Crowdfunding is defined as the process of gathering small monetary contributions from a large group of individuals to finance a for-profit venture or support a cause. In the past, crowdfunding was accomplished through mail-order subscriptions, benefit parties, and other slower, although still effective, methods.
Modern crowdfunding utilizes the Internet to make the process faster and more efficient. Crowdfunding websites like Indiegogo and Kickstarter give would-be philanthropists an effective platform to advertise their causes while gathering essential funding.
The following are some tips for philanthropists who want to raise funds for their causes through crowdfunding websites.
Set clear goals
With crowdfunding, it helps to have specific, measurable goals. For example, a charity trying to raise money for homeless people should specify which cities or locations it would be targeting, what the funds will be used for, and which problems, in particular, the fundraising campaign would help alleviate. It also helps to set clear monetary goals such as $1,000 for 10 more beds for a homeless shelter and a deadline such as raising money for the extra beds before the start of the winter.
Choose the right crowdfunding site
There are dozens, if not hundreds, of crowdfunding websites. They all have different features and audiences, and some websites are better suited for the goal of raising money for charity than others. For example, crowdfunding websites CauseVox, FirstGiving, and Rockethub are particularly geared toward nonprofits and institutions of higher learning. Philanthropists should consider factors such as ease of use, fees, and marketing capabilities before choosing a website.
Build a great team
The success of a crowdfunding campaign relies heavily on the work of its team. Philanthropists should consider getting employees or volunteers involved in campaign management. Teams allow campaign managers to spread the workload and help them market to a wider audience.
With all the great tools out there today, raising funds for a worthy cause is no longer a pipe dream, even for first-time philanthropists. The tools are only as good as the user, however, so philanthropists should take the time to plan their campaigns thoroughly to maximize the benefits of online crowdfunding.