Crowdfunding for Nonprofits | Top 8 Crowdfunding Platforms and Tips

Nonprofit Crowdfunding Tips

The financial stability of most nonprofit organizations is dependent upon fundraising, which historically included special events such as walk-a-thons, galas, and auctions, along with grant writing and direct mail solicitations.

In 2020, crowdfunding has become the new normal in our digital, COVID-age. There are plenty of ways to create an engaging crowdfunding platform, but there are many details you’ll need to tend to in order to get the most out of your campaign.


What is Nonprofit Crowdfunding?

Nonprofit crowdfunding is a form of fundraising encouraging the public to invest in your organization. It can be used for specific programs within the organization or a general donation to the cause.

Crowdfunding has become more popular recently. $9,237.55 is the average amount a nonprofit crowdfunding campaign raises, reports Nonprofit Source. This can be monumental to an organization, and even more to smaller nonprofits.


8 Powerful Crowdfunding Platforms for Nonprofit Fundraising

There are plenty of crowdfunding sites specifically for nonprofits, such as Fundly and CauseVox. All have different features and pricing. Do your research and see which nonprofits are using certain platforms and why. Here are some widely popular crowdfunding platforms:

  1. Donorbox
  2. Fundly
  3. Classy
  4. CauseVox
  5. Donately
  6. Chuffed
  7. Salsalabs
  8. GoFundMe Charity

1. Donorbox

Donorbox is introducing its crowdfunding feature in supporting nonprofits to further engage donors and potential donors. Donorbox is widely popular with nonprofits in various spaces- education, museums, churches, animal welfare among many others. The crowdfunding feature lets nonprofits customize the crowdfunding page, send customized email updates, add compelling media. Nonprofits can share updates and messages on their crowdfunding page and anyone can sign up for their email updates. The platform also provides a donor wall- acknowledging all donations.

Pricing:

Priced lowest in the market with 1.5% of monthly donations plus transaction fees.

Pros:

  • Efficient software for fundraising and crowdfunding campaigns
  • Affordable and easy to use
  • It Integrates with Zapier, Salesforce, and Mailchimp and PayPal, Stripe for payments.
  • Offers multiple currencies, languages, and payment options
  • Powerful donor management system

Cons:

  • Customer support is great on email compared to phone support.

Here’s a video to show you how crowdfunding works on Donorbox – explained with steps!

Get Started With Donorbox


2. Fundly

Fundly is about functionality and customization, with the main focus on digital donations. Those who donate can share the campaign with their social media to help reach potential donors. You can also customize your donation page with media, so your campaign will look exactly how you imagined and will be branded to your organization.

Pricing:

Platform fee of 4.9 percent, a credit card processing fee of 2.9%, and a $0.30 per-transaction fee.

Pros:

  • Great for crowdfunding
  • Excellent email support
  • Superfast transfer of funds.

Cons:

  • High platform fees
  • Offers limited reach to beginners

3. Classy

Classy is a very popular platform that is based on making the crowdfunding process easy for nonprofits. Their website also offers resources for nonprofits, such as guides, webinars, and Giving Tuesday resources. Educating nonprofits is near and dear to Classy’s core. All prices are customizable – answer some questions about you and your nonprofit, and someone from Classy will get in touch with you to discuss pricing options.

Pricing:

Classy pricing starts at $199.00 per month with additional transaction fees.

Pros:

  • Easy customization
  • Great customer service
  • Easy Peer-to-Peer Fundraising

Cons:

  • It is a pricy option compared to its alternatives.

4. CauseVox

CauseVox backs up their success by focusing on the stats. Did you know that in the past two years, there’s been a 24 percent growth in online donations? Or that in 2018, mobile giving increased by an astonishing 205 percent? The point: CauseVox understands the importance of digital donations.

Pricing:

CauseVox has three packages: Basic, Standard ($139/month), and Plus ($245/month). The basic plan has no cost per month, and there is a 0% platform fee.

Pros:

  • Peer to peer campaigning
  • Integrates with stripe, salesforce, PayPal, Mailchimp, Google analytics, and various other software.

Cons:

  • High Platform Fee
  • UI improvements are needed.

5. Donately

Donately is hip to the system. Similar to other platforms, Donately allows custom forms, fundraising pages, and donor management capabilities. Where they take it up a notch: they have a text messaging platform. This can help with increasing donations and peer-to-peer fundraisers, among other positive effects.

Pricing:

Donately Team plan is priced at $49 per month with a 2% platform fee. You can also customize your plan with the Donately enterprise pricing option.

Pros:

  • Donately is easy to set-up and navigate
  • user-friendly interface
  • Affordable

Cons:

  • Limited donation tracking and donor outreach tools

6. Chuffed

Chuffed has done more than 7900 campaigns globally. Their unique optional donation model, which helps the campaigners to receive the funds in their bank accounts without any charges. Incredible transparency is the core of this platform, and they follow the “keep it all” approach. Hence, many campaigners are turning towards chuffed to receive all their raised funds without any deduction. Chuffed is also known for its generosity because they are not only dedicated to operating as a crowdfunding platform but also serve the value of kindness to their donor fraternity.

Pricing:

Chuffed is priced at 2.00% of monthly donations with $0.20 processing fees.

Pros:

  • Chuffed is free to start
  • It provides multiple crowdfunding pages for a single campaign.
  • You can keep all amounts raised without reaching the fundraising goal.

Cons:

  • The upfront cost has to be paid by donors.
  • Page customization is limited.
  • Customer service is not up to the mark.

7. Salsalabs

Salsa labs manage online fundraising, peer to peer campaigning, online advocacy, email marketing, and social media promotion. It is one of the unique software that merges support engagement and relationship management with outstanding online support in its flagship suite. With all the efforts and excellence, salsa is known for its fantastic track record, rich user experience, and happy clients.

Pricing:

Salsalabs provides custom pricing based on different types of fundraising needs.

Pros:

  • User-friendly CRM
  • Award-winning customer support
  • New features are added consistently.

Cons:

  • The upfront cost is high.
  • Migration of accounts is challenging.
  • Email marketing is less responsive.

8. GoFundMe Charity

With its fast, friendly, and flexible service, GoFundMe Charity has gained a massive amount of trust in the crowdfunding industry. The impeccable customer support is the backbone of this platform which quickly responds to the questions and concerns of the users with immediate solutions. A robust platform, empathetic support team, and professional user experience are what make Gofundme charity unique and special. It is the plug and plays model of the crowdfunding ecosystem, which is gaining immense popularity all over the world.

Pricing:

GoFundMe Charity lets you start for free, charging up to 2.2% of monthly donations with a $0.30 processing charge.

Pros:

  • Customer support is super responsive.
  • Easy to use and easy to set up.
  • Clean interface to attract a vast number of users.

Cons:

  • Gofundme charity is more expensive than other platforms.
  • API integrations are limited

Pro Tip: There are tens of different platforms that you can use, so do thorough research prior to picking out a platform. Key things to consider: visual layout, ease in customizing platform, platform fees, and credit card/transaction fees.


Benefits of Nonprofit Crowdfunding

With COVID-19, in-person events are no longer an option. This can be troublesome for nonprofits that rely on events and face-to-face meetings. With a little creativity, a clear goal in mind, and a clean interface, crowdfunding can replace the crucial in-person events you’re missing.

  • The Bandwagon Effect- People are usually more prone to contribute money if they see that many others are already doing it.
  • It is cost-effective- Crowdfunding is generally cheaper and more cost-effective than other sources of fundraising. It is a fast way to raise funds without any upfront fees.
  • Marketing- Crowdfunding is also a valuable form of crowdfunding and can result in media attention.
  • Alternate source of fundraising- crowdfunding is an alternate source of fundraising if you have a hard time getting loans.
  • Testing crowd reactions- Crowdfunding is also a great way to test if your idea works and get valuable feedback.

Crowdfunding for Nonprofits – Top 7 Tips


1. Hone In On What You Want to Accomplish

The first step in creating a crowdfunding campaign? Hammer out the details in advance. How much are you hoping to raise? Do you have an ideal amount of donors you’d like? Are you hoping to convert one-time donors to recurring donors?

It is crucial to have answers to all of these questions in advance, otherwise, you risk being overwhelmed by small details that will hinder your success once you have launched.

Discuss these objectives with your team members, and run ideas by your board as well. You want everyone to be on the same page before you execute your plan.

Pro tip: Create a shared document – in your company folder, a google doc, or another program – that everyone can edit, therefore reducing the likelihood of someone missing a meeting, misunderstanding objectives, or simply forgetting what was discussed.


2. Use Video for Crowdfunding

nonprofit crowdfunding tips

Most crowdfunding websites allow you to embed videos as an introduction to the organization and its mission. And, crowdfunding campaigns with personal videos raise 150% than those that don’t have videos.

This will be one of the first parts of your campaign that people will see, so it is vitally important to create a thorough, short-and-sweet, to-the-point, and pleasing-to-the-eye introductory video. Crowdfunding campaigns with personal videos raise 150% than those that don’t have videos. (Nonprofit Source)

2.1 Open With a Fact

Is there a statistic that makes a point, is surprising, or will immediately hook the viewer? Lead with that. The goal is to capture their attention and draw them in within the first 15 seconds. Avoid opening with plenty of text or a sterile message – engagement is king.

2.2 Don’t Overshadow the Message

Executive director and board member statements have a large influence on viewers, especially when there’s a face to the name. However, they should be the B-story or narrator, rather than the focal point. While it can be inspiring to hear why the team member does what they do, the focus should be on what the organization as a whole provides.

2.3 Showcase the Community You’re Helping

Representation means showcasing who you’re helping. Is it disenfranchised youth? Women’s reproductive rights? Animals? Whatever it is, capture this community on film and integrate it into your video. If you don’t have the ability to film them directly, there is plenty of stock footage online; scour the internet for relevant clips.

2.4 Include Your Ask

Don’t end the video without voicing your ask. Sure, you can include this in the description, but remember: your video is what’s captivating the audience. Pad it with how it relates to your mission and campaign goal. Is it $1,000 to provide hot meals to the homeless? Or $3,000 to provide medical care to stray cats? It won’t come off as pushy if it’s relevant to the overall mission.

Pro Tip: It’s worth it to hire a professional videographer for this, as you will want it to be high quality and edited to have the most impact on the audience. Find videographers whose work you are impressed by and reach out. Compare rates and work, then get input from the rest of your nonprofit’s team.


3. Gather Testimonials

The community you’re helping is your greatest selling point. To bring the point home, have testimonials from those you’ve supported directly.

Have the community speak about their struggle, the nonprofit’s goals, and how the nonprofit has had a positive effect on the community. You can have individual speakers or a group – both will have an impact.

This is also great content to include in your video. Have your professional videographer come along with you to interview those you’ve helped, then add these to your introduction.


4. Turn One-Time Donors Into Recurring Donors

crowdfunding for nonprofits

One of the top ways to keep donors coming back: communication. When someone donates to your campaign, make sure to personally reach out and thank this person. Chances are, they were simply expecting updates through the platform (and if you aren’t updating – consider doing so!), so a personal “thank you” will go a long way.

When thanking your donor, use their name, explain what their donation will go toward, and give them the option to become a recurring donor. Acknowledge why it would be helpful for you and which facets of your organization the donations would be applied to.

As mentioned, you should update your campaign regularly. Based on the platform you choose, you may have the option to email the updates to the donors.

Updates should include what you’ve accomplished so far with the donations, what the next goal is, and a sentence or two of gratitude. These reminders will put you at the forefront of their minds, and different goals will inspire them to give more.

Pro Tip: These reminders should not replace your personal thank you!

Watch this video as we share 7 pro tips to turn one time donors into recurring givers:


5. Match Funds

According to The Big-Give Research Initiative, 84% of donors reported that they were more inclined to give should their donation be matched. And one in three donors said they’d give a larger donation if they knew matching was applied.

Take note of any donors who make regular, large donations. Contact them and propose that they offer matching funds. It might be one donor, or a combination of donors – no matter what, that 84% can make or break nonprofits’ fundraising. Announce that all donations up to a designated amount will be matched dollar-for-dollar within a designated time period to convey urgency.

Donorbox donation forms allow you to set up donation matching by simply adding an embeddable company search widget. It is really quick and easy.

successful nonprofit crowdfunding campaigns

Pro Tip: You can pitch this to larger donors in exchange for a mention of them and/or their company – visibility can definitely entice a potential partner.


6. Make the Impact Tangible

successful nonprofit crowdfunding campaigns

Suggest pre-set tiers of payment, and mention the impact the amount will affect. Does $50 buy a week’s worth of groceries for a family? How many antibiotics for pets does $100 cover? When people know what they’re donating to, they’re more likely to donate more.

Do this for all suggested price points – on top of convincing them to donate more, you may turn a one-time donor into a recurring donor because they are passionate about what they are providing to the nonprofit.


7. Promote, Promote, Promote

crowdfunding strategy for nonprofits

Something that may slip through the cracks when putting on a massive campaign: regularly promoting your campaign on social media. Mentioning it one or two times throughout the campaign is not enough – you should have a regular posting schedule, with multiple – but diverse – posts a day on some platforms.

For Twitter, aim to tweet one to two times a day. Post to your Instagram four to five days a week, but regularly reference the campaign in your stories; do the same for Facebook.

As you are promoting the crowdfunding campaign, make sure to place your Call to Action effectively. Most social media platforms let you place a donate button. For example, Facebook allows you to add a donate button with your fundraiser posts. You can add your Donorbox donate button on Twitch. Your promotional emails must include a donate button that links to your crowdfunding page.

Do you have rewards for donors? While most donors are driven to give to support the mission, there are those who will always want the t-shirt. Use some of your posts to mention a tangible benefit to the donor. Finally, in each newsletter and email that you send out, save space to mention the campaign. It doesn’t have to be flashy, but it should be noticeable.


How Nonprofit Crowdfunding Campaigns Differ From Personal Crowdfunding Campaigns

Personal crowdfunding for a cause you’re passionate about differs from a professional crowdfunding campaign.

Personal crowdfunding may be geared toward a specific cause, but it does not guarantee that all proceeds will go to one organization. For example, a personal Facebook campaign geared toward eliminating animal cruelty that raises $300 may donate $100 to three different nonprofits.

There’s nothing wrong with this, and your nonprofit will be grateful for any amount of funds. But nonprofits should not bank on personal fundraisers bringing in the vast majority of donations.

That’s where nonprofit crowdfunding comes into play: they generate the campaign and reap the rewards directly. While funds may be split between different aspects of the nonprofit – such as advocacy and educational programs – all funds go directly to the organization.

Just make sure to keep in mind that both types of fundraisers are crucial to keep nonprofits going.

Pro Tip: When someone hosts a fundraiser, make sure to reach out and thank them personally, and absolutely share their campaign among your circle. This can be shared via email and social media.


Dodge These Mistakes

Of course, there are always accidental mistakes. Try to avoid the following for a more successful campaign.

1. Lack of Information

If you do not have information about your nonprofit and your goal with the fundraiser, donors may pause. Leaving your donors to guessing where their donations are going can put them off. they may be donating to support a specific program that is close to them but might be worried that their donation will go toward a different program. Assurance and clarity can go a long way!

2. Use Social Media

You should also be posting on social media on a regular basis. Social media is one of the strongest forms of self-promotion, so don’t hesitate to announce your campaign multiple times on all platforms. And don’t forget about email: Over half of people who receive an email about a crowdfunding campaign made a donation.

3. Update Your Donors

Don’t forget to update your donors – they want to see how they’re helping you to accomplish your goal. Share pictures, tell stories, thank them for their generosity – anything to let them know you’re appreciative. Stats back it up: Crowdfunding campaigns get 126% more donations when owners update supporters, and campaign owners raise three times more if they update supporters every 5 days. (Nonprofit Source)


Frequently Asked Questions (FAQs)


1. What are the best crowdfunding sites for nonprofits?

Donorbox, Classy, CauseVox, Donately, Chuffed, and GoFundMe Charity are some of the best crowdfunding sites available in the market for nonprofits. They effectively help you raise quick funds for your specific needs and update your donors.

But if you’re looking for an all-in-one solution, Donorbox is the right choice for you; it’s cost-effective, user-friendly, secure, customizable, and at the same time, a great way to manage your donors effectively.


2. How to set up a crowdfunding page?

Setting up a crowdfunding page is a breeze with Donorbox; it takes only 15 minutes to create a campaign and turn on the ‘crowdfunding’ feature. After that, you can easily add your story, share images/videos, and post updates for your donors on the page. Non-donors can subscribe to the campaign and you can email updates to them on a regular basis.

Features like social media buttons, goal thermometer, and donor appreciation wall make the whole crowdfunding experience outstanding for you and your donors. Learn more on how to set up a crowdfunding page here.


3. What are some good crowdfunding ideas for nonprofits?

If you’re a nonprofit serving disadvantaged people across the country, start a crowdfunding campaign specifically for helping the local community. It could be for providing shelter and food to people affected by a natural calamity. Or if you run an animal shelter for dogs, consider crowdfunding the treatment costs for a rescued dog. These are some simple yet effective ideas for crowdfunding.

Also, try making the campaigns reward-based. Let your volunteers offer their skills or services to the highest donation-makers. Or perhaps, give out apparel, branded goodies, etc. to the donors. It will help promote your nonprofit and make donors happy.


4. Which crowdfunding platform has the lowest fees?

Considering all available options in the market, Donorbox is the most affordable for you. It’s free to start. The platform fee is 1.5% only, which is the lowest among all leading crowdfunding platforms.

Additionally, payment processing fees are deducted based on the payment gateways i.e. Stripe, PayPal, or ACH bank transfers. But with Donorbox, you can always ask your donors to cover the processing fees.


Conclusion

Crowdfunding can be extremely lucrative when crafted, promoted, and executed properly. A successful campaign requires up-front research to select the platform that best meets your financial and visual needs, a clear message that inspires action, creative and constant promotion by the organization, and consistent communication with campaign donors.

While in-person events may be canceled, the giving spirit has not. And lucky for you: Donorbox has launched a crowdfunding feature to help nonprofits fundraise, thus increasing funds for nonprofits’ various projects! Watch the blog closely for updates.

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