Does crowdfunding actually work? – 8 convincing reasons for your nonprofit to try crowdfunding today
Everyone in the nonprofit sector knows what it’s like to be stretched too thin. Chances are, your organization is overworked, underfunded, and putting out fires left and right. We all choose this path because we want to make a difference and help solve issues we’re truly passionate about. But when you’ve barely got the resources to address your core mission, spending time learning about new ways to fundraise can feel like an insurmountable task – even if they have the potential to bring in more funds and spread your message to a wider group of people.
Trust us – at FundRazr, we get it. That’s why we designed our platform carefully, with the goal of breaking down the barriers that prevent nonprofits from trying out crowdfunding and online giving. Experimenting with new technology can often feel like a big risk, especially if there’s no real problem with the way you’re doing things now. You might be thinking, “but what if it doesn’t work out, and I’ve invested time, money, and energy for nothing?”
The good news is that we can offer real solutions to make implementing crowdfunding an effortless no-brainer. Read on for our simple, clear-cut explanation of what crowdfunding is, exactly, and 8 convincing reasons why it can work for you.
1. Crowdfunding helps you build a stronger connection with your audience
You probably already know that the key to successful fundraising is connection and a great story. The good news is that online giving like crowdfunding can play into that mission naturally and intuitively. The features built into enterprise-class crowdfunding platform work to reach out to your audience and include them in the compelling story of your organization’s mission. You can post real-time updates that will automatically be sent to your donors and campaign followers, keeping them engaged in the real-world impact your work is having. Integrated social media makes it effortlessly easy for your audience to like, comment, and share your campaign with their friends. Donation can be this easy, too – not only can your supporters give with the tap of a button, but you can set up recurring monthly donations for those who care deeply about your mission and want to stay involved. The goal of crowdfunding is to help you attract donors, then engage this new and existing donor base into online giving and turning them into your passionate advocates.
2. It will bring sustainable, incremental growth to your yearly donation stream and be less dependent on individual cheques and one-off donations
One important way that crowdfunding differs from traditional methods of fundraising is that it opens the doors to long-term, extended fundraising possibilities. Unlike yearly galas, grants, and one-off peer-to-peer campaigns, crowdfunding can, if you like, be a continuous part of your nonprofit’s fundraising efforts. The previously mentioned online monthly donations can work very well with this type of strategy, and your social and web presence can be used to create a club- or community-like feeling for these dedicated supporters, making sure they feel included and rewarded for their generosity. Even if your fundraising campaign is tied to an event, it can extend the duration of your audience’s awareness of that project, and act as a funnel to move donors into a recurring mode of support. Another way crowdfunding can bring sustainability is through other types of crowdfunding projects such as microprojects, do-it-yourself (DIY) fundraising projects and more. The possibilities are limitless!
3. It increases awareness about your cause and help you reach new donors
For modern nonprofits, fundraising and spreading awareness are two sides of the same coin. Effective online crowdfunding brings these activities together on an actionable, branded campaign page that pulls in the viewer, immediately sharing with them the high stakes and big impacts of the work you do. This gives your nonprofit an amazing power – for your campaign to be a tool not only to bring in donations on a consistent basis, but to raise awareness about your cause and get people talking, learning, and sharing. In this way, crowdfunding becomes a strong marketing asset and reason to reach out to new people who are not familiar with your cause.
4. You can tap into a new generation of donors
Crowdfunding is a new way of giving for a new generation. Unlike their predecessors the Baby Boomers, Generation Z and Millennials prefer to give online, and demand to know exactly how their money will be spent – right away. What’s more, they spend time researching how they spend their money, looking to find causes they feel personally connected to, and may also be swayed by the opinions of their peers and influencers. All these reasons make online, socially-connected giving an absolute must if you want to connect with these demographics long term. It may sound like a lot of changes to make in how to relate to your network, but FundRazr takes the guesswork out of it by building all these capabilities right into the platform in a user-friendly way.
5. You can communicate your results and impact more effectively
The ready-to-go network of donors that crowdfunding gives you will make sharing your results and impacts easier than ever before. Through wishlists, perks, and incentives, you can make donating fun and interactive, closer to the experience of giving a carefully chosen present than merely selecting a number. As your campaign reaches important funding milestones, these successes will be shared with all the donors, allowing them to share in these happy moments and reassure them that their gift helped move you forward. Updates in your day-to-day work can be shared here too, keeping the storytelling going around your nonprofit’s mission and ensuring that your audience stays engaged. In short, FundRazr takes most of the hard work out of keeping an immediate connection with your network, whether they’re devoted repeat donors, those curious about donating, or just have a passing interest in your cause.
6. It’s safe and risk-free
With FundRazr, you can start your crowdfunding campaign for free right away, with no upfront costs. It’s important to us that nonprofits get the chance to try out this method and fundraising and enjoy its capabilities for amping up your fundraising and awareness raising efforts. With this low barrier to entry, why not set up a campaign as a test-drive? You may be blown away when your community takes it to the next level by bringing in more money and new donors.
7. It helps you tailor your fundraising strategy to your donors’ journey
Knowing your donor journey is important for successful fundraising. Just as when they meet a new person, potential donors will go from acquaintances with your nonprofit, then grow closer as they become more invested in the work you do. Ideally, they’ll eventually consider you a ‘friend’ – maybe even one they respect enough to introduce you to their family! With crowdfunding, you can tailor your fundraising strategy to your donors, allowing you to meet them where they prefer to engage and give. Online fundraising opens up multiple ways for your donors to engage, according to how they feel most comfortable. They can like your cause on Facebook, follow you, share it with their network, commenting on new posts and milestones, donate or even become your advocate and volunteer! With crowdfunding, there are just more possibilities – and no drawbacks.
8. It’s easy!
Raising money can be so time-consuming and stressful for nonprofits that they’re left with no time to try something new. And with good reason – when you’re already overextended, it can be very intimidating to approach something as important as money in a whole new way. However, FundRazr simplifies the process, taking the burden of coordinating and managing campaigns off of your hardworking team. Because FundRazr automates many of its processes, campaigns simply don’t take much manpower to run. The many, inspirational success stories of those who use FundRazr speak for themselves: just look at Last Chance Animal Rescue, who launch 3-5 campaigns a week with a team only 3 staff members. Thanks to this strategy, they bring in millions of dollars to help save vulnerable and abandoned animals.
So if you’ve been curious about crowdfunding, don’t let worries about time, cost and hassle hold you back. With FundRazr, any time of crowdfunding campaign is just a few minutes away. We have more than 4000 organizations who adopted crowdfunding and made it a part of their regular fundraising strategy. Try crowdfunding today or connect with our crowdfunding coaches about your campaign goals.