Menu

CHAPTER THREE: HOW NONPROFITS CAN USE CROWDFUNDING

Chapter List

Empower Your Supporters To Fundraise On Your Behalf

Crowdfunding is the best way to gain more new donors for your cause. Volunteers, advocates, celebrities, and corporations can raise donations from friends and family using their own peer-to-peer fundraising pages shared across social media, text message, and email. The average nonprofit crowdfunding campaign sees 5 out of 8 donors being new to their organization, and the average individual collects $612.

This guide can be applied to virtually any crowdfunding campaign, giving it the potential of going viral across social media.

See how you can empower family, friends, and corporate partners to fundraise on your behalf for all types of Crowdfunding campaigns:

Peer to Peer Fundraising Reach Today’s Donors Crowdfunding Donor Psyche Crowdfunding Success Stories Crowdfunding Tips How Nonprofit’s Use Crowdfunding

Empower Your Network of Supporters to Raise Donations

Conveniently raise donations via mobile, social, and online networks

Crowdfunding and peer-to-peer fundraising often go hand in hand, but knowing the difference is key for both you and your donors. Above all, donor education is paramount when it comes to the success of your crowdfunding campaign.

crowdfunding for nonprofits

Crowdfunding for Nonprofits:

Marketing directly to your existing donor base and new donors to help you raise donations for a specific campaign.

  • Create a library of assets and communication for educating donors
  • Create emails, templates, images and more
  • Make it as easy as possible for donors to give
  • Plan a series of training events (in-person or virtual)
  • Set clear goals and make the value of the campaign clear

Peer-to-peer fundraising:

Educating your donors to empower them to market to and raise money from their personal networks.

  • Decide if you are rallying existing donors or attracting new ones
  • Use success stories and compelling videos to attract new donors
  • Make it as easy as possible for donors to give
  • Give value 3 times before asking something of people
  • Email is still a valuable way to spread the word—so keep building your email list

Did you know? 1/3rd of all online donations are a result of peer-to-peer fundraising and nearly 90% of donations come from Millennials and Gen Xers!

How to Reach Millennial and Gen X Donors

Peer to peer fundraising

They avoid phone calls, rarely respond to emails, and tend to throw out any direct mail they receive. So how do you get them involved with your cause? Target them on the one piece of technology they have on them at all times: their smartphone.

Both Millennials and Gen Xers are generous and want to give, but tend not to carry cash or checks. Therefore, it is imperative that everything your organization does is accessible from a mobile device. Mobile and online fundraising solutions are the #1 way to do this successfully for your cause.

nonprofit crowdfunding donors

Reaching Millennial Donors

Age 18-35
Millennials have recently surpassed Boomers as the largest generation in America, and by 2025 will make up 75% of the workforce. They are active on their phones and respond best to text messages and social media, but rarely respond to personal email or voice calls. They tend to watch videos online before making a gift, and prefer to donate online right from their phones.

crowdfunding donors

Reach Gen X Donors

Age 36-50
Combined with Millennials, Gen Xers make up over 2/3 of the workforce today. These donors are most likely to fundraise on behalf of a cause, make a pledge, and volunteer their time to an organization. Gen X donors check email regularly, stay up-to-date on social media feeds, and prefer to receive communication by text message, making mobile and online fundraising solutions vital in targeting them.

Appeal to the Donor Psyche to Motivate People to Give

Psychological motivators are the best way to inspire people to give!

peer to peer fundraising psychology

Empathy: use compelling video, images, and stories with clear calls to action

Storytelling: stories connect people, and people connect to the stories being told

Impact: appeal to the ego—people want to feel like they are making a difference for your cause

Social pressure: people are more likely to give after seeing others do the same

Scarcity: create a sense of urgency to get people to participate

Small First Step: a small initial commitment is more likely to lead to a bigger commitment later on

Nonprofit Crowdfunding Success Stories

Leveraging the power of the “crowd” and the community is what makes crowdfunding so successful, so share the impact of your cause! Be sure both your vision and your goal are clear and provide updates throughout the campaign to keep fundraisers motivated and informed about the progress being made as you move closer to your goal.

nonprofit crowdfunding success stories

Crowdfunding & Peer to Peer Fundraising Best Practices

  • Conduct organized training to orient crowdfunding volunteers
  • Encourage participants to customize their page
  • Attach direct impact to each dollar and explain gift benefits
  • Be transparent about costs to encourage good stewardship
  • Provide a fundraising guide to encourage peer-to-peer activities (garage sales, bake sales, run/walks, etc.)
  • Create a journal framework for people to share their stories
  • Always bring it back to your mission and goal!

Nonprofit Crowdfunding Tips

Treat every follower as a potential fundraiser

Tell your nonprofit’s story across social media to help propel the momentum of your crowdfunding campaign. From micro donations to larger gifts, show your audience what every level of involvement means to your cause in order to increase participation and giving, and inspire them to share your cause with their own networks!

crowdfunding social post example

Social Post Example

crowdfunding donation page example

Crowdfunding Page Example

Tips for Nonprofit Crowdfunding Success:

  • Ask for participation across all social networks
  • Utilize keywords and links for easy promotion across channels
  • Use your unique voice to tell your story along with donation asks
  • Include bold, bright images and compelling video and provide clear instructions within each to boost participation
  • Encourage your audience to get their personal networks involved by sharing posts and asking them to fundraise with you
  • Keep your audience updated as you reach milestones along the way
  • Show supporters how they will be making a difference by donating or fundraising on your behalf
  • Thank and recognize donors and fundraisers for participating
  • Post often, across all networks—they won’t all be seen!

How Your Nonprofit Can Use Crowdfunding Right Now

Deciding on the type of crowdfunding campaign is only the first step.

While you can start your campaign by simply by reaching out to a small circle of supporters, you must also understand how and where to actively promote the type of nonprofit crowdfunding campaign you choose.

Then decide what you can do to help your peer-to-peer fundraisers capitalize on every opportunity available to make the biggest impact.

Alumni Engagement

Those who have been involved in the past are most likely to participate

Alumni Crowdfunding

“Alumni” isn’t limited to just schools—it’s anyone who has been involved with your organization:
volunteers, donors, past beneficiaries, and anyone on your email or mailing list.

These supporters have already invested in your cause in some way, making them the best people to spread the word and raise donations on behalf of your organization.

Run, Walk, Swim, Rides, and More…

Embrace the trend in order to targer Millennial and Gen X donors

Run, Walk , Swim, Ride Crowdfunding

Both of these generations spend much time online and on their smartphones and look for fun and meaningful ways to give back, making them ideal candidates to fundraise for your cause before and during a run/walk (or other event) using mobile solutions.

Use all your available communication tools including social media, text messages & email to spread the word about the event to get supporters signed up.

Make sure to follow up with your supporters on your progress frequently to create excitement leading up to the event.

Try creating teams to fuel friendly competition and boost donations to your cause.

Disaster Relief

Nearly every organization will experience a situation where funds are needed ASAP

Disaster Relief Crowdfunding

Donations are the lifeblood of educational, faith-based, healthcare and all other types of charitable nonprofit organizations. The faster you raise money, the faster your organization can do good.

There are 4 essentials of effective disaster relief crowdfunding campaigns that will drive maximum awareness, participation and donations.

  • Effective Branding – includes org name, logo, colors, imagery, clear goals and dates.
  • Compelling Storytelling – includes videos, photos, testimonials
  • Make It Easy to Give – includes a secure mobile responsive donation form with clear giving instructions.
  • Make It Easy to Advocate – includes empowering any person or business to easily share and create personal fundraising pages.

Service Projects, Missions, and Trips

Transform supporters into advocates for your cause

Trips Crowdfunding

Fuel your organization’s mission by empowering your most passionate supporters of all ages to raise the funds they need to make a difference in communities across the world from their family, friends, and social networks.

Provide them with the tools necessary—all the requisite links, graphics, wording that they need. The more detailed and specific you can get when asking them to perform a task, the better!

Next Chapter Arrow

Download a free PDF version of this online fundraising guide…

PDF version contains all of the content and resources found in the web-based guide

Pin It on Pinterest

Share This