social media and crowdfunding for charities by ideavibes
DESCRIPTION
Presentation given on Feb 24/2011 at CSI in Toronto to Charities and Non-Profits on the topics of Social Media and Crowdfunding. Attention was paid to Fundchange as a new crowdfunding initiative in Canada sponsored by TELUS.TRANSCRIPT
Social Media andCrowdfundingPaul Dombowsky & Evelyn So
Time: 8:30 to 10:30am
Speakers: Paul DombowskyFounder and ceo of Ideavibes / Fundchange
Evelyn SoFounder of Noesium
Follow-up: Slides
Workshop Overview
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8:30 Introductions and Format
8:45 Social Media Overview by Evelyn SoExperience from the trenches - what are people experiencingImpact on fundraising efforts
9:15 Crowdfunding by Paul DombowskyWhat is it and how can you use it?Options for engaging a new generation of donorsProject based or ‘doable ask’ focused fundraising
10:00 Fundchange.com – what is it and how can you participate
10:00 Wrap-up and Questions
Agenda
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• A crowd
• Business challenge / problem / question you want answered – ideas
• A process and tool for engagement
• Trust and commitment in your crowd to take action
• Key performance indicators – what does success look like?
• Proof of action – your crowd wants to see what happened
Crowdfunding - what do you need?
2
Donor Generations
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Millennials (born ’91 and after) - ?
Gen Y (born ’81-’91) – Avg Donation $325
Gen X (born ’65-’80) – Avg Donation $549
Boomers (born ’46-’64) – Avg Donation $725
Civics (born ’45 or earlier) – Avg Donation $833
Where Donors are Giving
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Checkout DonationFundraising Event
Tribute GiftCharity Gift Shop
Online via WebsiteMailed Gift
Monthly DebitIn Lieu of Gift
PhoneThird Party Vendor
SMSSocial Network Site
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%
“Fundraising Trends and Challenges in the Canadian Direct Marketing Sector”, a research paper from 009 by Cornerstone Group of Companies shows:
• donors who make their first gift to an organization online as opposed to via direct mail have a much higher average gift
$73 vs. $30
• There are now more than 4 times the number of new donors, per organization, from online initiatives than 5 years ago (9M to 40M).”
Online Giving
2
Who is your crowd?
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Donors
Prospects
Event AttendeesMailing Lists
Donors’ Network
Prospects’ Network
Event Attendees’ Network
Mailing List’s Network
The crowd you know The crowd you don’t know
Social Media Makes the Connection
5
Projects or Doable Asks
• Easier for most people to wrap their head around a smaller project as opposed to a ‘cure’ or a ‘hospital wing’
• Examples:• Piece of medical equipment• Stream revitalization• Education program• Conference attendance• Sports equipment for a couple kids
PostPromoteShareSearch/FilterFundReceiptReport
Costs:$99 + hst to join
includes 2 postings3.9% processing fee
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Examples: Fundchange
PostPromoteFundReport
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Examples: Crowdrise (US only)
• 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 are actively building a crowd • A challenge for organizations new to social media
• It’s the free market at work• It’s the free market at work
• Build stickiness to the project• Need to pay attention to write-up to inspire funders
Benefits & Challenges
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Things to keep in mind: • Crowdfunding success comes quickest to organizations that are social
media aware and engaged. If your organization is not yet social media-enabled, it will take time 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 organization 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.
Integrating Crowdfunding into your Organization
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• Donor stats, etc. came from “The Next Generation of Canadian Giving” – Nov. 2010 – by Vinay Bhagat, et al
• “The Wisdom of Crowds” – book by James Sudwecki• “Crowdsourcing” – book by Jeff Howe• “Fundraising Trends and Challenges in the Canadian Direct
Marketing Sector”, a research paper released in 2009 by Cornerstone Group of Companies
Resoruces
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Thank you
Paul Dombowsky | 613.878.1681 | [email protected] So | 647.223.3804 | [email protected]