Consultations with NGO’s consistently indicate a dire lack of fundraising resources and donor relationship challenges. I identify alternatives to whatever they are currently trying and am currently exploring crowdfunding options. My posts about the topic reflect my own learning curve and thoughts.
Why Crowdfunding is a Possibility
By April 2012 there were reportedly 452 active crowdfunding platforms worldwide. According to the Crowdfunding Industry Report, these platforms raised almost $1.5 billion and successfully funded more than 1 million campaigns in 2012. That’s huge!
That’s over 1 million campaigns that would have competed for the same limited pool of uptight donors and stiff investors. How many do YOU think would have been able to secure money using traditional means and how many would have done kick ass presentations only to be told – sorry, you just don’t fall into a priority sector? These were campaigners who had passion, belief and were active in driving ideas and embracing new forms of financial interaction and taking the gap. They made it happen – there’s space for more! 🙂 <whoop!>
Find the Right Model
Equity and Lending based vs Donation and Reward based crowdfunding.
Equity and Lending are models based on financial returns and tend to raise the largest amounts of money per campaign. (Think digital media such as music and movies.)
The most common campaigns are donation based. If you require donations to support a cause then you need to create a campaign that appeals to donor beliefs and passions in order to be effective. The reward based category is the largest in terms of platform availability and is also growing the fastest.
Your model should also be relevant to the platform you choose. Bear in mind that different platforms offer different value propositions and charge differently.
Read the abridged Crowdfunding Industry report.
Life SA 