Online crowdfunding has fast gained acceptance as an effective tool for individuals, nonprofits, and others to raise funds and other support quickly, securely, and reliably. It is helping fund a wide range of issues and causes including microlevel challenges that affect small local communities. Countless people are able to quickly raise funds for medical emergencies, treatment for rare diseases, addressing hunger, higher education, social innovation projects, and so much more. But given its growing popularity, more people are using crowdfunding campaigns. And it is possible that your campaigns don’t reach the target audience or get lost in the crowd.
How do you make your fundraising campaigns stand out? How do you ensure you fill your requests to meet your urgent needs? How should you increase the effectiveness and success of your fundraising campaigns? Find out in this blog.
The Power of Online Crowdfunding Campaigns
The power of online crowdfunding is such that causes that may not find sufficient support in the larger scheme of things also find supporters. This is mainly because it is not reliant on the kindness and compassion of a few wealthy donors or Governmental action.
The burden is shared among multiple donors from across varied backgrounds. Individuals can make contributions, no matter how or big, to any cause/ request that resonates with them. Anyone with the willingness to give money or resources can do so.
This way, underfunded causes, micro-challenges, and grassroots level issues can be addressed by local communities. So, online crowdfunding helps communities to resolve issues that affect them and everyone to make a real difference.
The barriers to entry are low and anyone with a need can create a request, raising funds and support. It is extremely cost-effective with minimal to no overhead costs. Platforms like TALGiving do not charge any platform fees or commissions. Through the use of the internet, digital technology, and social media, online fundraising connects donors across the globe with people and causes in need.
Online crowdfunding creates the bandwagon effect as it provides social proof. Put simply, when people see a cause is supported by others, they are more likely to jump on the bandwagon and more likely to donate more.
For nonprofits, in particular, crowdfunding serves as a great marketing tool. Online nonprofit fundraisers spread awareness about the organization’s work, mobilize long-term support, and build a community around their cause. This will help them to amplify their impact in the long run.
How to Build a Successful Crowdfunding Campaign?
Clarity is Key
You need to be clear on your goals before starting a fundraising campaign – do you want to raise funds alone? How urgent is the fund requirement? Are you looking to perhaps use the campaign to raise awareness about your cause? Do you want to build a donor network for the long-term? You must have answers to these questions and others that donors may have in terms of impact, end goals, how funds/ support will be used, etc.
By starting off with clarity, you will be able to strategize and plan the campaign better. Even when you urgently need funds, it is better to establish clearly the amount of money you need and by when.
Remember the 3Cs While Writing the Request
Every crowdfunding platform will require you to submit a write up for your request. Remember the 3Cs – Clear, Concise, Compelling – while writing your request.
Think about your request from the donor perspective and make sure it clearly answers all the questions they may have such as,
- What is the cause?
- Why is the cause important?
- Why should I donate to this cause?
- Who is the beneficiary?
- What direct impact will the donation make? Will it drive any other changes? Does it have any larger social impact?
- (additionally for nonprofits) What is the timeline for the project? What is the mission of the project and the organization?
….and so on.
Make it super crisp and clear to the donors reading your request. Make the writing compelling, appealing to the kindness and compassion of the donors.
Visual Storytelling Works Wonders
In your crowdfunding campaign, make sure to include good photographs and videos. Visual stories speak a thousand words and create a greater impact on potential donors.
You must include clear, impactful photographs in your campaign request; that is non-negotiable. It is better to include pictures of the project or beneficiaries rather than including stock images.
Create a video that tells your story, impact and work in a compelling and impactful way. Data suggests that 57% of people who watch nonprofit videos take action and donate to fundraising requests. Furthermore, campaigns with personal videos will raise 150% more funds than campaigns that do not. So, including videos is a huge plus for your campaign regardless of whether you are a nonprofit or an individual raising funds.
Front Load Campaigns
Crowdfunding campaigns that raise 30% of their fundraising goal within the first week are more likely to succeed. This is why it is important to frontload your campaigns. Reach out to existing personal and professional networks (and existing donors in the case of nonprofits) and request them to donate to the fundraiser. This will build momentum for your campaign and provide social proof to other donors, triggering the bandwagon effect.
Leverage Multi Channel Crowdfund Marketing
One of the biggest mistakes virtual fundraisers make is not effectively marketing their campaigns. You must understand that there are hundreds of crowdfunding platforms and thousands of requests out there. So, you cannot just create a request and expect your target donors to find it. You have to actively promote it while creating a presence across multiple channels where your potential donors will be.
Multichannel marketing yields a 204% higher conversion rate in fundraising campaigns. So, if you want to maximize your crowdfunding ROI and success, you have to engage in multichannel marketing of your campaign. Leverage diverse social media platforms, email, radio and audio platforms, and so on.
Most crowdfunding platforms allow you to share your campaign page. So, create good marketing copies and share your request on diverse platforms. Further, find other avenues such as support groups, social media pages, etc. that align with your cause/ request and promote your campaign there.
Engage Your Donors…Retain Them
Reducing your donor attrition rate by just 10% will empower you to increase your fundraising value by 200%. With greater donor retention, you will be able to raise funds faster. Not just that, retained donors will upgrade their giving, donate their time, resources, and other ways, recommend your cause to others in their networks, and much more.
For effective donor retention, you should keep engaging them during and after the campaign. Keep updating them about how their funds are being used and what impact they have made. Invest in building long-term relationships with them.
Consistent Communication is Important
Maintain consistent communication during and after the fundraising campaign, giving them regular updates and keeping them in the loop. This will nurture trust and will keep backers committed to the cause.
Most Importantly…Choose the Right Platform
There are hundreds of crowdfunding platforms out there. If you want to run successful crowdfunding campaigns, you must choose the right platform. TALGiving, a unique online crowdfunding platform, is the only one where you can raise more than just funds. You can create requests for scholarships, resources, expertise, and so much more.
TALGiving is a free platform that charges 0% platform fees or commissions. All donations go straight to the donees. It offers a range of free marketing tools, powerful analytics, and support features to maximize crowdfunding efforts of individuals and nonprofits.
