- Identify research funding that could be used for projects related to encouraging youth empowerment and combat apathy among Arab citizens in Israel.
- Locate donors that provide funding for NGOs addressing refugee-related concerns.
- Develop a proposal for a crowdfunding project.
Creating a crowdfunding proposal was my top priority and is, therefore, the central topic of this post. In developing the project, I began with a basic understanding of what a crowdfunding campaign included. However, I was still unclear about successfully creating a campaign that would be attractive to donors.
In this post, I will address the basics of crowdfunding and the marketing strategies I learned about that help make them successful as I worked toward completing my proposal.
The information contained herein is based on an analysis of crowdfunding tutorials and an October 12, 2017, meeting with Nadim Nashif, the executive director of 7amleh: The Arab Center for the Advancement of Social Media.
Crowdfunding Basics
Crowdfunding is a method for raising funds for a project by collecting a series of small donations (i.e., typically between $5-$100) from many different donors. The field of crowdfunding is relatively nascent. For example, in 2012, there were approximately 450 crowdfunding platforms offering campaigners a chance to raise funds. By 2016, the number of platforms grew to over 2,000. Campaigns range from philanthropic activities (e.g., cleaning up a park) to raising money for an educational experience, a medical surgery, or a documentary film.
There are 3 main distinguishing features between the various crowdfunding platforms. The first is the fee structure. Most companies advertise no upfront cost to publish a campaign on the platform website; however, they will charge a platform fee ranging from 3% to 7% of the total funds. All companies charge a payment-processing fee. This fee is fairly consistent and starts at 2.9% + $0.30 per donation.
The second feature that distinguishes crowdfunding platforms relates to the marketing tools offered to the campaigner. Most platforms include a basic marketing tutorial, although some companies provide premium services such as predesigned templates or email marketing for an additional charge.
The final difference is the payout structure for donations. A crowdfunding platform might involve a provision that requires an all-or-nothing guarantee. If the campaign does not meet its fundraising goal, donations are refunded to donors, and the campaign earns nothing. This contrasts with the flexible funding goal, which allows for the disbursement of funds even if the target goal is unmet. There are various advantages to using either payout structure that depend on the type of campaign being operationalized, all of which are beyond the scope of this post. You can follow this link for more information on these systems.
Once Upon a Crowdfunding Campaign
Central to the crowdfunding campaign is the message. Telling a compelling story that involves a call to action can be the difference between a successful campaign and one that misses its goal. For years, storytellers have incorporated a familiar plotline into their narrative that often follows a familiar pattern that might include following a protagonist through a series of events that lead to a change. As is often the case, an antagonist attempts to block the protagonist’s attempt at reaching his or her goal. Along the way, the hero likely faces a challenge that will either end in defeat or become a testament to perseverance.
Successful crowdfunding campaigns adopt a similar approach to messaging to illustrate the human nature of the campaign. The following questions, including how the money will be spent, are often crucial to the message.
What is the problem or issue your campaign hopes to address?
Who are the parties involved?
Why is the issue important?
How will your solution address the problem?
When do you expect the project to be completed?
How do you measure success?
Social Media Marketing
Even the most thought-out crowdfunding campaigns will fail without an active marketing strategy in the age of digital media. Social media is one of the most effective tools for disseminating a campaign to a wide target audience who, in turn, is encouraged to share the message across their networks.
Before the launch of a crowdfunding campaign on social media, it is necessary to ascertain the target audience, the limitations to delivering the message, and the potential connections that can be tapped to help spread the message. Once these sources are identified and the message created, the crowdfunding campaign is nearly ready for launch.
The final element of preparation is a clear recognition of the fundraising timeline. It may help think about a crowdfunding campaign as a well-choreographed event that relies consistently on its sense of timing. Crowdfunding organizers must be aware of events in the news that may draw attention away from their campaign and plan campaigns accordingly. In this vein, it is important to think about the entire donation period as a collection of moments within a calendar organized around the second and third wave of donation cycles.
Social media marketing involves incorporating video reminders, testimonies, and email templates – all of which are prepared ahead of time to keep the target audience involved throughout the duration of the campaign cycle.
This preparation includes identifying the day of the week when the crowdfunding campaign will be launched. Some research suggests that it is best to launch at the beginning of the week on a Monday, Tuesday, or Wednesday when people have come off a weekend break. By launching earlier in the week, campaigns are better suited to tapping into donors’ generous spirit instead of launching at the end of the week when campaigns may be overlooked in place of donors focused on weekend plans.
Ending a campaign is just as important as the beginning. A crowdfunding campaign has a typical period of about a month for fundraising where most funds are often contributed in the first and final weeks of the project. Many crowdfunding projects will be unsuccessful because the fundraising campaign lacks the momentum to propel the campaign from the beginning to the end by building enthusiasm along the way. One way crowdfunding campaigns incorporate a sense of urgency into projects is through using a countdown clock that drives the message toward the goal.
Finally, there is a psychological component related to crowdfunding that several campaigns overlook. Donors often feel more comfortable giving to a project when they see others have done so as well. A common tactic used among many successful campaigns is, to begin with, 20% of the funds already raised by friends and family before the campaign launch. Pilot testing the crowdfunding campaign may also generate these funds; additionally, incorporating a soft opening before the campaign’s actual launch allows the fundraiser to see how certain marketing strategies will work before a full-scale crowdfunding project is implemented.
Most of the discussion in this post has focused on the research and development of a crowdfunding project and not a lot about conflict resolution skills in particular. Oftentimes, conflict resolution skills occur behind the scenes adhering to best practices in communication and a series of steps adopted along the way to navigate challenging landscapes. Preparation is key to this practice, and many professionals, whether working in mediation services, facilitation, negotiation, or arbitration, will benefit from work done ahead of time.
