Crowdfunding: Using Stories and Strategies to Raise Funds from the Crowd

Crowdfunding: Using Stories And Strategies To Get Funds

From The Crowd

2015 Storytelling Non-Profit Virtual Conference

Housekeeping

Write down 3 thingsCaveats & biases@bradyjosephson | #storytellingnppeergiving.com | chimp.net | [email protected]

First, a story.

The collective effort of individuals who network and pool their money to

support efforts initiated by other people or organizations.

Crowdfunding has both project and person based forms of fundraising.

Project Based• Purpose is fundraising• Driven by a person or an

organization • Options to choose a

project• Think Kiva• Think direct mail

Person Based• Purpose is engagement• Driven by a person or

group of people• Focusing energy towards

one project• Think charity: water• Think online gala

Crowdfunding is growing rapidly and driven by social causes

Another story.

We’re not doing a great job...

Maximize donor utility.

Crowdfunding helps combat the reasons why people don’t want to give.

Why People Don’t GiveDiffusion of ResponsibilityFutilityParochialismIdentifiable VictimFairnessMoney

How To Inspire To Give Social InfluenceTangibilityMake Personal, TangibilityTangibilitySocial InfluenceNon-Financial Actions (Pledge, Volunteer, etc.)

What makes donors happy?

● Giving more frequently in smaller amounts● Giving to very specific projects● Giving when it all goes “to the cause”● Giving when they don’t get anything tangible back in

exchange● Giving and being thanked promptly● Giving and getting smaller, more frequent updates on

impact

Hero Donor Framework

You are not the hero of the story.

How to Crowdfund?8 Steps to a successful campaign

Carve out a tangible funding opportunity

1

Connect with outsiders6

Finish strong7

Compel with great stories2

Choose a platform3

Create your project4

Communicate with insiders5

Close the loop8

1. Carve out a tangible funding opportunity

SMART● Specific● Measurable● Attainable● Relevant● Time bound

Simple case● Why care?● Why you?● Why now?

What are you hoping to raise, by when, to impact who and how?

2. Compel with great stories

• Social Currency• Triggers• Emotion• Public• Practical Value• Stories

• Simple• Unexpectedness• Credibility• Concreteness• Emotion• Stories

There are different story types you can use in your campaign for different reasons.

Story Types– Genesis– Future– Beneficiary– Staff– Donor/Supporter

Tell your founding story and where you came from for trust.

Story Types– Genesis– Future– Beneficiary– Staff– Donor/Supporter

Tell your desired future story of what’s possible to inspire.

Story Types– Genesis– Future– Beneficiary– Staff– Donor/Supporter

Don’t close the gap before it is even opened.

Tell a client story to personalize and move emotionally.

Story Types– Genesis– Future– Beneficiary– Staff– Donor/Supporter

Tell a staff story to humanize the brand and let people peek behind the curtain.

Story Types– Genesis– Future– Beneficiary– Staff– Donor/Supporter

Tell the donor/supporter story to show the power in everyday people and others aren’t in it alone.

Story Types– Genesis– Future– Beneficiary– Staff– Donor/Supporter

3. Choose a platform5 Questions

1. Do you need/want the donor information?2. How much brand control do you want?

3. Do you want a tool that can access a pool of supporters?

4. Do you want to provide updates during and after the project?

5. How do you prefer to pay for the project?

3. Choose a platformClassyNetwork for GoodBlackbaudPeer GivingCauseVoxArtez

CrowdRiseIndiegogoKickstarterFundlyRazoo

Choose the best platform for them.

4. Create your project

● Keep it simple, add layers (and links)● Use videos and images● Add social and social tools● Add incentives (carefully)

Overhead doesn’t matter… except when it does

Videos, quick starts and audience are all keys to successful projects/campaigns.

5. Communicate with insiders● Send an eBlast out to

those that know and already love you○ Tell them what’s

coming○ Ask them to give○ Ask them to share

● Let your staff and board know about it and what they can do

6. Connect with outsiders● Share on social media

○ Videos, photos● Write a blog post about it● Tag friends, family, staff and insiders who have given in

Facebook updates● Get staff and board to share through personal updates

Your supporters often have more social capital than you do.

7. Finish strong

● Send last round of emails● Share how close you are and how little time

left on channels● Ripest time to acquire new donors

8. Close the loop

• Thank everyone for giving and sharing• Tell them how the campaign ended• Follow up with results and stories on impact

Resources

● Made to Stick● Winning the Story Wars● The Life You Can Save● charity: water● LiNK● Classy● Bloomerang

Thanks!Brady Josephson

[email protected]@bradyjosephson

recharity.catext ‘recharity’ to 33733 for weekly digest

Questions?