started in 2012) calls for an early start to holiday giving following-up on the Thanksgiving holiday and Black Friday retail shopping. Based on a CONE Communications Digital Activism study, more Americans are drawn to donating to individuals or environmental causes rather than directly to nonprofits themselves (18% and 12%, as compared to 47%). Therefore, recruiting your supporters to start campaigns associated with their name will help your organization reach out to new types of donors.
If you're considering a new web-design for your nonprofit, consult with our representatives on how you can incorporate crowdfunding widgets into your site's template design or integrate social media sharing to spread the word about your campaigns. Contact us to speak to learn what you should be doing to prepare for the holiday giving season.