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Crowdsourcing for communities
Alison Seabrooke Charlotte Stuffins
June 2015
Coming together to share knowledge
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Session outline• Introductions
• How crowdfunding is used by communities
• How community groups can benefit from crowdsourcing and knowledge sharing
• Crowdsourcing in practice – the Just Act website
Crowdfunding communities
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What is crowdfunding?Crowdfunding is a means of raising money online directly from supporters to fund the launch of projects, products and services.
It will normally be for a fixed period of time and will have a compulsory target –
so projects raise all or nothing.
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What is crowdfunding?
Source: Crowdfunder.co.uk
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What are the benefits?• It makes good use of Social Media,
video, Twitter, etc
• It builds interaction with backers
• Backers receive a ‘benefit’
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Haden Hill Dog Awareness Group
Promotes responsible dog ownership through:
• Annual Dog Awareness Day
• Social Dog Walks
• Social Events
• Informative Talks
• Sharing of information via Facebook, Website and Newsletter
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Setting milestones£300 - CHIHUAHUA
To purchase basic equipment to host a successful day to comply with health and safety requirements
£1,300 - BULLDOG
To purchase additional equipment e.g. gazebos for sun/rain shelters and to hire seating for spectators
£1,800 - GREAT DANE
To hire a coach/bus to run a shuttle service to the event to save potential parking issues
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What did they achieve?
• Raised £310 in 60 days from 14 people
• 4 people gave £3, 1 person gave £100
• Only 1 person went for the ‘free’ option
Crowdsourcing knowledge
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What is crowdsourcing?
• Moves away from finding ideas from traditional ‘experts’
• Instead consults a large group of people, often online
• Used in design, technology and education
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Wikipedia’s definition
“Crowdsourcing is the process of obtaining needed services, ideas, or content by soliciting contributions from a large group of people, and
especially from an online community, rather than from traditional employees or suppliers”
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Benefit for community projects
• Advice from likeminded people– easy to access and understand
• Pools resources – keeps costs low
• Reduces duplication – saves time
Crowdsourcing for communities – the Just Act website
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JustAct.org.uk
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Just Act…Inspiring community action
Support from across the sectors
Ideas exchange
Resource for Business Connectors
“I try to get along to any community or fun days that are running, as that’s where you meet other enthusiastic people and can make useful connections”
Forum post, June 2014
“Two of my local pubs are under threat, and they are the last two which means the death of the pub in the area. Has anyone any experience of working with a PubCo?”
Forum post, May 2015
“I am going to take advice from the charity and from the drop-in group before I do another
trip. Thank you for your comments, I will take them on
board ”.
Forum post, December 2014
How can you get involved?
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How can you get involved?Rate resources
Upload new resources
Write a blog
Post in the Just Act Forum
For further information please contact:
Charlotte Stuffins, Communications & Policy
Manager
www.cdf.org.uk
Responses to questions from Connect@Evolve• Crowdfunding questions from BITC @ Evolve event• • Does Crowdfunding attract gift aid?• Yes – as long as you are fundraising for a charity that is registered for gift aid. More detail on setting it up can be found here:
https://www.crowdfunder.co.uk/blog/top-tips-crowdfunding-charities/ • • What are the costs involved (we know they range)?• There are a range of crowdfunding platforms available and most operate on a percentage fee basis, normally if your project is successful (although some will charge even if you
don’t raise the money). Most will also charge transaction fees to backers e.g. credit card fees on behalf of banks/ credit providers. Here are a few of the popular ones costs:• Buzzbnk – 5% commission fee on successful campaigns, no fee is collected if campaign does not reach it's first milestone and the funds are returned to the backers. Also a
transaction fee for the donor/lender depending on the type of payment/card used. These fees are presented in the shopping cart when the user checks out: 2% for credit cards and 37p for Debit Cards.
• Crowdfunder – fees are 5% + VAT (so effectively 6%). PayPal charge 1.9%+20p on each pledge (currently the backer pays this). GoCardless charge 0.5% on all the amount raised with GoCardless (the project owner pays this). Stripe charges 2.4% + 20p per pledge (the Project Owner pays this).
– Under the 'All or nothing' payment scheme:• PayPal - If the project is unsuccessful your money is refunded.• GoCardless - If the project is unsuccessful no money is taken.• Stripe - If the project is unsuccessful no money is taken.
– Under the 'Flexible-funding' or 'Keep What You Raise' Payment Scheme:• PayPal - The project will receive all funds pledged.• GoCardless - The project will receive all funds pledged.• Stripe - The project will receive all funds pledged.
• Indie Go Go – charges a 9% fee on the funds you raise. If you reach your goal, you get 5% back, so the overall fee is 4%. Registered charities receive at 25% reduction on fees.• Space Hive – Charges a 5% on funds raised if a project hits its funding target. Rather than being deducted from each pledge, their commission fees are added to the overall cost of
projects. So if a project needs £100 to buy a tree, it will have to raise £105. Then transaction fees of 1.5% are payable on payments made via GoGardless. Fees of 3.4% + 20p per pledge are payable on payments made via PayPal. Like Spacehive's commission fee, they are only payable if projects hit their funding goal.
• Just Giving Crowdfunding – If you reach your target, they will send the funds to you minus a 5% fee and processing costs (1.3% credit card, 17p debit card). The 5% fee is taken from the total amount raised on your page, including any funds raised above your target. For all online transactions, credit card companies take a 1.3% fee and debit card companies charge a flat rate (17p for Visa debit cards and 16p for Mastercard debit cards).
• • Is it always all or nothing?• No – some platforms offer ‘flexible funding’ which means you can keep whatever you make, although you are likely to be charged a fee for this (whereas if you don’t reach your
target you often don’t pay a fee). Crowdfunder offer ‘flexible funding’ and on BuzzBnk you can set milestones, which you can then keep the money if you reach.
