Thanks to ingenuity and the internet, people donate money to see other people's dreams come true. The "crowdfunding" initiative - that is, collective financing - allows people to donate money for a cause, a creative project or starting a business. With dozens of sites designed to assist you in raising funds, choose the one that best suits your needs. Therefore, develop a campaign that helps you achieve your fundraising goal.
Steps
Part 1 of 3: Preparing for Crowfounding
Step 1. Start an official project
People generally don't like contributing to a "generic fund," so set a goal to achieve. Describe your project as specifically as possible.
Step 2. Establish the cost
Tell people how much you are trying to collect. Make a plan to update your progress from time to time.
Step 3. Understand that there are limits to crowdfunding
In the United States, the Securities and Exchange Commission has not yet established any measures to allow crowdfunding of company shares. This aspect could change in 2014, but until today the "Jumpstart Our Business Startups Act" (JOBS Act) has only proposed, not enacted, regulations on start-ups. As for Italy, on 12 July 2013 the Consob has published the rules for equity crowdfunding, making Italy the first country in Europe to adopt such legislation.
Step 4. Decide whether to offer a gift to your collaborators
In the United States, one way to bypass SEC rules and encourage people to donate is to give a product to the contributor.
Part 2 of 3: Choosing a Platform
Step 1. Open a PayPal account
If you are still undecided on the platform, you can register a PayPal account and link it to your e-mail address. People can donate to nonprofits or to individuals through your email address.
PayPal takes a commission on each transaction
Step 2. Search Kickstarter
This is the first crowdfunding site, in order of time and importance, for the presentation of creative projects. Over a billion dollars has been invested in the Kickstarter project and you can take advantage of the brand recognition. As for Italy, this article contains some of the Italian crowfunding sites, but if you prefer to take a look at the American reality as well, you will find other suggestions below.
- Websites, brick and mortar companies initiatives (physical corporate structures where customers can go in person to view and purchase products), music albums, books and inventions are commonly posted on Kickstarter.
- Donors can search by location, type of project and the popularity of the projects.
- Compare Indiegogo, RocketHub and Quirky.
Step 3. Consider "DonorsChoose" for funding educational projects
This site is specifically for teachers and educators looking to fund school projects. Projects under $ 400 have a better chance of being funded.
Step 4. Compare Causes and Givlet, if you have a 501 (c) 3 non-profit organization with no funds
Using these two sites, transactions are cheaper and you don't pay a monthly fee.
Step 5. Use Crowdfunder, Somolend or Invested
if you are a small business looking for online funds to cover the costs of starting up the business.
Somolend is a debt-based rather than a donation-based system, so you may be eligible for a loan to start your business.
Step 6. Check appbackr if you have an app in mind and want to build it
This is a niche site for building mobile apps.
Step 7. Compare Crowdrise, DonateNow, Givezooks, Qgiv and StayClassy if you want a fundraising tool with social media, websites and other tools
If you don't have the resources to raise awareness and have enough to pay a monthly fee, it may be your best bet.
For nonprofits that raise most of their money locally, paying the monthly fee is probably not worth it
Part 3 of 3: Start a Fundraising Campaign
Step 1. Set a deadline
Not only is it required by most crowdfunding sites, but it will also encourage people to donate. As the deadline approaches, people can get caught up in the excitement of accomplishing a goal.
Step 2. Build your email list
Since you are fundraising online, you need to focus on some online marketing methods. Consider buying a list if you are unable to build one through events, offers or website activity.
Step 3. Formulate a message and ask for the donation directly
Make sure that the method for informing potential donors by email, online correspondence or webpage is set out in the message. Don't let it get confused with so many newsletters.
Keep the message concise, pleasant, and truthful
Step 4. Ask someone to lead the project or be a spokesperson for it
If you get someone to dedicate themselves to publishing, updating and managing tasks online, you will be more likely to maintain the surge in your project.
Step 5. Use behavioral marketing on Google, Bing and Facebook
If it's a local project, use zip codes to target your audience.
Step 6. Include the donation link on everything
Make it to the top of site pages, on Facebook and other social media accounts, on email signatures and printed information.
Step 7. Suggest a donation amount
Use a phrase like: "If everyone gives € 25, we will be able to buy hospital beds for our seniors by March."
Step 8. Give people instructions on how to donate
If possible, indicate what to do in case of malfunctions of the online system.
Step 9. Try new channels if your current methods are not as successful as you were hoping for around your crowdfunding project
Set up partnerships and ask your partner to send you emails and online inquiries.
Step 10. Loyalty
Keep your reputation intact by submitting donation reports, giving gifts, and sending thank-you letters.
