Crowdfunding websites are the innovative driving force behind online fundraising. Hundreds of new crowdfunding sites have emerged, some specifically set up to help non-profits. If you are a non-profit, and you are thinking of starting an online fundraising campaign, here are some things to consider.
Which Site to Choose
Some of these sites, like Fundraise.com, CauseVox and Fundly were set up specifically to help non-profits raise money to support their causes. Others, like GoFundMe, MyDonationPage, and Kickstarter, aren’t non-profit specific, but can be used by charities and non-profits to raise money for a specific event or goal that supports their mission.
What Crowdfunding Sites Are
While features differ from site to site, at their most basic crowd-funding sites are websites that allow your non-profit to set up an online fundraising campaign based around a fundraising page, and accept money directly from that page using the website’s third party payment processor (like PayPal). Many of these sites will also allow individuals to set up fundraising pages on behalf of charities they want to support, and others will allow your non-profit to set up a master page for your campaign and then allow your supporters to set up tangential pages that they can use to get their friends and colleagues to donate a portion of the goal of your master campaign.
What Crowd-Funding Sites Are Not
Many non-profits that find out about crowdfunding websites get very excited. Easy money! Right?? Well, crowdfunding sites can definitely help, but they can't solve all your financial woes. The nature of crowdfunding is literal-you need a very large crowd to fund your project fully. Most likely, that won't happen in a 30-day campaign. However, since online fundraising is marketed via social media like blogs, Facebook, and Twitter, it can definitely get the word out about your project and your charity/non-profit, and hopefully hook potential recurring donors/contributors!
Which Crowd-Funding Site will Work For You?
If you’re interested in using a crowd-funding site for your next fundraising campaign, be sure to shop around. Each site offers different features, costs, and benefits. Here are some of the key things to watch out for:
1. Appearance
What do the fundraising pages look like? Are they pretty and appealing? Can you upload pictures or videos?
2. Ease of Use
How easy is it to set up a fundraising page? Will donors be able to navigate easily to your "donate" button?
3. Payment Processing
What payment methods can donors use to make donations to your organization? Do they use a trusted payment processor like PayPal or WePay? Do they take all major credit cards? How about e-checks? How long does it take for donations made on the site to reach your organization’s bank account?
4. Fees
What is the total cost of using this fundraising platform? Is there a monthly fee? Set-up fees? Credit card processing fees? Standard flat fee?
5. Marketing and Social Networking Capabilities
What tools does the site provide to help you spread the word about your fundraiser? How easily is it to link and promote your fundraising page on social networking sites? Can your supporters set up their own pages to support your cause, and have the money funneled back to you and apply to your overall fundraising goals?
6. Traction
Does this site have traction? (In other words, are people using this site to make donations, and are non-profits successfully raising money through this platform?) You want to use a site that at least has a decent amount of traction and traffic. Ideally, people come to the site to browse for causes to support… that way, you may get donations from folks who you don’t know, and who simply find you on the site.
Crowdfunding is a great resource for charities and non-profits. With a little time spent researching and surfing, you will find a site that suits you. And then, ... happy fundraising!
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