Understanding Crowdfunding

Learn. Strategize. Execute.

Crowdfunding is...

  • Technology-enabled and driven by online contributions.
  • Driven by creators, with video testimonials providing the “case for support.”
  • A campaign that supports a specific project with a deadline for support and a defined dollar goal, although stretch goals are common.
  • Amplified by social networks such as Facebook and Twitter to allow contributors to share their support and encourage others to join the effort.
  • Embracing of a wide range of donors from micro-contributions to major supporters.
  • A contribution channel that meets newer donors where they spend their time: social media.

According to a 2013 crowdfunding report from research firm Massolutions, all told, crowdfunding websites helped companies and individuals worldwide raise $2.7 billion from members of the public in 2012 — an 81 percent increase from the previous year. Revenue from new and existing crowdfunding platforms is projected to have doubled to nearly $5.1 billion by the end of 2013. Seeing this success, charities are increasingly turning to crowdfunding to support their projects.

Example Team Structure

1-2 project leaders

  • Main interface with platform manager
  • Put together solicitation list of approx. 100 & e-mail them
  • Create team
  • Set goal with advising from platform manager

3-5 project champions

  • Responsible for specific pieces of content creation
  • Put together solicitation list of approx. 100 & e-mail them

As many ambassadors as possible

  • Put together solicitation list of as many as possible & email them (often around 50)
  • Find new advertising mechanisms
    • School paper
    • Blogs
    • Mission aligned non-profit organization