Nonprofit Pitfalls: Crowdfunding Blunders

In our last blog, we covered some ways that your clients can reestablish their nonprofit’s brand this year. This time, we’re going to cover some unintentional mistakes that nonprofits make when they utilize crowdsourcing fundraising techniques. Since this method has the potential to be lucrative and provide a staggering return on investment for your clients, this article is going to be equally beneficial for them.

So, what is crowdfunding? Crowdfunding is built around and relies on an online platform that allows individuals to make donations with a simple click of the mouse. Some crowdfunding platforms allow organizations to create fundraising teams, set up giving levels and offer t-shirts or other “gifts” at various donation levels, says Nonprofit Hub.

Not setting clear goals.

Crowdfunding is a great way to collect money for an organization, but that doesn’t mean your clients can set up a campaign, sit back, and let the money come to them. In fact, this type of mentality often backfires. Set a realistic goal, determine the time frame, and have a plan to allocate funds once the fundraising goal is reached.

Not being proactive.

Going hand in hand with our first point, setting up a campaign and walking away are not great crowdfunding techniques. Instead, your clients will need to keep rallying for their cause, building interest and getting others interested in supporting their mission.

Start marketing the campaign to your top supporters far in advance of the launch using your organization’s newsletters, email communications and social networking sites. You want to recruit this group to help you get the word out. Additionally, many crowdfunding sites allow you to include photos, videos and other interactive slideshows to help get your donors pumped to be a part of the campaign, states the article.

Not utilizing social media.

Remind your clients not to be shy. Crowdfunding and social networking are a perfect match. If they share their campaign on their social media sites, they can increase their fundraising by 350%. The more engaged your clients are on their Facebook pages, for example, the more likely they are to raise money. They can even start live videos, thank their followers for their support, and run contests to build more incentive to donate.

Once the goal is reached, they can share their success with their followers, as well. Engagement and gratitude are ideal for crowdfunding success.

 

About Domenick & Associates

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