Revised with new information as of March 19, 2019

A free resource for nonprofit organizations, NGOs, civil society organizations,
charities, schools, public sector agencies & other mission-based agencies
by Jayne Cravens
via coyotecommunications.com & coyoteboard.com (same web site)

 
Crowdfunding for Nonprofits, NGOs, Schools, Etc.:
How To Do It Successfully

Any organization or individual can put an appeal for funds on any social media channel, like Facebook, or a platform specifically for crowdfunding, like GoFundMe.

If your nonprofit or NGO or charity or school does this, will it get lots of money? No, mostly likely, it won't.

A lot of consultants will talk breathlessly about crowdfunding and bring up a high-profile, successful campaign that attracted a lot of media support, like a campaign to replace a stolen wheelchair, or a campaign to provide micro-housing for homeless veterans, implying that any nonprofit, non-governmental organization (NGO), school or other community initiative can suddenly, easily bring in large amounts of money just by posting a request for money on the Internet. I'm here to be the reality check on that.

When crowdfunding works for nonprofits, schools, etc., it works for the same reason that any fundraising effort works:

Yes, sure, there are those campaigns that are successful only because a celebrity or major news outlet picked it up. For every one of those, there are THOUSANDS of efforts there that DOESN'T happen. You can never, ever count on this happening for your organization.

I'm not saying don't do it, but crowdfunding should be seen as a supplement to all of the other fundraising activities a nonprofit, NGO, charity, school, etc. should be undertaking. Rare is the organization that can rely solely on crowdfunding to primarily fund its operations.

Successful fundraising comes from a solid reputation, established credibility and long-cultivated trust. Yes, there are the examples of someone who had an idea, quickly formed a new nonprofit and got the attention of the media for his or her idea, and because of the media support, attracted hundreds, even thousands of total strangers to support the cause. Sure, that happens. But if there are even 500 examples of that, there are many, many, many thousands of examples where that DIDN'T happen, leaving a cause with little or no money raised through crowdfunding.

Here are four reality checks you need to keep in mind if you want to crowdfund for a nonprofit, non-governmental organization (NGO), school or other community initiative:

  1. There are not thousands of people with a big bag of money, who are surfing the web, trying to find a stranger in need to donate it to.
     
  2. Pleas for money to "save" an organization, initiative or building may work - but just once. If you continually have pleas that say "we're going to have to close our doors if you don't help NOW", you are going to close your doors.
     
  3. The majority of successful crowdfunding efforts have raised small amounts of money from people that are already familiar with the organization, familiar because they have been volunteers, clients, previous donors, or are relatives of such. The more of these kinds of friends your organization has, and the more they care about your organization, the more money you will raise.
     
  4. You are competing with several thousand other organizations and individuals that are trying to raise the funds, as well as all of the people raising money from friends for a run or walk they are going to participate in to benefit a nonprofit and individuals who are desperate for funds to pay medical bills, stay in their homes, etc. 
     
  5. Some sites require you to set a goal for the money you want to raise and, if you don't reach that goal via pledges, you don't get the money. And as most crowdfunding efforts FAIL, even on #GivingTuesday, organizations that use such a platform get nothing.

Staying realistic in your goals will better make it worth your while and keep you from over-investing in something that isn't going to work out for your organization.

Know those points before you invest the time in a crowdfunding platform to try to raise money.

One more important note: my colleague Mary Cahalane is a fundraising consultant, and one of my favorite blogs of hers is about the importance of storytelling in fundraising. The advice is absolutely applicable to crowdfunding campaigns as well. Mary's advice says, in part:

Fundraising is always about feelings. What’s the goal today? Not the action yet; the feelings that could lead to action. This is where you can use emotional triggers. But take a moment to decide which to use before you begin...

You want your readers feel frustrated and itch to solve the problem. Then you can show them how they can solve it...
Find stories of the people you help, instead. Pull the audience in by making that character human. It’s the little touches that make it work. Since you’re using words, paint a picture – her shy smile, his rough hands.

Aim for empathy, not pity. (Because you want this to be personal – something the reader can’t push away.) This is probably my favorite part of writing for fundraising – the chance to connect donors to beneficiaries. To bring everyone to a level human place, where empathy and caring reign. Give your donors the gift of a story, not statistics. Make your request in human terms and you’ll be more likely to succeed.

Step One:

Pick something simple that you can campaign for, and a specific amount as your goal. That could be money for your Executive Director to attend a national conference. Or four tablets that would let four of your staff members work in the field. Or a car. In your appeal, you will note why you need the money, exactly how much you need, and what will happen if you don’t raise the money. And be clear that this is a ONE time appeal, that you are not going to come back in six months and beg for more money for your latest urgent critical need.

The smaller the amount, the more likely you will be able to raise funds. $500 is far more realistic than $1500. Raising money for a specific component of a summer camp is easier than raising money for the entire camp. And, of course, pick a certain date by which you need this particular amount.

Step Two:

Have at least five people in mind who you know will give money to your cause. Talk to those five or more solid supporters in person, tell each of them what you are going to do, and ask them if, right after you launch the campaign, they would make a donation online, on whatever platform you choose, and to make a public comment along with the donation about why they are making the donation. Also ask those core supporters to immediately share that they have made a donation, along with a link to your campaign, on all of their social media channels - and help them craft the message they will post. It is vital that you have these core supporters who will immediately support your effort - it does not reflect well on your effort if, days after launching, no one has given any money.

Step Three:

Launch your appeal on a crowdfunding site (scroll down for options). Choose ONE site - do not pick several.

Step Four:

Share the fundraising appeal via your social media accounts. Ask volunteers to share the appeal with their friends via their social media accounts as well, and give them guidance on messaging. You can ask staff, but make it clear that it is optional for them to do so - many people do not like mixing their work and personal life on social media. Also, ask the people who donate to say, at the time of their donations, why they are contributing to the cause, and encourage them to share with friends via social media that they have donated.

Step Five:

Thank every contributor - pledge personally, directly, and as immediately as possible. 

Step Six:

Is there something unique or especially touching about your appeal? If so, local TV stations MIGHT be interested in talking about your appeal on a news cast. 

Step Seven:

Give updates. You can do this on the platform itself, and then share a link to the appeal yet again on your social media accounts, like Facebook, noting the update (“We’re halfway to our goal… We have 10 days left… “)

Fundraising platforms

Do NOT use more than one fundraising platform for people to donate through for your crowdfunding cause! That will NOT help you reach more people! Pick ONE where people will donate. That said, no matter what you pick, you should put links to your fundraiser on all social media you use, including Facebook. 

Note: all fundraising sites take out a small portion of each donation for administrative and other costs, which can range from 5%-20% of funds raised.

But, with all that said - your messaging and relationships are everything when it comes to successful fundraising. If you haven't fully explored how you are going to do steps one through seven, your crowdfunding efforts will fail. If you don't know the basics of funder cultivation - how to tell a compelling story with words and photos, how to ensure funders feel valued, how to look results-based, not desperate - it's very likely your crowdfunding efforts will fail. 

Other fundraising resources on my web site or blog:  
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