CrowdfundingCrowdfundingfor the Arts, Cultural and for the Arts, Cultural and

Creative sectorCreative sector

‘‘It was the revolutionary fundraising model that It was the revolutionary fundraising model that

swept Barack Obama to power swept Barack Obama to power –– and it could help and it could help

arts bodies in Britain stay in business.arts bodies in Britain stay in business.’’

Crowdfunding

Today’s Workshop

• What is Crowdfunding?

• How does Crowdfunding work?

• Where to Crowdfund?

• Writing your pitch

• Choosing rewards

• Marketing your campaign

• Keeping in touch with your funders

• Tips and Pitfalls

• Your First StepsThis workshop is powered by HI-Arts

What is Crowdfunding?

“Survival of the fittest for creative ideas.

Lots of people – each giving a small amount – can

make good things happen. The ‘crowd’ decides

what’s good, what’s not, what they want to fund

and what they don’t…Good ideas will shine

through and the wisdom of the crowd to fund them

is a really exciting prospect.”

Crowdfunder

£5 or more – Acknowledgement on the Hamish Henderson

Archive Trust website

£10 or more – Acknowledgement in the first Hamish

Henderson Journal

£20 or more – Exclusive signed copy of the Journal

£100 or more – Signed copy of the Journal and a VIP

invitation to the launch

£200 or more – Private View - personal viewing of some of

the materials in the Henderson Archive.

Hamish Henderson Archives

Raised ££4,6704,670

(£2,670 over their target)

with 128 donations128 donations.

On average people donated ££36 each36 each.

What is Crowdfunding?

Let the projects explain…

Help us grow into New Designers

• The New Designers campaign finishes on the 26th April

2012.

• They have raised £585 - £85 more then their target

• 30 people pledged to support the project.

• On average people donated £20.

What is Crowdfunding?

Let the projects explain…

Bridport’s Lyric Theatre

• The crowdfunding campaign finished on 10th

November 2011.

• They raised £8,429.20 – £429.20 more then their

target

• 82 people pledged donations.

• On average people donated £103.

How does Crowdfunding work?

In a Nutshell…

1. Pick the creative project or idea you want funded.

2. Identify how much you need to raise.

3. Pick a Crowdfunding website.

4. Identify your story and your pitch.

5. How will you reward your new funders?

6. Tell everyone you know, and those interested in what you do, about it!

Where to Crowdfund?

Look for a host that offers support and advice in developing and communicating

your project.

Find out how long the site will run your campaign

Check to see if the crowdfunding site charges you for raising funds?

Make sure you read any guidelines or terms and conditions before launching your

project.

Setting your Funding Target

• Core costs of the project

• Rewards – what additional costs?

• Ask for slightly more

• Community commitment

• Estimate the average pledge

Writing your pitch

You need to make the idea stick in the minds of potential funders…

• Keep it Simple

• Make it Unexpected

• Create a Concrete idea

• Make it Credible

• Find the Emotion

• Tell a Story

Who, What, When, Where and How

14 Questions to Answer

9. Who will be doing it and what are

their qualifications?

10. How will you tell people about it?

11. How much do you want?

12. How much have you raised yourself?

13. How will the project be evaluated?

14. Who or what will benefit from the

funding of this project?

1. Who are you?

2. Who is your target audience?

3. Why do you need money?

4. Why might the funder be interested?

5. What’s the idea?

6. Why are you the best people to be delivering

this?

7. Where is the activity taking place?

8. When will it be taking place?

Creating a Video

Creating a Video is Essential for:

• Connecting with your funders

• Demonstrating trust and value

• Being clear and concise

• Providing a short and sweet pitch

Creating a Video

What type of video?

• Interview’s

• Documentary

• An animation

• Photography Slideshow

Pointers

• Keep it short and to the point

• Clearly relate to the project

• Quality of video footage

• Editing

• Audio

• Creativity

What is a Reward?

Let Plum explain…

Meme

• Plum’s crowdfunding campaign ended on October 15th 2011.

• She raised £5,040 (101% of her target)

• 137 people backed her project.

• On average people donated £36.

• Your way of saying ‘Thank You’

• Builds support for your future project, cause

and/or organisation.

• Act as a marketing and promotional tactic.

• Must be creative and linked to your campaign.

What is a Reward?

Invest £20 and get –

Limited edition printed t-shirt or canvas bag. The print will be created by the participants

on the project.

Invest £50 and get –

Limited edition signed print from the exhibition, a copy of the final newspaper

publication, the print will be created by the participants.

Invest £100 and get –

Limited edition print created by one of the established artists supporting the project.

£5 or more – A thank you Tweet.

£20 or more – A personal thank you and link of your choice on my Hastastic! Facebook

page.

£30 or more – Entry into raffle to win a bespoke commissioned headpiece.

£40 or more – A promotional hat or headpiece made especially for your business event or

ad campaign or simply to wear.

£50 or more – 30 minute talk on millinery from Chloe for your charitable or social event,

plus a unique Hatastic piece.

£100 or more – Afternoon for up to 5 people for a headpiece making class with Chloe.

£500 or more – Pledge Package: Gratitude on all promotional materials, a handwritten

thank you, an exclusive bespoke hat for you or a friend, and a choice of a unique

bejewelled piece from the Lost Treasure Collection.

Why is Crowdfunding relevant to us

now?

• It is an enterprising solution to raising funds.

• It is a new approach which cuts out traditional funding

approaches and their requirements.

• It enables communities to mobilise around the things they

want to see happen;

• Communities become investors in their own future.

• It mobilises new money when traditional support is less

available.

• It is a good indicator of the eventual success of your project.

Telling the World Telling the World

about about

Your Crowdfunding Your Crowdfunding

ProjectProject

Marketing your projectCrowdfunding Website

Your Website – friends, partner and supporter websites (Web Release)

Your Blog – friends, partner and supporter’s blogs (Blog Release)

Your Social Networks – friends, partner and supporter social networks (Share)

Community News, Radio, Magazines, Leaflets – local word of mouth (Press Release)

National News, Radio, Magazines – national word of mouth (Press Release)

Email Your Database – friends, partner and supporter’s forward emails (Links)

eNewsletter – friends, partner and supporter’s newsletters (Links)

Mobile SMS – ask them to share their text (Share)

Presentations – at your events, activities, when selling (Word of Mouth)

Posters, Leaflets, Postcards – For your community or beyond (Promotion)

Letters – contact your fans, supporters, volunteers etc personally (Invite)

Tell everyone you know! Get them to tell everyone they know!

The Crowdfunding Sites

Sector Media

Websites

Other People’s Websites

Blogs

Other People’s Blogs

Social Networking

Social Networking

Social Networking

Social Networking

Press and Media

MSPs, MPs & Councillors

Keeping your funders up-to-date

• Update your Crowdfunding site

Update your Crowdfunding Site

Keeping your funders up-to-date

• Update your Crowdfunding site

• Thank You Cards

• Blogging

• Social Networking

• Personalised Emails

• Invitations

Tips

Crowdfunding is not the easy option – any and all fundraising is hard!

It helps, but it’s not necessary, to have a pre-existing community of supporters.

Be resourceful –

It can be hard to incentivise people, capture their imagination.

Be clear –

Set a completion date for the campaign, clearly define your goals and

expectations.

Be Informative –

Offer as much information about your project as you can.

Pitfalls

Projects fail if…

• You don’t express clearly the nature of your project.

• Additional information is hard to come across.

• You don’t tell anyone about it.

• There is a lack of communication between yourself and your new funders.

• You don’t follow up on rewards.

• Your project doesn’t fit with the parameters of the Crowdfunding site you choose.

• You choose not to produce a video.

• You forget to build and nurture your online and offline community around your

project.

• You promise what you can’t deliver.

• You focus on the negative.

FAQs

• How long does a campaign last?

• What happens when my project reaches its target funding?

• How will I be able to contact my funders?

• What happens if I don’t meet my target?

• What happens if I reach my funding target before the end of the campaign?

• Can I pledge to my own project?

• Will the Crowdfunding site take a cut?

• How do supporters collect their rewards?

Your First Steps towards

Crowdfunding

• The project idea

• Delivery dates

• Costs to deliver

• Crowdfunding Target

• What would Crowdfunding support

• The benefits of the project

• Crowdfunding video

• Rewards

• Potential donors

• Marketing tactics

• Keeping funders up-to-date