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How To Crowdfund Successfully
Masterclass Workbook
11th September 2015
@Findacure_fdn / #RDcrowdfund
www.findacure.org.uk
WHAT IS CROWDFUNDING?
Crowdfunding is the practice of funding a project by raising many small amounts of
money from a large number of people, typically via the Internet. Unlike traditional
funding, crowdfunding is from individuals, who donate money, either in-kind or in
return for some form of gift (a ‘perk’), which often vary according to the size of
donation made.
The benefits of crowdfunding can include:
Awareness: Crowdfunding helps share your stories about people working
together to make the world a better place.
Engagement: The average project reaches over 10,000 people, helping to build
the community and find further donors/volunteers.
Fundraising: Crowdfunding is a vital source of funds and has the potential to
reach millions through partners and projects, raising the profile of your
organisation.
RUNNING A CROWDFUNDING CAMPAIGN
There are four stages to running a successful crowdfunding campaigns: planning,
launching, promoting, and thanking. The first step usually takes up the most time as it
is crucial all details are planned and prepared prior to launching to ensure a successful
campaign.
PLANNING
CHOOSE AN APPROPRIATE PROJECT
First step for running a crowdfunding campaign, is to identify an appropriate project.
You need to have a concrete project, where supporters can see their donations directly
helping and making a real difference.
Out of the above brainstormed ideas, which one is the most tangible? Which one
would have the largest demonstrable impact? Why?
What projects do you
need to fund?
BUILD A STRONG TEAM
Crowdfunding campaigns consume a lot of time and require a lot of creativity to appeal
to supporters in new ways. The team needs to include individuals with different
backgrounds to channel new ideas and approach the campaign from different angles.
What skills do you bring to the team?
What skills and experience do you need on your team?
Who could you approach for your team?
SET A GOOD TARGET
How much will it cost to deliver your project in full? Remember to include things like
staff time, venue hire, travel expenses, etc.
How much does your campaign need to raise? Remember to include the cost of
producing and shipping perks (next page), and the crowdfunding platform fees.
How much can you reasonably expect to raise? Remember, you should expect to raise
at least a third of the donations from your existing network.
£ (network) X 3.3 = £
If the amount you expect to raise is significantly lower than the amount you need to
raise, this is an important point to stop and consider if crowdfunding is the right option
for you.
GET GOOD PERKS
The perceived quality of perks is determined by three factors:
1. Value: the value of the perk is much larger than the previous perk
2. Customization: the perk is customized to the donor
3. Rarity: the perk is offered in limited numbers and/or cannot be found
elsewhere
Donation
(£) Value Rarity Customization
% of
Donations
% of
Revenue
generated
10 Low Low None 19.69 2.80
25 Low Medium None 32.52 11.43
40 Low Medium None 24.34 13.68
50 Medium Medium Low 9.47 6.66
100 Medium High High 10.48 14.73
500 High Very
high Very high 2.63 18.50
1,000 High Unique Very high 0.64 9.00
5,000 High Unique Very high 0.23 16.17
10,000 High Unique Very high 0.05 7.03
Perks you can offer
When planning your perks, it’s important to remember that they will have a cost
associated with producing them and shipping them. Use the table below to plan out
how much to offer each perk for, how much it costs to produce, and the total income
you’d receive per perk.
Donation
(£) Perk
Cost of
Producing
(£)
Total
Income (£)
NAIL YOUR VIDEO
The next step is developing a strong message for your campaign, and the best way to
convey this message is through a campaign video. The best videos are those that begin
with an emotive and heartfelt story, which then branches into a narrative about the
project itself. You need to hone your message to fit within two to three minutes,
grabbing the attention of the viewer in the first 30 seconds.
0:00 – 0:30
_____________________________
_____________________________
_____________________________
0:30 – 1:00
_____________________________
_____________________________
_____________________________
1:00 – 1:30
_____________________________
_____________________________
_____________________________
1:30 – 2:00
_____________________________
_____________________________
_____________________________
2:00 – 2:30
_____________________________
_____________________________
_____________________________
2:30 – 3:00
_____________________________
_____________________________
_____________________________
TIME IT WELL
When considering the timing of your campaign, you should consider the following:
When will you launch your campaign?
How long will it run for?
What events can you organise or attend to promote the campaign?
Are there awareness days for your condition that you can time the campaign
around?
CREATE A CLEAR PLAN OF ACTION
You need to constantly push the campaign among your network, and continually
update your page to make it engaging to those who are on the fence about donating.
Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7
Day 8 Day 9 Day 10 Day 11 Day 12 Day 13 Day 14
Day 15 Day 16 Day 17 Day 18 Day 19 Day 20 Day 21
Day 22 Day 23 Day 24 Day 25 Day 26 Day 27 Day 28
Day 29 Day 30 Day 31 Day 32 Day 33 Day 34 Day 35
Day 36 Day 37 Day 38 Day 39 Day 40 Day 41 Day 42
Day 43 Day 44 Day 45 Day 46 Day 47 Day 48 Day 49
LAUNCH
PRIME YOUR NETWORK
Stakeholder Group e.g. patients,
companies, press
Interested Individuals
e.g. John Smith, Jane Doe
Support They Could Give e.g. donate, radio show
How To Approach Them
e.g. personal email, press release
PROMOTE
UPDATES
Ideas For Updates e.g. patient stories, news surrounding
your condition, team profiles
Added Interest e.g. video patient stories, graphics
explaining disease mechanisms, photos
ADDITIONAL NOTES
APPENDIX
PICK THE RIGHT PLATFORM
There are a huge number of crowdfunding platforms, each serving a slightly different
purpose and audience. But which one should you choose?
The London Business School conducted the following research to identify which
platforms are best for non-profit campaigns.
CROWDRISE.COM
This platform is geared merely towards legally registered non-profit organizations and
can be used independently or in conjunction with other platforms to raise money.
Pros
Charities have raised reasonably
high amounts of money
Different fees for different
memberships options (5% for
basic membership, 4.95% for
paid memberships)
Cons
Transaction fees ($1.5- $2 per
transaction+ 5% of fundraising).
Total fees are 7.5%-9%
Projects tend to be small in size
(funds are typically less than
$200,000)
INDIEGOGO.COM
This platform is typically used to raise a small amount of money for a distinct project
or activity, including entrepreneurial, creative, and non-profit projects.
Pros
Discount on transaction fees
given the fundraising target is
met (only 3%)
Non-profit projects get an
automatic discount of 25% on
transaction fees (6.75% instead
of the typical 9% platform fees
Cons
People expect to receive a perk
in exchange for donations
KICKSTARTER.COM
Kickstarter is a crowd-funding platform to fund creative projects. These are typically
films, games, music, art, design, and technology.
Pros
One of the most popular
platforms with 4.1m pledgers
Creators keep 100% ownership
Provides analytics and
collaboration tools
Cons
Limited time to raise funds (90
days maximum)
All or Nothing Funding model
Fees of 5% of all funds raised
RAZOO.COM
Razoo is a crowd-funding platform for good causes. This funding is only available for
non-profit projects.
Pros
Receipts are tax deductible
Claims to be one of the
cheapest crowd-funding
platforms (flat fee of 4.9% on all
donations)
Creator keeps all the money
raised
Provides analytics tools
Cons
Charges 4.9% flat fees on all
donations received
Only 300,000 people have
supported causes using this
platform
GOFUNDME.COM
The platform focuses on helping individuals in adverse situations or on funding social
causes (such as charities, foundations, or other social projects). The projects are
usually related to entrepreneurship and education.
Pros
Donation-based approach
Provides analytics tools
Offers both online and offline
payment methods
Cons
Charges 5% of the donations
received
Projects that attract most
attention are those helping
famous/ popular individual or
are related to well-covered
events