Non-profits today don’t rely on traditional fundraising methods completely. Technology has availed us with some truly whimsical options for fundraising. Crowdfunding has been one of them. The technique works on the principle of garnering small funds from a large number of people typically over the Internet.
Along with the money acquired, you also gather a handful of donors that support your cause or initiative. But is it an efficient and reliable way to depend upon? Do non-profits should rely on this concept of raising funds?
To answer these questions, you must know about crowdfunding and how the funding takes place. You must ensure that the cause for which you are raising funds has a defined period. It is not a good choice for long-term fund raising campaigns. The technique works best for the projects which need funding within specified period.
Once you come up with the decision of getting your cause crowdfunded, you need to organize a crowdfunding campaign for your non-profit. The campaign should be targeted and must contain all the relevant information related to your Non-profit as well as your cause.
To raise funds, you must be prepared to handle the upfront costs. Crowdfunding as such does not require any upfront cost, but it surely needs your time and energy to be invested in making your campaign successful. You will need to employ a team which can create a beautiful story, share your campaign on social media, measure analytics and follow up as and when required. You must also give serious thoughts to the rewards that you are going to offer to your backers. To lower cost, you should consider delivering intangible rewards to your backers which otherwise money can’t buy and gratify your backers too.
Getting crowdfunded will avail you with the additional donors along with the existing contributors of your non-profit. You must utilize the power of your existing donors by making them contribute to your campaign thereby increasing traction over your campaign. The organizations often consider crowdfunding as the way to raise small or large individual donations rather it is the way to capture the out of the reach donors such as youth and the extended circle of the existing donors.
You should have a compelling story to captivate the crowd. People only contribute to campaigns which they feel connected with. A story plays an influential role in ruling the hearts of people making them contribute to your campaign. And once the backer contributes to your campaign, he will necessarily share it with others; such is the impact of a great story.
Social media plays a significant role while crowdfunding. Your non-profit team must be efficient enough to handle social media. It will provide you better engagement opportunities and chances for your organization to grow.