The Power of Crowdfunding

In today’s world, social media and the Internet have become much more than a form of personal entertainment–they have become powerful tools capable of rallying the support of hundreds of individuals. Crowdfunding–one of the newest forms of fundraising–is proof of the innovative power of technology in the modern world.

So what exactly is crowdfunding? Using the help of an online fundraising campaign website (available through many companies, as listed below), crowd funding places emphasis on using digital communication to spread a message, rally support for a cause, and ultimately turn that support into dollars.

Crowdfunding has seen tremendous results in the past. In one notable case, a man trying to raise vacation funds for bus monitor Karen Klein (whose story hit national headlines after she was bullied by a group of school children on a bus in upstate New York in June 2012) hoped to raise $5,000 through crowdfunding. Amazingly, at the end of the campaign, he had raised over $700,000 for the cause–exceeding his goal by over 14,000%.

Although national attention certainly helped the campaign for Klein, it still proves a point–crowdfunding works. For individuals, groups, and organizations looking to raise money for a cause, crowdfunding can be an easy and effective path towards achieving fundraising goals. A crowdfunding campaign has two major steps:

STEP ONE: Establish A Cause and Sign Up With A Crowdfunding Platform

In simple terms, sign up on a crowdfunding website. There are many crowd funding sites across the web, each with different terms and conditions established by the host company, so it helps to look around before choosing a site. According to Kara Scharwath of TriplePundit.com, the top ten crowdfunding platforms are:

1. Kickstarter
http://www.kickstarter.com
2. Indiegogo
http://www.indiegogo.com
3. Fundable
http://www.fundable.com
4. Crowdfunder
http://www.crowdfunder.com
5. EarlyShares
http://www.earlyshares.com
6. SeedInvest
https://www.seedinvest.com
7. GetFunded
http://getfunded.com
8. RelayFund
http://www.relayfund.com
9. WeFunder
http://wefunder.com
10. CrowdCube
http://www.crowdcube.com

(Source: http://www.triplepundit.com/2012/07/emerging-next-generation-crowdfunding-platform-roundup/)

This step is important because it gives people–even people around the world–an easy way to donate to your cause. By using an online platform that collects all of your funds, you establish a simple, professional-looking page that could easily be passed along to others by passing along a URL address. By making donating easier to do, there is a greater chance that people far and wide will see your call for action and respond with donations toward your cause.

STEP TWO: Spread The Word

This means utilizing the power of the Internet to get the word out about your fundraising campaign. Essentially, crowdfunding is similar to turning your campaign into a “viral hit.” This only happens with the help of two things: utilizing several digital communication sources, and utilizing all of the members of your fundraising campaign team.

The key to success in crowdfunding is to use the connections you have within your group and motivate others to spread the message along through any media form they can. As when a video goes viral on the Internet and everyone is talking about it, you want everyone to be talking about your cause and telling others about it, therefore you must get the word out in any and every way you can.

Harness the power of e-mail, Twitter, Facebook, YouTube, and other social sharing sites to shed light on your cause and campaign. Post the link to your fundraising website profile on social media sites and attract donations. With several people on your fundraising team using all of their social media connections to get the word out, you can create a crowd of people that will fund your cause.

With the right cause and a strong effort from every member of the fundraising team, crowdfunding certainly holds potential to be an effective and simple form of fundraising for any group.

Tags: After Grad Party Fundraiser, Church Fundraising, Fundraisers, Fundraising, School Fundraiser, Sports Team Fundraiser

Category: Fundraising Tips, Ideas and Strategies