Crowdfunding WebinarPatrick MoriartyExecutive Directorpatrickm@ourcommunity.com.au

Today’sagenda• Whatiscrowdfunding?• Howdoesitwork?• Mostcrowdfundingis“allornothing”.Whatdoesthismean?• Whatisaprojectdeadline?• Whathappenswhentheprojectreachesitsdeadline?• Whatifthefundingissuccessful?• Whatisthefundingisnotsuccessful?• Canprojectsraisemoremoneythantheirgoal?• Whatarerewards?

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Crowdfunding– whatisit?

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OxfordDictionarydefinition:“Thepracticeoffundingaprojectorventurebyraisingmanysmallamountsofmoneyfromalargenumberofpeople,typicallyviatheInternet.”

Crowdfunding worldwide*:2013 - >US$5.1 billion§ 2014 – >US$16 billion § 2015 - estimated over

US$34 billionCrowdsourcing.org

Image source: Thinkstock

Othertypesof“crowdfunding”• GivingCircles– usuallyfriends,familyorcolleagueswhogettogethertopoolfundsanddeterminewhatcauseorcharitytheywillsupport.

• ProgramslikeTheFundingNetwork– hostlivecollective-givingevents– like-mindedindividuals,foundationsandcorporationscometogethertosupportprojects

– projectsrepspitchforfundingThissessionfocusesononlinefundraisingplatforms

Whycrowdfundonline?• Fullcontrol/ownership• Easywaytoshareyourstoryandpromotewhatyoudo• Acreativewaytoreachyourtargetaudience- unlimited• Expandyourtargetaudience– evengoglobal• Quickandeasyforfunderstogetinvolved• Usuallytwo-wayexchange/conversationstarter

Eugowra, NSWRaised $5,020 to host visiting artists and paint a mural – telling the town’s story by depicting local rural life and families, as well as illustrating changes throughout Eugowra's history.

Typesofcrowdfundingcampaigns

Source: www.crowdinvest.com

Whocanruncrowdfundingcampaigns?Anyone• Individuals• Businesses• Not-for-profitgroupsDon’tneedspecialtaxstatus– unlessyouwanttorunadonationscampaign

– Butremember,youcan’tofferrewardsandgetataxdonation

Whatkindofcommunityprojectscanbecrowdfunded?Someexamples:• Equipmentforahospital• Paintforacommunitymural(orthewholedamnthing)• Enclosuresforawildlifebreedingprogram• Start-upcostsforanewsocialenterprise• Rebuildacommunitymeetingplace• Advertisingcampaignsaroundanissue• Printingofabook• Environmentalprojects• Performancesbyartistsorartsgroups

Thingstodobeforeyoustartacampaign• Beclearonwhatyouwantoutofit

– Targetdollarvalue?– Awarenessraising?

• Whatkindofcampaignwillyourun?– Doyouwantdonations?Orcanyouofferrewards?Ifso,what?Andwhatdotheycost?

• Articulateyourstoryandbuildcredibility• Planhowyou’llpromoteitandgetthewordout• Decidewhatwillhappenifyoudon’treachyourtarget• Setmilestonesalongtheway

– Howlongwillitrun?Whenwillyoustopifit’snotsuccessful?• Recognisetherewillbeupsanddowns

Howdoyoustartacampaign?First,findtherightplatform

Doyourresearchandconsider:1. LookandFeel2. EaseofUse3. PaymentProcessing4. Fees5. MarketingandSocialNetworkingCapabilities6. TractionandReach

Allplatformshavetheirownfeestructures• Creditcardcharges:from2%to3.5%• Paypalfees:from2.4%to5%.• Processingfees:30c• Anumberofsitesdon’tchargeaservicefeeunlesstheprojectreachesits

target.Ifthegoalisreached,thefeesrangefrom2.9%to5.5%.• Poziblefollowthisservicefeemodelforsuccessfulprojects:

– 3%forprojects>AU$500k– 4%forprojects>AU$100k– 5%forprojects>AU$1

• Flexibleprojectandfixedprojectoptions:– Flexibleprojectsarechargedafee(asabove)– Fixedprojectdonationsarerefundedifthegoalisn’tmetandnoservice

feeischarged.

Tipsforasuccessfulcampaign1. Visuals/design2. Planyourrewards3. Connectthroughstorytelling4. Personalandauthentic5. Bedifferentorremarkable6. Jointheconversation–

keeppeopleupdated7. Spreadtheword8. Maintainmomentum9. Hustle

Mt Rothwell Landcare Volunteers:Raised $11,154 via 105 supporters to upgrade

and purchase new enclosures to expand the captive breeding program for native Eastern Quolls.

Usevideo– onaverageraises5xmoremoney• Keepitshort– 2minutesmax• Clear,bold&strongintroduction:

– “Ihelppeople…..that....because"• Introducetheteamandbrand

– Whoareyouandwho'sbehindthis?• Engageandconnect– makeitshareable:

– Usequestions- Doyouremember?Haveyouever?Why’sitimportant?

• Tellastory:– Explainhowitallbeganandyourjourney,

tobuildtrust,credibility• Haveastrongcalltoaction

WhichplatformshouldIchoose?

Pozible:Crowdfundingisforeveryone

• Allornothingplatform– i.e.nofeesunlessyoureachyourtarget

• 57%successrate• >12,000projectslaunched• $50mraisedinpledges

SchoolsPlus– anonlineplatformfordonorsandschools

The Australian Schools Plus website connects donors who know the importance of a great education with schools seeking funding for activities and equipment that will have a real impact on their students’ lives.

DonationsCampaign:Newultrasoundmachineforthehospital,Canowindra

• "Itdidtakealotofexplainingtogettheideaacross."LocalPracticeMgr.

• The resultsquicklywonthedoubtersover.

• Importanttohavethefundraisingteamonboardandspreadingtheword.

• Communicatingtheneedhelpedtogetthelocalcouncilinvolved.

• Onlinecommunicationisagreatwaytoreachpeoplewithalocalconnectionwhohavemoveaway.

RewardsCampaign:Let’sbuildapub,BuchanRewards:• $10– Aroundonme(79)• $20– BuyajugforBuchan(135)• $40– ‘Webuiltapub’t-shirt(488)• $50– Buyaschoonersooner(84)• $80– Coffeetablebook(95)• $100– TheBuchanPubClub(454)• $500– Nameonamural(45)• $1,000– Brassplaqueinthebar(43)• $5,000– Barstool(9)• $10,000– CorporateKindnessHonour

Board(5)• $50,000– You’reaBuchanlegend(0)

All or nothing campaign on Pozible.

1,712 supporters raised $605,146!

DonationsCampaign:Keepingthepantrystocked

BigpushbyProjectManager:• PitchedSouthernCrossTV,ABCRadio&

TheMercuryformediacoverage.• Soughtsupportfromthelocalcouncil;

agreedtomatch$for$.• Usedpersonalcontacts,askedeveryone

tospreadtheword.• Usedsocialmediatoraiseawareness.• Flyersencouragingpeopletodonate

onlineorpopin.• 30Juneevent attheGagebrook

CommunityCentretoseekdonors.

Raised over $11,000(matched by Brighton Council

= $22k+)58 supporters

• Target:$150,000• Raised:$128,125• Supporters:224

Campaign multi faceted

DonationsWhich then was able to trigger grants

Acoupleofwatch-outs• Platformfees• Typosandpoorqualityphotos– youneedtodrawpeoplein

andbuildtrust• Thinkcarefullyaboutwhatyouofferasrewards – logistics,

costofshippingetc• Competingprojects– becreativeandfindawaytostandout• Keeptrackofyourproject–monitorwhatpeoplearesaying–

goodandbad• Beplanned – ittakeseffortandaclearstrategytobe

successful

RecappingtheLessons• Research– findtherightcrowdsourcingplatformforyourproject

• Communicate – clear,compellingandpersonal• Videos– strongfootagebringsinmoredonations• Utiliseyournetworks– theycanbeyouradvocatesandhelptospreadthelink/word.

• Update – keepyoursupportersupdatedwithyourprogress.

• Recognise – thankyoursupporters!(makesureyoudeliverontherewards)

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Additionalresources• www.OurCommunity.com.au• www.pozible.com• https://blog.pozible.com/plan-some-promotion-mate-6d7cfcce06e5 - How

toplanapromotionstrategy• www.schoolsplus.org.au• www.thefundingnetwork.com.au• www.chuffed.com/biggive/prelaunch

Othercrowdfundingsites• www.gofundme.com• www.startsomegood.com• www.Indiegogo.com• www.givenow.com.au

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