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Crowdfundamentals - A Beginner's Guide To Crowdfunding Success

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21 views27 pages

Crowdfundamentals - A Beginner's Guide To Crowdfunding Success

Uploaded by

pooja.tanwar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Drug Prevention and a Culture of Peace in Mexico,

a project by Instituto Mexicano de Investigacion de Familia y Poblacion

Crowdfundamentals
A Beginner’s Guide To Crowdfunding Success
CROWDFUNDAMENTALS 1
Contents
INTRODUCTION

CHAPTER 1

Be SMART
Tool You Can Use: SMART Goal Chart

CHAPTER 2

Pick The Right Platform


Tool You Can Use: Crowdfunding Platform Comparison Chart

CHAPTER 3

Make It Personal
Tool You Can Use: Strong Story Checklist

CHAPTER 4

Get By With Help From Friends


Tool You Can Use: Network Mapping Diagram

CHAPTER 5

Prepare To Share
Tool You Can Use: Sample Facebook Messaging

CHAPTER 6

Be Creative And Courageous


Tool You Can Use: 10 Creative Crowdfunding Ideas

CHAPTER 7

Show Your Gratitude


Tool You Can Use: Donor Appreciation Checklist

CONCLUSION

CROWDFUNDAMENTALS 2
Hands-On Minds-On Learning in Rural Nepal,
a project by Marpha Foundation

WELCOME TO

Crowdfundamentals
A Beginner’s Guide To Crowdfunding Success

You’re here because you want to raise money for a cause that is close to your heart, and you
understand the power of crowdfunding, but you aren’t sure where to start.

Crowdfunding is the practice of raising small amounts of money from a large number of
people, typically online. Instead of relying on buy-in from a very small pool of wealthy donors or
institutions, successful crowdfunders tap into the power of many.

In 2002 when GlobalGiving created the first crowdfunding platform for nonprofits, we turned traditional
fundraising on its head and unleashed the potential of anyone, anywhere, at any time, to make the
world a better place. Today, there are almost too many crowdfunding platforms to count, and the
market for crowdfunding in developing countries alone is expected to top $96 billion annually by 2025,
according to the World Bank. That’s a lot of potential, but success requires planning.

For 15 years, we’ve been making it possible for nonprofits from Afghanistan to Zimbabwe (and lots
of places in between) to build schools, preserve our environment, feed the hungry, and thousands
of other amazing things. We’re excited to share what we’ve learned! Each chapter offers a practical
step you can use in preparation for your first crowdfunding campaign. At the end of each chapter,
you will find a tool you can use, including:

1. Smart Goal Chart


2. Crowdfunding Platform Comparison Chart
3. Strong Story Checklist
4. Network Mapping Diagram
5. Sample Facebook Messaging
6. 10 Creative Crowdfunding Ideas
7. Donor Appreciation Checklist

CROWDFUNDAMENTALS 3
Educate Deserving Poor Children In Uganda,
a project by Arlington Academy of Hope, Inc.

CHAPTER 1

Be Smart

Imagine a sea of strangers who wake up determined to donate to a


good cause. Somehow, they stumble across the one that is closest to
your heart on the Internet, immediately understand its worth, and
make a donation before the day comes to a close.

Wouldn’t that be amazing? Unfortunately, that rarely ever happens.


Donors need motivation to give! And you need a plan. To set yourself
up for success, outline a SMART goal before your crowdfunding
campaign launches. In your outline, address each point listed in the
SMART goal chart on the next page.

CROWDFUNDAMENTALS 4
SMART Goal Chart

Use this space to craft your own


QUALITY GG TIP
SMART goal, addressing each quality.

Describe exactly what you’d like to


achieve and how. To narrow your
Specific
goal, think about it in terms of who,
what, when, where, how, and why.

Quantify your goal. How much


Measurable
money do you want to raise?

Specify what actions you will take,


who you can work with, and what
Actionable
resources you can leverage to meet
your goal.

Be ambitious, but don’t set a goal


that you can’t realistically achieve
Realistic
in a time-bound manner with your
attainable resources.

Set a clear beginning and end date


for your crowdfunding campaign
to create sense of urgency and
Time-Bound
motivate you and your donors.
Throughout your campaign, remind
donors of your deadline.

CROWDFUNDAMENTALS 5
HOW THEY DID IT

Arlington Academy of Hope, Inc.

Country: United States


Mission: Help children in Uganda reach their full potential.
Dollars Raised: $474,418

Background: Arlington Academy of Hope, Inc. has successfully crowdfunded


three projects on GlobalGiving! The nonprofit, which is based in Arlington,
Virginia, had a SMART approach from the start. Its first SMART goal on
GlobalGiving? Raise $5,000 from 40 donors within one month to launch a
program to prepare primary school graduates for secondary school. Having a
SMART goal helped the nonprofit clearly communicate its intentions and build
momentum with existing and new donors. They exceeded their campaign
goal by $2,000. Rachel, an Academy of Hope student who graduated from the
Academy’s primary school, credits the nonprofit with her educational success.
“I just assumed that after 7th grade, I would get married,” she said. “That is
what all my older sisters did. That was all I knew. Now, I am in university and
will have a career helping others.”

CROWDFUNDAMENTALS 6
Provide Food & Care for All Our Animals for 1 Year,
a project by Daktari Bush School & Wildlife Orphanage

CHAPTER 2

Pick The Right Platform

There are hundreds of crowdfunding platforms on the Internet!


It’s important to pick the right one for your campaign. Use our
crowdfunding comparison chart to examine platforms in five key
areas: structure, fees, features, reach and reputation. Each key area
is explained on the next page. We also rounded up five important
questions to ask before you commit to a platform, which may require
a setup fee or contract. In the chart on page 9, you’ll find answers from
GlobalGiving, so you can easily compare what we offer to others.

CROWDFUNDAMENTALS 7
Key Areas of Platform Comparison

ST RU CT UR E
Who does the platform serve?
Some crowdfunding platforms were created to help individuals meet a personal need (e.g., a
parent who needs help to pay for her sick daughter’s healthcare). Others were created to help
entrepreneurs launch an innovative idea (e.g., a fashion designer who wants to start a new
eco-friendly clothing line). Read the platform’s mission statement and scroll through existing
projects to learn about its structure.

FEES
What fees will you incur?
Some platforms charge set-up fees, ongoing subscription fees, and/or fees per transaction. Be wary
of platforms that are not upfront about their fees.

FEAT U R E S
What benefits and features will you get?
Make a list of features that matter most to you and find out whether the platform offers them (e.g.,
one-on-one customer support, social media integration, campaign customization options, donation
disbursement process, ability to process different currencies).

REACH
Will the platform promote your project through its channels?
Check out how many of your peers (nonprofits, entrepreneurs, or individuals) are using the
platform, and consider what kind of donors and corporate partners you may be able to connect with
through the platform. Take a look at social media for clues about how the platform will promote
your project.

REP U T A T I O N
What do people say about the platform?
Ask existing users about their experience, and read reviews from independent and trusted sources,
such as Charity Navigator (if the platform is a nonprofit), the Better Business Bureau, and GuideStar.

CROWDFUNDAMENTALS 8
Crowdfunding Platform Comparison Chart

O T H E R CR O W DF U N DI N G
GL OB A L G IVING
PLATFORM
STRUCTURE

GlobalGiving’s purpose is transforming aid and


philanthropy to accelerate community-led change.
Did you know that GlobalGiving is itself a 501(c)(3)
registered nonprofit? That means donations made
through our platform are
tax-deductible.

There’s no fee to join GlobalGiving. Instead,


GlobalGiving retains a 5-12% nonprofit support fee
plus a 3% third party processing fee for each donation.
GlobalGiving works hard to keep our costs low!
Although our support fee may vary due to a number
FEES

of factors, it is typically 5-7%. This covers our vetting


costs and enables us to deliver even more money (and
many other benefits) to our partners. Because we drive
money back to our partners in the form of new donors,
matching funds, and corporate partnerships, the net
cost to most of our nonprofit partners is actually zero!
FEATURES

GlobalGiving offers gift cards, peer-to-peer fundraising


tools, specialized training, one-on-one and in-person
fundraising support, and matching campaigns.

GlobalGiving is the oldest and largest crowdfunding


community for nonprofits, companies, and donors.
REACH

Since our founding in 2002, we’ve raised $300+ million


for 18,000+ projects in 170 countries. We promote
projects tirelessly, and we’ve partnered with 200+
companies, including Nike, Ford, and Microsoft, to
accelerate community-led change.
REPUTATION

Charity Navigator gives GlobalGiving four-stars, its


highest rating. We are also accredited by the BBB Wise
Giving Alliance.

CROWDFUNDAMENTALS 9
HOW THEY DID IT

DAKTARI Bush School & Wildlife Orphanage

Country: South Africa


Mission: Inspire, motivate, and educate underprivileged children to care for
their environment through a wildlife orphanage.
Dollars Raised: $10,755

Background: DAKTARI Bush School & Wildlife Orphanage was on the


verge of closure when its founders came to GlobalGiving. The husband-
and-wife team chose to crowdfund on GlobalGiving because of its training
and one-on-one support for nonprofits new to crowdfunding and its vast
network of American donors. In 2008, DAKTARI joined a GlobalGiving virtual
crowdfunding training program, which took it step-by-step through its first
crowdfunding campaign. “We had no strategy heading into the challenge,”
says Michèle, but, “GlobalGiving was very present and gave us the support to
help us develop the technique and knowledge of fundraising that we didn’t
have.” GlobalGiving is now a crucial funding source for the nonprofit, which
celebrated its 10-year anniversary with GlobalGiving by its side in 2016.

CROWDFUNDAMENTALS 10
Make Motherhood Safe for Tanzanian Women,
a project by Kupona Foundation

CHAPTER 3

Make It Personal

Once you’ve selected the best platform for your crowdfunding


campaign, craft a story about your campaign that has the power to
drive donations. Most crowdfunding platforms come with a project
page where you can direct donors and tell your story. Our research
shows that stories about single individuals told in first-person are
more powerful motivators than statistics or stories about groups of
people. As you write content for your crowdfunding project, focus on
why the project matters to you or explain the impact of reaching your
goal on your life or someone else’s. Use our checklist on the following
page to maximize the impact of your crowdfunding story.

CROWDFUNDAMENTALS 11
Strong Story Checklist

DOES YOUR STORY INCLUDE:

Your reason for getting involved with the cause or a first-person anecdote about
your nonprofit?

A clear ask? (e.g., please make a $25 donation today)

Specific examples of what a donation will do? (e.g., a $50 donation will give a
hungry child enough food for one day)

A high-quality photo?

A prominent donation link or button?

CROWDFUNDAMENTALS 12
HOW THEY DID IT

Kupona Foundation

Country: United States


Mission: Prevent disability and maternal and neonatal mortality.
Dollars Raised: $2,474

Background: It took Alison five days and six nights to bring her daughter
into the world. “Not for a second did I worry about access to medical help
if I needed it. One year later, I can’t help but think of other moms—those
with high-risk pregnancies—who don’t have access to the life-saving care
they need.” Alison relied on her experience as a new mother to motivate
her friends and family to help build a maternity ward for at-risk mothers
and babies in Tanzania, one of the most dangerous places in the world to
give birth. She created a fundraising page on GlobalGiving, and she asked
her friends and family to donate $1 for every hour that they (or a loved one)
labored, or give a dime for each of her 131 hours in labor. Her candid story
about her labor of love inspired 55 donors to give to her cause!

CROWDFUNDAMENTALS 13
Drug Prevention and a Culture of Peace in Mexico,
a project by Instituto Mexicano de Investigacion de Familia y Poblacion

CHAPTER 4

Get By With Help From Your Friends

Here’s the good news: You already know the people who are most likely to donate
to your cause—they are your friends, family, colleagues, and acquaintances! Focus
on how to inspire the people around you to donate to your cause, and invite them
to reach out to their networks on your behalf. Successful crowdfunders often
pair up with friends or assemble fundraising teams to amplify their reach. To get
started, create a list of people you know. Begin with the people who are closest
to you and expand. The bigger your list, the better (so don’t overlook people like
your doctor or a neighbor). Write down names, phone numbers, emails, and
mailing addresses, and plan to reach out to each person in a few different ways
throughout your crowdfunding campaign. Crowdfunding experts sometimes
refer to this step as network mapping. Remember to include a clear ask for a
donation, no matter the method of your outreach.

CROWDFUNDAMENTALS 14
Network Mapping Diagram

YOU

YOUR YOUR YOUR YOUR


CO-WORKERS FAMILY FRIENDS ACQUAINTANCES

T HEI R F A M IL Y , TH E IR F A MI L Y , TH EI R F A MI L Y , TH EI R F A MI L Y ,
FR I E N D S , F R IE NDS, F RI ENDS, F RI ENDS,
CO- WO R K E R S + C O - W O R KERS + CO -W O RKERS + CO -W O RKERS +
A CQUA IN TA N C E S A C Q U A IN TA NCES A CQ U A I NTA NCES A CQ U A I NTA NCES

CROWDFUNDAMENTALS 15
HOW THEY DID IT

Instituto Mexicano de Investigacion de Familia y Poblacion

Country: Mexico
Mission: Create and implement programs that allow individuals to take control
of their own health, productivity, and lives.
Dollars Raised: $21,443

Background: IMIFAP raised $21,443 from 136 donors in less than one month!
They key to IMIFAP’s success? Its 35 staff members. Before IMIFAP’s launched
its crowdfunding project, Shoshana, a project leader, helped her co-workers’
map their networks and coached them on how to ask for money. This process
yielded many small donations. The president and vice president of IMIFAP
also contributed by asking for higher-level donations from their networks.

CROWDFUNDAMENTALS 16
Hands-On Minds-On Learning in Rural Nepal,
a project by Marpha Foundation

CHAPTER 5

Be Prepared To Share

Prepare to ask for donations from your target audience in multiple ways
throughout your crowdfunding campaign. To determine what and where to
share, know your audience! It will be much easier to motivate your donors if you
know where they spend their time and what type of content appeals to them. Do
they shop at a specific store or socialize at an annual workshop or festival? Try a
joint fundraising event.

Be sure to develop a digital outreach plan, too. Think about what time of day
your target audience is likely to read emails, and craft email subject lines that
will catch their attention. Also, know which social media platforms your
audience uses. Facebook? Twitter? LinkedIn? Instagram? Spend a few weeks
listening to what resonates with your target audience on social media before you
map out what you’ll share about your crowdfunding campaign.

CROWDFUNDAMENTALS 17
Sample Facebook Messaging

CROWDFUNDAMENTALS 18
HOW THEY DID IT

Marpha Foundation

Country: Nepal
Mission: Equip rural youth in Nepal with lifelong learning skills, design
educational resources, and foster equal-opportunity environments.
Dollars Raised: $7,064

Background: Marpha Foundation raised $7,064 from 87 donors within


one month to enrich its kindergarten education program in mountainous
Mustang, Nepal. The nonprofit relied on email and social media to reach
donors. On its Facebook page, the nonprofit paired high-quality, colorful
photos of its students with short, urgent fundraising updates. “SOOOOO
CLOSE! 2 days left, $775 to go. DONATE TODAY,” read one update. The
strategy paid off: 39% of the donations to the foundation’s kindergarten
project came through Facebook.

CROWDFUNDAMENTALS 19
Help Protect Endangered Bandicoots,
a project by Conservation Volunteers Australia

CHAPTER 6

Be Creative And Courageous

Successful crowdfunders fail (it’s true), but they have the courage to experiment
with bold, creative ideas (continuously), collect feedback about what’s working
(and what’s not), and change course (if needed). There are so many fun ways to
fundraise! One Atlas Corps volunteer promised to ride his bike from Washington,
D.C., to Great Falls, Va., in his underwear if 100 of his friends donated to his project.
Thousands of women all over the world have raised more than $1.5 million to end
human trafficking through the Dressember campaign. The women wear a dress
every day in December and ask their friends to support their commitment with a
donation.

Experiment with creative tactics that will appeal to your network. Once you settle
on a tactic, track your results and test new ideas. Be prepared to adjust if necessary
to achieve success. Try varied email subject headlines, social media content, and
fundraising approaches to identify what works and why. Use what you learn to
improve your current and future crowdfunding campaigns. In short, never settle!

CROWDFUNDAMENTALS 20
10 Creative Crowdfunding Ideas

1. Host a fundraiser at a local restaurant. Ask the owner to donate a portion of proceeds
to your crowdfunding campaign.

2. Challenge yourself to an athletic feat. Ask your friends, family, and co-workers to make
a donation to support your endeavor.

3. Host a dinner at your home. Ask each guest to make a donation to your campaign.

4. Organize a film festival in your neighborhood. Show films that relate to your
crowdfunding project. Instead of an admission fee, ask for a donation.

5. Host a chess tournament. Ask losers (and winners) to make a donation to your campaign.

6. Ask local businesses to donate items to your nonprofit. Auction the items online or at
an event and donate proceeds to your campaign.

7. Assemble a book club. Ask each member to make a donation to your cause.

8. Make custom T-shirts, bracelets, or other promotional merchandise for your campaign.
Direct all proceeds from sales to your cause.

9. Ask a prominent member of your community (mayor, celebrity, church leader) to


publicly support your campaign and pass along donation information to their network
on your behalf.

10. Invite five of your friends to serve as “fundraising captains.” Give a prize to the
captain who raises the most money for your collective cause.

CROWDFUNDAMENTALS 21
HOW THEY DID IT

Conservation Volunteers Australia

Country: Australia
Mission: Attract and manage volunteers to participate in projects that protect
or enhance the Australian environment and heritage.
Dollars Raised: $3,885

Background: Conservation Volunteers Australia wants more people to


care about what happens to Eastern Barred Bandicoots. The rabbit-sized
marsupial is critically endangered—only 1,500 remain on mainland Australia.
The nonprofit connects the crowd with bandicoots through creative videos
like this one, which brings viewers along for the release of 20 adorable
bandicoots into newly protected grasslands. The video has more than 7,700
views. Conservation Volunteers Australia has now raised enough money on
GlobalGiving to protect 77 acres of bandicoot habitat!

CROWDFUNDAMENTALS 22
Help Older People Learn Basic IT Skills,
a project by Age Action Ireland

CHAPTER 7

Show Your Gratitude

Thanking and appreciating your donors is absolutely vital. One


study found that 45% of donors said that an “outstanding thank
you letter” inspired them to give again; 23% said that the quality of
the acknowledgement they received encouraged them to make a
larger donation the second time. After you receive a donation, follow
up with a thank you as soon as possible. Make your thank you as
personal as possible, and illustrate the impact of the donation in your
life or the life of someone your donor sought to help.

CROWDFUNDAMENTALS 23
Donor Appreciation Checklist

Send an email, a handwritten note, or a personal video message to


thank your donor. Make it a goal to thank every donor within 48 hours!

Mention your donor’s generosity on social media. Tag your donor to


maximize your reach.

Invite your biggest advocates to get involved beyond a single donation.


Ask if they can offer time-bound matching donations to encourage
others to donate or reach out to their networks on your behalf.

CROWDFUNDAMENTALS 24
HOW THEY DID IT

Age Action Ireland

Country: Ireland
Mission: Achieve fundamental change in the lives of all older people by
empowering them to live full lives as actively engaged citizens and to secure
their rights to comprehensive, high-quality services.
Dollars Raised: $14,615

Background: Age Action Ireland doesn’t just tell donors about their impact.
They show them. In a project report on GlobalGiving, the nonprofit shared
photos of handwritten notes from students of its IT course for senior
citizens.“I arrived terrified—yes really! And am now confident I can use my
home computer. Wonderful! A new lease on life,” one graduate wrote. Enough
to make any donor’s heart melt!

CROWDFUNDAMENTALS 25
Drug Prevention and a Culture of Peace in Mexico,
a project by Instituto Mexicano de Investigacion de Familia y Poblacion

Conclusion
Thank you for reading GlobalGiving’s seven steps to crowdfunding
success. We hope it’s helpful as you crush crowdfunding for a
cause that’s close to your heart.

Want one-on-one support for your nonprofit’s crowdfunding


campaign? Join GlobalGiving’s Accelerator program! Learn more at
www.globalgiving.org/accelerator/.

CROWDFUNDAMENTALS 26
To learn more about the topics found in this document,
visit GlobalGiving.org/Learn.

CROWDFUNDAMENTALS
1110 Vermont Avenue NW Suite 550 Washington DC 20005 USA • 202.232.5784
27

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