Crowd funding is a way of raising money for a specific project using the internet and social networking technologies to get small amounts of money from a lot of people (cumulatively, this can equal a lot of money). Crowd Funding allow you to describe and promote your cause to their audience, whether it be raising money for your club, seeking funds for a charity event, some folks even use Crowd Funding to raise money for movie projects. It’s up to you to promote your cause well enough to get your supporters, sponsors friends, family, club members and your community to donate so you can reach your funding goal.
Crowd Funding Platforms
There are a number of Crowd Funding platforms out there in the marketplace.
How to begin Crowd Funding
To begin crowd funding your project, follow the procedure below:
How does it work?
Your club sets up a page online, through any of the above listed crowd funding sites. The page provides a clear overview of a club project or cause (eg. Extension of the kitchen or more playing equipment), the amount of money sought and exactly what it will be used for.
The club project page has the ability to host multimedia so clubs can post videos, music or photos to support their fundraising cause. It is important to put some thought into the development and creativity of the multimedia explaining why it is so important that people pledge to your cause. The objective of the multimedia is to get people to share it with their friends on social media.
Supporters of the cause donate as little as a dollar. Incentives and rewards are very important for attracting attention and donations, the more bizarre and unique to your club the better. The most successful projects on crowd funding have offered a unique gift or product in return for a pledge, been well communicated, clearly set out with goals and driven by associated social media and networks. Gifts for pledges can range from stickers to club memberships, in fact gifts for pledges are limited only by the club's imagination but they must be seen as something of value in order to attract funds.
For eg, for a $10 pledge, the donor receives a club beanie (keep you warm in winter), a $100 pledge gets a 1 hour remedial massage. Here is a full list of other suggestions:
The money given is a pledge. If the amount needed for the project is not reached in the set timeframe, all pledges will be cancelled and no transactions take place.
How Successful is Crowd Funding?
50% of the time, fund targets are not reached but this is mainly because the project/cause is not promoted or driven hard enough. If clubs are going to use Crowd Funding to raise funds they need to spend time to make their fundraising page interesting and drive the promotion using tools like social media.
Very few clubs have tried crowd funding. It is not a magic giving tree, it will take time, effort and constant communication to get traction. When it does, amazing things can and do happen.