By Rob Ruchotzke, Consultant
There’s nothing like a crowdfunding campaign to capture a moment, build your donor base, or raise money for a specific project. I’ve had the opportunity to lead over 30 crowdfunding projects ranging in goal from $1,000 to $50,000, as well as seven days of giving and Giving Tuesday campaigns. Each project had its unique set of challenges and opportunities that led to the insights I am pleased to share with you below.
Crowdfunding allows you to galvanize your existing supporters and leverage your constituents and their social media networks to expand your reach faster than traditional annual giving methods like phonathons or direct mail campaigns. Plus, crowdfunding can be fun. When people see you and your followers having fun with a campaign, they are more likely to engage.
Crowdfunding is most successful when executed over a designated time period or on a single “Day of Giving,” such as Giving Tuesday. Giving Tuesday falls on the Tuesday after Thanksgiving (November 29, 2022) and is recognized around the world as a day to make contributions to nonprofit organizations. On Giving Tuesday 2021, nearly $3 billion was raised in the United States alone.
How to run a successful crowdfunding campaign
Set Campaign Messaging
Your goal can be a specific number of donors or a dollar amount, but it must be attainable, relevant, and time-bound. Create a unique, authentic tagline to communicate your goal and a dedicated landing page or fundraising platform that you can link to in all of your messages. Plan to share stories online along the way.
- Consultant Tip: Campaign video teasers sent via email and social media are effective ways to build anticipation before your campaign launch. Here is an example of a crowdfunding campaign teaser video from a university where I worked. When we encouraged reactions and responses to our posts, people were more likely to spread our message.
Build Your Team
Recruit a leader to manage the progress of internal staff members, volunteers, and “star” ambassadors. Who is best suited for planning and who for execution? Who is motivated and will stay engaged? What connections to social media “stars” do you have on your Board who would be willing to make a gift, post about their contribution on their social networks, and help increase organic engagement?
- Consultant Tip: Track which of your ambassadors brought in the most new donors or overall dollars and create a leaderboard to generate healthy competition within your team to increase gifts.
Find the Right Partner
Crowdfunding can be part of your larger annual giving strategy. Partnering with an expert who understands the planning, marketing, fundraising, and strategic moves that crowdfunding requires will make your effort run smoothly and give you confidence.
- Consultant Tip: Set aside time to meet with an account manager for each of the platforms you use including your customer relationship management (CRM) and bulk email platform, direct mail vendor, texting application, and giving page. Make sure you understand what tools you have at your disposal and how to use them to make your campaign really shine.
Set a Timeline
Once you determine your crowdfunding approach, it is crucial to plan when, what, and where you will post your campaign goals and progress updates. Creating a timeline can help your team see the bigger picture, generate new ideas throughout the process, and stay on schedule with timely communications.
Crowdfunding is most effective when you have a compelling and urgent need to entice donors, many of whom may not yet be associated with your organization. One or more of your donors may be willing to encourage others to give to your crowdfunding effort by making a challenge gift and calling for matching gifts.
- Consultant Tip: In advance of launch day, meet with potential major donors to “seed” the campaign with early donations. This early support will encourage more people to get involved, especially when you have a challenge gift. During a designated day, time challenges can also be effective, such as a “Rush Hour Challenge” or “School’s Out Challenge” or a “Members Only Challenge.”
Your crowdfunding campaign success will be defined by how constituents drive the momentum via social media. Harness your ambassadors and keep the online engagement moving with timely messages, videos, and updates along the way. Use a multi-channel communications strategy to reach people in more than one way.
- Consultant Tip: Plan for the unexpected. Your campaign could go viral if a megastar or influencer gets on board. Be ready to react in real time and ride the wave to success.
Make It Easy
Donors want to click, give, share, and receive acknowledgement and campaign updates. Make the path to sharing your content simple and approachable both for your team and the public.
Plan stewardship well in advance of launch day so that you can thank donors along the way. Enlist ambassadors, staff, and volunteers to help with a letter writing campaign or thank-you video in addition to your regular tax receipt acknowledgement.
- Consultant Tip: Show the impact! Record a video capturing the excitement on a day of giving or the results of the gifts that have been made – check out this example of a personalized video I received when I made a contribution during a crowdfunding campaign.
Debrief, learn, and adapt for future programs using quantitative and qualitative data. Create tracking mechanisms in advance of your campaign. Use solicitation codes and set up a campaign tracking sheet so you can understand which channels and outreach tactics were most successful.
Crowdfunding takes effort, but can have an immediate impact on your organization and be incredibly satisfying when done correctly. Reach out today to learn more about how CFA can help your organization succeed in your crowdfunding and annual giving efforts.
Rob Ruchotzke, Consultant
Rob Ruchotzke focuses on annual giving strategy, development assessments, campaign feasibility studies, and campaign counsel. Rob comes to CFA with nearly a decade of annual giving experience in higher education institutions. Most recently, Rob served as the director of annual giving at the University of Northern Iowa (UNI), where he led multi-channel campaigns, developed crowdfunding platforms, managed annual giving vendors, and served as the strategy lead for UNI’s Day of Giving (#LivePurpleGiveGold).
A native of Camanche, Iowa, Rob holds a BA in Public Relations from the UNI and resides in Cedar Falls, Iowa.