By Anita Gallagher
Training Lead at HIPGive
Crowdfunding is many things, but it’s not a magic wand. Signing up on a platform and publishing a project doesn’t guarantee that the donations will roll in: it’s up to you and your team to actively promote your project and create a communications strategy that encourages more people to give.
Nevertheless, when compared with other strategies such as large-scale fundraising events or setting up a monthly giving campaign, crowdfunding has many advantages. By focussing on a specific, short term project you can tap into people’s desire to see the impact of their contribution, and since it’s quick and easy to donate online, more and more people will give small but spontaneous donations.
You should also take into consideration that successful campaigns on HIPGive typically raise between $3,000 and $10,000 USD so while a crowdfunding campaign won’t replace your major sources of income in the short term, it can be a great way to diversify your income and your donor base.
If you’re ready for crowdfunding, but think other people on your team might need convincing, here are a few more points to consider when deciding if crowdfunding on HIPGive is a good match for your organization.
- Audience alignment. There are crowdfunding platforms for all types of initiatives, so it’s up to you to find a good match for your project. HIPGive is unique in focusing on social impact projects serving Latinx communities across the U.S. and Latin America, inspiring confidence with 100% bilingual English-Spanish content and verification of an organizations’ legal status.
- New and innovative projects. Because of the ability to appeal directly to givers, crowdfunding is a great way to run new projects that are difficult to fund through traditional means. If you have a project that isn’t a priority for grant makers or doesn’t quite fit with your major or recurring donors, but you know it will make sense to your wider audiences, then give it a go!
- Speed. Although choosing the right project requires careful consideration, most organizations are able to put together the content – title, video, images and text – in the course of a few days or a week. Uploading the project to the platform is quick and easy and once published, most campaigns run for 4 – 6 weeks. In other words, you’ll see results much quicker than if you relied only on lengthy grant application processes or event planning.
- Ease of use for givers. By using a crowdfunding platform, you’re enabling people to give to your project from all over the world at any time of day (or night) using their credit or debit card. Blending top security with ease of use, HIPGivers can access projects in both English and Spanish, decide how much to give and in which currency, and receive immediate confirmation and a thank you message. There’s no better way to engage with and grow your community where you work and around the world.
- Low cost. Most crowdfunding platforms charge between 5% – 15% of funds raised, often including a contribution to their operation and a commission relating to each transaction (donation). As a nonprofit organization ourselves, at HIPGive, our commitment is to keep the cost as low as possible. We don’t charge for operations and only deduct the exact cost of the payment processing of each transaction, on average 3.5%. Check out the full table of costs per payment method here. The takeaway is that you’ll keep approximately 96.5% of the funds you raise.
- Training, guidance and support. We know that crowdfunding can appear daunting, but it doesn’t have to be. From our famous crowdfunding bootcamps to the personalised feedback on your project pitch and the opportunity to engage in self-guided training in the learning centre, the HIPGive team have got your back! Start by exploring the Learning Center and check out our upcoming campaigns for more training opportunities.
If you have a project that needs funding and are willing to coordinate a vibrant communications campaign involving your existing donors and with a view to reaching to new donors, then crowdfunding is a great way to achieve your goals.