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Utah Nonprofits Association Crowdfunding Presentation by Devin Thorpe


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Crowdfunding presentation to Utah Nonprofits Association Members in Ogden, Utah

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Utah Nonprofits Association Crowdfunding Presentation by Devin Thorpe

  1. 1. Crowdfunding For Your Cause Devin D. Thorpe December 3, 2013 Ogden, Utah
  2. 2. Thank You UNA • This training is made possible by • The Utah Nonprofits Association • American Express • Utah Division of Arts and Museums • Ogden’s George S. Eccles Dinosaur Park Chris Bray Kim Delaney
  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: • The “Face” of your campaign: is it appealing? • The urgency: is there a native reason people must act now? • The politics: Is your cause potentially divisive? • Geography: Is your cause local? • Community: Is your cause tied to a larger community, religion or club? • Project or event: Is there a specific project or event to be funded?
  12. 12. 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.
  13. 13. 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
  14. 14. 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
  15. 15. Amplification • 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.)
  16. 16. Platforms • • • • • • Razoo: LoveUTGiveUT Fundly: Biggest for nonprofits StartSomeGood: Cause oriented Indiegogo: Includes causes Kickstarter: Excludes causes Hundreds of others
  17. 17. Identify Media • Bloggers you know • Traditional media: relationships are key • People who cover your “space”
  18. 18. 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
  19. 19. Organize Your Team • • • • Identify your partners Identify and sign up your champions Recruit Boosters Create contests and incentives for Champions and Boosters
  20. 20. 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
  21. 21. Acknowledgements • • • • Some platforms don’t allow rewards Tax receipt What you can do with the money Recogition: – Twitter posts – “Mike Smith Day” (Traveling Stories: – Naming rights to a project (Traveling Stories: – Name on website, annual report – Inclusion in press announcements (we’ll quote you) (Free the Information:
  22. 22. A Powerful Press Release • Target the media carefully – 30 is better than 300 • Find an online template • Distribute by personal email • Put the entire release in the email (not an attachment)
  23. 23. 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.
  24. 24. Face • Find an appealing or compelling “face” for your video and your campaign • Include yourself—or your leader—in the video.
  25. 25. Authenticity
  26. 26. Brevity • 2 – 3 minutes • 2:59 is better than 3:01 • Capture attention quickly • Cover the key points in the first 30 seconds
  27. 27. 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] / / CC BY-NC-SA
  28. 28. 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 / / CC BY-NC-ND
  29. 29. Make an “Ask” • Ask for a donation • Ask for people to share the video/campaign with their friends
  30. 30. Don’t Forget Basics • • • • • Who What Where When Why
  31. 31. 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
  32. 32. Let’s Make a Video • • • • • • Interview style What is the cause? Who is the organization? How does this money help? Where does the money go? When can people give?
  33. 33. 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. • Start before you start! Get commitments for 50% of your goal before you launch!
  34. 34. Start Before You Start Each Partner, Champion and Booster Should: • Identify the five biggest donors closest to you; schedule meetings to make the ask - $500 to $5,000 • Identify 15 to 30 people who may not make big donations but are certain to donate if you ask; call them by phone. • Identify 30 to 100 people who may also donate and send personalized emails to each one • Continue the personal outreach throughout your campaign
  35. 35. 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!
  36. 36. 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
  37. 37. 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
  38. 38. 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, now help spread the word!
  39. 39. Traditional Media Every partner and champion should: • Identify bloggers you know personally • Identify bloggers who write about relevant topics—relevant to your cause • Reach out to all of these bloggers asking them to write about your cause (first) and your campaign (second). • Prepare a traditional press release • Consider PR Web for $80 • Personally send the email to traditional media types who may be interested—the media LOVES to talk up charities. • Make yourself available for radio and television and offer yourself up.
  40. 40. Crowdfunding for Social Good Download for free at when you subscribe.
  41. 41. Q&A
  42. 42. Mid-life Crisis
  43. 43. Remember the Cavalry