Online crowdfunding has become an increasingly popular method for non-profit organizations to raise funds. This is due to its flexibility and effectiveness in generating income for various purposes, such as one-time events, existing programs, pilot projects, or long-term campaigns like capacity building or annual giving. While online crowdfunding campaign is not a replacement for foundation grants, it provides non-profits with a valuable tool to diversify their funding sources.
According to a report by Classy, the median one-time gift size for crowdfunding is approximately $52. However, the value of crowdfunding goes beyond just the initial donation. As a vast majority of recurring giving occurs on donation and crowdfunding pages, crowdfunding can help acquire future major donors and recurring givers over time.
Furthermore, crowdfunding can expand a non-profit’s fundraising capacity and increase its visibility online. By keeping supporters updated on the progress of the campaign and the organization’s activities, non-profits can build trust with donors and attract new ones.
It is essential for non-profits to compare crowdfunding platforms as they differ in philosophies, features, and mechanics. FoundationSearch recommends that non-profits ask relevant questions when comparing platforms to select the one that best suits their needs.
