Crowdfunding for organizations can help all types of nonprofits quickly meet fundraising goals and attract new donors in the weeks leading up to a major event. As a medium, crowdfunding is highly versatile and effective for nonprofit organizations ranging from local sports clubs to international humanitarian aid.


Nonprofits adopt for-profit fundraising models

Writing for LinkedIn Pulse, Gene Takagi suggested that one of the major fundraising trends in 2015 will be nonprofits getting more involved in for-profit social fundraising. An increasing number of businesses have been initiating charitable campaigns, but it can be difficult to tell the genuine socially responsible companies from less admirable firms. Companies that take an interest in social responsibility can improve brand reputation with customers. However, many consumer brands are using cutting-edge fundraising channels, like peer-to-peer campaigns to raise money and awareness for the causes they choose to support. Cause-related marketing is taking off, which is defined as selling a product and dedicating a portion of the proceeds to a specific cause or organization.

Because more for-profit companies are getting involved in charity, nonprofit organizations are facing higher competition for the same donors’ attention. However, you may be able to collaborate with a business to attract more awareness and take advantage of a brand’s larger customer base. Takagi suggested some forms of collaboration will be mutually beneficial for both groups and some joint fundraising tactics may peter out over time. Crowdfunding for organizations can be a great tool for nonprofits and for-profit companies working together.

Crowdfunding for organizations isn’t static

Like a number of other donation channels, Crowdfunding for organizations isn’t static. Although it is a fairly new tactic, it has gained a great deal of popularity, especially because several celebrities have launched high-profile campaigns in the past few years. While the idea of crowdfunding started out as a way to amplify fundraising efforts, it was applied to more personal causes in 2014, according to Crowdfund Insider. People created campaigns to help store owners in Ferguson, Missouri, repair damages or to raise money for those impacted by natural disasters.

In addition, crowdfunding campaigns typically offered a reward for contributors when the medium first emerged. Now, donors are more motivated to give through this channel for the sake of being charitable. Even though some campaigns will likely continue to offer a reward for donating, charities stand to gain from the move away from rewards-based campaigns. Smaller nonprofits need to put donations toward their cause, but you may be able to create intangible benefits that engage donors.

Trends to watch for in crowdfunding for organizations in 2015


  • Crowdfunding campaigns will get more formal: One of the biggest advantages of crowdfunding is it can empower donors to get involved. More organizations will start providing templates for contributors to set up their own fundraising pages and attract donations.

  • The decline of “all or nothing” campaigns: Some crowdfunding websites require fundraisers to hit their donation goals before the funds are released. It can be harmful for nonprofits if they fall short of their goals, and donors who genuinely care about a cause may leave feeling dissatisfied as well.Crowdfunding for organizations is adapting to offer a lower barrier to entry.

  • Greater variety of campaigns: Similar to the decrease in number of “all or nothing” campaigns, lower-goal peer-to-peer efforts are expected to increase. As individuals get more comfortable with both asking and giving, it will open new possibilities through this channel. Crowdfunding for personal reasons will continue, but nonprofits shouldn’t be afraid to get involved, even if it’s with a modest campaign goal.

By Carlos Morales, VP of Product

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