Crowdfunding is a flexible and relatively easy way to tap into supporters’ generosity. Learn the best tactics to see long-term benefits from your campaign.
By Lomesh Shah
As a result of COVID-19, it’s now more important than ever to actively engage your supporters and keep them up to date with your nonprofit’s latest happenings. With year-end fundraising campaigns quickly approaching, you want your nonprofit to be at the forefront of your supporters’ minds.
The needs that your constituents and communities face are still as present as ever, so it’s crucial to continue raising support and awareness for your cause.
The technique of crowdfunding helps individuals and nonprofits alike raise needed support quickly and across a large donor base. Not only does crowdfunding raise funds and awareness for your nonprofit, but it can help you recruit donors and strengthen those donor relationships.
Curious about what the crowdfunding process looks like? It’s a fairly straightforward technique whether you’re raising funds as an individual or as a nonprofit. Organizations create campaigns with fixed, often short-term timelines that are designed to raise funds for a specific project.
First, you select your platform and set up your campaign. Next, promote your fundraiser and watch your progress. Finally, thank your generous donors for their support!
Today, we’ll take a look at the best practices for maximizing your crowdfunding efforts and a few other helpful tips to benefit your nonprofit as a whole. Here’s an overview of the tips we’ll suggest:
- Embrace the Versatility of Crowdfunding
- Keep Your Donors Updated
- Promote Matching Gifts to Donors Post-Contribution
- Actively Promote Your Campaign Supporters
- Utilize Engaging Content
Ready to learn more about the best way to improve your fundraising? Let’s dive in.
Tip #1: Embrace the Versatility of Crowdfunding
One massive benefit of raising money through crowdfunding? Its wide array of options! You can raise funds for pretty much any project you or your organization can think of. Crowdfunding campaigns can be adapted for any type of nonprofit project, occur on shorter time frames, and typically have lower goals than full-scale fundraising campaigns. These give you a lot of flexibility that you wouldn’t necessarily get with a major campaign that requires more investment of your time and resources to plan.
For nonprofits, crowdfunding reduces many restrictions and provides unmatched flexibility for your fundraising needs.
While crowdfunding is extremely versatile, you have to make sure your supporters will be motivated to support your campaign. A specific, timely project related to your nonprofit’s mission or operations will be the most effective choice. This will engage existing donors and attract new donors who will be likely to stick around with your organization after the crowdfunding campaign ends.
Tip #2: Keep Your Donors Updated
As you set up your crowdfunding campaign and invite donors to contribute, it’s vital to keep those generous supporters up to date on your campaign. Set up a system to inform donors on the latest happenings in your organization and your progress towards your crowdfunding goals. Do this weekly, if you can.
Remember, donors want to see and hear about the ways their money is having an impact on your mission, so keeping them informed not only keeps them happy, but encourages them to give, and give again. In order to keep these donor updates professional and consistent, it’s a good idea to invest in a high-quality constituent relationship management system (also known as a CRM).
Consistent updates show your supporters that you’re personally invested in your campaign and encourages them to share it with their own networks. According to Fundly’s statistics, crowdfunding campaigns that updated their supporters at least every 5 days raised 3 times more in donations than less communicative campaigns.
Communicating updates on your campaign’s progress is vital for its success. Having a weekly outlet to do this makes it easier to boost energy if you’re falling behind or to give donors new ways to engage with your nonprofit if your campaign is attracting a lot of support.
Tip #3: Promote Matching Gifts
One commonly forgotten aspect of crowdfunding is additional promotion of donations and engagement after your supporters have contributed.
After receiving a generous contribution, try engaging even further with your supporters by promoting matching gifts. Through these programs, donations might be financially matched by the donor’s employer. Donors love to see their contribution grow, so by reminding them to check on matching donations, you’re giving your supporters the opportunity to see their gift literally double. Ask them to check their eligibility in your follow-up messages after they make a donation.
Contrary to popular belief, many companies are actively growing their matching gift programs amid COVID-19. These gifts are often underused, so take advantage of the opportunities that most people easily miss! While some companies offer matching gifts at a 1:1 ratio, many also offer 2:1 or 3:1 options! Matching gifts are a great way to help your fundraising team succeed, and they also lay the groundwork for long-term engagement and support after your crowdfunding campaign ends.
Tip #4: Actively Promote Your Campaign to Supporters Via Email & Social Media
Crowdfunding doesn’t work unless you spread the word. Without successful promotion, supporters will be less likely to see and engage with your campaign. When you raise awareness, you give your organization the opportunity to speak for itself.
Promoting your campaign on social media is a great way to get it in front of a wide audience and encourage supporters to share it with their own networks. Additionally, email marketing is still one of the most efficient ways to get your message out and see tangible results, so embrace the ability to put a message directly in your supporters’ inboxes and see higher numbers in giving. Check out these email statistics from DNL OmniMedia:
- Run, walk, and ride fundraisers that used email marketing raised 76% more than those that didn’t.
- Email messages drove 28% of all online fundraising revenue for nonprofits in 2017.
- Over 50% of people who receive an email about a crowdfunding campaign donate.
Email marketing is an extremely effective way to share updates with your existing supporters and generate more interest in your crowdfunding campaign. Once you’ve successfully captivated your audience via email, you can encourage them to share your campaign on social media to reach new supporters and begin building more relationships.
Tip #5: Put Your Heart Into Your Content
In a time when maintaining your audience’s interest is everything, prioritize content that will grab their attention and hold it. Whether it’s through offering incentives or using multimedia, your message needs to get across in an engaging way.
Your organization is fighting for a cause that’s near and dear to your heart. It’s crucial that your audience gets a window into that emotional connection that your organization holds. Let your prospective donors see how much your campaign means to your organization by creating unique photo and video content that tells the story of your mission and how your specific project (and their support) will help fund it.
Incentives are another fantastic way to make content worth engaging with. For various giving levels of your crowdfunding campaign, offer gift incentives that will excite your audience. Whether it’s a free t-shirt or tickets to your organization’s next virtual event, offer a gift that will engage your audience and thank them for their contribution. When your donors are excited about what they’re getting, they’re more likely to turn to social media and share their big news, resulting in more shared content for your organization.
At the end of the day, nonprofits are in uncharted territory when it comes to effective fundraising in a pandemic. As your organization heads forward, remember to focus on doing your best and not get too dragged down by new challenges.
Fortunately, people want to help and support those most hurting. It’s important to not get too discouraged and instead focus on all the good your organization can bring to the world with the money you raise.
Crowdfunding is a flexible and relatively easy way to tap into supporters’ generosity and investment in your mission. You’ll just have to back it up with the right communication, engagement, and promotional tactics to see long-term benefits from your campaign.
Lomesh Shah has over 25 years of experience in international corporate leadership with a strong emphasis on marketing technology and data management systems. Lomesh has worked with small to mid-size businesses, privately-held companies and Fortune 500 corporations in various capacities; from sales and marketing to overseeing automation and re-engineering of processes and operations.
As CEO of Fundly, Lomesh spends much of his time immersed in the nonprofit industry both as an industry leader, speaker, and in service to several organizations as a board member and volunteer. Outside of the industry, Lomesh is a technology junkie and will give anyone willing to listen an assessment of the latest trends in anything from espresso makers and mobile gadgets to electric cars and wind power.