Crowdfunding for nonprofits can help a company raise money for its mission or cause. We tackle this topic in two ways: The more obvious way of nonprofit crowdfunding is to raise money externally, just like traditional crowdsourcing, and crowdfunding platforms for nonprofits to raise money internally – a lesser-known type of nonprofit fundraising.
Crowdfunding for Nonprofits: Internal
Many corporations, including nonprofits, have some employee assistance fund to which their employees contribute directly or through fundraisers or perks. For example, in some companies, the ability to wear jeans on a Friday costs a dollar, given to the employee assistance fund. Or maybe there is a cookout, and the money charged is more than the cost of the food, so the extra is given to the fund. And then that fund can be used to further the company’s mission in some way – for a nonprofit or charity, this allows the employees to contribute just like the outside world does.
An Internal Website
A nonprofit can set up a system on their intranet where people can post personal projects their department is working on. Perhaps in many cases, these departmental projects are, in some ways, those same things that might have otherwise caused them to ask for assistance from the above fund. Yes, the drawback to these types of crowdfunding for nonprofits at the company level is that there could be undue competition between departments and employees. Still, it might be a way to free up even more money, raise awareness of what different departments are doing, improve morale, and make employees feel closer to the mission. And, of course, it may be a successful way to raise money for critical projects.
We could even imagine a scenario where companies give a benefit of a certain amount per employee that could go to this fund. In other words, perhaps each employee had $100 each year, on top of her or his salary, that he or she could designate for any number of posted requests on the internal crowdfunding for nonprofits.
Crowdfunding for Nonprofits: External
Of course, most people reading this and looking into crowdfunding for nonprofits are thinking more about those platforms that allow for fundraising for a product or purpose, or perhaps an overall mission, from external sources. Many crowdfunding for nonprofits platforms of this type are available, and with only a few differences, they are very much like any other crowdfunding website. Here are the slight differences you might find when you use a crowdfunding platform for a nonprofit:
1. The fees may be reduced a little from other platform types. You may find that the website is designed to give nonprofits a break on the amount they will lose to fees and additional costs.
2. The platform will be designed to emphasize the nonprofit’s mission. In many cases, these companies want people to understand the depth and importance of their mission to encourage giving, so these platforms emphasize this.
3. Crowdfunding sites for nonprofits allow for comparison, meaning that they try to attract many possibilities for donors. Of course, you may feel that a drawback is that there will be more sites looking for money, but at the same time, this approach may also attract more investors.
4. Finally, crowdfunding platforms for nonprofits may also be organized in an easily searchable way for donors who want to choose among different companies with similar missions.
Crowdfunding for Nonprofits: Independent Sites
The examples above do not include a unique type of crowdfunding for nonprofits: the “white label” approach, where you build your independent website to raise money for your cause or purpose. The drawbacks are that you must start from scratch and create your traffic and search engine optimization. However, this may be an effective technique if you already have a website that people visit or a large following that you can notify quickly.
Nonprofit Crowdfunding: Conclusions and Our Work
These are just some of what you might find if your nonprofit company seeks fundraising on your own or through a crowdfunding portal. This can be an excellent way to engage with stakeholders and has the added benefit of getting the word out about what is essential to your company, no matter how much you raise. Extra work is involved, and you should be sure you have the resources to make it all work. That is where we can be helpful with our services. Many of our services are free, and the paid ones are discounted when we help with crowdfunding for nonprofits.
Please contact us if you’d like help raising money for your mission or want to use this approach for any purpose. We are here to help with your crowdfunding for nonprofits campaign.
