How To Crowdfund successfully - Findacure · 2019-10-03 · NAIL YOUR VIDEO The next step is...

How To Crowdfund Successfully

Masterclass Workbook

11th September 2015

@Findacure_fdn / #RDcrowdfund

www.findacure.org.uk

WHAT IS CROWDFUNDING?

Crowdfunding is the practice of funding a project by raising many small amounts of

money from a large number of people, typically via the Internet. Unlike traditional

funding, crowdfunding is from individuals, who donate money, either in-kind or in

return for some form of gift (a ‘perk’), which often vary according to the size of

donation made.

The benefits of crowdfunding can include:

Awareness: Crowdfunding helps share your stories about people working

together to make the world a better place.

Engagement: The average project reaches over 10,000 people, helping to build

the community and find further donors/volunteers.

Fundraising: Crowdfunding is a vital source of funds and has the potential to

reach millions through partners and projects, raising the profile of your

organisation.

RUNNING A CROWDFUNDING CAMPAIGN

There are four stages to running a successful crowdfunding campaigns: planning,

launching, promoting, and thanking. The first step usually takes up the most time as it

is crucial all details are planned and prepared prior to launching to ensure a successful

campaign.

PLANNING

CHOOSE AN APPROPRIATE PROJECT

First step for running a crowdfunding campaign, is to identify an appropriate project.

You need to have a concrete project, where supporters can see their donations directly

helping and making a real difference.

Out of the above brainstormed ideas, which one is the most tangible? Which one

would have the largest demonstrable impact? Why?

What projects do you

need to fund?

BUILD A STRONG TEAM

Crowdfunding campaigns consume a lot of time and require a lot of creativity to appeal

to supporters in new ways. The team needs to include individuals with different

backgrounds to channel new ideas and approach the campaign from different angles.

What skills do you bring to the team?

What skills and experience do you need on your team?

Who could you approach for your team?

SET A GOOD TARGET

How much will it cost to deliver your project in full? Remember to include things like

staff time, venue hire, travel expenses, etc.

How much does your campaign need to raise? Remember to include the cost of

producing and shipping perks (next page), and the crowdfunding platform fees.

How much can you reasonably expect to raise? Remember, you should expect to raise

at least a third of the donations from your existing network.

£ (network) X 3.3 = £

If the amount you expect to raise is significantly lower than the amount you need to

raise, this is an important point to stop and consider if crowdfunding is the right option

for you.

GET GOOD PERKS

The perceived quality of perks is determined by three factors:

1. Value: the value of the perk is much larger than the previous perk

2. Customization: the perk is customized to the donor

3. Rarity: the perk is offered in limited numbers and/or cannot be found

elsewhere

Donation

(£) Value Rarity Customization

% of

Donations

% of

Revenue

generated

10 Low Low None 19.69 2.80

25 Low Medium None 32.52 11.43

40 Low Medium None 24.34 13.68

50 Medium Medium Low 9.47 6.66

100 Medium High High 10.48 14.73

500 High Very

high Very high 2.63 18.50

1,000 High Unique Very high 0.64 9.00



Perks you can offer

When planning your perks, it’s important to remember that they will have a cost

associated with producing them and shipping them. Use the table below to plan out

how much to offer each perk for, how much it costs to produce, and the total income

you’d receive per perk.

Donation

(£) Perk

Cost of

Producing

(£)

Total

Income (£)

NAIL YOUR VIDEO

The next step is developing a strong message for your campaign, and the best way to

convey this message is through a campaign video. The best videos are those that begin

with an emotive and heartfelt story, which then branches into a narrative about the

project itself. You need to hone your message to fit within two to three minutes,

grabbing the attention of the viewer in the first 30 seconds.

0:00 – 0:30

_____________________________

_____________________________

_____________________________

0:30 – 1:00

_____________________________

_____________________________

_____________________________

1:00 – 1:30

_____________________________

_____________________________

_____________________________

1:30 – 2:00

_____________________________

_____________________________

_____________________________

2:00 – 2:30

_____________________________

_____________________________

_____________________________

2:30 – 3:00

_____________________________

_____________________________

_____________________________

TIME IT WELL

When considering the timing of your campaign, you should consider the following:

When will you launch your campaign?

How long will it run for?

What events can you organise or attend to promote the campaign?

Are there awareness days for your condition that you can time the campaign

around?

CREATE A CLEAR PLAN OF ACTION

You need to constantly push the campaign among your network, and continually

update your page to make it engaging to those who are on the fence about donating.

Day 1 Day 2 Day 3 Day 4 Day 5 Day 6 Day 7







LAUNCH

PRIME YOUR NETWORK

Stakeholder Group e.g. patients,

companies, press

Interested Individuals

e.g. John Smith, Jane Doe

Support They Could Give e.g. donate, radio show

How To Approach Them

e.g. personal email, press release

PROMOTE

UPDATES

Ideas For Updates e.g. patient stories, news surrounding

your condition, team profiles

Added Interest e.g. video patient stories, graphics

explaining disease mechanisms, photos

ADDITIONAL NOTES

APPENDIX

PICK THE RIGHT PLATFORM

There are a huge number of crowdfunding platforms, each serving a slightly different

purpose and audience. But which one should you choose?

The London Business School conducted the following research to identify which

platforms are best for non-profit campaigns.

CROWDRISE.COM

This platform is geared merely towards legally registered non-profit organizations and

can be used independently or in conjunction with other platforms to raise money.

Pros

Charities have raised reasonably

high amounts of money

Different fees for different

memberships options (5% for

basic membership, 4.95% for

paid memberships)

Cons

Transaction fees ($1.5- $2 per

transaction+ 5% of fundraising).

Total fees are 7.5%-9%

Projects tend to be small in size

(funds are typically less than

$200,000)

INDIEGOGO.COM

This platform is typically used to raise a small amount of money for a distinct project

or activity, including entrepreneurial, creative, and non-profit projects.

Pros

Discount on transaction fees

given the fundraising target is

met (only 3%)

Non-profit projects get an

automatic discount of 25% on

transaction fees (6.75% instead

of the typical 9% platform fees

Cons

People expect to receive a perk

in exchange for donations

KICKSTARTER.COM

Kickstarter is a crowd-funding platform to fund creative projects. These are typically

films, games, music, art, design, and technology.

Pros

One of the most popular

platforms with 4.1m pledgers

Creators keep 100% ownership

Provides analytics and

collaboration tools

Cons

Limited time to raise funds (90

days maximum)

All or Nothing Funding model

Fees of 5% of all funds raised

RAZOO.COM

Razoo is a crowd-funding platform for good causes. This funding is only available for

non-profit projects.

Pros

Receipts are tax deductible

Claims to be one of the

cheapest crowd-funding

platforms (flat fee of 4.9% on all

donations)

Creator keeps all the money

raised

Provides analytics tools

Cons

Charges 4.9% flat fees on all

donations received

Only 300,000 people have

supported causes using this

platform

GOFUNDME.COM

The platform focuses on helping individuals in adverse situations or on funding social

causes (such as charities, foundations, or other social projects). The projects are

usually related to entrepreneurship and education.

Pros

Donation-based approach

Provides analytics tools

Offers both online and offline

payment methods

Cons

Charges 5% of the donations

received

Projects that attract most

attention are those helping

famous/ popular individual or

are related to well-covered

events

How To Crowdfund successfully - Findacure · 2019-10-03 · NAIL YOUR VIDEO The next step is...

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