7 Crowdfunding Tips for Nonprofits

7 Crowdfunding Tips for Nonprofits

Crowdfunding is a great way to persuade a large number of people to make small donations to raise funds for a specific project or support a cause. It’s a type of fundraising strategy used by nonprofits to fundraise for their mission while engaging with their supporters through in-person events or online.

Most nonprofits have a large number of supporters that reach out to their personal network on behalf of nonprofits to raise funds. These supporters can be donors, volunteers, staff, board members or other community members who support your cause. This type of supporters are ideally known as social fundraisers or crowdfunder.

Crowdfunding for nonprofits helps charities and NPOs reach a much larger and untapped audience with a potential to raise funds exponentially. It allows them to grow their online community, generate awareness about the cause and gain new supporters.

How does Crowdfunding for Nonprofits work?

Most successful crowdfunding campaigns are done online by making use of crowdfunding websites such as GoFundMe, Donorbox, Kickstarter, Classy, CauseVox, MightyCause, FundRazr, Indiegogo, Fundly etc.

Here supporters can set up a crowdfunding page which is just like a donation page, but with a personalised touch and then promote them on their social media networks, website, blog or email. In a crowdfunding page, you can add your story, images, video, logo, define your fundraising goal, timeline, setup payment processors, add wish-lists, perks, incentives etc

It’s an easy and unique way to help and raise funds for their supported cause or organisation.

Apart from online crowdfunding, nonprofits can make use of live crowdfunding where a spokesperson for the nonprofit can conduct a live event to pitch their cause to the audience gathered and pledge for donations. It also gives an opportunity to nonprofits to answer potential donors’ questions and collect feedback.

Benefits of Nonprofit Crowdfunding

  • When people see that their connections are contributing to the cause, it’s more likely that they will too start doing it and ask others to do so.

  • Allows to raise funds from a larger audience without hiring more staff

  • Easy to set up, cost effective and fast way to raise funds

  • Great way to build brand awareness and new supporters

  • Opportunity to test crowd response and get feedback

Top 7 Crowdfunding tips for Nonprofits

  1. Set a clear goal for your crowdfunding campaign i.e. what amount of money you wish to raise and by what time

  2. Create an authentic and captivating story that resonate with your audience and create instant empathy

  3. Create a sense of urgency in fundraising appeals

  4. Ensure that your crowdfunding website is responsive and fast loading

  5. Make use the crowdfunding for specific projects or cause and not for general funds

  6. Don’t forget to thank donors soon after their contribution. You can do this by sending a personalised email, donor gift, social media shout out or by listing them on your website supporters page

  7. Make use of videos for introducing your organisation and its mission to improve user engagement

Today all nonprofits big or small understand the power of “crowdfunding” and are effectively using it more than ever due to coronavirus pandemic. However, it does require proper planning with serious investment of your valuable time and efforts to derive required results.

But this can be easily paid off with the raised awareness, increase in donor base and with the growth of online supporters.