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How to Make and Grow Crowd Fundraising Directory of Social Change Robert Foster [email protected]
Agenda and running order 1. What crowdfunding and crowdfundraising is 2. What it isn’t 3. Do’s 4. Don’ts 5. Practice makes perfect
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Robert Foster I’m interested in how organisations: create positive change / impact / value* share that value with stakeholders quantify and communicate that value to
stakeholders Worked with RSA / Kickstarter (SE / social),
Crowdfunder, Crowdcuve, Rock Stars (equity)
*Not Public Service (Social Value) Act definition
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What is crowdfunding and crowd fundraising?
… crowdsourcing?
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What is it? Digital storytelling Crowdfunding is growing – UK is second most active
market Crowdfunding uses digital platforms for enablement
But, you can use your own crowd!
It comes in many flavours (and many platforms) Gift e.g. Just Giving, Virgin Giving, Indiegogo,
SE / enviornmentla e.g. BuzzBnk & Trillion Fund (FunditBuzz), crowdfunder Pre-sale / rewards e.g. Crowdfunder, Kickstarter Blended – crowdjustice, GoFundMe etc. Debt / loan e.g. funding circle, ratesetter, lending crowd Equity e.g. Crowdcube, Seedrs**, RockStars
Getting the money Threshold vs. Stretch targets Keep it all
Four (4) additional platforms a week since January 2014 © Red Ochre 2015 16
Storytelling as engagement
Four (4) additional platforms a week since January 2014 © Red Ochre 2015 16
A multi-faceted tool
Finance
Market research / validation
(need, user etc.)
Micro-patronage / stakeholder engagement
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Recap: Important elements Something interesting to support (a Project) Something interesting to say Video Messages / memes Mantra: Support or refer
Some one to speak with (a crowd) Immediate Extended “Social” crowd (the cloud crowd)
A way to speak to the crowd (channels) Looks a bit like a plan …
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2. What it isn’t Easy Free money A panacea
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3. Think about your supporters Sophisticated or unsophisticated? Other motivations? E.g. Millennials* & playing the Sims for real?
What do potential supporters want to know? How much money you need What you will do with it How you will “repay” me – impact, event, gift etc.** When you will “repay” me – rate of social return*** * 50% UK work force, 70% global workforce will be Millennials
by 2020 ** depends on type of crowdfunding *** depends on type of supporter
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4. Don’t make assumptions All or nothing vs. milestones (Indiegogo) vs keep it
all etc. 78% of successful campaigns were overfunded Set a realistic funding target and over achieve
Your campaign will have a cost Direct costs Platform fees Servicing the repayment* (SIB-type repayment)
Indirect costs Marketing, comms and events Possibly reward costs* (gifts) etc.
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5. Don’t take your foot off the pedal Get as many pledges as soon as you can 30% of target in week 1 are 50% more likely to succeed Investors are 22% more likely to donate once you have
reached 40% of your target Plan to have “waves” of activity to maintain interest Campaigns with day to day comms plans raise 180% more Campaigns with a personal video raise 105% more (114% on
indegogo) Use your team Campaigns with more than one person raise 38% more
Neither a sprint or marathon, more like a relay Should be part of your general fundraising plan of activities
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Useful links ● Platforms
● http://www.crowdfunder.co.uk/ ● https://www.justgiving.com/ ● http://uk.virginmoneygiving.com/giving/ ● https://fundit.buzz/ ● http://www.indiegogo.com/ ● http://www.kickstarter.com/ ● https://onepercentclub.com
● Information about the sector ● http://www.nesta.org.uk ● http://www.thecrowdfundingcenter.com/ ● http://www.crowdsourcing.org/
● How-to guides and tips ● http://www.nesta.org.uk/news_and_features/crowdfunding_tips ● http://www.crowdfunder.co.uk/crowdfunder-academy/crowdfunder-academy-the-
basics ● http://www.crowdfunder.co.uk/uploads/projects/cf_how_to_guide.pdf ● http://www.peoplefund.it/help/tips/
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Caveat: i+ case Goal: $15,000 / Funding: $85,372 Possibly the most infamous Kickstarter dud this successfully funded iPhone case was plagued with production delays The i+ wraps the phone in aluminium, essentially blocking wireless signals. CAVEAT crowdfunding sites are not shopping sites nor do they guarantee success for anyone
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Your turn: Practice makes perfect
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Pitch scoring sheet
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