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NACCDO Crowdfunding Cincotti-Eller

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  • 1. CROWDFUNDRAISING April 29, 2014
  • 2. Crowdfundraising Introduction Cindy Eller, Vice President for Development & Executive Director, Roswell Park Alliance Foundation Karen Cincotti, Assistant Director Web & IT Operations, Roswell Park Alliance Foundation
  • 3. Why Us? Why Us? • NACCDO centers were approached over a year ago by a cancer patient who wanted to give back • He created a cancer only focused crowdfunding site called CureCancerStarter.org • Founding partners were: – Roswell Park Cancer Institute – UNC Lineberger Comprehensive Cancer Center – Duke Cancer Institute – UW Carbone Cancer Center
  • 4. Why Us? • Site went live in October, 2013 with 5 campaigns • Brain Cancer Vaccines • Benefits of Fibrocytes in Cancer Car • Taking a Closer Look at Vitamin D • Treating Cervical Cancer Better Faster via UNC Malawi Initiative • Personalizing Treatment for Colorectal Cancers • Only 1 campaign achieved their goal of $5,000 What Happened?
  • 5. Why Us? • There was no marketing plan to promote the site • The centers were looking to the website staff to promote to get them new donors • The centers were reluctant to promote to current donor base • Hence no traffic IF YOU BUILD IT THEY WILL COME
  • 6. Why Us? • Decided we needed to develop a marketing plan and conduct more research on crowdfunding options. • This is a part of our FINDINGS…
  • 7. Why? Why Research? Why Crowdfundraising?
  • 8. Why? The Numbers • 2012 - The overall crowdfunding industry has raised $2.7 billion, across more than 1 million individual campaigns globally. More than ½ from sites based in North America.* • 2013 – The industry is projected to grow to $5.1 billion. • 2014 - Crowdfunding will top $10 billion. * Data form Crowdfunding Industry Report by Massolution
  • 9. Why? We cannot ignore this growing trend and online medium.
  • 10. Benchmarking Results NACCDO 2014 Benchmarking Survey • Which platforms are being used:
  • 11. Benchmarking Results NACCDO 2014 Benchmarking Survey • Types of crowdfunding programs:
  • 12. Benchmarking Results NACCDO 2014 Benchmarking Survey • Who manages your crowdfunding:
  • 13. Benchmarking Results NACCDO 2014 Benchmarking Survey • Number of crowdfunding campaigns completed:
  • 14. Benchmarking Results NACCDO 2014 Benchmarking Survey • Main audiences for your campaigns:
  • 15. Benchmarking Results NACCDO 2014 Benchmarking Survey • Money raised from crowdfunding in the last 12 months:
  • 16. What is it?
  • 17. What is Crowdfunding First let’s define Crowdsourcing “Obtain (information or input into a particular task or project) by enlisting the services of a number of people, either paid or unpaid, typically via the Internet.” • Combination of the words 'crowd' and 'outsourcing’ • The idea is to take work and outsource it to a crowd of workers
  • 18. What is Crowdfunding Crowdsourcing • Famous Example: Wikipedia • Gave the crowd the ability to create the most comprehensive encyclopedia in the world • The underlying principle of crowdsourcing is that more heads are better than one
  • 19. What is Crowdfunding Definition of Crowdfunding “The practice of funding a project or venture by raising many small amounts of money from a large number of people, typically via the Internet.” Crowdfunding is a type of Crowdsourcing. Crowdfundraising is a variation of crowdfunding to meet fundraising goals.
  • 20. Crowdfunding & Nonprofits Nonprofits have been crowdfunding for years • In 1949, Milton Berle hosted the very first telethon for the Damon Runyon Cancer Research Foundation • A little over $100,000 was raised in 16 hours – one of the earliest example of public nonprofit crowdfunding Crowdfunding is simply the act of accruing micro donations to reach a larger goal and now it is online and available to the masses.
  • 21. Review of Commericial & Non-Profit Crowdfunding Projects Examples
  • 22. Commercial Examples Movies
  • 23. Commercial Examples Movies Music Amanda Palmer, Grand Theft Orchestra
  • 24. Commercial Examples Movies Music Electronics TikTok + LunaTik simply transform the iPod Nano into the world's coolest multi- touch watches
  • 25. Commercial Examples Movies Music Electronics Start Up Toy Company (seed money)
  • 26. Commercial Examples Movies Music Electronics Start Up Toy Company Or the “10 Year Hoodie” - raised over $1M so far
  • 27. Non-Profit Examples State of Minnesota - GiveMN • Raised $16.3 million in 1 day in November, 2012 • Razoo.com
  • 28. Non-Profit Examples Tesla Science Museum • Raised $1.4 million • Indiegogo.com
  • 29. Non-Profit Examples DonorsChoose.org – • Since inception has raised $225 million and helped more than 175,000 teachers fund over 400,000 projects
  • 30. Non-Profit Examples University College of San Francisco Medical Center Challenge for the Children • Raised over $1 million • Causes.com
  • 31. History History of Crowdfunding 1997 – First instance of modern day Crowdfunding (British band funded their reunion tour) 2000 – ArtistShare – first dedicated platform 2005 – Kiva.org was the first microlending website, lending small amounts of money to entrepreneurs in poor, rural areas around the globe
  • 32. History History of Crowdfunding, cont’d. 2006 – Prosper.com - first peer-to-peer lending site – Term “CrowdFunding” is first used 2008 – IndieGoGo.com launches - platform for films 2009 – Kickstarter.com launches as a new way to fund creativity
  • 33. Growth Growth of ALL Crowdfunding Platforms 2012 – 452 2014 – 800 and growing Crowdsunite.com – “There are over 800 funding websites globally and every week new ones are created for specific demographic, region or category”
  • 34. Growth Growth of Crowdfunding 2011 – $1.5 Billion 2012 – $2.7 Billion 2013 – $5.1 Billion (projected) 2014 – $10 Billion (projected)
  • 35. Growth Number of US Donation Based Crowdfunding Platforms* – 93 platforms available for donation based projects –>> 54 platforms available for Non-Profit organizations * As listed on Crowdsunite.com which reviews crowdfunding sites. The number continues to grow and you can see our choices are numerous.
  • 36. Types Types of Platforms
  • 37. Types Types of Platforms, cont’d. Equity-based & lending-based (for financial return) – Is most effective for digital goods (e.g., software, film and music) – These categories, on average, raised the largest sum of money per campaign
  • 38. Types Types of Platforms, cont’d. Donation-based & for cause based campaigns (for intrinsic reward) – Perform best in reaching goals – BUT the money raised in these categories are much smaller, with 2/3 of them generating less than $5,000
  • 39. Donation Campaigns Majority of donation based campaigns raised less than $5,000 Only 10% raised over $10K Typically majority of money raised is within 1st or 2nd ask from fundraiser * Data form Crowdfunding Industry Report by Massolution
  • 40. How it Works Parameters of a Successful Crowdfunding Campaign 1. Concrete Goals 2. Transparent 3. Rewards 4. Social
  • 41. How it Works Need to be Goal Orientated – have tangible results for funds raised – restricted vs. unrestricted funds – focus should be on what the money raised can do, not just talk, but specific, if we raise $10K we will be able to: - perform XYZ research, - XXX number tests of on patients - buy this equipment to complete research
  • 42. How it Works Have a Specific Fundraising Goal – Have a specific goal for each campaign or project, whether it is $5K, $25K or $13,250 – you need to determine an amount that is your goal – You can raise more but your stated goal should be reflective of the amount that is needed for the specific research or initiative
  • 43. How it Works Short, Specific Time Frame – Crowdfunding projects have start and end dates – 30 days, 70 days, 120 days – There is a trade-off between giving your audience sufficient time to engage with the campaign and losing momentum because of a timeline that is overly long – According to insights released by Indiegogo, the optimal campaign length is 45 days
  • 44. How it Works Personal Involvement of Fundraiser (i.e. researcher) – Gives donors the opportunity to meet (vicariously through the website) and see results from the researcher – Provide content, i.e., videos, blog updates, so they become connected to the researcher – Makes the donor feel involved in the process
  • 45. How it Works Importance of Researcher – The researchers have to keep their donors up to date and give them progress reports (part of their rewards) – Need to continue to show them how their funding has helped and contributed to the process One of biggest keys to success is to engage the researcher/doctor/fundraiser in the campaign.
  • 46. How it Works Reward Donor – Equity and lending sites specifically offer tangible rewards for their donors – Donation based campaigns should also reward the donor by giving them the updates as described – This is the intrinsic, emotional reward
  • 47. How it Works Reward Donor, cont’d. – Some non-profits also provide tangible rewards – actual goods - t-shirts, bags, gift cards, etc. – access - hospital tours, event tickets, lunch with researchers – special content (video updates, personalized letters) – publicly giving credit Remember to plan for what you can actually handle in terms of fulfillment before you promote the rewards.
  • 48. How it Works Social Involvement & Online Sharing – Crowdfunding is an online initiative – The campaign grows through your online donors – Give donors the tools to tell people what they just donated to, we need them to PROMOTE for us – And you need them to continue the conversation with their networks by giving them continued content to share
  • 49. How it Works Social Involvement & Online Sharing, cont’d. – The content THEY post and share is most trusted – YOU NEED TO HAVE THEM SHARE
  • 50. How it Works Review - Parameters of a Successful Crowdfunding Campaign 1. Concrete Goals – specific time frame and fundraising goal 2. Transparent – where the money is going, keep up to date on progress 3. Rewards – actual or intrinsic rewards 4. Social – need them to share online
  • 51. Online Options Constituent vs. Organizational Crowdfunding Centers have the option of: – sponsoring a campaign or – letting their constituents do it for them
  • 52. Online Options Constituent Ex. – Miami’s Children Hospital – Mike Fernandez – Personal fundraiser where he walked across Europe to raise money for the hospital – A crowd of friends and contacts raised over $1.4M
  • 53. Online Options Organizational Ex.– Univ. of California, Promise for Education – Created a crowdfunding campaign to rally their networks for support – Over $1.3M raised for undergraduate scholarships
  • 54. Online Options Constituent vs. Organizational
  • 55. Online Options With constituent crowdfunding – We can leverage our already inspired supporters to fundraise for our mission through their own personal networks online With organizational crowdfunding – We can leverage our messaging, our content, and our research, to encourage existing and new constituents to help us raise money for a specific goal
  • 56. Online Options Company Branded vs. Commercial Platform Centers also have the option of: – having a Company Branded (white label or internal initiative) site – or list their campaigns on a Commercial Platform
  • 57. Online Options Company branded (white label or internal initiative) – A singular site for the organization’s initiatives – Completely branded by the Center with no platform branding – Highlights Center projects only – Built internally OR using a provider’s white label option – If built internally no costs or fees are paid to a 3rd party – If built using a provider’s white label option additional fees will apply
  • 58. Online Options Company branded example – Cornell University
  • 59. Online Options Company branded example – Children’s National Medical Center
  • 60. Online Options Commercial Platform – Platforms where we can jump right in and start a campaign without any custom build – Other centers and their constituents are also on these sites – Some have large network of followers looking across the different causes – Sites are templated with an easy to use CMS system – Costs and policies are dependent upon the platform
  • 61. Online Options Commercial Platform Example – Crowdrise
  • 62. Online Options Commercial Platform Example – Causes
  • 63. Online Options Commercial Platform Example – Indiegogo
  • 64. Online Options Commercial Platform Example – Consano
  • 65. Online Options Internal vs. Commercial
  • 66. Evaluating Crowdfundraising for your Center – What criteria should be used to evaluate if your center should participate in crowdfunding - Why? - Where?- What platform? - What projects to fund? - What resources are needed? - What are the risks and rewards? Evaluating Crowdfundraising
  • 67. I. Why consider crowdfundraising?  It can be a key component in your digital strategy  Additional gifts from online donors  Additional gifts from mail donors to online donors  Part of a peer to peer fundraising strategy  Part of an acquisition strategy for new donors Evaluating Crowdfundraising
  • 68. Evaluating Crowdfundraising
  • 69.  Value of online donors • Higher gift value • More efficient renewal and communications cost Evaluating Crowdfundraising
  • 70. Evaluating Crowdfundraising Acquisition: According to our consultant Grizzard, the percent of revenue from new donors should be in the range of 20% At Roswell Park it is 8.9% and our mail market is aged and shrinking
  • 71.  Crowdfundraising as a acquisition vehicle • To secure new donors from patient and prospect lists; new out of market disease site interests • New from cross pollination with others on the site • Peer to peer fundraising vehicle for highly engaged donors and advocates Evaluating Crowdfundraising
  • 72. Evaluating Crowdfundraising Ask yourself: • Do you have a plan to engage trending online boomers and up and coming younger generations? • Does your fundraising channel mix include mail and digital communications? • Are you empowering your most enthusiastic supporters to fundraise and evangelize online on your behalf?
  • 73. Multi Channel is the new norm The ideal mix varies from generation to generation Evaluating Crowdfundraising
  • 74. Donors routinely respond to direct mail pieces by making an online donation Online donors switch back and forth between internet and direct mail ROI is not as straightforward Evaluating Crowdfundraising
  • 75. Evaluating Crowdfundraising
  • 76. Evaluating Crowdfundraising “Keep your eye on the bouncing ball” • Boomers likely to be a dominant source of income at least next decade • Need to optimize the mix for boomers while opening the door to younger donors
  • 77. True or False: Digital is for young people and offline engagement is for old people. The TRUTH is, ALL generations value a mix of online and offline. Evaluating Crowdfundraising
  • 78. According to the “next generation of American giving” • The most promising future fundraising strategies include peer to peer fundraising and crowdfunding Evaluating Crowdfundraising
  • 79. Note: • There is little evidence that social media is growing as a transaction channel (not donating through social networks- i.e. Facebook) • Growing evidence that social media is an important stewardship role Evaluating Crowdfundraising
  • 80. Evaluating Crowdfundraising
  • 81. Evaluating Crowdfundraising
  • 82. Evaluating Crowdfundraising
  • 83. II. Decision to go for it! First Step: Choosing a Platform “Research indicates the choice of platform is the strongest factor influencing the potential success of the program.” Incorporating Crowdfundraising
  • 84.  Home grown alone?  Home grown with similar entities? (healthcare site?)  Selection of a pre-existing commercial entity (52 choices) Incorporating Crowdfundraising
  • 85. Online Options
  • 86. III. Making it happen! • Committing the necessary resources; creating the team • Not something development can typically do alone- needs expertise from other specialties in house Implementing Crowdfundraising
  • 87. “The Team” • Web- online team • Finance/backend- gift processing • Creative- creating the videos • Researchers- engaged, entrusted, committed (i.e. updates) • Marketing- driving the traffic Implementing Crowdfundraising
  • 88. “The Team” cont…. Communications Staff- Supporting it with social media and other ways to keep awareness high of funds to date against target and create momentum; report back on success of project at completion of research effort Implementing Crowdfundraising
  • 89. IV. Deciding what projects to feature on your site? • Can benefit from a small gift total • Can appeal to a specific disease group (i.e. disease sites or genetics) Building Your Crowdfundraising Campaign
  • 90. Building your case • Should be a 1-3 minutes long with a compelling video • Concise and clear- who and why funds are needed Building Your Crowdfundraising Campaign
  • 91. Crowfunding Example - Multiple Sclerosis
  • 92. Leukemia Crowdfunding
  • 93. Setting Your Goal • Make sure goal is realistic. • Should be able to raise 25-30% from within your own network • Strangers will want to see traction to get excited about your campaign • Generally don’t stop funding once a goal has been reached
  • 94. Setting Your Goal • For larger projects consider multiple campaigns with smaller funding goals for each stage of the project
  • 95. Crowdfunding Example degenerative diseases Setting Your Goal
  • 96. Length of Campaign How long? • Longer does not mean that you will raise more- the longer the campaign- the harder it is to build a sense of urgency and momentum • ~ 40 day long campaigns are most successful • Successful campaigns generally raise 30% of goal in the first two weeks, slows down in the middle – keep ,momentum going
  • 97. Non Profit Perks Examples: • Listing as supporter on website • Personalized, signed donor certificate or plaque • Annual updates about progress of project • Listed as a patron at lab location • Invitation to conference for scientists, patients and donors where progress made will be presented
  • 98. Non Profit Perks Continue to add new perks during campaign: 20% of repeat contributors are for perks added after the campaign went live
  • 99. V. The Cure Cancer Starter Model https://www.curecancerstarter.org/ • How it came to be • List of participants: UNC Lineberger Cancer Center (Chapel Hill, NC) Roswell Park Cancer Institute (Buffalo, NY) Duke Cancer Institute (Durham, NC) UW Carbone Cancer Center (Madison, WI) • Status- “suspended hold” A Cancer Only Crowdfundraising Site?
  • 100. Risks and Rewards • Potential of diluting or losing donors to other centers • Opportunity to strengthen existing and acquire new • Strength in numbers driving interested cancer donors- prospects • Clean and easy to access vs. being lost as one of thousands on a commercial site Cure Cancer Starter Platform?
  • 101. Cure Cancer Starter Platform? Next steps for a Cancer Cure Starter?  Circle back and evaluate with the funding group the required investment in an online marketing strategy  Reinforcing the need for “team” engagement not just development reps  Determine future directions of the site and partnership