NONPROFIT WEBINARS · NONPROFIT WEBINARS Crowdfunding as an Innovative Source of Nonprofit Funding...

NONPROFIT WEBINARS Crowdfunding as an Innovative

Source of Nonprofit Funding

A little about me:

Daniel Kent Executive

Director

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A little about you:

What will I get out of this webinar?

Example Planning Context

Conceptualizing

Preparing

Building

Running

Pla

nnin

g Y

our

Cam

paig

n

Next Steps O

utc

om

es

Donation Channels

Onlin

e G

ivin

g C

onte

xt

Trends and Demographics

Exam

ple

Different channels, different donations

Channel

Generic Giving Page Branded Giving Page Portal Giving Social Giving

Percentage

of Overall

Online

Giving

58%

4%

Donation

YoY %

Growth 6% -5% 60%

Average

Donation

Network For Good 2013

Example Planning Context

6% 12% 22%

Channel

Generic Giving

Page

Percentage of

Overall Online

Giving

Donation YoY

% Growth

Average

Donation

Blackbaud 2011-2012

Generic pages have a low yield

Example Planning Context

▪ Quick to build and

deploy

▪ Requires few

technical skills to

create

▪ Low engagement

▪ Quality might not

reflect well on your

organization

6%

-5%

Channel

Branded Giving

Page

Percentage of

Overall Online

Giving

Donation YoY

% Growth

Average

Donation

Blackbaud 2011-2012

Branded giving page’s dominance

Example Planning Context

▪ Good aesthetic

▪ Becoming the norm

for online donations

with the highest

average donation

amounts

▪ Requires integration

into your current

website

▪ More difficult to “do it

yourself”

58%

6%

Channel

Portal Giving

Percentage of

Overall Online

Giving

Donation YoY

% Growth

Average

Donation

Blackbaud 2011-2012

Giving portals losing popularity

Example Planning Context

▪ Low up-front

investment costs

▪ Requires little

updating

▪ Low engagement

▪ Low visibility

12%

4%

Channel

Social Giving

Percentage of

Overall Online

Giving

Donation YoY

% Growth

Average

Donation

Blackbaud 2011-2012

60%

Social giving: The future of donations?

Example Planning Context

▪ Lower up-front costs

▪ High growth

▪ Social media

integration

▪ Donations have

higher fees

▪ Success dependent

on organization’s

marketing

22%

Crowdfunding Incidence on the Internet

http://www.google.com/trends/explore?q=crowdfunding#q=crowdfunding&cmpt=q, http://mashable.com/2013/08/08/viral-philanthropy-infographic/

For years, non-profits and individuals alike have flocked

to social media to spread awareness, bolstering viral

philanthropy through crowdfunding sites.

-- Mashable, August 08, 2013

Example Planning Context

-5.00%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

Jun-1

0

Jul-

10

Aug-1

0

Sep-1

0

Oct-

10

No

v-1

0

De

c-1

0

Jan-1

1

Feb

-11

Ma

r-1

1

Apr-

11

Ma

y-1

1

Jun-1

1

Jul-

11

Aug-1

1

Sep-1

1

Oct-

11

No

v-1

1

De

c-1

1

Jan-1

2

Feb

-12

Ma

r-1

2

Apr-

12

Ma

y-1

2

Jun-1

2

Jul-

12

Aug-1

2

Sep-1

2

Oct-

12

No

v-1

2

De

c-1

2

Jan-1

3

Feb

-13

Ma

r-1

3

Apr-

13

Ma

y-1

3

Jun-1

3

Jul-

13

Year-Over-Year Overall Giving and Online Giving Growth

Overall Giving Online Giving

https://www.blackbaud.com/nonprofit-resources/blackbaud-index

Data represented is based on a 3 month rolling average of YOY performance, Jun-10 = 100

High overall growth, even higher online growth

Example Planning Context

The pie continues to grow: overall giving growth has increased steadily

Our opportunity: online giving growth consistently exceeds overall growth

Small and medium nonprofits growth is higher

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Small (Less than$1m)

Medium ($1m -$10m)

Large ($10m+) Average

Overall Giving Trend Year % Change

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Small (Less than$1m)

Medium ($1m -$10m)

Large ($10m+) Average

Online Giving Trend Year % Change

Blackbaud 2011-2012

Example Planning Context

Small and medium nonprofits are getting more of the pie

Growth demonstrates cases for devoting more resources to crowdfunding

0%

1%

2%

3%

4%

5%

6%

7%

8%

0:0

0

1:0

0

2:0

0

3:0

0

4:0

0

5:0

0

6:0

0

7:0

0

8:0

0

9:0

0

10:0

0

11:0

0

12:0

0

13:0

0

14:0

0

15:0

0

16:0

0

17:0

0

18:0

0

19:0

0

20:0

0

21:0

0

22:0

0

23:0

0

Percentage of Transactions by Hour

Most online giving is during the workday

http://philanthropy.com/article/The-State-of-Online-Giving/139909/#/time

Example Planning Context

4.00%

6.00%

8.00%

10.00%

12.00%

14.00%

16.00%

18.00%

20.00%

Sun Mon Tues Wed Thurs Fri Sat

Total Given

Focus resources and campaigns during the weekdays

Tailor touchpoints to engage donors right before the workday

Crowdfunding Timeline

Step 1: Conceptualizing

Step 2: Preparing

Step 4: Running

Step 3: Building

1-2 Months 1+ Month 1+ Month 1+ Month

View as a short duration capital campaign

Crowdfunding lives on momentum

Also as a mini-awareness campaign

Example Planning Context

▪ Set a conservative, reasonable goal

▪ A reasonable goal, based on your project, is $2,500 - $25,000

▪ Keep donors and potential donors engaged

▪ Update your campaign regularly

▪ Online campaigns alone cannot support your organization

▪ Continue grants, traditional fundraising, and foundational support

▪ Strongest call to action

▪ Long or multiple campaigns can exhaust donors

Step 1: Conceptualizing the Campaign

One time, specific purpose

Augmenting offline campaigns

Set reasonable goals

Social media

Example Planning Context

▪ Compare platforms - 501(c)3, fees, branding, reach

▪ Ensure that the donation structure fits your needs

▪ Can help recruit new donors and amplify your message

▪ Reach out into new networks to highlight your need

▪ Meet in person, call past donors, send out personalized e-mails

▪ Reach out before the campaign to set expectations

▪ Gather press and past success stories and draft content early

▪ Ensure that you have a team to back you up, if the need arises

Step 2: Preparing for the Campaign

Plan ahead

Relationships and interaction

Investigate and identify your platform

Leverage volunteers and past donors

Example Planning Context

▪ Include at least 6 high-quality images and 1 video

▪ Keep the video under 5 minutes

▪ Encourages larger donations

▪ Provides additional visibility when worn around a community

▪ Helps justify reasons to donate at a higher level

▪ Illustrates how money is directly applied to a cause

Step 3: Building the Campaign

Back up request with prior successes

▪ Highlight numbers and quantitative data

▪ Develop rich success stories of those impacted

Match donation amounts with tangible benefits

Include quality, rich media

Consider offering nominal rewards and perks

Example Planning Context

▪ Online donors have many options of causes to which to donate

▪ Positive campaigns run more successfully

▪ Regular updating helps build momentum

▪ Reward individuals who have referred other donors

▪ Third party websites don’t advertise tax-deductibility

▪ First consult the platform, your lawyer or CPA

▪ For every $1,000 in a campaign, spend ½ hour daily on maintenance

▪ Engage donors, social media, and raise the your campaign’s profile

Step 4: Running the Campaign

Devote time to the campaign each day

Reminders that some pledges are tax-deductible

Always stay positive

Engage the crowd and reward participation

Example Planning Context

Many Crowd-Platforms to Explore

Example Planning Context

Example Planning Context

Example Planning Context

Example Planning Context

Example Planning Context

Example Planning Context

Example Planning Context

Example Planning Context

804,372 unique monthly visitors

Why or why not use Indiegogo?

Very popular crowdfunding platform

Strong charitable giving track record

High-production values means higher bar for campaigns

First Giving payment processor

6.75% platform (Indiegogo) fee

4% card processing fee

If fully funded, fee drops to 3% Expensive if goal not reached

Example Planning Context

“Keep what you raise” funding model

Next Steps

▪ Crowdfunding matrix of 24 leading crowdfunding platforms

▪ This slide deck

▪ Link to share a video this webinar

Complete our 10 Question survey for:

▪ Add your comments and questions in the webinar chat client

Join us for live Q&A following this presentation

▪ www.crowdsourcing.org

▪ www.huffingtonpost.com/tag/crowdfunding

Additional resources

Look for our next upcoming webinar

Thank You

Website: www.LegalZoom.com

E-mail: webinars@legalzoom.com

Twitter: @LegalZoom

Daniel Kent

Executive Director, Net Literacy

Website: www.NetLiteracy.org

E-mail: danielkent@netliteracy.org

Twitter: @rrdkent

For all the sources used in this

presentation, visit: http://www.netliteracy.org/crowdfunding-webinar-sources/

Appendix: Sources and Works Cited • https://bloomerang.co

• http://pewinternet.org

• http://www.synthesispartnership.com/

• http://www.thefundraisingauthority.com

• http://www.idealware.org

• http://www.nonprofitquarterly.org

• http://soundideas.pugetsound.edu/cgi/viewcontent.cgi?article=1098&context=economics_theses

• http://www.onlinegivingstudy.org/quarterlyindex

• https://medium.com/p/2a48bc6ffd57

• http://en.wikipedia.org/wiki/Crowdfunding

• https://www.blackbaud.com

• http://www.zdnet.com/ios-up-android-down-in-the-us-as-windows-phone-hits-eight-percent-in-europe-7000020117/

• http://mashable.com/2013/01/11/indiegogo-crowdfunding-2012/

• http://philanthropy.com/article/The-Big-Boom-in-Online-Giving/139965/

• http://www.nptrust.org

• http://www.philanthropy.iupui.edu

• http://www.slideshare.net/CrowdfundInsider/rockethub-the-crowdfunding-success-pattern

• http://crowdsunite.com

• http://www.crunchbase.com

• http://www.theverge.com

• https://siteanalytics.compete.com

ADDITIONAL PLATFORM

VETTING POINT EXAMPLES

Why Use Causes?

Transparency – data disclosed

175m total participation, 600m unique campaigns, $4.5m pledged

Among the highest number of campaigns

Network For Good payment processor

Zero platform (Causes) fee

563,787 unique monthly visitors

Card processing fee is 4.75% (among the highest)

Majority of campaigns are petitions

More top-down social media integration

https://www.causes.com/

Why Use Crowdrise?

Fundraising/team model

“Keep what you raise” funding model

Network For Good payment processor

3-5% platform (Crowdrise) fee

94,696 monthly unique visitors

2.9%+$0.30 card processing fee

Limited Branding and layout functionality

Lower monthly uniques compared to other platforms

http://www.crowdrise.com/

Why Use Google One Today?

Emerging form of crowdfunding

Zero platform (One Today) fee

Installed Instances 10,00-50,000

Payment processor: Google Wallet & Network for Good

Daily push notifications

1.9% card processing fee

Data not disclosed

Less control over visibility of campaign

http://www.google.com/onetoday/