Transcript of "Ideavibes Presentation on Crowdfunding and Fundchange - June 23/11"
Crowdfunding andArts FundingPaul Dombowsky
Introduction Social enterprise web development company that has developed the ﬁrst Crowd Engagement Pla>orm for crowdsourcing and crowdfunding. One of Canada’s ﬁrst crowdfunding sites for chariCes, non-‐proﬁts and arts groups to fund change in our communiCes one project at a Cme. 9
Starting Point 7.7% Percentage of Canadians that aIended 5+ arts events in 2007 1% Percentage of donaCons in Canada given to arts & culture 3.7% Average number of organizaCons each donor in Canada gave to 25% of all arts donors gave 75% of the total donated 2
Online Giving “Fundraising Trends and Challenges in the Canadian Direct MarkeCng Sector”-‐ a research paper from 2009 by Cornerstone Group of Companies shows: • Donors who make their ﬁrst giZ to an organizaCon online as opposed to via direct mail have a much higher average giZ $73 vs. $30 • There are now more than 4 Cmes the number of new donors, per organizaCon, from online iniCaCves than 5 years ago (9M to 40M).” 7
OpportunityPerhaps there is an opportunity to try something new to engage more donors to support the arts? 3
Crowdfunding - What do you need?• A crowd • A challenge or a project • A process and tool for engagement • Trust and commitment in your crowd to take acCon • Key performance indicators – what does success look like? • Proof of acCon – your crowd wants to see what happened 4
Donor Generations Millennials (born ’91 and aZer) -‐ ? Gen Y (born ’81-‐’91) – Average DonaCon $325 Gen X (born ’65-‐’80) – Average DonaCon $549 Boomers (born ’46-‐’64) – Average DonaCon $725 Civics (born ’45 or earlier) – Average DonaCon $833 5
Where Donors are Giving Social Network Site SMS Third Party Vendor Phone In Lieu of GiZ Monthly Debit Mailed GiZ Online via Website Charity GiZ Shop Tribute GiZ Fundraising Event Checkout DonaCon 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 6
Who is your crowd? The crowd you know The crowd you don’t know Donors Donors’ Network Prospects Prospects’ Network Event AIendees Event AIendees’ Network Mailing Lists Mailing List’s Network Social Media Makes the Connection 8
Projects or Doable Asks • Easier for most people to wrap their head around a smaller project as opposed to an enCre opera producCon or building a theatre. • Examples: • AIendance at fesCval • New producCon • New website • Film trailer • Outreach program 9
Examples: Fundchange Post Promote Share Search/Filter Fund Receipt Report Costs: $99 + hst to join includes 2 posCngs 3.9% processing fee 10
Examples: Crowdrise (US only) Post Promote Fund Report 11
Examples: Kickstarter (Not in Canada) Successfully Funded Projects: 3,910 Dollars Pledged: $27,638,318 Total Pledges: 386,373 Average Pledge: $71.53 11
Benefits & Challenges• It’s social – the crowd promotes projects it likes • It’s social – the crowd won’t promote projects that aren’t shareable • Success comes to those that acCvely build a crowd • A challenge for organizaCons new to social media • It’s the free market at work • It’s the free market at work • Build sCckiness to the project • Need to pay aIenCon to write-‐up to inspire funders 12
Integrating Crowdfunding into Your OrganizationThings to keep in mind: • Crowdfunding success comes quickest to organizaCons that are social – media-‐aware and engaged. If your organizaCon is not yet social media-‐ enabled, it will take Cme and human and ﬁnancial resources to do so. • Because your eﬀorts are only as good as the crowd you are able to mobilize to your cause, it makes sense that your organizaCon strategically manages and promotes its brand online. • Make sure your target audience is online and will give online • If you opt to post your projects on established crowdfunding sites, do your homework – be careful of the company you keep. 13
Why Fundchange?• Building our own crowd • Tap into the collecCve crowd that funds change • CreaCng desCnaCon for arts funding based on the crowd and driven by social media • Now supports sharing on Facebook 14
Joining Fundchange• $99 to join – includes 3 free posCngs • $50 to post projects aZer ﬁrst 3 • You receive 96.1% of money raised • Max. project size is currently $5000 Offer• First Alliance Member to fund project (+$2000) gets an iPhone • Media campaign focused on partnership with Alliance • Eligibility for TELUS matching campaign based on Facebook integraCon – Summer Campaign 14
Resoruces• Donor stats, etc. came from “The Next GeneraCon of Canadian Giving” – Nov. 2010 – by Vinay Bhagat, et al • “The Wisdom of Crowds” – book by James Surowiecki • “Crowdsourcing” – book by Jeﬀ Howe • “Fundraising Trends and Challenges in the Canadian Direct MarkeCng Sector”, a research paper released in 2009 by Cornerstone Group of Companies 14
Thank you Paul Dombowsky | 613.878.1681 | email@example.com
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