Crowdfunding for Nonprofits
Crowdfunding for NGO is the process of collecting money as donations, for a cause from individuals and businesses. A person who raises the money from them is known as a fundraiser.
It was usually used to gather money for non-profit organizations, but, over the years fundraising has evolved a lot and it is now used to fund various important causes.
These causes may include anything, from helping the underprivileged to raising funds for one’s education. Traditional fundraising happens offline whereas the modern day nonprofit crowdfunding happens online.
Crowdfunding for Nonprofits in India
Crowdfunding is the practice of funding a project or enterprise by collecting small amounts of money from numerous people, typically via online platforms. In the past two decades the market of crowdfunding has been growing quickly; crowdfunding has become a new way to finance, for example, start-up companies, projects in the visual arts and music, technological innovation, scientific research, and community projects.
Crowdfunding Tips For Nonprofits
Nonprofits can host their own crowdfunding campaigns to receive online donations directly from their donors and their donors’ social circles to fund specific, urgent projects or campaigns.
Since crowdfunding campaigns often have a firm deadline when fundraising ceases, they can be an effective means of funding a campaign or project relatively quickly.
However, jumping into a crowdfunding campaign without proper planning can prevent your nonprofit from taking advantage of all that this particular fundraising style has to offer.
Let’s break down the steps you’ll need to take to effectively plan and run your campaign:
- Set your crowdfunding goals.
- Choose a crowdfunding platform.
- Design your crowdfunding page.
- Motivate your supporters.
- Advertise on social media and email.
- Transfer crowdfunding data into your CRM.
- Perform prospect research.
- Send follow-up materials.
- Target your message.
- Learn what makes a good campaign and a bad one.
- Build a community before launching.
- Speak to experts.
- Know your launch target.
- Use multimedia
- Research and Prepare
- Ask for Donations Early
- Ask the Right People for Donations
- Be Specific About What the Money’s Going Toward
- Offer Incentives (When You Can)
- Write Compelling Copy When You Share Your Crowdfunding Page
- Update Your Crowdfunding Page
Read Further: 10 Reasons Why Fundraising Is Important for Your Nonprofit
Crowdfunding Ideas For Nonprofits
Want to succeed with your fundraising?! Then you need to pick the right ideas!
– Doing charitable work is available to all, so don’t be put off by the fact that you are unable to do some of the suggestions on this list. Some of the biggest fundraising drives have been those that take very little effort (the ice bucket challenge is a great example) but are fun and can be done by anyone regardless of physical ability.
1. Online Donation Campaign (Crowdfunding):
For most groups and causes this would be the first recommended fundraising idea.
It is without a doubt the simplest and quickest method of raising funds!
Signup and setup an Online Donation page on Crowdfunding platform.
Write a killer fundraising request pitch. That connects readers emotionally to your cause.
They must feel MOVED by your cause and trust that they’ll be making a difference by donating.
Include a Video (and some great images). Stats have shown that videos greatly increase your crowdfunding success.
Make sure that it’s short, sharp, and once again connects emotionally.
And then you must PROMOTE effectively. The more eyeballs on your fundraising page, the more donations you shall receive!
2. Run a marathon– it’s a challenge that many aspire to conquering during their lifetime, and is certainly no small feat. Running 26.2 miles takes a lot of preparation, training, and perseverance, and is a challenge that should be approached with dedication and respect, as it can be very demanding physically. This isn’t meant to put you off, JG staffers who have run marathons often get the bug and have run in multiple events in cities across the world. Fundraising and the marathon go hand in hand, and that sometimes makes it easier to communicate to your supporters how dedicated you are to the cause you are running for.
3. Enter a 10k – For those put off by the long-distance running of the marathon, there are many 10k and smaller running events around the country that are perfect for the more casual athlete. You will obviously still need exercise and preparation in the build-up, but the event can be approached with an attitude of “let’s get in shape” rather than looking to run an elite event.
4. Get on your bike and ride– there are plenty of organised events for those that would prefer a bicycle challenge rather than running to raise money for a charity. Or think of a cycling trip you have always wanted to take and raise money that way, both options are great for those who really enjoy riding their bicycles and helping to change lives.
5. Take the plunge and swim– challenges that involve swimming are great for all ages and all abilities. Organised events such as the Swimathon are becoming more and more popular, and allow people to take to the water to raise money for a cause they really care about. Those who want a more difficult challenge
6. Give up something you love– it might not be easy for some, but it should be relatively simple for most people to give up something they enjoy for a month in order to raise some money for charity. There are many options, we have seen Dechox for chocolate, Sober October for alcohol, and Movember for shaving facial hair. This is another option for the creative among you, as you can choose to ditch the thing that you know your supporters will be most surprised you are giving up.
7. Get your pets involved– India is a nation of animal lovers, and as a population we obsess over our four-legged friends. A number of organised charity events have launched for those that want to spend time with their pets and raise money for a good cause. Some like the Dog Jog are open to all abilities and are a fun way to spend a day out with other dog owners, where both you and your pet get some exercise and help raise money for charity. You can also be creative and use your pet as a focus point for your fundraising, perhaps getting people to donate to animal welfare charities or rescue centres on their behalf.
8. Do an extreme challenge– skydiving has long been a typical fundraising challenge, and it is still quite popular as a way to demonstrate commitment to a charity cause. Likewise, abseiling, long distance runs, or mountain climbing challenges can all resonate with supporters who will realise just how much effort you are putting into your charity work.
9. Organise a school event– A great way to raise money and engage with your local community is to organise a charity event with your children’s school. Having an activity day, that is linked to an online fundraising page, is an innovative way to teach kids about social responsibility and ICT.
10. Have a bake sale– it sounds very traditional, but with the popularity of the Great British Bake Off more and more people are turning to their kitchens to kick start a fundraising drive. A bake sale in your work or your child’s school is a good way to boost your fundraising for your page.
11. Do a year of good deeds – Why not think of giving as something you do year-round rather than once? By organising a series of events throughout a year, you, your family and your friends can all join in the fundraising.
Related Blog: How to Raise Funds for NGO in India: 12 Fundraising Techniques!
Benefits of Crowdfunding for Nonprofits
Inspite of being a new financial innovation it has taken everyone by a storm, here’s why:
1) Website for all NGOs
NGOs and Non-profits usually lack resources to and the expertise to create and maintain a website. A crowdfunding platform provides a microsite to every user. Every campaign that goes up on the crowdfunding website gets a personalised and customised web-page that pleads their case, and makes their campaign more relatable to the donors.
2) Acquire new donor base
It goes without saying that using a crowdfunding website, gives the NGO access to the already established customer base and audience of the crowdfunding platform.
Since most of the leading crowdfunding websites have a following of millions on various social media combined, the campaign can be easily promoted on any of these social media sites.
Facebook, Twitter and Instagram can be used to post relevant facts related to the NGO campaigns and reach out to internet users across the globe.
3) Low fundraising cost
The cost of raising funds through crowdfunding platforms is low. Unlike other methods of traditional promotions and fundraising, crowdfunding websites charge only a small part of the entire amount raised, as a fee. The best part about using a crowdfunding portal is that it is free to use and there are no additional charges to launch a campaign. There are no pre-investments to be made. All you need is a credible story and a creative promotion strategy to attract donors/ investors.
4) Corporate CSR partners
Corporate social responsibility is a legal obligation for every corporate entity now. Social Crowdfunding helps Corporates empower NGOs/ Non-profits, financially. Moreover, crowdfunding websites are known for their transparency and quality of service which makes all the transactions safe and efficient for the Corporates. At the same time the NGO enjoys the benefits of a generous donation by a well-known corporate entity.
5) Increase volunteer base
NGOs can access the established customer base of the crowdfunding website. Following suit, it can be said that a larger audience would attract more volunteers to the campaigner’s because that will help them branch out and make more impact in the long run.
7) Rewards
The campaigning NGOs can offer rewards to the donors made. Tax Exemptions are a form of reward that is offered by the government for the benefit of such NGOs. Other physical forms of rewards can also be used to encourage more donors to donate. Personalized certificate of contribution or mementos can be handed out as a reward to the donors.
This just goes to show that Crowdfunding has proven its mettle and is here to stay.
If you are an NGO/ Non-profit in need of funding, crowdfunding is definitely a better option than many others available today.
So go ahead, CROWDFUND your way to do your good work!
Read Further: Top 5 Benefits of Crowdfunding for Nonprofits NGOs
Nonprofit Crowdfunding Success Stories
From there, a new digital platform for “Social for Action” crowdfunding has been launched to bring together NGOs and donors. So far funds have been allotted to these organizations – Maher (Pune), Mata Adishakti Social Foundation (Dhule), Eklavya Child Education and Health Trust (Ratnagiri Kudal Project), Bharat Jodo Yuva Akademi (Nanded), Prarthana Foundation (Solapur), and Yashodhan Trust (Satara) under the “Social for Action” campaign.
Yashodhan Trust
The information was published in the Samajbhan Sadar about the NGO ‘Yashodhan Trust’ working for orphans, the homeless, and the mentally challenged at Wai on Satara Road. The “Social for Action” campaign called for financial support for the annual cost of treatment of psychiatric health check-ups, medicines and for the construction of a new ashram building. Donors responded spontaneously to this call. At present 60 mental patients are staying in the ashram and construction of the new ashram building has also been completed.
Prarthna Foundation
Anantamma Krishnayan and Prasad Mohite, are a young couple running a project to bring poor, low-income, destitute, homeless, and unfortunate children into the mainstream of society through the ‘Prarthana Foundation’ at Morvanchi in Solapur District. Under the ‘School for the Disadvantaged – One Step Towards Progress’ project, financial assistance was sought through the ‘Social for Action’ campaign for the construction of a residential project ‘Prarthana Balgram’ for 300 homeless and destitute children and the elderly on the streets. Donors responded spontaneously to this call. The construction of the ‘Prarthana Balgram’ project building is currently in its final stages through the “Social for Action” campaign and is nearing completion.
Eklavya Child Education Health Trust
Considering the scope of problems of financially backward, destitute, and out-of-school children and understanding their need for help the organization wanted to set up separate hostels for boys and girls at Sindhudurg. Financial assistance was sought through the “Social for Action” campaign for the construction of the hostel building and other physical facilities for the ‘Eklavya Balshikshan Arogya Nyas’ organization. Donors responded spontaneously to this call. The work of the hostel of Eklavya Child Education and Health Trust has been completed through the “Social for Action” campaign and many donors. The entire dormitory building is a multi-purpose hall. The dormitory building has rooms for boys and girls dormitories, classrooms, library, kitchen, besides basic amenities like bore well for water and cement tank, toilet, etc.
Best Crowdfunding Platform For Nonprofits
The top three crowdfunding platforms in India (Ketto, Milaap, and ImpactGuru) raised Rs 271.65 crore (2.7 billion) in 2018. The amount was roughly 11% of the Rs 2,400 crore (24 billion) inaugural budget for Modicare— the government’s public healthcare scheme introduced in the same year. Together, Milaap and Ketto have raised over Rs 1000 crore (10 billion) for healthcare-related campaigns in the last five years, with a growth rate that doubles almost every year. Over 1,200 medical campaigns are started on Milaap every month, with a 3x growth per year on average. Ketto, on the other hand, hosts around 2,000 medical fundraisers per month and has seen a constant growth of 50% CAGR in the last five years.
We work across sectors including cleantech, health, work and learning, food, and social inclusion, providing support to enterprises focused on early cancer detection to community power co-operatives producing renewable energy. We work to help them raise capital so they can focus on their business.
We work with all investors, from foundations and family offices to everyday investors, to help them identify opportunities and to support their decision-making efforts so they can match their money with meaning.
To get you started, here are just a few of the best crowd funding platforms to donate
- SocialForAction
- FuelADream
- Ketto
- ImpactGuru
- GiveIndia
Read Further: Top 6 Crowdfunding Platform for Nonprofits in India
Can a nonprofit crowdfund?
Yes. Nonprofit crowdfunding is a form of fundraising encouraging the public to invest in your organization. It can be used for specific programs within the organization or a general donation to the cause.
Crowdfunding has become more popular recently. $9,237.55 is the average amount a nonprofit crowdfunding campaign raises, reports Nonprofit Source. This can be monumental to an organization, and even more to smaller nonprofits.
Which Crowdfunding Platform Is Best For Nonprofits?
There are many people who want to help others and are helping to serve the community to live better lives, helping the people with the help of other peoples makes things bigger and many needy get benefited, for which other people donate funds to non-profit organizations. Making contributions to many such non Profit organizations are eligible for Income Tax Exemptions as well.
In Today’s digital world, the world is open to everyone through the internet and Non-Profit Organisation’s to benefit from this by collecting funds in the form of donations by running campaigns on Online Crowdfunding platforms.
Here are the top Fund raising platforms on which NGO’s can raise funds to achieve their objectives :
- Milaap (https://milaap.org/)
- Impactguru (https://www.impactguru.com/)
- Ketto ( https://www.ketto.org/)
- Fueladream (https://www.fueladream.com/)
- Social For Action (https://socialforaction.com/)
Summary
Crowdfunding can be extremely lucrative when crafted, promoted, and executed properly. A successful campaign requires up-front research to select the platform that best meets your financial and visual needs, a clear message that inspires action, creative and constant promotion by the organization, and consistent communication with campaign donors.
While in-person events may be canceled, the giving spirit has not. And lucky for you: SocialForAction has launched a crowdfunding feature to help nonprofits fundraise, thus increasing funds for nonprofits’ various projects! Watch the blog closely for updates.
Online Crowdfunding for Nonprofits with SFA
Social For Action connects campaign owners to funders in a way that is productive and engaging. The uniqueness lies within our various campaign, as a part of Sakal Media Group, we have extensive reach throughout Maharashtra and beyond, the most credible resources which are available to us. We have been previously supported By 2000+ Donors and over 15000+ impact stories.
We want to spur innovation & make access to funds easy through crowdfunding in India; while promoting transparency and accountability. We want to change the traditional methods of how ideas, activities, ventures and organisations are funded by making crowdfunding the go to method of raising funds in India.
Start Your NGOs Fundraiser Journey with Social For Action, today!
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