Crowdfunding is becoming more popular and worth considering as a source of funding. As public sector funding is cut back and grants available for the voluntary sector are reduced crowdfunding is a viable funding. This type of funding is raised by many small amounts of money from a large number of people, typically via on-line platforms.
How can it work for you?
- Plan your crowdfunding campaign using the principles of SMART (Specific, Measurable, Achievable, Realistic and Timed).
- Know your audience and target the social media platforms they use.
- Explain why crowdfunding is important for your project – keep it brief up to 500 words.
- Show photographs of your project or the issue you are trying to resolve.
- Use your contacts and encourage those people you know to share your campaign details.
- Email widely – social media has great platforms for promoting crowdfunding, however email can be just as effective.
- Consider making a short video – about 1 minute long.
- Thank your donors promptly and often – they may act as advocates by encouraging people they know to fund your project and they may fund future project.
- Review your success and modify your SMART plan.
Be aware of the many crowdfunding platforms and their terms and conditions. So many charge fees. This may put off some potential contributors. Also consider fees that may be incurred through online payment routes such as PayPal.
This type of income generation is increasing in popularity. A report released by the United Kingdom-based The Crowdfunding Centre – 2017: The State of the Crowdfunding Nation Global Report states that $796m dollars was raised in 2016 worldwide.
Competition levels are high. Don’t let that put you off.