Now that I have convinced you (hopefully from my last few blog posts) that you should embrace crowdfunding as a viable fundraising channel for your organization, where do you start?
First step is to choose the right crowdfunding platform for your organization. To help you out, I have put together this list of 10 questions you should ask before settling on the right platform for your organization.
1) What percentage or fee does the crowdfunding platform take out of the revenue you raised? Some platforms don’t charge anything, others will take a percentage of what you raise, and some will charge only a small posting fee and not take any portion of funds raised. Be sure to also identify if there are credit card processing fees above and beyond the fees the platform charges.
2) Do you receive the funds you raised even if you do not hit your fundraising goal?
3) What support services (if any) does the platform offer? Also be sure you know who is responsible for creating your crowdfunding page and if you can post updates/changes throughout the campaign.
4) Is there someone that you can talk to when you need support?
5) Will you receive your donor list? This is an important question! Some platforms do not provide you with the list of donors that contributed to your campaign.
6) Who is responsible for communicating with donors about the campaign once it has ended? An important part of the process, you want to be sure your donors receive information about their dollars at work.
7) What kind of payment platform is used? Pay Pal, WePay, Etc.
8) Is the site exclusive for nonprofit organizations and are nonprofits vetted (weeding out any that are not legit)?
9) What kind of social media promotion, if any, will the site do for you?
10) Will the site contact your donors in the future for other projects that are not for your organization?
For a resource that lists and compares crowdfunding platforms, check out CrowdsUnite.com and if you are still not convinced crowdfunding is necessary to grow your younger donor base, then read my business partner’s blog post about the aging donor file.