Tips for Getting Started With Crowdfunding

Different people consider various activities crowdfunding. There is: 
•    the “traditional” method of using a platform such as GoFundMe, 
•    peer-to-peer fundraising pages such as the kind people create when they are doing a Walk for Life and want their friends to donate to their team fundraising goal,
•    donations via social media such as Facebook and Twitter,
•    and there are variations on the theme that pair one of the online methods listed above with small, in-person events.

Regardless of what you call it, this type of fundraising is here to stay. Nonprofit organizations must work diligently all year long to extend their online and social media presence. For when you have a strong online following, you are more likely to be successful when crowdfunding. 

Here are a few tips to keep in mind: 
•    crowdfunding campaigns should be a planned part of your overall Development Plan (but you should be flexible enough to add one in if it makes good sense to do so), 
•    there is a big difference between your supporters crowdfunding for you and your organization crowdfunding for itself. 
o    Don’t forget to register as a certified charity if that is an option with the crowdfunding platform you choose. 
•    choose a platform carefully and read the fine print. There are hundreds of crowdfunding platforms available today. Do some research to find out about the reputation and fees of the highly-rated sites. 
o    When comparing fees, don’t forget that you are not paying for just credit card processing, you are also paying for the company to host the crowdfunding program, process gifts, and market to a wide audience. 
•    you may be running your campaign on one site, but you should use various social media outlets to promote and drive traffic to your campaign. 
•    it takes effort to steward donor relationships that start online. In general, it doesn’t make sense to try to steward donors who gave via crowdfunding in the same way you steward major donors. But that doesn’t mean you shouldn’t do something! Make use of videos and photos and share the impact of their gift. 

People who give via crowdfunding campaigns may be a different demographic than some nonprofits’ traditional donors… but they are still donors. We must learn to connect with them in their preferred way- not ours. 

Tracy Vanderneck, MSM, CFRE
President, Phil-Com