It was 2013 and the nonprofit world was abuzz about the potential for crowdfunding to close budget gaps, fund innovative new programs, and bring new donors into the mix. Fast forward four years later, and it’s clear crowdfunding is here to stay as one of many effective tools in nonprofit giving But it’s not the panacea we thought it would be. In fact, it’s driving competition for a donor’s dollars.
Crowdfunding is the hottest trend in fundraising. To help nonprofits take advantage of this new tool, the Chronicle of Philanthropy hosted a live chat with a co-founder of a crowdfunding platform and a nonprofit that successfully raised $100,000 from the crowd. Here are five quick takeaways:
It seemed like a match made in heaven: your mission, their money. Maybe you met the program officer at a conference or “Meet the Grantmaker” session and clicked. Or their foundation tends to fund groups just like yours. You were really, really excited about this one. But when it came time for the grant decision? They just weren’t that into you.
So what do you do next?
You’ve done your research on potential funders. The basics -- guidelines, issue areas and grant cycles -- are understood. And after thoroughly reviewing a foundation’s website, 990s and any other background materials you can find, you’re considering an application for capacity building or programmatic support.
The next step? Make contact and talk to the funder directly.
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The Grantsmanship Center’s mission is to help private and public nonprofits make better communities. The Center offers training and publications to help organizations plan solid programs, write logical, compelling grant proposals and create earned income opportunities. They succeed when you succeed at helping those you care about most.
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