Questions

Kickstarter for charity?

A marketplace where charities, orphanage, non profits can post what resources or finances they need along with a breakdown of what the finances will be used for and then individuals or corporations can donate to them and money is released when they hit the amount needed. Pro and cons of this?

3answers

It's a very nice and worthy idea. Please kindly note that there already are a few of these platforms (but maybe there is room for more - perhaps if you add something unique to the model).
Examples:
https://chuffed.org/
https://www.thebalancesmb.com/giving-to-charity-online-2501931
https://www.gofundme.com/
https://doublethedonation.com/tips/crowdfunding-platforms-for-nonprofits/
Good luck
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Answered 4 months ago

Having done a crowdfunding campaign on Kickstarter & Indiegogo last year to launch a new brand, I think crowdfunding sites have amazing potential and are here to stay.

That being said, Gofundme will definitely be your biggest competitor in that space, but I think you can definitely add more value to this marketplace to connect people closely with the charities they want to support.

Having the organization who receives the fund obligated to "show" how they are using the fund and giving a detailed update to the backers would be great to avoid people taking advantage of the system like many have done on gofundme...

I think as long as you can connect people with their favorite organization and give them the trust and confidence that the money is going to the right place, a Kickstarter for charity will always be a success.

Check out the Kickstarter campaign I did last year that raised $154k - I'd like to share with you what I learned from this experience and what I like/dislike about Kickstarter that could be improved.

Feel free to book a call if you want to chat: https://clarity.fm/xavier-cl/expertise/how-to-launch-a-succesful-kickstarter-indiegogo-campaign

Good luck with this project!
Xavier


Answered 4 months ago

There are many pros and cons of launching a Kickstarter.

Pros:

1. Generally safe - There is a low venture to dispatch a crowdfunding effort.

2. No Equity - You can fund-raise without parting with part of your organization (value).

3. Leverage small donations - A heft of crowdfunding gifts originate from limited quantities. A star of crowdfunding is you can gather these gifts you would normally not get if raised from enormous contributors.

4. Increase Feedback - People are exceptionally vocal about crowdfunding efforts. It's an extraordinary time to get input for your thoughts.

5. Negative money to money - This is one of my preferred motivations to crowdfund. You can gather the money before you put resources into making your venture. In bookkeeping we call this negative money to money. It makes dealing with your cash 1000x simpler than the customary way. With a normal income you pay for the materials first and afterward need to sell the item/administration to recover the cash.

Cons:

1. Risk of failure- You could fail, and that always sucks. Again better to fail early than after investing a ton of your own money in creating something people do not want.

2. Advertising - Most creators are not experts at marketing. This makes getting people to hear about your campaign difficult. There are a ton of tactics and tricks to gaining traction on a crowdfunding platform. But it takes time and you need to be committed to the strategy.

3. Investment of time- When I talk to successful crowdfunding creators they are always surprised at how much time it took. Plan ahead and give yourself a realistic timeline for the campaign.

4. Expenses - On Kickstarter you possibly pay in the event that you raise the measure of your objective. On the off chance that this happens you do need to pay expenses.

5. Rules - There are additional rules to most stages about what you can and can not do. Try to understand them so you are not in infringement!

If you have any further questions, please schedule a call.


Answered 4 months ago

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