On March 10, 2011, Dianne Debicella of Fractured Atlas and Danae Ringelmann from IndieGoGo shared this insightful presentation on fiscal sponsorship and crowd funding opportunities for artists. Hosted by Spacetaker.
Agenda1. Overview of Fiscal Sponsorship & Crowdfunding2. Taking advantage of fiscal sponsorship program and the IndieGoGo platform3. Fundraising for artists and small arts organizations4. Tips on Successful Fundraising campaigns +
But first… Nice to meet you!• Fractured Atlas & IndieGoGo• Dianne Debicella and Danae Ringelmann• Fractured Atlas staff IndieGoGo Staff +
Who Is Fractured Atlas?Fractured Atlas is a non-profit organization that serves a nationalcommunity of artists and arts organizations. Our programs andservices facilitate the creation of art by offering vital support to theartists who produce it.We help artists and arts organizations function more effectively asbusinesses by providing access to funding, healthcare, education, andmore, all in a context that honors their individuality and independentspirit.
What is Fiscal Sponsorship?• Fiscal sponsorship is a legal agreement between an artist or arts organization and a 501(c)(3) charity (like Fractured Atlas)• It allows the sponsee to raise tax-deductible contributions through individuals and grants• Funds are given to the sponsor and are restricted to the specific purpose and use of the sponsee• Without getting tax exempt status, you can use fiscal sponsorship to solicit contributions from individuals and institutional funding agencies.
Benefits of the Fractured AtlasFiscal Sponsorship Program• Fundraising: having the ability to give your donors a tax-deductible receipt for their contribution of cash (checks or credit card) or tangible items• Grants: having access to foundations that only allow tax-exempt charities to apply• Also, with FA fiscal sponsorship, you can gain access to: • IndieGoGo partnership – more on this in a few • Nonprofit rates with vendors and companies who offer them • Review of all grants and solicitation materials
Arts Fiscal Sponsors:Best Practices• All fiscal sponsors charge a fee, usually between 5 and 10%. FAs feeis 6%• The sponsor provides oversight for the funds that are raised and howthey are spent (May request receipts, invoices, contracts)• Most sponsors, including FA, will never own any of your work, or any ofthe rights to it• Many sponsors, including FA, will review grant proposals to make surethat they are appropriate and that the foundations are good matches• All fiscal sponsors should have some sort of written agreement for thefiscal sponsorship arrangement
Who Can Use the FA FiscalSponsorship Program?• Individuals and organizations with a US social security number or Federal Tax ID (also called an EIN)• The individual or organization must have an artistic focus or strong arts component• Individuals must have a project in mind or ongoing work and creative development• Organizations that are waiting on their own 501c3 status, or who are not planning on filing for their own status• The potential sponsee must NOT have investors or commercial intent; they should be nonprofit and have a charitable purpose (But please pay yourself if you can!)
Applying for Fiscal Sponsorship1. Become a member of Fractured Atlas2. Carefully review the agreement, eligibility, benefits, and policies and procedures3. Submit the application4. Deadline is the last day of the month, approvals are sent no later than the 15th of the following month5. We do not judge the quality of your work and simply need to see that it is artistic and nonprofit in nature
Post-Original Productions – HulkRaised $239,396 through fiscal sponsorship $69,396 of that through IndieGoGo
NEA Breakdown of Revenue• The 2007 NEA publication “How the U.S. Funds the Arts” provides a clear, statistical analysis of how arts organizations fund their operations and programs.• www.nea.gov• They surveyed both large and small arts organizations in a variety of disciplines and found that money is raised from the following sources in the following percentages:
How do the Arts Fund Operations?• Earned Revenue 44% (e.g., ticket sales, selling your work)• Individuals 31% (e.g., your family, friends, and donating patrons)• Foundations 9% (e.g., The Puffin Foundation and The Rockefeller Foundation)• Governmental Sources 13% (e.g., your state arts council)• Corporations 3% (e.g., The Altria Group, Citibank, and Target)
Individuals Economics Altruism/Personal ConnectionDonor recognition (thank you letters, invitation only events, newsletters, periodic company updates Earn it, ask for it The creative economy is a social economy
Individual Appeal Letters• Write in simple, straightforward English• Format your letter so it’s easy to read• Ask for money, not support• Give them a reason to send money now• Use “I” and “you,” but mostly “you”• Base the appeal on benefits and not needs• Use online resources to search for examples of amazing appeal letters.
Crowdfunding – what is it?• Is the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations. (from wikipedia)• Use an online community to solicit pledges• It uses word of mouth and wisdom of the crowd to generate interest and donations• Engages donors as part of a community of donors that provides transparency on who is giving and how much is being raised
IndieGoGo: quick overview• Credit Card Contributions – People contribute to your project on IndieGoGo via credit/debit cards. All funds raised for your project via IndieGoGo go directly to Fractured Atlas and are treated like online donations.• No Double Fees - Because your project is fiscally sponsored by Fractured Atlas, IndieGoGo is available at no additional charge.• Opt-in for IndieGoGo - To launch an IndieGoGo campaign that is integrated with your Fractured Atlas fiscal sponsorship, activate IndieGoGo in the Manage Fundraising Campaigns section of the Managed Sponsor Fund Page.
What is IndieGoGo? IndieGoGo is a funding platform for ideas. Anyone with a project (creative, cause, or entrepreneurial) can raise money, offer perks, and keep 100% ownership.
Crowdfunding: Let’s Define What is it? Funding People pooling their money together to support an idea or effort initiated by a person or organization Complementary funding channel Crowdfunding that helps you jumpstart funding, Marketing Distribution marketing & distribution: all in one. Involves? Personal pitch Online community Proactive outreach
Crowdfunding: Let’s Define What it is What it is NOT Sharing & Inviting Advertising Telling Selling Goal & Deadline Driven Open-ended & Infinite Sound It Out: shoot BY: Jeanie FinlayThank you!! Please visit our new Audience-Building Audience-Buying page to see more and support our independent documentary Contributions Just donations DIWO DIY (Do It With Others) (Do It Yourself)
5 Benefits of Crowdfunding1. Money Money is justThat’s clear. You get funds to help you make your film. ONE Benefit!2. Market ValidationA Successful crowdfunding campaign shows that people wantit to happen because they are voting with their wallet.3. MarketingAuthentic “Word of Mouth” marketing is most authentic. Takesmultiple impressions before people act on a call to action.4. Monetization Hava Nagila, What Is It?Crowdfunding jumpstarts distribution (pre-sells) and allows BY: Roberta Grossmanyou to monetize “outside your copyright” (via perks) IS CONNIE FRANCIS JEWISH? Click on “GALLERY” below to find out!5. MojoLet’s fans and followers participate in the exclusive world offilmmaking – a world they’ve always been locked out of.
Faces of Success Raise $ from Friends, Followers, Customers Offer Unique Perks Pre-sell Your WorkLet those who love your goods can now help you grow. “Dancing lessons Brother Finian? Sign me up!” Start selling your product before you even build it. Emmy’s Organics $13,412 63 Makepeace Brothers $5,810 114 Satarii Star $10,635 54 FOOD RAISED FUNDERS MUSIC RAISED FUNDERS TECHNOLOGY RAISED FUNDERS Engage strangers! Gauge Interest & Demand Do It With Others and Have Fun! Those who share your passion, can now take action. When people vote with their wallets, you’re good to go. Project “for the people” brought to you “by the people.”Rebuilding Haiti $10,185 55 New Left Media $21,837 363 Walking Audio Tour $7,281 69 CAUSE RAISED FUNDERS JOURNALISM RAISED FUNDERS COMMUNITY RAISED FUNDERS
How IndieGoGo Works 1. Post a Project 2. Engage Audience Social media integration Campaign tools 3. Get Funded 4. Track Analytics 5. Collect Money 6. Fulfill Perks
KEYS TO SUCCESS: 5 P’sPitchClear Goals. Transparent. Personal. Right-sizefinancial target & deadline. Personal!PerksUnique. Creative. Not “copyable.” Pre-sell yourwork. Offer financial discounts & scarcityincentives (i.e. limit supply).PromotionStart with core base (friends, fans & followers).Use email, facebook, twitter. Engage throughUPDATES.PartnersConnect with influencers (bloggers, organizations,reporters, & facebook group/online forum leaders)whose readership/membership mirror your targetaudience.
INDIEGOGO BENEFITSStart Immediately InternationalThere is no fee or application process to post No restrictions on locations for campaigns.a project. Currently IndieGoGo is in over 130 countries.Keep Your Funds Fiscal SponsorshipYou keep all the money raise (after fees), Integrate fiscal sponsorship with your crowd-even if you dont meet your funding goal. funding campaign via our Fractured Atlas & SF4% fee when you reach goal (9% if don’t). Film Society partnerships. No double fees.PayPal Integration & Flexibility Customer ServiceContributors can pay via their PayPal accounts We have a 24-hour response policy for anyor credit cards (no PayPal account required!) questions. Every campaign gets a FREEAll you need is a bank account to get started. 1-on-1 Coaching Call pre-campaign launch.Campaign Analytics and Info Strong PartnershipsAnalytics dashboard shows who is referring MTV New Media partnered with IndieGoGopeople and dollars contributed. Fulfillment to source new projects. Every campaign ondashboard keeps track of contact information IndieGoGo is eligible for MTV selection.and perks owed.
Fr. Atlas & IndieGoGo PartnershipSingle platform solution integrating fiscal sponsorship withaudience-building, engagement and crowdfunding tools IndieGoGo + Fundraising X X X Fiscal Sponsorship X X Campaign Tools X X Social Media Integration X X Analytics X X Save Fees 6% 9% 6% 9%
Partnership Benefits Single platform solution to streamline fundraising Tax deductions for contributions on IndieGoGo Integrated social media and community management/ tracking tools Automatic IndieGoGo pitch page creation upon opt-in Cost savings: No double service fees & no processing fees +
How It WorksSet-Up1. Fractured Atlas Projects opt-in to IndieGoGo tool from FracturedAtlas.com2. IndieGoGo campaigns are automatically started3. Project owners receive instructions on how to complete and promote their IndieGoGo campaign4. All Fractured Atlas campaigns on IndieGoGo receive a Fractured Atlas badgeFundraising & Disbursement1. All funds contributed to on IndieGoGo are deposited to Fractured Atlas2. For each contribution, IndieGoGo issues a confirmation receipt to the project owner and contributor, and Fractured Atlas issues a tax receipt to the contributor3. Fractured Atlas disburses the funds to the project per project’s request. +
How to Opt-InProjects With Fractured Atlas Fiscal Sponsorship Step 1 Login into Fractured Atlas & go to Managed Sponsor Fund page Step 2 Go to Your “Managed Fundraising Campaigns” section Step 3 Activate IndieGoGo in the External Tools section New to IndieGoGo? Click: “Create a new IndieGoGo Campaign” Already on IndieGoGo? Click” Connect my IndieGoGo Account”Projects Without Fractured Atlas Fiscal Sponsorship Step 1 Become a member of Fractured Atlas Step 2 Apply for Fiscal Sponsorship Step 3 Once accepted, follow the steps above +
How to Get Started on IndieGoGoProjects New to IndieGoGo Step 4 Receive set-up emails: 1. Welcome message with login details 2. Fractured Atlas opt-in confirmation Step 5 Head to your project’s campaign page: 1. In your Welcome message, clink the link to activate your IndieGoGo account and login. 2. Click on your name in the login area to be taken to your individual profile 3. Click EDIT MY PROFILE to fill in your personal info and your picture 4. Click DONE EDITING to return to your individual profile page 5. Click on your project listed in the “PROJECTS I’M ON” areaProjects Already on IndieGoGo Step 4 Receive Fractured Atlas opt-in confirmation email Step 5 Return to your Project Page +
How To Create CampaignProjects New to IndieGoGo Step 6 Click EDIT in the upper right Step 7a Update INFO & TEAM Set Appearance to “Hidden” in Info section to remain in DRAFT mode Set Appearance to “Visible” in Info section to go LIVE to public Step 7b Complete FUNDING section Set Funding Goal, Deadline & Use of Funds Determine Perks Step 7c Complete GALLERY and EVENTS sections (optional)Projects Already on IndieGoGo Step 6 Click EDIT in the upper right Step 7 Fill in Non-Deductible Portion for each + of your Perks
How To Launch a CampaignAll Projects Step 8 Click on VIEW Launch an email campaign Step 9 Use your Gmail, Yahoo, Hotmail Invite Tool Include your GoGoWidget in any email campaign your do Use Social Media Step 10 Facebook Twitter MySpace YouTube Step 11 Reach out to Influencers with followers Bloggers Organizations Press +
How To Track your CampaignAll Projects Step 12 Click on DASHBOARD Review your ANALYTICS Step 13 Track which fans are driving the most traffic and dollars to your campaign Step 14 Click on FULFILLMENT tab Export your contributor details (perks, amounts, emails, addresses) to fulfill PERKS +
How To Get PaidAll Projects Step 15 Return to Fractured Atlas and your Managed Sponsor Fund Page Step 16 Request a Fund Release + +
TIPS & RESOURCESDIWO Live Tips http://www.indiegogo.com/blog/tipsNo restrictions on locations for campaigns. "10 Places to Promote Your IndieGoGo Project ONLINE“Currently IndieGoGo is in over 130 countries. http://www.indiegogo.com/blog/2010/09/10-places-to-promote-your- indiegogo-project-online.html "10 Places to Promote Your IndieGoGo Project OFFLINE“1-on-1 Coaching Calls http://www.indiegogo.com/blog/2010/09/10-ways-to-promote-your-Every campaign can sign-up to have a indiegogo-project-off-line.html1-on-1 Coaching Call with one of ourcampaign experts. "Reaching the Media: Smart Tactics for Getting Your Project into the News“ http://www.indiegogo.com/blog/2010/10/reaching-the-media-smart- tactics-for-getting-your-project-into-the-news.htmlDIWO DownloadBlog to help people run a successful Insights http://www.indiegogo.com/blog/insightscampaign. http://www.indiegogo.com/blogYou’ll find: “IndieGoGo Insight: More Team Members Means More • Tips Money“ • Insights http://www.indiegogo.com/blog/2010/10/diwo-tactics-using-your-whole- team.html • Case studies • 6Q interview series w/ successes 6Q http://www.indiegogo.com/blog/6Q “6Q with Jeanie Finley of Sound it Out“ http://www.indiegogo.com/blog/2010/11/6q-with-jeanie-finlay-of-sound-it- out.html
Helpful ResourcesKeys to Crowdfunding Successhttp://www.indiegogo.com/blog/2010/01/keys-to-crowdfunding-success-on-indiegogo.html5 Benefits of Crowdfundinghttp://www.indiegogo.com/blog/2010/01/benefits-of-crowdfunding.htmlThings I Relearned While Crowdfunding (Insightful customer blog!)http://ventriloqui.posterous.com/things-reaffirmed-to-me-while-crowdfundingAudience-Building 101http://www.indiegogo.com/blog/2009/06/audiencebuilding-101-stepbystep-guide-from-indiegogo.html Fractured Atlas Support firstname.lastname@example.org GoGoSupport email@example.com
Additional Resources• Chronicle of Philanthropy: www.philanthropy.com• Philanthropy News Digest: www.fdncenter.org/pnd• Wikipedia on 501(c)(3): www.en.wikipedia.org/wiki/ 501(c)(3)• IRS Website on Exempt Organizations: www.irs.gov/ eo
Our Staff is Here to Help• Call us at 212-277-8020• Email us at firstname.lastname@example.org• Tara, Theresa, and Brittany answer the phones, process donations and mail fund release checks• Kara processes donations, deals with text approvals and answers many questions• Juliana and I review grants, provide fundraising consultations, and develop the program
Check out the FA webinarsoffered monthly online:1. Introduction to Fiscal Sponsorship2. Orientation for Newly Accepted Fiscally Sponsored Projects3. Overview of Individual Donors and Online Campaigns4. Proposals and Grants for Fiscally Sponsored ProjectsFor more information on these webinars visitwww.fracturedatlas.org/site/fiscal and check out theschedule under “Upcoming Info Sessions”Please email us at email@example.com for allquestions.
AppendixKeys To Success4 P’sHow to Set Your Funding GoalHow to Set your DeadlineImportance of UpdatesMore On How IndieGoGo WorksSteps to LaunchOptimized Funding User ExperienceHow Sharing WorksHow to Track Your AnalyticsHow to Check Your Funds’ StatusHow to Fulfill PerksMTV New Media Partnership
How To Set Your Funding GoalHow To Set Your Funding Goal Helpful Tips1. Breakdown your total funding need intospecific “Use of Funds” chunks (i.e. budget IndieGoGo Blogitems) www.indiegogo.com/blog/tips2. Assess the size of your community “Value of Transparency & Specificity • Email list in Raising Money” • Facebook friends • Twitter friends • Audience reach through influencers • Audience reach through press3. Set a Goal to cover one or a few budget items at a time, knowing your community will grow over time and multiple campaigns. • IMPORTANT: You DO NOT need to raise 100% of budget in one campaign. You can launch multiple campaigns if needed. • KEEP MONEY: On IndieGoGo you keep the money you raise whether you reach goal or not.
Keys to Success: 5 P’sPitchClear Goals. Transparent. Personal. Right-sizefinancial target & deadline. Personal!PerksUnique. Creative. Not “copyable.” Pre-sell yourwork. Offer financial discounts & scarcityincentives (i.e. limit supply).PromotionStart with core base (friends, fans & followers).Use email, facebook, twitter. Engage throughUPDATES.PartnersConnect with influencers (bloggers, organizations,reporters, & facebook group/online forum leaders)whose readership/membership mirror your targetaudience.
Multiple Campaigns 1 Campaign one Specific Use of Funds: To cover costume and FX costs Campaign two 2 Specific Use of Funds: To cover editing, post- Production & distribution
How To Set Your DeadlinePick a Deadline that: Helpful Tips1. Gives you time to reach your targetaudiences IndieGoGo Blog • Just friends, family & followers? 30 www.indiegogo.com/blog/insights days is probably fine • Plans for influencers & press? Allow “IndieGoGo Insight: More Time 2- 3 months for activity Doesn’t Always Mean More Money”3. Ends right after a major milestone sothere’s urgency to fund NOW • Fundraising party • Screening / premiere • Principle photography launchInsight:On IndieGoGo campaigns that set afunding deadline between 60 and 70 daysraise, on average, 141% more moneythan shorter or longer campaignsIndieGoGo: Campaigns are 1 to 120 days
Deadlines: Aim for 60-70 days Pick a Milestone: Antoinette chose the deadline to be the day she had to leave for Africa where she was going to complete her photo project Sweet Spot: Campaigns between 60 and 70 days raise, on average, 141% more money than shorter or longer campaigns
How to Communicate with FundersFrequent & Creative Updates Helpful Tips1. Advantages of Updates IndieGoGo Blog • Build trust www.indiegogo.com/blog • Builds community • Builds GoGoFactor “How To Use Updates on IndieGoGo” “IndieGoGo Insight: Campaigns that send2. When To Use Updates 11 or more updates raise 137% more • To celebrate success money” • To keep people posted on progress • To inform on news/events relevant to topic • To share press & other news • To post images & videos3. How Updates Work • Automatic emails • Gallery ArchiveInsightCampaigns that send 11 or more updates raise137% more money than campaigns that don’t.
Updates Celebrate Success Recognize key milestones Thank funders publicly – big and small Automatic Email All updates are aggregated from the day and packaged into one email to all funders
Updates Share Progress Preview perks Ask questions & engage funders Gallery Archive: All video & images Shared in updates get archived in the Gallery.
Updates Share Your Press Press is exciting & validates to funders that they’re a part of something super cool. It gives them another reason to share with more friends too! Inform & Give Free Info You’re an expert! People appreciate it when they’re kept informed of relevant info & news. Getting free stuff / info makes people more likely to want to help when asked.
Updates Create a Campaign. 1 Successful campaigns start with a great idea. Post a campaign and make your pitch. Share your vision, and answer the question: “why should I care?” Set Your Goal & Deadline. 2 Think smartly about how much money you need to raise, how it will be used and how long it will take to reach your goal. (Note, You don’t need to raise 100% of your funding need in one campaign. You can launch multiple subsequent campaigns.) 3 Make Some Noise! Tell people about it. Share. Update. Inspire.
Optimized Funding User Exper. Enhance Contributions Most people prefer to be above average. So IndieGoGo helpsthem, and you benefit from higher contributions. Sharing Made Easy Funders are mobilized into promoters instantly. Data is Power All sharing activity is tracked & given to you so you know who is driving referrals & dollars to your campaign.
More on SharingShare From the Campaign PagePeople don’t have to wait to fund to be prompted to share. FAN SHARE CAMPAIGN TOOLS TEAM SHARE TOOLSShare via Widgets Gmail/Yahoo InvitesYou and anyone can share your As campaign owners, you and teamwidget on their website or blog. members can import & invite any/all yourNo coding required. gmail & yahoo contacts seamlessly TOO!
HOW TO TRACK YOUR CAMPAIGNDASHBOARD: Your Campaign Title CAPTURE REFERRAL & FUNDING DATA TRACK YOUR CAMPAIGNERS’ SHARE RESULTS “Kaleena referred 4 people who then contributed $226”
HOW TO CHECK YOUR FUNDS STATUSDASHBOARD: Your Campaign Title CHECK YOUR CONRIBUTED FUNDS’ STATUS CHECK CONTRIBUTOR DETAILS
HOW TO FULFILL YOUR PERKS EXPORT DASHBOARD: Your Campaign Title YOUR DATAVIEW YOUR PERKFULFILLMENT DATA NAMES, EMAILS & ADDRESS INFO HIDDEN FOR CONFIDENTIALITY
MTV NEW MEDIA Get Discovered by MTV New Media Create a campaign. The greater the DIWO The greater the consideration Monthly Selections Each month, IndieGoGo shares a selection of projects with MTV New Media that meet their criteria. Target ContentWeb series, documentaries, features, shorts for online, VOD, Mobile, DTV & DTO