Crowdfunding is the best way to expand your donor base. When engaging in crowdfunding, 62% of those who donate are new and 28% of those new donors will give again.
Thinking realistically, a $1 donation will not help a nonprofit organization very much; however, one million donations of $1 can help a nonprofit mobilize their cause. This is where crowdfunding comes in because donors can see that many people, some of whom they know and some they do not, are donating in many different quantities.
Crowdfunding pages stress the importance of donating money whether it be small or large–they utilize a group model instead of a singular model. When you donate to a crowdfunding campaign you become part of a group that is supporting that cause no matter how much you donate. On the other side, when you donate to a text to donate or text to give campaign, you are simply one person supporting an organization. Mobilizing donors to give gifts of all sizes can result in a massive fundraising effort.
Nonprofit crowdfunding is changing the landscape in online fundraising. As more and more donors are being exposed to crowdfunding for products and services, they’ll expect your fundraising to shift towards those approaches as well.
Here are five best practices to crowdfund successfully for your nonprofit.
1. Start with a measurable goal
Your goal aligns your team and supporters with your crowdfunding campaign. You have to find a balance between what is within reach and what is an aspiration. If you’ve fundraised online before, ask yourself a few questions to get a baseline of what is achievable.
2. Rethink Rewards and Donation Tiers
Rewards are items, recognition, or a service that you’ll get for contributing a crowdfunding campaign. They are also known as perks or gifts, and are used as incentives to motivate people to support a campaign.
3. Create your eye-catching story
You know that compelling stories get you donations, sharing, and publicity, but you’re probably thinking — “I don’t have a eye-catching story” or “I don’t know how to tell a compelling story”. It’s actually easier than you think to create one that works. Think about your mission and how your mission serves the community, your story is there.
4. Build a tribe of champions
Contrary to what you may assume, you can’t launch a crowdfunding campaign by relying on the crowd. You’ll need to cultivate a tribe. Start with a list of 100 people that you know and would be willing to take action and put them in three buckets: Promoters, Fundraisers, Donors.
Give each bucket a role and goal so that they know how and when to help. Some people can take on multiple roles if they’re high up on the engagement ladder.
5. Focus on your crowdfunding page
Getting started with crowdfunding is easy, but doing it right can be a challenge. You can learn more details on how to launch a nonprofit crowdfunding campaign by contacting our team of experts at Stewardship Technology.