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?
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).
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Answered 2 years 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!
Answered 2 years ago
There are many pros and cons of launching a Kickstarter.
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.
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 2 years ago
Before we get into why the Kickstarter approach is teed up for success, or how it can be applied to charity fundraising, we need to touch on its main elements in a little more detail.
Time Bound– Kickstarter projects must be finite.
Tangible Outcome– Every project on Kickstarter must produce some sort of tangible result. Potential supporters can see upfront what the intended outcome is, and if they decide to give, they know exactly what their money will be used to achieve. For example, if the project is to build a new park, then the fundraising goal will be determined by the estimated cost of building the park.
Video Appeal– Kickstarter projects all include a video appeal that the projects’ creators use to make the case for support.
Backer Incentives– Supporters of Kickstarter projects are generally given something in return for their financial support.
All or Nothing- For a project to receive the money it raises on Kickstarter; it has to reach the funding goal.
Recent studies have confirmed that tangibility is positively correlated with generosity. The takeaway is that when supporters can connect their giving with specific positive outcomes, they feel like they have made a real impact and they get more satisfaction out of the experience. Keeping these findings in mind, it is easy to see why Kickstarter’s project-based approach is set up for success. Kickstarter projects are inherently tangible.
Each project is required to have a well-defined outcome. When people give to a project, they know exactly where their money is going and what it will be used to accomplish. Kickstarter combines this highly tangible approach with other best practices like time limits to create urgency, incentives for supporters, and engaging content, to create an atmosphere primed for fundraising success.
Like Kickstarter projects, most fundraising campaigns are of limited duration, they have predefined fundraising goals, and they often use incentives to encourage supporter participation . One thing that many fundraising campaigns lack, however, is a tangible and clearly articulated outcome. As the research suggests, this is an area where charities would do well to learn from the Kickstarter approach. The Society for the Prevention of Cruelty to Animals International operates a program that helps transport military pets back to the U. In April they launched a special campaign to raise enough money to bring over thirty animals back to the States.
They needed to raise the money before June 1st when the airlines would shut down all animal travel because of the extreme heat of summer in the Middle East. Any animals left behind would be separated from their soldier companions and would almost surely die. SPCAI succeeded in making the campaign highly tangible for its donors and fundraisers. Pictures and names of the actual animals in need of rescue were included on the campaign landing page.
If you donated or raised money for the campaign, you knew that you would be helping these specific animals, saving them from an untimely death and keeping them united with the soldiers they’d befriended. Of course, it’s not always possible to have such a laser-focused goal. The SPCAI campaign was highly specific because it was part of a special appeal meant to fulfill a clearly defined need. It’s still entirely possible, however, to make even your general fundraising appeals more tangible for supporters.
Fundraisers are told upfront that their money will help fund a water project to provide people in the developing world with clean water. Even better, fundraisers are assured that after they finish fundraising, they will receive a packet showing exactly where the money they raised has gone. The digital report fundraisers receive is filled with specifics about the water project they helped fund. It’s the ultimate proof of impact.
They’ll feel empowered and you’ll raise more money. It’s the ultimate win-win. The Critical Link Between Tangibility and Generosity.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Answered 2 years ago