{"id":1124,"date":"2022-11-22T09:53:33","date_gmt":"2022-11-22T15:53:33","guid":{"rendered":"https:\/\/learning.hipgive.org\/?p=1124"},"modified":"2023-06-01T10:34:28","modified_gmt":"2023-06-01T16:34:28","slug":"crowdfunding-where-are-we-now","status":"publish","type":"post","link":"https:\/\/learning.hipgive.org\/en\/crowdfunding-where-are-we-now\/","title":{"rendered":"Crowdfunding: where are we now?","raw":"Crowdfunding: where are we now?"},"content":{"rendered":"

By Anita Gallagher
\nTraining Lead at HIPGive<\/span><\/p>\n

When we launched HIPGive 8 years ago, crowdfunding was so new that we spent most of our time simply explaining the concept. The world has changed a lot since then! Digital technology continues to reshape how we connect with the causes we care about and crowdfunding is an established part of many nonprofits\u2019 fundraising strategy.<\/span><\/p>\n

Yet if the past few years have taught us anything, it\u2019s that – as Heraclitus famously wrote\u00a0 – the only constant in life is change. Crowdfunding continues to evolve and we must too. That\u2019s why we\u2019ve put together a run down on the trends affecting crowdfunding. It\u2019s a bit of a long read, but definitely worthwhile if you want to know where to go with your crowdfunding strategy in 2023.\u00a0<\/span><\/p>\n

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Crowdfunding for nonprofits: what\u2019s changed?\u00a0\u00a0<\/b><\/h4>\n

Diversifying the donor base is top of the \u201cto do\u201d list for many nonprofits these days. This is especially true in countries where government regulations are increasingly restrictive, public funding is limited and there is increased competition for philanthropic funding. When it comes to finding alternative funding, crowdfunding is a valuable bridging strategy, helping nonprofits begin to interact more directly with grassroots givers and learn the ropes as they gradually build up a\u00a0 community of individual donors.\u00a0<\/span><\/p>\n

As nonprofits make this switch, the landscape of fundraising narratives shifts too. It\u2019s true that the spotlight on racial equality that has sparked much needed soul searching in the US has not reverberated in the same way in Latin America. Yet, some truly valuable ideas have emerged that shape how we crowdfund and for whom.\u00a0<\/span><\/p>\n

Above all, and just in case you haven\u2019t got the memo yet, it\u2019s time to drop the \u201cdonor-as-a-hero\u201d narrative. We can\u2019t praise donors for changing the world or commend them for \u201cwhat <\/span>you<\/span><\/i> did\u201d, if this boosts egos at the expense of rendering years of hard work and commitment\u00a0 invisible. Instead, we have an opportunity to bring givers and communities closer, either by integrating the principles of community centric fundraising (Vu, 2017) and\/or drawing on strength based communication (Conrardy, 2021).<\/span><\/p>\n

Secondly, is crowdfunding\u2019s ability to help level the playing field. By putting the tools for grassroots fundraising into the hands of social impact leaders, and providing training to boot, we help community leaders raise funds for community led projects.\u00a0\u00a0<\/span><\/p>\n

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The crowdfunders: changes in why and how people give\u00a0<\/b><\/h4>\n

Thanks to more and more academic-led research, not to mention big data, we know more than ever about people\u2019s giving behavior, in the US at least. Research in Latin America is less abundant, but thanks to GivingTuesday\u2019s Data Collective, of which HIPGive is part, we\u2019re making advances here too. So, what have we learned? Among other things:\u00a0\u00a0<\/span><\/p>\n