Unless you’ve been under the proverbial rock these past couple weeks, you’ve probably heard about what has been aptly named the “bus monitor incident.” You’ve also probably heard about the fundraiser that was initially started by a concerned individual in an effort to give Karen Klein (the bus monitor) “a vacation of a lifetime.” In just five days, that campaign has raised over $640,000, and that number is still growing.
Now, regardless of opinions about the situation surrounding the fundraiser, I doubt there are very many people out there that aren’t impressed by the amount of money that has been raised for this cause in such a short amount of time. I’d also be willing to bet that a lot of people (especially those of us in the non-profit world) are wondering just how it was done and how they can replicate this success in their own campaigns.
The answer to this is relatively simple: crowdfunding. The fundraiser that was set up for Karen Klein was done so through a site called indiegogo.com, which is just one of the many independent websites that supports this kind of fundraising platform. What exactly is crowdfunding, you ask? In simplest terms, crowdfunding is a fundraising model that relies on the donations of many individual contributors (who are usually making relatively small donations) to reach a not-so-small campaign goal.
A little bit from everybody adds up to a LOT
Is it right for you?
There are a lot of reasons why crowdfunding works, and there is no doubt that it is a great tool for any fundraising campaign manager to keep in their toolbox. However, it may not always be the best answer when it comes to generating funds for your cause. Generally speaking, crowdfunding typically works best when you are trying to raise funds for a very specific purpose or cause (like this example, here) rather than asking people to donate in support of your organization as a whole. In other words, people are more likely to donate to an online crowdfunding campaign that asks them to “Bring Fuzzy the Bear to Our Zoo!” over one that asks them to donate in general support of the zoo’s ongoing activities. So if you were hoping that this might be your new and improved alternative to planning your organization’s annual fundraiser, you’re probably out of luck (sorry!). But that doesn’t mean that it’s not a great way to raise funds for a specific initiative, especially if it’s one that evokes a strong emotional response from donors.
How could you not donate to this?!
So what’s the catch?
Most crowdfunding campaigns are free to set up, but the platform providers have to make their living somehow! Each site has their own pricing structure, but they are usually commission-based, taking a small percentage of the total funds raised. Additionally, there may also be fees for credit card processing, or for accepting funds from other countries, among other things. They are all slightly different in their terms of service and restrictions, so if you think you might want to get started with a campaign like this, expect to do a little research beforehand. If you’re looking for more information, here is a great article that includes the names of some of the more popular crowdfunding sites as well as some great tips on how to get started on a crowdfunding campaign of your own.
If, after you’ve done your research, you think that this a good model for your fundraising needs, then go for it! Just don’t forget – this tool, like any other, is only as effective as the person behind it. Use it wisely (and don’t get discouraged if you don’t make it to $640,000 in 5 days).
-Stephanie Garvia
Not just another face in the crowd
Over Coffee 