Crowdfunding for Your Cause

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Crowdfunding for Your Cause, training for the Utah Non Profits Association.

Training by Devin Thorpe of the Your Mark on the World Center (YourMarkOnTheWorld.com).

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  • Many of you will recall when in 1976, the Teton dam near Rexburg Idaho failed, damaging or destroying about 80 percent of the structures in Rexburg. My father invited me to join him with a volunteer group to Rexburg where we helped dig mud out of a basement and otherwise work to salvage a home. The whole trip took about 24 hours, leaving about 2:00 AM, arriving at dawn, working all day, leaving at dark and returning after midnight. I’m not a big guy now. Picture me as an eleven-year-old standing next to a shovel—I wasn’t as tall as the handle and just lifting the empty shovel was a task for me. I’m sure I was of virtually no help that day, but the experience has come to define my life. I felt so good helping people that day that I promised I would never miss an opportunity to help.Of course, I have missed many opportunities to help. But, after being let go from my position as the CFO for a global food and beverage company I have focused on channeling the enthusiasm of my youth to do my part to make the world a better place.
  • Turned 40 8 years ago.Looking for something to keep me young.Decided to buy a Harley, but before doing so I took a class to learn how to ride.Rented a Harley for a long day of ridingBought a Harley.Gail swore she’d never ride on the back.She went for a ride on the back the first day.We loved riding togetherThe tripThe GasThe crashThe rescue.
  • Crowdfunding for Your Cause

    1. 1. Crowdfunding For Your Cause Devin D. Thorpe January 16, 2014 Salt Lake City, Utah
    2. 2. Thank You UNA This training is made possible by: • The Utah Nonprofits Association • American Express • Utah Division of Arts and Museums • Utah Food Bank Chris Bray Paula Abdul
    3. 3. Teton Dam
    4. 4. What is crowdfunding? • Raising money from the crowd through thirdparty online platforms – Donations – Rewards or “Pretailing” – Investments
    5. 5. SMAC! Monkeys
    6. 6. LiveMoreAwesome
    7. 7. Vivienne – Make a Stand
    8. 8. Crowdfunding Timeline (Weeks) 1 2 3 4 5 6 7 8 9 10 11 12 Campaign Live On Site 1 Day to 60 Days Reconnaissance Preparation Ground Assault Air Attack
    9. 9. Reconnaissance • • • • • Assess your crowdfunding potential Survey your team Count your friends Review platforms and choose one Identify Media
    10. 10. Assessment • Your cause • Your team • Your network
    11. 11. Assessing Your Cause Score your cause on a 5-point scale for: • Face • Urgency • Politics • Geography • Community • Project or event
    12. 12. Face • • • • • The “Face” of your campaign: is it appealing? Person or critter Logos can’t be the face of your campaign Words can’t be the face Objects can’t be the face
    13. 13. Urgency • The urgency: is there a native reason people must act now? • Boston Bombing v. American Cancer Society
    14. 14. Politics • Is your cause potentially divisive? • Cancer v. Marriage Equality
    15. 15. Geography • Is your cause local? • All else equal, local is better for crowdfunding
    16. 16. Community • Is your cause tied to a larger community, religion or club? – Football fans – Online gamers – Methodists – Rotarians
    17. 17. Project or Event • Is there a specific project or event to be funded? – Construction project – Service trip – Love UT Give UT
    18. 18. Assessing Your Team • How many partners? • How many champions? • How many boosters? • Partners are worth an average of $2,000 each. • Champions are worth about $1,000 each. • Boosters are worth about $500 each.
    19. 19. Assessing Your Network • • • • • Friends you can call Friends you can email Friends you have on Facebook Friends you have on Twitter Friends on LinkedIn, Google+ and other social networks
    20. 20. Estimating Your Potential • Most common donation: $20 • Average donation is $75 (skewed by a few large donations) • Don’t expect more than 10% of your friends to support you. The more “friends” you have, the lower the percentage likely to support your campaign. • 1000 friends * $75 * 10% = $7,500
    21. 21. Going Viral • If your cause scores below 10 points, be creative to find ways to improve your score before crowdfunding. • If you scored 11 to 20 points, expect little or no out-ofnetwork support. • If you scored 21-25 points, expect up to 25% of your money to come from outside your network. (If your network is good for $7,500 you could raise $10,000.) • If you scored 26 to 30 points, expect up to 75% of your money to come from outside your network. (If your network is good for $7,500 you could raise $30,000.)
    22. 22. Platforms • • • • • • Razoo: LoveUTGiveUT Fundly: Biggest for nonprofits StartSomeGood: Cause oriented Indiegogo: Includes causes Kickstarter: Excludes causes Hundreds of others
    23. 23. Comparison Razoo Fundly StartSomeG ood IndieGogo Kickstarter Rules Keep What You Raise Keep What You Raise Tipping Point Choose All-or-None Fees 4.9% 4.9% + 3% 5% + CC 4% + 4% or 8% +4% 5% plus CC Community Nonprofits and Personal Campaigns Generally nonprofits Social Absolutely causes, anything typically not (legal) 501(c)(3) Only creative projects
    24. 24. Identify Media • Bloggers you know • Traditional media: relationships are key • People who cover your “space”
    25. 25. Preparation • • • • • • • Build and organize teams Train your team Organize lists Design your rewards/recognition Draft email messages, tweets and posts Write a press release Produce a video
    26. 26. Organize Your Team • • • • Identify your partners Identify and sign up your champions Recruit Boosters Create contests and incentives for Champions and Boosters
    27. 27. Four Tiers of Rewards • • • • Nonprofits that offer no tangible reward Modest rewards for nonprofits Perks for social ventures Rewards for social ventures with consumer products/services
    28. 28. Acknowledgements • • • • Some platforms don’t allow rewards Tax receipt What you can do with the money Recognition: – Twitter posts – “Mike Smith Day” (Traveling Stories: http://bit.ly/YTG94l) – Naming rights to a project (Traveling Stories: http://bit.ly/YTG94l) – Name on website, annual report – Inclusion in press announcements (we’ll quote you) (Free the Information: http://bit.ly/YTECv3)
    29. 29. A Powerful Press Release • Find an online template • Remember who, what, where, when, why and how • Provide one or two good quotes • Link to images • Review, edit and polish
    30. 30. Targeting Media Every partner and champion should: • Identify bloggers you know personally • Identify bloggers who write about relevant topics—relevant to your cause • Find individual reporters at newspapers, radio and television who cover your space • Don’t be shy, include national media • Forbes and Huffington Post
    31. 31. Importance of the Video • Most important element on the campaign page; make an effort. • Not the most important part of the campaign; don’t break the bank.
    32. 32. Face • Find an appealing or compelling “face” for your video and your campaign • Include yourself—or your leader—in the video.
    33. 33. Authenticity
    34. 34. Brevity • 2 – 3 minutes • 2:59 is better than 3:01 • Capture attention quickly • Cover the key points in the first 30 seconds
    35. 35. Powerful Images • Take full advantage of the medium • Not just talking heads • Use stills to supplement video Photo credit: Sprengben [why not get a friend] / Foter.com / CC BY-NC-SA
    36. 36. Tell a Story • Create context • Create a hope, a goal, an aspiration • Explain the challenge in the goal • Explain the solution Photo credit: aye_shamus / Foter.com / CC BY-NC-ND
    37. 37. Make an “Ask” • Ask for a donation • Ask for people to share the video/campaign with their friends
    38. 38. Don’t Forget Basics • • • • • • Who What Where When Why How
    39. 39. Quality • For campaigns hoping to generate more than $100,000, plan to spend some money on a professional • Less optimistic folks should find a friend who can help or do it yourself – Good lighting is most important for what you see – A good microphone is most important for what you hear
    40. 40. Let’s Make a Video • • • • • • • Interview style What is the cause? Why does this matter? Who is the organization? How does this money help? Where does the money go? When can people give?
    41. 41. Ground War Before the campaign starts: • Call out the big guns: meet face to face with people who can give big money • Sharp shooting: get on the phone with people who will give good donations • Machine Guns: Send personal, individual emails to the people you know will support you simply because you ask. • “D-Day” invasion: Get commitments for 50% of your goal before you launch!
    42. 42. D-Day Invasion Each Partner, Champion and Booster Should Participate! • 3 to 5 Meetings yielding at least $500 • 10 to 25 Calls yielding an average of $100 • 30 to 100 Personal email messages averaging $50 • $1,500 + $1,500 + $1,500 = $4,500 on D-Day • Follow up after D-Day
    43. 43. Keep Track • • • • Log all interactions Track commitments Follow up, follow up, follow up Thank, thank, thank!
    44. 44. Launch Party Host a big party or multiple, simultaneous parties • Connect using Google+ Hangout and broadcast live • Coordinate interaction during the party • Announce rewards and contests • Encourage social media • Above all, be creative and have fun!
    45. 45. Air Attack Before the campaign begins: • Traditional Media – Contact every blogger you know – Send a press release to your local paper, TV and Radio After the campaign begins: • Social Media – Daily posts on Facebook, Twitter, LinkedIn, Google+ – Post everywhere you have an audience
    46. 46. Traditional Media • Remember, the media love good causes! • Reach out to all of these bloggers asking them to write about your cause (first) and your campaign (second) • Consider PR Web for $80 • Distribute by personal email • Read, flatter, subscribe • Put the entire release in the email (not an attachment)
    47. 47. Social Media Each partner and champion should engage her own social media audience • During the campaign make daily tweets and daily Facebook posts on the campaign • Use the crowdfund campaign to launch a Facebook page if you don’t have one • Use Google+ even if you don’t yet have an audience there • Be sure to tweet and post about the things you normally do
    48. 48. Social Media (Cont.) • Emphasize the cause over the campaign – NOT: We reached $5,000 today! Woot! – YES: You’ve donated $5,000 so far to end hunger in Africa/Educate Girls in Afghanistan/Provide Equal Opportunity for underprivileged kids in our community, thank you! • Update, remind and thank!
    49. 49. Workshop • • • • Reconnaissance Preparation Ground Assault Air Attack
    50. 50. Crowdfunding for Social Good Return your feedback sheet for free download instructions!
    51. 51. Q&A
    52. 52. Mid-life Crisis
    53. 53. You Are the Cavalry

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