Understanding Crowdfunding
Learn. Strategize. Execute.
Crowdfunding is...
- Technology-enabled and driven by online contributions.
- Driven by creators, with video testimonials providing the 鈥渃ase for support.鈥�
- A campaign that supports a specific project with a deadline for support and a defined dollar goal, although stretch goals are common.
- Amplified by social networks such as Facebook and Twitter to allow contributors to share their support and encourage others to join the effort.
- Embracing of a wide range of donors from micro-contributions to major supporters.
- A contribution channel that meets newer donors where they spend their time: social media.
According to a 2013 crowdfunding report from research firm Massolutions, all told, crowdfunding websites helped companies and individuals worldwide raise $2.7 billion from members of the public in 2012 鈥� an 81 percent increase from the previous year. Revenue from new and existing crowdfunding platforms is projected to have doubled to nearly $5.1 billion by the end of 2013. Seeing this success, charities are increasingly turning to crowdfunding to support their projects.
Example Team Structure
1-2 project leaders
- Main interface with platform manager
- Put together solicitation list of approx. 100 & e-mail them
- Create team
- Set goal with advising from platform manager
3-5 project champions
- Responsible for specific pieces of content creation
- Put together solicitation list of approx. 100 & e-mail them
As many ambassadors as possible
- Put together solicitation list of as many as possible & email them (often around 50)
- Find new advertising mechanisms
- School paper
- Blogs
- Mission aligned non-profit organization
