Ideavibes Presentation on Crowdfunding and Fundchange - June 23/11
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Transcript of Ideavibes Presentation on Crowdfunding and Fundchange - June 23/11
Crowdfunding and Arts Funding Paul Dombowsky
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Introduction
Social enterprise web development company that has developed the first Crowd Engagement Pla>orm for crowdsourcing and crowdfunding. One of Canada’s first crowdfunding sites for chariCes, non-‐profits and arts groups to fund change in our communiCes one project at a Cme.
7.7% Percentage of Canadians that aIended 5+ arts events in 2007
1% Percentage of donaCons in Canada given to arts & culture
3.7% Average number of organizaCons each donor in Canada gave to
25% of all arts donors gave 75% of the total donated
Starting Point
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“Fundraising Trends and Challenges in the Canadian Direct MarkeCng Sector”-‐ a research paper from 2009 by Cornerstone Group of Companies shows: • Donors who make their first giZ to an organizaCon online as opposed to
via direct mail have a much higher average giZ
$73 vs. $30
• There are now more than 4 Cmes the number of new donors, per organizaCon, from online iniCaCves than 5 years ago (9M to 40M).”
Online Giving
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Perhaps there is an opportunity to try something new to engage more donors to support the arts?
Opportunity
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• A crowd • A challenge or a project • A process and tool for engagement • Trust and commitment in your crowd to take acCon • Key performance indicators – what does success look like?
• Proof of acCon – your crowd wants to see what happened
Crowdfunding - What do you need?
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Donor Generations
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Millennials (born ’91 and aZer) -‐ ?
Gen Y (born ’81-‐’91) – Average DonaCon $325
Gen X (born ’65-‐’80) – Average DonaCon $549
Boomers (born ’46-‐’64) – Average DonaCon $725
Civics (born ’45 or earlier) – Average DonaCon $833
Where Donors are Giving
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0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
Checkout DonaCon Fundraising Event
Tribute GiZ Charity GiZ Shop
Online via Website Mailed GiZ
Monthly Debit In Lieu of GiZ
Phone Third Party Vendor
SMS Social Network Site
Who is your crowd?
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Donors
Prospects
Event AIendees
Mailing Lists
Donors’ Network
Prospects’ Network
Event AIendees’ Network
Mailing List’s Network
The crowd you know The crowd you don’t know
Social Media Makes the Connection
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Projects or Doable Asks • Easier for most people to wrap their head around a smaller project as opposed to an enCre opera producCon or building a theatre.
• Examples: • AIendance at fesCval • New producCon • New website • Film trailer • Outreach program
Post Promote Share Search/Filter Fund Receipt Report Costs: $99 + hst to join
includes 2 posCngs 3.9% processing fee
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Examples: Fundchange
Post Promote Fund Report
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Examples: Crowdrise (US only)
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Examples: WeDidThis (UK)
Successfully Funded Projects: 3,910 Dollars Pledged: $27,638,318 Total Pledges: 386,373 Average Pledge: $71.53
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Examples: Kickstarter (Not in Canada)
• It’s social – the crowd promotes projects it likes • It’s social – the crowd won’t promote projects that aren’t shareable
• Success comes to those that acCvely build a crowd • A challenge for organizaCons new to social media
• It’s the free market at work • It’s the free market at work
• Build sCckiness to the project • Need to pay aIenCon to write-‐up to inspire funders
Benefits & Challenges
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Things to keep in mind: • Crowdfunding success comes quickest to organizaCons that are social –
media-‐aware and engaged. If your organizaCon is not yet social media-‐enabled, it will take Cme and human and financial resources to do so.
• Because your efforts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organizaCon strategically manages and promotes its brand online.
• Make sure your target audience is online and will give online • If you opt to post your projects on established crowdfunding sites, do your
homework – be careful of the company you keep.
Integrating Crowdfunding into Your Organization
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• Building our own crowd • Tap into the collecCve crowd that funds change • CreaCng desCnaCon for arts funding based on the crowd and
driven by social media • Now supports sharing on Facebook
Why Fundchange?
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• $99 to join – includes 3 free posCngs • $50 to post projects aZer first 3 • You receive 96.1% of money raised • Max. project size is currently $5000
Offer • First Alliance Member to fund project (+$2000) gets an iPhone • Media campaign focused on partnership with Alliance • Eligibility for TELUS matching campaign based on Facebook
integraCon – Summer Campaign
Joining Fundchange
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• Donor stats, etc. came from “The Next GeneraCon of Canadian Giving” – Nov. 2010 – by Vinay Bhagat, et al
• “The Wisdom of Crowds” – book by James Surowiecki • “Crowdsourcing” – book by Jeff Howe • “Fundraising Trends and Challenges in the Canadian Direct
MarkeCng Sector”, a research paper released in 2009 by Cornerstone Group of Companies
Resoruces
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Thank you
Paul Dombowsky | 613.878.1681 | [email protected]