When Hurricane Harvey struck Houston in August 2017, Houston Texans athlete Justin Watt set up a crowdfunding campaign on GoFundMe to provide relief to victims of the flooding. When all was said and done, he managed to raise over $37 million, which was distributed to various nonprofit organizations. It was a beautiful example of the good that can be done with the Internet and social media.
It was also proof positive that crowdfunding is not only a viable tool for nonprofit fundraising but a powerful one.
It’s our firm belief that if your nonprofit is interested in raising money for a good cause, a crowdfunding platform is one of the best ways to do so. However, crowdfunding isn’t a tool you can use without proper research and planning. We see a lot of nonprofits forget that, and make a ton of easily-avoidable mistakes in the process.
Here are a few of the most common crowdfunding mistakes we see them, and how you can avoid them.
Going in Without a Plan
As with any fundraising campaign, planning is the first thing you need to do before getting involved in any crowdfunding platform. The most important part of this process is to set clear, achievable goals. While it’s certainly possible that you might go viral and raise millions, the number of crowdfunding campaigns that achieve this are few and far between.
You need to manage your expectations and focus not just on how much money you want to raise, but what you want to do with that money.
Ignoring Marketing and Communication
It’s true that crowdfunding can greatly increase your nonprofit’s reach, putting your message out before a far larger audience than might otherwise see it. But if you haven’t put in the necessary effort to first refine that message, it’s likely going to fall on deaf ears. This starts with understanding your nonprofit’s culture and using that understanding to refine your voice across your marketing channels.
Beyond that, it’s also important to put in the necessary work to keep in touch with your donors. You need to have a communication plan in place that you can use in the weeks ramping up to your campaign’s launch, one to use during your campaign, and one after it’s complete. The idea is that you want to remain in constant contact with your audience, providing them with regular updates about milestones and progress.
Not Researching a Crowdfunding Platform
We see a lot of nonprofits gravitate towards Kickstarter. While it’s possible to host a nonprofit fundraiser on this platform (or any consumer crowdfunding site), it’s not really what they’re intended for. Instead, we’d advise choosing a nonprofit platform that’s specifically geared towards nonprofits, such as Rally, Causes, or GoFundMe Charity.
Not only are they likelier to have nonprofit-specific tools and metrics for you to leverage, but they’ll also see you promoting your campaign to an audience that’s far likelier to be onboard with charitable giving.
Smarter Fundraising. Better Giving
Crowdfunding is a powerful tool in the repertoire of any nonprofit. Sure, there’s a bit of a learning curve, but you shouldn’t let that stop you. Do your homework, understand where the most common mistakes occur, and you’ll do just fine.