As the digital age has progressed, it has changed many aspects of our lives and businesses. We no longer do things the way we did prior to the advent of the internet. One of the areas that has been more recently affected is that of fundraising.
Internet fundraising platforms on which users may donate to individual projects have become all the rage.
Crowdfunding, as it has been affectionately dubbed, is one of the best methods for people to raise money for personal projects, as well as for new businesses to raise starting capital.
One use of crowdfunding that most people largely overlook, however, is its immense usefulness in raising money for charities and nonprofit organizations.
Nonprofit Fundraising on GoFundMe [Video]
In this article, we will take a look at why crowdfunding is such an excellent option for nonprofit fundraising, and also show how organizations may put it to use almost effortlessly.
Firstly, we must understand what makes crowdfunding so useful in fundraising.
Imagine a local fundraising event. Because it is a physical event, there are overhead costs, physical space for it must be found, and a great deal of time and effort must be put into setting it up, running it, and tearing it down.
After all is said and done, the organization that was using the event to raise money makes only the difference between the total money raised and the initial cost. While this can be high, there are certainly no guarantees.
This summary is not meant to bash live fundraising events, but only to show some of their limitations and drawbacks. Crowdfunding, on the other hand, is the complete opposite.
A crowdfunding campaign can be set up quickly and easily, no physical resources of any kind are required, and there are no initial costs of any kind.
Best of all, while more traditional fundraising methods are usually geared only to local contributors, a crowdfunding campaign can reach potential contributors all over the world, vastly increasing the possibility for donations.
So, how does an organization go about starting a crowdfunding campaign to raise money? The process is actually quite simple, and can be done in just a few minutes.
First, a clear goal must be determined. Contributors on crowdfunding platforms tend to donate more readily when there is reason more specific than general fundraising.
Nonprofit Fundraising Ideas [Video]
For example, if a church was raising money to send a group of people on an overseas missionary trip, that end should be very specifically stated as the purpose of the campaign. The more information is added, the better the campaign will look to those who might donate.
Secondly, media of some sort should be added to the campaign. Pictures are good, but video is always best. Putting a video on a crowdfunding platform will create greater interest in your cause.
Lastly, the goals, specifics, and media that have been put together should be put up as a campaign on a crowdfunding website.
While there are many such sites, nonprofits would probably be best to use GoFundMe, which is the world's largest crowdfunding platform. It is best for nonprofits because it has a specific section for nonprofits and charities, making it easier for those with a philanthropic inclination to find your campaign.
The platform you use will guide you through the creation process, which should take no more than 10-15 minutes if you have everything ready in advance.
As you can see, crowdfunding commands significant advantages over traditional fundraising in both ease of setup and initial cost involved. Getting a crowdfunding campaign started is extremely easy, and there is nothing to be lost by doing so.
One thing to keep in mind to ensure the success of a crowdfunding campaign is that you must promote it outside of the platform.
If your organization has social media pages, a newsletter, or even live meetings, you can use these to get the word out that you are currently raising money via your campaign, and ask that people contribute to it.
Crowdfunding, especially when well promoted, can be one of the best tools a nonprofit organization has for raising money.