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IOF crowd funding slides july 2011
This document discusses crowd-sourcing and crowd-funding as new models for fundraising in the digital age. It provides examples of successful crowd-funding campaigns for arts projects in the UK and US. The key principles of crowd-funding discussed are transparency, choice, social media, and gamification. Crowd-funding is presented as going beyond just fundraising and being about engagement and developing long-term relationships with supporters. Challenges to adopting crowd-funding include restricted income, limited resources, and difficulties with promotion.
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IOF crowd funding slides july 2011
- 1. Crowd-sourcing meets fundraisingin a digital ageStarring…Nick BurneEd WhitingTamasine Johnson
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- 3. Crowd Quiz!Users ofWikipedia have made more than 2 billion editsUsers Kiva.org have loaned more than $200 millionRoughly 2/3rds of people who have donated on Cancer Research UK’s My Project website are new to the charityIn 1997 American fans of the band Marrillon underwrote an entire US tour to the tune of $60,000, with donations following an internet campaign - an idea conceived and managed by the fans before any involvement by the bandA writer for Wired Magazine coined the term crowdsourcing in June 2005
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- 17. Start with...A QUIZOR A VIDEOTREND #1Transparency
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- 19. Start with...A QUIZOR A VIDEOTREND #3Social media
- 20. (Thanks to AmyWard -www.amysampleward.org)
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- 22. 22What’s so differentabout crowd-funding compared to what we do now?
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- 27. 27It’s NOT aboutyou…
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- 30. Crowdfunding - ourexperienceEd WhitingFounder, WeDidThis.org.uk@WeDidThisUK
- 31. How it worksArtsorganisations pitch projects to the WeDidThis marketplace, offering rewards tied to specific giving.Individuals and companies pledge funds to projects.Organisations receive funds once they reach their funding target (if unsuccessful, pledges are not redeemed). Great art gets made. Funders get rewarded. July 6, 201131
- 32. Similar (US) modelshave seen success..ParticularlyThe Duck’s wife Dance90 Backers $6,459 raisedSporeSculpture146 backers $15,308 raisedBlue like jazzFilm4495 backers $345,992 raisedAbove hell’s kitchen Theatre 61 Backers $16,561 raisedAnd also……but its potential is not yet fully realisedLeviathan lab presents Twelfth NightTheatre50 contributions $6,625 raisedSoLuna Performing arts school.76 backers$10,058 raisedJuly 6, 2011
- 33. About usFor UKarts organisations and artistsOver £25k raised in first 5 months, 8 success stories so far.Projects launched on monthly cycle, with a ‘prize week’ and party every month. Media coverage on BBC news, Metro, Guardian, Radio 4 (among others).Not for profit - reinvest profits in UK arts sector.“Art for everyone, funded by everyone”
- 34. Benefits for artsorganisationsYes, it’s a new source of funding, and a great way to turn supporters into funders…… but…It’s not only about the money! Audience developmentCultivation of longer-term fundersEngaging audiences/ funders in the creative process.Our new approach is designed to support artists to do all of this - including tighter social media integration, monthly events and funder offers.
- 35. Where next- local‘collectives’? A crowd of local arts projects fundraising in the same month. Events at start and end of the month to bring together potential funders and build momentum. Use the month to build local press, ambassadors, and corporate support behind the collective.Cross-funding opportunities, a local critical mass - more than the sum of our parts!Opportunities to evolve the crowdfunding model….Partnerships - with like-minded brands and groups. Help us form a crowd of arts supporters, build opportunities to engage them in different ways.Merging Fundraising/ E-commerce space (e.g. WeDidThis / Culturelabel.com partnership).Spreading corporate support across arts projects - not just the biggest - and make corporate support for the arts about employee reward as well as CSR/ client entertainment.
- 36. FAQs‘All or nothing’- why?Why a 1 month fundraising period?How much to go for? Gift aid? Target audience - ours/ projects?
- 37. Any other questions?Wantto know more?Interested in getting involved? Email: ed@wedidthis.org.ukFollow us: WeDidThisUK
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- 43. What now?A productnot a gameRefocus & learn from FarmersRefine user experience & nurture communitySpend money on marketing!
- 44. TakeawaysInvolve people, don’tjust broadcast – it’s about engagement and long term relationships.Do, Review, Plan – be brave but learn from your mistakes!Crowdsourcing goes beyond Crowdfunding – money is just the start…
- 45. 46The principles ofcrowd-fundingare just successful online fundraising
- 46. Start with...A QUIZOR A VIDEOHow can you be more transparent?
- 49. How can yougive donors more choice?
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- 53. Start with...A QUIZOR A VIDEOHow can you make your online donation experience more social?
- 55. How can youuse gamification?
- 58. Online fundraising SUCCESSS– storytellingU – unexpectedC – choiceC – credibleE – emotionalS – showS – socialAdapted from Made to Stick: Why Some Ideas Survive and Others Die, Chip and Dan Heath 2007
- 59. 60Thank you,we’ll besticking around for questions
- 60. What can youdo tomorrow?Find a project & a platform & just test it!Review your donation process thinking about crowd-funding principlesIf you have the budget think about doing a crowd-funding testOrganise a brainstorm
- 61. Challenges#1 – Restrictedincome#2 – Resources#3 – Promotion
Editor's Notes
- #2 Nick Burne – Senior Consultant at THINK Consulting Solutions Ed Whiting - CEO of WeDidThisTamasine Johnson - Senior Corporate Content & User Experience Manager at the National Trust
- #3 http://slidesha.re/iofcrowds
- #6 When the collective power of the internet happened – Jeff Howe(editor of Wired) coined the term – crowd sourcing. Using the collective power of the internet to do stuff. So instead of outsourcing to suppliers you would “outsource” to a crowd of people and this became crowd-sourcing.
- #7 It’s really the wiki concept. So you’ve all probably used Wikipedia. Experts say that Wikipedia is no more than 45 minutes from complete destruction from spammers and bots who want to turn every page into a advert for a rolex watch. But Wikipedia keeps going through the collective power of thousands of people every day who are passionate about keeping it going (and they do it for free)The world’s problems are now being solved using crowd-sourcing.Proctor & Gamble and The Economist use sites like Innocentive for R&D
- #8 NASA started a website called Galaxy Zoo (now being used by 250,000 people) where ordinary people (like you and me) can help Nasa research galaxies.Hundreds of thousands of very detailed images are taken be the hubbletelecope and Nasa doesn’t have the resources to pour through these. And it’s too complex for a computer to do and the human brain is much better at it apparently.They need our help and you could be the first person to spot a galaxy far far away.
- #9 Start to permeat everything we do.THINK recently crowd sourced a logo for our new crowd-funding platform using a site called Design Crowd – which we love.Any online creative work you need? Crowd source it!
- #10 Bands are now funding themselves online – changing the entire music industry.If you are a new band now – you no longer seek a record deal. You can raise enough to record your albums from your fans.
- #11 Creative and community-led projects are doing it! So this is for an arts festival who raised just over £1,000.
- #12 There has been nothing short of a boom in crowd funding - we’re in the middle of it and we don’t know where it’s going to go.But it’s still early days and while I wanted to talk about the subject today, and there are a few charities doing this kind of activity, we still don’t know many of the results yet.
- #13 This has spread directly into our sector and you’ve all heard of sites like KivaTotal value of Kiva loans now exceeds $200 million!
- #14 Interestingly CRUK actually crowd-sourced the idea for thistoo!Raised £900k since 2008
- #15 And we are seeing projects like LendwithCare – who I heard yesterday have an email open rate of 48%!! That’s unheard of and shows you how engaged donors are into this concept.
- #16 There are lots springing up now. Action for Children are using crowd –funding. We’ve been building one at THINK for Quarriers – a Scottish charity.Extends to crowd fundraising in lots of interesting ways (birthdays (Charity Water ) weddings, companies, schools etc) Lots of innovation happening to (mention National Trust coming up)Can help you recruit new donors (CRUK found that 2/3rds of registrants were new to the org)Can help with natural MGM/viral activity – people spreading the word to their friends.Can help increase conversion rates as it’s a stronger proposition.
- #17 So why is there such a massive boom in this area. What’s going on? What are the trends behind it?Well I wanted to look really quickly at 4 trends.
- #18 The first is transparency.People are demanding to know more about what they are supportingThey want real case studies &true storiesThey want to see that they are making a difference
- #19 Our donors are now used to have lots of choice in their lives. Apparently if you were to order a different starbucks coffee every day, with all the combinations it would take over 15 years to run through their menu!- Supporters want more choice – they want tochoose where their money goes- They want options of who to help, what to buy, support and give- They want a more personal experienceAs Kevin Waudby said yesterday about MyProjects – these are demanding donors!Less loyal – they are already using the power of digital to make charity choices.48% of donors who come to your website to make a donation don’t! Why? Could it be because of the lack of choice we give them?
- #20 I don’t need to spend too long on this one as you all know about it, but we are now living it different more connected world.This has enable a different type of fundraising and we’ve all seen the peer-2-peer fundraising that goes on, on sites like JustGiving.
- #21 But to explain this a bit further within the concept of crowd-funding I think this is a really interesting model to think about. We think of social media and we often think of the community that is closest to the organisation. But the real power of social media is how you reach the network of your community and the crowds that lay beyond these people.The example of Charlie Simpson did this. It went completely viral and reached out well beyond the people that Charlie knew.
- #22 And the final trend I just wanted to point to is one we’re thinking about a lot at THINK at the moment and that is GAMIFICATION.People like to play especially with others. But gamification isn’t game. It’s introducing the concepts behind gaming into other experience.So we know that people like to have a goal to achieveand a reward – badges, achievements, recognition, totalizers.All this kind of stuff is the trend of gamification.
- #27 Some of the biggest brands now are web2.0 brands – Facebook, Twitter, YouTube, Linked InWho will be the new charity brands (Kiva, Charity Water…?)
- #40 Intro to MyFarm:10000 Farmers wanted, no experience necessary£30 membership fee grants Entry to community and chance to be involved in decision making by voteOpportunity to get up close and personal with a real working farmFree visit to the farm
- #41 MyFarm as an example of crowdsourcing not just crowdfunding:Ambition – a self-financing experiment in reconnecting people with foodCrowdsourcing wisdom to run the farm – the wisdom of crowdsAspiration to give people a voice – Farming 2030 consultationCrowdsourcing wisdom to run the project – no one has ever done this before£30 ‘subscription’ to make it financially viable
- #42 Traditional NT model = plan, plan some more, review, plan, do and review.MyFarm broke that model.No one had done this before – so we decided to get the product out there and see how they would respond10,000 Farmers£30 each3 monthsSelf-fundingAway we go
- #43 What we wanted?6000 in 3 months or walk awayWhat actually happened?Original plan went out the window - 2000 in 2 months – 800 on day one and then trickle over next 7 weeks.
- #44 What are the positives?‘National Trust’ trending on twitter2000 Farmers in 2 months£2.2m of media coverageShifting perceptions – 80 % of people who’ve encountered the project say theat is has made them think of us more positively as an organisation.
- #45 What now?Refocus – working WITH understanding of project gleaned from Farmers to define what we doNurture existing community and recruit new ones – member get member incentives/affiliate partnershipsPlan now to work till April 2012 to get to financial viability for year 2
- #48 Does your online donation process really bring donors closers to what you do?
- #51 How can you give more choice to your donors?
- #52 Really thinking about some of the simple choices you can offer donors. This is a simple example….
- #53 I think Save The Children UK’s donation page is probably the best one I have seen.
- #54 PayPal has around 30 million UK accountJustGiving has around 13 million accountsWhy not give donors a choice?
- #55 How can you make your online programme more social?Well I think a lot of this will happen organically as you engage users with more credible and transparent stories.
- #56 But we are thinking a lot about this concept of social proof within the donation experience. Showing potential donors that they are not alone and what other people are doing.
- #57 What about gamification?
- #58 Why not implement some of the targets,totalisers, rewards into your site? It could be as simple as a badge for Facebook on the thank you page or a fundraising totaliser on an appeal (it can just be an image you constantly update – it doesn’t even have to be dynamic!
- #60 And I wanted to leave you finally with this easy to remember framework for online fundraising success…S – storytellingU – unexpected – grab people’s attentionC – choice - giving donors a choiceC – credible – build relationships through credable and authentic contentE – emotional – help people see the importance of their actionS – simple. Get to the core of the ideaS – show – show where the money goes and other people who are taking action
- #61 Thanks – that’s it!
- #63 #1 – Restricted income- This is going to be a problem with some organisations. The organisations who are doing it best have the buy in at the most senior levels.- If you’re not given donors choice then you may already be loosing donors to other organisations- Not all donors need the choice – especially if they are loyalYou could fund the hard to fund projects you have#2 – ResourcesYou may need to give resource to community management & content#3 – PromotionOrganisations forget that they need to promote this things and the best way to do this currently is using social media and empowering the donors to spread the word.