There is something very special about the support you receive from loved ones, friends and allies. The support you get can fuel the passion you need to get a project off the ground. The truth is we all have times of need or projects that we’d love to be able to complete.
But, it can feel very overwhelming when there is a huge price tag on it.
The global crowdfunding market is forecasted to value $41.7 billion dollars by 2026. That means people all over the world believe in supporting passion projects.
So, what are your real options for crowdfunding in the WordPress space and beyond?
What is crowdfunding, exactly?
Simply put, crowdfunding is a way to raise money from people to fuel a project.
Ideally, you use a crowdfunding platform to reach large groups of people to pool together individual investments needed to get a company or project off the ground. Individuals, charities or companies can create a crowdfunding campaign for specific causes where anyone can contribute.
Crowdfunding is a way of using your community to invest in you, your company, or your product. Crowdfunding is more than just a tip jar, but serves a different purpose than fundraising for nonprofits — it can be used by a wider audience. Crowdfunding can help launch your music recording or help pay medical bills.
What are the advantages of crowdfunding?
There are many advantages of crowdfunding – the most obvious is the funding part. But many people don’t know the details.
Here are some advantages of crowdfunding:
- No application process.
- No long wait periods to receive your funds.
- It allows you to reach people outside of your network.
- It’s fun to design and easy to share.
- It takes the fear out of asking for financial help.
And just like everything, there are a few things you need to know before you get started. It won’t be free, but it will be minimal to get started and then you’re off and funding.
What are the fees to expect?
Most crowdfunding sites charge a platform fee that’s a percentage of the money raised in addition to charging a payment processing fee of around 2.9% plus about $0.30 per transaction.
Typically, the platform fees range anywhere from 3% to 5% for sites like Indiegogo and 5% to 12% for Patreon. Consider this the hosting fee for using their website, community, and infrastructure.
Another option is to go with WordPress and make it your own! By using a CMS, you can build your own passion project on your own terms with no percentages taken out. You will have the standard WordPress domain and hosting fees – and then you’re ready to build out the crowdfunding platform of your dreams.
Check out our article on why people choose WordPress for fundraising for more information.
Who are the real people that benefit from crowdfunding?
WordPress users are savvy and part of an active, thriving, and generous community. We’re honored to have been able to play a small role in so many crowdfunding stories lately.
Crowdfunding Takes Emrah to Oxford
Meet Emrah. When he was denied scholarships for graduate school, he turned to crowdfunding with Give to finance his dreams.
Emrah needed to raise £26,000. His scholarship applications returned with negative responses just two months prior to this deadline. In the absence of a scholarship, he created a crowdfunded campaign using GiveWP and a few donation incentives. Team Give was ecstatic to see this dream of higher education achieved and we hope to see more soon.
Crowdfunding for Musicians with a Tip Jar: Nate Maingard
Many musicians online only consider YouTube or Patreon to fund their work but Nate Maingard shared with us why he added a Tip Jar with GiveWP.
Using both GiveWP and Patreon allows Nate’s Patrons to give small tips on top of their monthly contributions to support his music. Nate has found lasting success building his community on Patreon (and more recently GiveWP).
Read more personal crowdfunding stories we’ve collected since we started the Give Stories series.
Best practices for crowdfunding
Here are some best practices to crowdfund successfully for your nonprofit.
You can use the SMART framework: specific, measurable, attainable, relevant, and timely. How do you do this?
Start by finding a specific, measurable and attainable goal. Your goals align you and your supporters with your crowdfunding campaign. You can begin by asking these simple questions:
- How much funding is needed to make an impact?
- What are my costs?
- What tools are needed to make this happen?
- How did others do it successfully?
Build a community of champions. Start with a small list of people that you know and would be willing to take action. Consider them to be in three different categories:
- Promoters: Sharers, referrals and supporters (not necessarily donating money).
- Fundraisers: Action-takers, mini-crowdfunding supporters, and event planners.
- Donors: Financial or service-based contributors.
Give each category a goal so that they know how and when to help.
Write your fundraiser story to share with the world. This is an example of impact-driven fundraising – and it can come in many forms: a website, content, gifts or incentives. Gifts like handmade items or personal letters are known to be a win-win because it connects the donor’s motivations to give and the impact on the supporters.
Compelling stories get exposure. When you make a connection, you can passively ask for donations for your fundraiser easily. One of the ways to do this is to add a call-to-action at the end of your story (in whatever form that may be) so that the visitor (hopefully converted supporter) understands the need for their help.
Take action. Use free tools like social media (and donation plugins) to find supporters that have an interest. Share, share and share again – across all channels.
And lastly, be prepared to pitch your fundraiser to larger audiences. Put yourself out there and contact organizations and businesses to tell them your story and give them incentive to fund your campaign.
Ready to make a difference with crowdfunding, today?
It doesn’t take much to make a dream become reality. You just need the right tools for the job.
If you have a killer idea or you want to support someone who does, why not consider crowdfunding and use a donation plugin like GiveWP to kickstart that dream?
Today we learned what crowdfunding is, the advantages and fees to expect – along with some tear-jerker stories of real grit and redemption. Those are real people, just like you.
If you’re interested in chatting with the team or would like to try GiveWP for yourself, reach out!
Amplify your fundraising with a GiveWP Plan
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