Non-profit Needs to Know about Crowdfunding
Fundraising Platform Non Profit Organization Online crowdfunding has exploded in popularity among non-profits of all sizes and types in the past few years. And it’s easy to understand why: an estimated $5.5 billion was donated through online crowdfunding sites in 2015.
While online crowdfunding dollars are not a replacement for foundation grants, FoundationSearch clients wanting to diversify their contributed income have a flexible and powerful tool with crowdfunding.
Raises New Money: Online crowdfunding raises money for one-time events, existing programs, pilot projects and long-term campaigns, such as a capacity building or annual giving campaign. Everything from a food bank’s new freezer to a multi-year, multi-million-dollar capital campaign can be funded through an online campaign that anyone – a former board member, a current donor or a stranger – can discover and fund.
A recent report by Classy, a fundraising platform for social impact organizations, found that though the median one-time gift size for crowdfunding is about $52, its value grows over time. Classy account manager Elizabeth Hilbert explains, “A vast majority of recurring giving occurs on donation and crowdfunding funding pages, so these donors acquired through crowdfunding are your future major donors and recurring givers.”
Increases Organization’s Visibility: A non-profit grows its online presence through crowdfunding campaigns by sharing news and updates to prospective and existing donors. Keeping supporters updated through the life of a campaign (and afterward) goes a long way in building trust between a non-profit and its donors.
Additionally, donors discover non-profits by searching a crowdfunding platform to support a cause, not a specific organization. Classy’s Hilbert adds that if a visitor to a crowdfunding site initially does not donate, they are primed for future gifts. “Research suggests supporters have to be asked anywhere between 5 and 8 times before they take action.”
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