An insider’s view of crowdfunding success

Ghazal Vaghedi, a committed proponent of “crowdfunding,” presented the case to MVDP Thursday for why and how nonprofits might adopt this technique.

Ghazal (left) and MVDP's Lynn Youngs

Ghazal Vaghedi (left) and MVDP’s Lynn Youngs

Ghazal, the vice president for digital philanthropy at Razoo.com in San Francisco, said that crowdfunding is “using the Internet to fund a project by raising small amounts of money from a large number of people.”

Four years ago crowdfunding produced an estimated $1.5 billion in donations. Last year the revenue generated totaled $16.2 billion. In 2015 it is expected to produce $34.4 billion.

Ghazal said that the average successful crowdfunding campaign generates $9,000 for nonprofits. The essentials for a successful campaign are:

  1. Developing a strategy utilizing a unique story;
  2. Identifying and quantifying measurable and attainable goals;
  3. Creating a simple, personal story; and
  4. Testing the ask to make sure it’s working.

She offered several case studies to support her points. Click here, here and here for three sample case studies. Her PowerPoint slides are stored here.

Razoo, which is one of several platforms that host crowdfunding campaigns, has no up-front charges to launch a fundraising drive. There is technical help available, too. Razoo charges a 6.9 percent fee to handle donations through the site, although some donors are willing to absorb the fee so that 100 percent of the planned donation goes to the nonprofit conducting the campaign.

Coming next to MVDP is a May 21 program featuring Bill Kemp from Bend presenting ideas on “building a development plan on a shoestring.” The event returns to the Central Willamette Community Credit Union in Albany from 1 to 5 p.m. Register attendance at mvdp-or.org.

Kay Sprinkel Grace, a nationally known consultant speaker and writer, returns to Salem for an afternoon presentation June 10 on retaining donors through a conscientious stewardship effort. This program is co-sponsored by MVDP and the Center for Community Innovation, which will host the event at 1255 Broadway NE. Special pricing will be in effect: $30 for MVDP season-pass holders and CCI members and $60 for guests and non-members.

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This entry was posted in crowdfunding, fundraising, MVDP, online giving, technology, Uncategorized. Bookmark the permalink.

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