Crowdfunding is the pooling of small amounts of capital from a large number of people, using the Internet and social media, to fund a project or business venture. As crowdfunding continues to grow rapidly in Canada, it is clear that the charitable and nonprofit sectors are increasingly turning to this important tool.
HiveWire and the Centre for Social Innovation are proud to present the 2015 Crowdfunding Guide for nonprofits and charities. With insights gained from examining over 27K nonprofit crowdfunding campaigns, this comprehensive guide will help your nonprofit or charity in the journey for crowdfunding success.
This guide is organized with a stepwise progression, so please feel free to follow the numbered sections in sequential order as you move through your crowdfunding effort.
CROWDFUNDING 101 – CROWDFUNDING BASICS
Crowdfunding is fundamentally about creating and exchanging value. We encourage you to think critically about what value you are creating, why people are interested in the work you are doing, and how you can build opportunities for the crowd to participate in your efforts. At its most basic level, crowdfunding is the aggregation of small amounts of money from a large group of people via the internet in order to fund something (e.g. a business, a project, etc.).
HOW DOES IT WORK?
Crowdfunding typically involves three key players: the campaigner, who is looking to raise money for a project or venture; the crowd of people who support the work; and a platform that hosts the campaign and brings together the fundraiser and the crowd. The fundraiser will start a crowdfunding campaign by creating a project page on a platform, and then ask the public to contribute funds to their effort.
The rise of social media sites such as Facebook and Twitter has made it much easier for fundraisers to find people willing to contribute to their campaigns. The growth of crowdfunding, and the associated success of many crowdfunding campaigns, is now heavily attributed to social media and networks.
TABLE OF CONTENTS
|STEP 1: Learn The Basics About Crowdfunding
|How does it work?
|Crowdfunding Engagement: Nonprofits & Charities
|Crowdfunding vs. Traditional Fundraising
|Why People Back Your Campaign
|Key Factors of Success
|Should Your Organization Use Crowdfunding
|STEP 2: Building Your Campaign
|Anatomy of Crowdfunding Page
|Creating a Great Crowdfunding Video
|Campaign Types: There are two basic campaign types
|Types of Rewards
|Metrics of Success
|STEP 3: Marketing Your Campaign
|Preparing Your Networks
|Conducting Your Campaign
|Optimizing Your Marketing
|STEP 4: Executing Your Campaign
|Campaign Logistics: Time Management and Workflow
|STEP 5: Post Campaign
|Once the Campaign is Complete
|Common Mistakes & Lessons Learned
|Proven Best Practices
|CSI / HiveWire / ESDC
|Fact Sheet 1: Campaign Execution Checklist
|Fact Sheet 2: Tools
|Fact Sheet 3: Choosing a Crowdfunding