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NONPROFIT WEBINARS Crowdfunding as an Innovative
Source of Nonprofit Funding
A little about me:
Daniel Kent Executive
Director
27,000 Computers
Refurbished
Increased Computer
Access to 250,000
Individuals Across the
Midwest
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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: [email protected]
Twitter: @LegalZoom
Daniel Kent
Executive Director, Net Literacy
Website: www.NetLiteracy.org
E-mail: [email protected]
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/
