In 2014 Merriam-Webster added 150 new words to their print dictionary. One of those words was “crowdfunding.” What exactly does this heavy - duty buzz word mean? Well Merriam’s definition is “the practice of obtaining needed funding by soliciting contributions from many people especially from the online community.” While crowdfunding initially began as a mechanism for start-up business to raise financial support, crowdfunding has now swooped into and made a place for itself in the nonprofit world.
While on-line fundraising has already raised millions of dollars, it is expected to explode into a $90 - 96-billion-dollar industry by 2025 (National Council of Nonprofits.) These numbers may sound exciting but, nonprofits need to carefully weigh the benefits of hopping on the crowdfunding bandwagon.
Agencies need to do a self-examination to decide if they should run a crowdfunding campaign. According to Crowdfunding for Nonprofits “ nonprofits should only run campaigns that both forward the organization’s goals and get significant organizational buy-in before launch.” Additionally, organizations should consider deciding how the following three questions will be answered:
Consider starting with the Nation Council of Nonprofits (www. councilofnonprofits.org) for recommendations. Another resource to look at is 7 Top Crowdfunding Sites for Nonprofits and Higher-Ed Institutions, by Taylor Corrado.
Whatever your decision, be patient. Crowdfunding takes effort and patience. It is not a sprint but more of a marathon.
Crowdfunding for Nonprofits
By Erin Morgan Gore & Breanna DiGiammarinoErin Morgan Gore is Director of Strategy at Purpose, an Adjunct Professor at NYU's Robert F. Wagner Graduate School of Public Service, and an advisor to the sharing economy startup Weleet.co. Gore previously led social sector work in The Bridgespan Group’s New York office and the Boston Consultant Group's Boston and Stockholm offices.
Breanna DiGiammarino is the cause director at Indiegogo, where she leads a team to bring the value of crowdfunding to the social sector. Prior to Indiegogo, DiGiammarino was the senior associate at the Draper Richards Kaplan Foundation and a consultant at The Bridgespan Group. Read the complete article: https://ssir.org/articles/entry/crowdfunding_for_nonprofits
7 Top Crowdfunding Sites for Nonprofits and Higher-Ed Institutions
By Taylor Corrado
Taylor Corrado is the Head of Nonprofit and Education Marketing at HubSpot, the inbound marketing software company.
Read the complete article here: https://blog.hubspot.com/marketing/crowdfunding-sites-for-nonprofits-higher-ed-li#sm.00000r7rzvgkavfpeph4mgui7jbis
Crowdfunding for Nonprofits
National Council of Nonprofits
Program & Outreach Director for VCMC