Crowdfunding for NonProfits 101


Crowdfunding for NonProfits - the Basics

Crowdfunding is an increasingly popular way to raise funds and awareness for a new venture - movies or books, products, services, or causes. Many nonprofit groups have significant expertise in raising funds to operate their organization, but can be slow to adopt new and trendy fundraising concepts. Seeing the success of crowdfunding campaigns, nonprofits and charities are beginning to take advantage of the enthusiasm and results that a well-organized crowdfunding campaign can generate.

What is crowdfunding?

Crowdfunding is a way for individuals to help finance ideas, products or causes by pledging money to a specific project – from very small amounts such as $1 to large amounts, even exceeding $1,000,000. Typically crowdfunding is conducted primarily on the internet, using websites and social media so the campaign is publicized and shared by supporters. Investors usually receive some kind of unique perk or exclusive benefit for supporting a project. Crowdfunding projects have a specific fundraising goal, and a deadline to achieve that goal. (read more: Crowdfunding 101).

What type of projects can nonprofits crowdfund?

Top 5 crowdfunding sites for nonprofits

  1. Fundly:Tell Your Story And Connect With Donors
  2. Kickstarter:Explore an eclectic creative universe
  3. IndieGoGo:empowers people to activate the global community to make ideas happen.
  4. FundRazr:Raise money for what matters to you.
  5. Causes:Support the people and causes that inspire you. Campaign to make a difference.

This infographic from FundRazr shares 11 Essential Ingredients Every Crowdfunding Campaign Needs

crowdfunding for nonprofits
crowdfunding for nonprofits

For More Information on Crowdfunding for NonProfits
HubSpot: 7 Top Crowdfunding Sites for NonProfits and Higher-Ed Institutions
National Council of Nonprofits: Crowdfunding for Nonprofits
CrowdCrux: Top 10 Crowdfunding Sites for Nonprofits