YouCaring, GoFundMe, other sites help individuals raise money for personal causes & nonprofits

Target audience: Nonprofits, NGOs, cause organizations, social enterprises, businesses, bloggers, social media managers, individuals.

By Lindsay Oberst
Socialbrite staff

After Superstorm Sandy hit in October 2012, individuals created campaigns and inspired people to donate money using online fundraising tools (including the ones mentioned in this article). These people raised millions of dollars and made many people’s lives a little bit easier.

This type of crowdfunding may not be new, but in increasing numbers, people around the world are creating all kinds of campaigns — for creative projects, technology, nonprofits and much more.

Individual fundraising, which we’ll examine in this article, means money raised from individuals. Two types exist:

• Individuals raising money for nonprofits
• Individuals raising money for a personal cause

If you work with a nonprofit, you might also want to check out our top five social fundraising tools, which help organizations raise more money by making the process social. The following tools all have social sharing capabilities as well.

Websites for fundraising as an individual

You want to raise money — say, medical expenses for a loved one, tuition costs for someone around the globe — but chances are you’re not sure how to go about doing it.

While you could use PayPal to raise money by integrating it into a website or through email — and many of the following sites rely on PayPal for donations — these eight tools will give you a more attractive and more engaging platform; one that has a better chance of raising the money and awareness you need.

YouCaring (for personal causes)

1YouCaring is a free fundraising website created specifically for individuals wanting to raise funds for personal causes. More than 16,000 fundraisers have been held to date. Most tools charge some type of fee, but not this one. The site is supported entirely by donors.

How do they achieve this? When people donate to a fundraiser, they have an option to donate a percentage of their total to YouCaring. The only money taken out (about 2.9 percent of the total plus 30 cents) will be from credit card processors PayPal and WePay (expected to be available this month). Money is sent instantly (in most cases) to the fundraiser’s account as soon as it’s donated, so you won’t have to wait until the end of the campaign to get your money.

For campaigns, the site has seven categories: medical expenses, memorials and funerals, tuition assistance, adoption fundraising, funding for mission trips, helping a neighbor and more.

Benefits:

• It’s free.
• You get donations instantly.
• A thank-you message (personalized by you) is automatically sent to your donors.
• Pictures and videos (only from YouTube currently) can be added to pages.
• Good social integration: Facebook, Twitter, Google Plus, Pinterest and email.
• Allows anyone to comment on the page.
• Page creator can make updates.
• Campaigns are promoted to the front page. Also, projects are promoted through Twitter and on their Facebook page.
• Offers fundraising tips and a blog.
• The site is secure: All donations are processed using Secure Socket Layer encryption, or SSL.

Downsides:

• No way to embed a widget on another site.
• Pages have a big YouCaring banner at the top.

GiveForward (for personal causes)

2GiveForward provides online fundraising pages for free. Their website says they are the No. 1 platform for medical fundraisers. Other options for pages include pet medical and funeral/memorial.

Desiree Vargas Wrigley and Ethan Austin created the site in early 2008 to allow anyone to raise money for anything. They have had more than 25,000 individual fundraisers published on their site and have helped people raise more than $27 million.

A fundraising page is free to create, and at the end of the fundraiser, GiveForward deducts 7 percent for processing fees. However, donors now have the option to cover the processing fee for their individual contribution. Also, PayPal deducts 2.9 percent of the total plus 30 cents. Creators get the money when the fundraiser reaches its end date, and the maximum time for fundraisers is four months.

Benefits:

• Users get their own personal fundraising coach, who will helps users reach their goals and answers any questions they may have.
• Photos and videos can be added to pages.
• Anyone can grab a widget to help promote the fundraiser.
• Anyone can send “hugs” or comments.
• Anyone can get updates on the project using RSS.
• You get your money, even if the goal is not reached.
• The site offers fundraising tips on its blog.
• The site is secure: They use 128-bit SSL encryption.
• You can make your page private if you wish, meaning that it won’t show up in Google.

Downsides:

• The fundraising goal and amount raised is generally small.
• The overall design of the page is a little cluttered.
• Social integration is adequate: Only Facebook and Twitter are included on the pages.

GoFundMe (for personal causes and for charity)

3GoFundMe is an online fundraising service that allows regular people to create personal donation websites and to raise money for charity. Some nonprofits also use the site. (Note: If you work for a nonprofit, it might be a good idea to get listed in the GoFundMe charity directory by contacting the site.)

Its website says it’s the most popular website for personal causes, and that it grew more than 500 percent from 2011 to 2012 (it launched in 2010). FastCo.Exist says its the third most successful crowdfunding platform after Kickstarter and Indiegogo.

Users can select one of three types of campaigns:

1. Personal donation campaigns. These type of projects receive money immediately after it’s donated, and there are no time limits or collection requirements.
2. Charity fundraising campaigns. Money raised for charity is sent to the selected charity on a monthly basis. All donations are sent via check.
3. All or nothing campaigns. Supporters are only charged if you reach your funding goal.

Creating a page is free, but GoFundMe deducts a 5 percent fee from each donation you receive. Also, the site partners with FirstGiving, which deducts a 4.25 percent fee to process and deliver all donation payments to charities. Or for individuals, a 2.9 percent plus 30 cent fee per transaction is deducted by WePay or PayPal.

Benefits:

• Users can choose different colors for pages.
• The fundraising page does have a GoFundMe banner at the top, but it is small.
• The home page shows recent donations, which might encourage others to check out and donate to campaigns.
• The site promotes campaigns on its blog and social media.
• Offers a customizable widget and badge that anyone can embed on a website or blog.
• Good social integration: Facebook, Twitter, Pinterest, Reddit and email.
• Creator can post updates, and each update has a donate button on the bottom of it.
• Each page has a printable sign, which anyone can use to help raise awareness and money.
• GoFundMe tries to answer all emails within five minutes.
• To protect donors and prevent misuse, a member of the GoFundMe team checks that the campaign creator has a valid Facebook account connected to their page, the page has a photo or video and the page has raised at least $100 in donations. After this, the page will be listed in the search directory.
• An email is sent to you each time someone donates to the page.
• People can set up recurring, monthly donations.
• The site is secure: They use SSL processing.

Downsides:

• Must have a Facebook account to show up in the site’s search.
• People must use Facebook to make comments on the page.
• Most of the messages explaining what the campaign is about get shortened, and people must click the more button to keep reading.

Fundraise.com (for personal causes and for charities)

4Fundraise.com is a social fundraising platform founded in 2011 for raising money for personal causes or for raising funds for nonprofits or other organizations. The site also offers pages and support for events, including ticket sales, donations and Salesforce integration.

Users can choose to receive their donations on a monthly basis or in one lump sum at the end of the campaign. Money is sent by check or by electronic fund transfer to the user’s bank account. A page is free to create, but a 4.5 percent fee plus credit-card processing costs are charged to each donation.

Benefits:

• Good, clean design of the campaign pages, with large, horizontal images.
• Photos and videos can be added to pages.
• The tour of the pages’ features is helpful and well designed.
• The pages do have a Fundraise.com banner at the top, but it is very small.
• Multiple donate buttons.
• Good social integration: Facebook, Twitter and Google Plus.
• Users get a dashboard with analytics to see how their campaign is doing.
• Offers an email center, allowing users to send thank-you messages and reach out to hundreds of donors at the same time.
• Offers users a one-line code to embed the donate form on a website.
• The site promotes some campaigns on its blog. They also feature campaigns on their homepage and show recent fundraising activity on the homepage, too.
• Pages are mobile-optimized, and users have access to a free iPhone app.
• Donors can choose from $25, $50, $100 or another amount.
• Allows people to make recurring donations.
• The site is secure: They use 128-bit SSL encryption.

Downsides:

• Pages don’t have a place for campaign updates.
• People can’t comment on the pages.
• People can only donate with a credit card or debit card, not using PayPal.

Razoo (for charity)

5Many nonprofits use Razoo to raise money, but individuals can also create fundraising pages to raise money for nonprofits. Nearly one million officially vetted nonprofits are registered on the site. More than 300,000 people have used the site to support their favorite causes.

Pages are free to create, but the Razoo Foundation, a nonprofit itself, deducts 2.9 percent, or 4.9 percent after April 1, 2013. Funds are given to the nonprofits once a month.

Benefits:

• Photos and videos can be added to pages.
• Recurring and anonymous donations available.
• Good social integration: Facebook, Twitter, Google Plus and email.
• Small Razoo banner on the top of all pages.
• A free iPhone app is available.
• A Facebook widget allows you to embed the fundraiser on a Facebook page.
• Has an embed code for putting a widget on your blog or website.
• The homepage features campaigns and shows recent donations.
• Anyone can leave comments on a page.
• Pages are mobile optimized.
• All donations are tax deductible, and donors instantly receive a tax-deductible receipt.
• The site is secure: They use SSL encryption.

Downsides:

• Online donations must be at least $10.
• Can only donate with a credit or debit card, not using PayPal.
• The goal and amount raised on the pages are small.

FirstGiving (for charity)

6FirstGiving allows nonprofits and individuals to create fundraising pages. The website has been around for 10 years, and more than 8,000 nonprofits have used it to raise more than $1 billion.

Pages are free to create, but FirstGiving deducts 7.5 percent service fee from all online donations. Also, donors have the option to pay this fee so that all money reaches the nonprofit.

Benefits:

• Photos and videos can be added to pages.
• An embeddable widget is available to put on a website or blog.
• Good social integration: Facebook, Twitter, LinkedIn and email.
• Offers fundraising tips and a blog.
• A few causes are featured on the homepage.
• Site is secure: They have 256-bit SSL security.

Downsides:

• Design is a little cluttered and not as good as some of the other tools.
• Only donors can make comments on pages.
• Can only donate with a credit or debit card, not using PayPal.
• No recurring donations.

Crowdrise (for charity)

7Crowdrise provides online fundraising websites for individuals, nonprofits and event fundraising. People can create fundraising pages for their favorite causes.

Charities choose from among three plans:

1. Basic. With this free plan, Crowdrise deducts a 5 percent fee plus a $1 fee on donations under $25 and a $2.50 fee on donations above $25.
2. Featured. This plan costs $49 a month or $490 a year, and Crowdrise deducts a 4.95 percent fee plus $1 per donation.
3. Royale. This plan costs $199 a month or $1,990 a year, and Crowdrise deducts a 4.95 percent fee and no transaction fee per donation. This plan also get custom, branded pages.

To get their money, charities can choose to receive a lump sum check every 30 days or they can receive each donation in real-time.

Benefits:

• Photos and videos can be added to pages.
• Good social integration: Facebook, Twitter, Pinterest and email.
• Visible “Donate” button and amount raised.
• Pages do have a Crowdrise banner at the top, but it’s small.
• Donations are tax deductible, and donors automatically receive email receipts.
• Users get Crowdrise Impact Points for raising money, donating to causes and getting votes.
• The site is secure: They use SSL processing.

Downsides:

• Online donations must be at least $10.
• No recurring donations.
• Only donors can make comments on pages.
• Crowdrise doesn’t promote causes very much.

IndieGoGo (for personal causes)

8IndieGoGo allows individuals and nonprofits to create fundraising pages. The site started out for creative projects only, but now it has expanded to causes and entrepreneurial projects as well. (Its chief competitor, Kickstarter, is still strictly for projects, not charitable causes.)

IndieGoGo charges a 9 percent fee on all funds raised, but if you reach your goal, you get 5 percent back. Also, nonprofits get a 25 percent reduction on platform fees. Campaign creators can keep all the money they raise, even if the goal is not reached. Or they can opt to keep the money only if the goal is reached. Creators who choose the first option will also have to pay a 3 percent credit-card processing fee, plus a $25 fee for non-US campaigns.

Benefits:

• Photos and videos can be added to pages.
• Each page has a shortened, shareable link.
• Can provide donors with perks for donating certain amounts.
• Good social integration: Facebook, Twitter, Google Plus and email.
• Creators can provide updates on projects.
• Creators have a dashboard with analytics.
• Anyone can get an embed code to add a widget to a website, blog or email.
• Offer a blog with tips and other info.
• They say they respond to all emails in 24 hours or less.
• Donations can be accepted through PayPal or by credit or debit card.
• Indiegogo helps spread the word about campaigns through an algorithm they call the gogofactor. Sharing, tweeting and getting people to “like” your campaign will boost your campaign’s visibility.

Downsides:

• All pages have pink and green (IndieGoGo’s colors) on them.
• Pages must offer perks to donors.

A few fundraising tips

• Be specific. Tell people why they should contribute to your campaign. Introduce yourself and describe your project and why it’s important to you. On its website, Indiegogo advises people to, “Keep it concise, yet personal.”
• Create urgency. According to the GiveForward website, they’ve seen that the most successful fundraisers typically last four to six weeks, as people are more inclined to donate when there is a shorter time frame and a higher sense of urgency.
• Do something unique. You should have a little fun so that people want to reach out and give money to your campaign. The Crowdrise website suggest coloring your hair blue when you raise $500.
• Tell your friends and family. According to the GoFundMe website, personal campaign donations come mostly from friends and family, not strangers.
• Share and use social media. According to the Razoo website, shared fundraisers raise $18 more in donations, on average.
• Be persistent. “The biggest difference I have seen between successful fundraisers and non-successful is persistence,” Luke Miner of YouCaring told me. “Most people give up in the first few days of fundraising, instead of continuing forward with the promoting, and lose hope.”

What did we miss? Which individual fundraising tools have you used? Add your experience, feedback and suggestions in the comments section!

Related

• 24 tools for fundraising with social media (Socialbrite)
• Behind the success of 10 top Causes (Socialbrite)
• top five social fundraising tools (Socialbrite)
• 10 mobile apps for social good (Socialbrite)
• A directory of top cause organizations (Socialbrite)

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5 tips on how to stand out in crowdfunding world

Guest post by Christopher Wallace
Amsterdam Printing

Let’s go back in time five years to 2007. You’ve got a great idea to build a watch with built-in Bluetooth, allowing you to control and access your phone or tablet from your wrist. Unfortunately, you’re a relatively broke hobby designer working a 9 to 5 technology job.

How do you proceed? Call up your rich uncle and ask him to back you? Go to the bank and apply for a loan?

Five years ago, any method of raising capital for a project would generally require a substantial profit share once the product came to fruition.

That’s no longer the case.

Crowdfunding gains momentum

By now, most people with an Internet connection have at least heard of Kickstarter, the crowd-sourced fundraising site that began in 2008 (and is now joined by a host of other competitor platforms — see some of these Social fundraising tools for nonprofits & causes).

The Kickstarter concept is simple: a budding entrepreneur or artist creates a video explaining their idea for a product or project and posts it to the website (like Dan Cohen did). Nonprofits and causes cannot currently raise funds with Kickstarter though other sites, like Indiegogo and Crowdrise, help fill that void for cause organizations.

Users set a monetary goal they want to reach, with different tiers of donations and corresponding “rewards” to donors. If they reach their goal within the time frame they set, then all of the money goes into the bank account of the creator, minus a 5 percent fee to Kickstarter. In the event that they don’t reach their goal, none of the donors’ credit cards are charged.

Now, until about a year ago, Kickstarter was the domain of garage bands and starving artists. Need $5,000 to get into a recording studio? Make a video and hawk it to the Facebook accounts of all your friends and family.

Then along came the Pebble. With their campaign last spring, the creators of a watch that syncs with smartphones managed to raise over $10 million. When they began the campaign, they set a goal of $100,000.

What does this mean?

Well, if you’re Pebble, it means you’ll be making a lot more watches than you’d initially planned on, and although you’ll be paying Kickstarter a cool $500,000, you won’t ever have to pay off interest to the bank on a $10 million loan.

Revolutionizing the way entrepreneurs raise capital

In a matter of months, Kickstarter has revolutionized the way that entrepreneurs big and small raise capital. There’s no longer any reason to give a financial backer a cut of your profits.

If your idea is good enough, consumers will pay in advance (but you have to give them a deal).

If you’ve got your own idea or are just looking to raise capital for your business, here are the basic ideals of running a Kickstarter campaign to get you started:

Be transparent

1There’s no reason to hide the profits you stand to make. People who believe in your product want you to succeed, but mostly they just want your product at a discount.

Explain in your campaign why you’ve set your goal the figure you choose. What will that money go to? How much does it cost to make this happen?

Be professional

2Nobody is going to believe in your idea if you present it poorly. Whether you’re a comic book artist or a tech geek, it’s crucial that your video and presentation be top notch.

Borrow or hire a professional camera and find someone who knows how to edit video. Draw out a storyline for your video before filming. Show your face in the video. Dress nicely and smile.

Be simple

3Up until the Pebble, one of the most successful Kickstarter campaigns to date was the Hidden Radio, an intuitive speaker that wirelessly connects with tablets and phones and pumps out up to 80 decibels of sound, all in the size of a can of soda.

The speaker’s Kickstarter campaign raised $938,000, just shy of $1 million, after setting an initial goal of $125,000. Because the product was attractive and well-explained in simple, layman’s terms, people understood it and immediately wanted it.

In the four-minute videos, the creators explained only what needed to be said, nothing more. People bought it up in droves.

Be generous

4Kickstarter is not a chance to ask for a handout. Just because your project is great, if you’re not a registered nonprofit or social enterprise, think twice before plainly asking for free money.

Think of Kickstarter like a Groupon or daily deal – you’re asking people to pay in advance. Reward them with a significant discount over the price they’d pay if they waited until your product, album, or project is complete.

Be passionate

5Whether you’re a playwright or a video game designer, if you believe in your product, that will show in your campaign. Don’t put up a Kickstarter campaign for anything that you’re not prepared to give 100 percent of your efforts to.

The most successful campaigns turn into full-time jobs for the creators. Best of all, they begin their business without crippling debt.

What ideas do you have that might raise $1 million on Kickstarter?

The post How to raise $1 million on Kickstarter appeared first on Socialbrite.

Best practices to help you leverage the power of the crowd

Guest post by Soha El Borno
Idealware 

Target audience: Nonprofits, cause organizations, foundations, NGOs, social enterprises, businesses, general public.

Crowdsourcing can help you harness the crowd to increase awareness, cultivate new volunteers, gather information and even get work done — all for a minimal investment. How can you put it to work for your nonprofit or organization?

Since the earliest days of the Internet, people have used it to solicit and organize groups of people to participate in projects in small ways. Called crowdsourcing, this process can be done in a number of ways and used for a variety of goals.

In an early example of the practice, nonprofits would post questions to a Usenet discussion board to seek answers from the community — for instance, asking how to write a particular policy, or for recommendations about recognizing and rewarding volunteers. That “open call” approach is what distinguishes crowdsourcing from outsourcing, in which you’d send a task to a specific person or organization for help.

Crowdsourcing can be done at an organizational or individual level, and nonprofits have used it for everything from marketing and fundraising to volunteerism and activism. It’s a great way to enlist help from a wider community knowledge base, and to engage people in your work.

In the last few years, the rise of social media and new technologies made it easier to reach and engage a broader audience. But how can your organization harness the power of the crowd to help achieve your mission? We asked nonprofit experts and professionals for crowdsourcing best practices and techniques that have worked for them.

The whys and hows of crowdsourcing 

Nonprofits can use crowdsourcing for a number of purposes, including cultivating new volunteers and donors and spreading the word about your organization’s work to a larger audience.

At its simplest, crowdsourcing is community engagement. Engaging a community — whether it’s your local community, your group of volunteers, donors and clients, or a community of like-minded people who share an interest in your cause — can provide you with ideas, feedback and contributions you might not otherwise get. It can also demonstrate transparency and openness in decision-making. Whoever is in charge of your nonprofit’s Facebook and Twitter activities should keep an eye out for questions to regularly ask followers about activities and events to help keep them engaged.

But there are some cautions to keep in mind, the most important of which is to keep crowdsourcing simple and meaningful. For example, if your organization is drafting a social media policy, your volunteer manager might share a draft with an online community of volunteers and ask for their feedback. If your organization wanted to come up with new plans for an annual fundraising event, your fundraising manager might email all your organization’s supporters to ask for ideas.

We’ve identified five categories of crowdsourcing, and found some real-world examples of nonprofits that have used them successfully.

Pooling collective knowledge

1This category follows the idea that two heads—or more—are better than one. This type of crowdsourcing can be used to share and aggregate information to help solve problems. For example, Ushahidi is an open-source software platform that plots a set of particular incidents, submitted by people via cell phone text messages, onto an online map. Ushahidi, which means “testimony” in Swahili, was initially developed to map reports of violence in Kenya after the post-election fallout at the beginning of 2008. It has also been used in disaster relief in Pakistan and to map crime incidents in Atlanta.

In an older example, a public radio station in New York City asked listeners to check the price of milk at their neighborhood store and enter it online. Several hundred submissions later, the station had created a detailed map of food prices showing inequities across the city.

Microvolunteering (asking the crowd to help with tiny tasks)

2By breaking large tasks into tiny ones, it’s possible to outsource repetitive jobs to the crowd. For instance, The Seed Company enlisted more than 1,000 residents of a remote village in Asia for help translating the Bible into their native language, with each participant translating a small piece of text. The project was made possible using the crowdsource translation platform Lingotek. Through sites like Sparked  or Amazon’s Mechanical Turk, organizations can ask people to perform a small task, such as tagging a picture, finding a phone number or typing a particular piece of text in a specific format. After Hurricane Katrina, for example, thousands of volunteers manually entered 15,200 records to consolidate all the dozens of sources of information about lost or missing people.

Crowd creation

3Tasks of this nature use crowds to help create original works of art. For example, The Royal Opera used Twitter to crowdsource a new “people’s opera” that drew more than 900 contributions, resulting in a 20-minute production in London performed by professional composers. Similarly, the San Francisco Symphony crowdsourced musician auditions for a mash-up performance over YouTube. The end result was a symphony orchestra of more than 90 players representing over 30 countries.

Crowd voting

4Everyone has an opinion, and most people like to express them by voting on or rating something or giving feedback. By tapping into that desire, you can increase awareness for your cause and draw in new audiences for your message. A great example of this is the Brooklyn Community Foundation, which launched a campaign encouraging locals to submit and vote on projects to make the borough a better place. More than 356 projects were nominated, and the number of votes totaled well over 300,000.

Art museums have also used crowdsourcing to let crowds curate and plan exhibitions. A good example is the Brooklyn Museum’s “Click! A Crowd-Curated Exhibition,” which involved an open call for people to submit photographs. Nearly 3,500 people participated, evaluating more than 350 images and selecting a number for a final exhibition of the photographs in 2008.

Crowd funding

5This category opens the collective pocketbook, encouraging crowds to fund projects that benefit others. Perhaps the most widely known is Kiva, a micro-lending website that uses crowdsourcing for its work. By allowing people to make micro-loans as small as $25 to entrepreneurs in developing countries, the site taps into the generosity of donors to change the lives of thousands in the developing world.

Across the United States, communities are harnessing crowds to provide funds for nonprofits on special “giving days.” In Minnesota, Give to the Max Day raised more than $13.4 million in November 2011, and GiveMN, an affiliated website, raised $46 million since its launch in 2009.

Any of these categories can be used on its own or combined with other approaches to achieve your goals.

Tips for successful crowdsourcing

Crowdsourcing and crowd funding projects are within reach of any organization, but there are a few things to keep in mind that will help ensure your success.

• Plan ahead. Start by choosing the right model for your goals. Figure out what you’re trying to achieve and find the best way to do it. Make sure you choose the right crowd, too — setting up a crowdsourcing campaign is the easy part, but getting the word out to the right people is not. Create a fully developed outreach plan, and use a combination of social media and emails to current supporters. These people, in turn, will have access to networks of people with similar interests, and help you pass your project along. If you’re using a crowd-funding site, like Kickstarter or Indiegogo, make sure you choose the one that most closely matches your goal — each has a different approach.
• Keep it simple. Make it very clear what you want the crowd to do, and break down your strategic goals into smaller tasks people can help with. Keep your message as easy as possible to communicate to help it get passed along. In order to help you meet your goal, set reasonable expectations. Crowd-funding is an easy way to ask for donations, but it creates the illusion that hordes of people with large amounts of money are sitting at their computers looking for some place to give it away. Most successful crowd-funding initiatives rely on friends, family and colleagues rather than total strangers. All the same traditional fundraising rules apply: You have to have credibility, you have to have a strong network, you have to have a track record of success, and you have to be transparent on how the money will be used.
• Engage the crowd and reward participation. Approach crowdsourcing as an opportunity to engage a new group of potential supporters. Be as creative as possible in your outreach and plant your campaign in places that you hope will reach new audiences. Think about how to regularly engage with your current supporters and start doing it. Consider giving incentives to reward participation — what do people want in exchange for their help? Try to really understand their motivation. Do they just want to be heard, have fun or learn something new? In this case, a simple acknowledgment might work, but other times, cash incentives might be used.
• Stay positive — both publicly and privately. Throughout the campaign, it’s important to remain personable with the people who might contribute, and a little personal interaction can increase the likelihood of a donation or action. Have faith in the process  and stay focused on your mission — if an activity doesn’t obviously support your mission, forget it.

Crowdsourcing is more than a tactic, it’s a mindset

Crowdsourcing provides many opportunities for nonprofits to tap the power of crowds. If you have a task, question or idea you want to explore, there are many ways to reach and involve people. Always look for opportunities to ask questions or seek feedback from your volunteers, donors, newsletter subscribers, clients, the local community or any community.

Crowdsourcing is a mindset. Want your community to be a part of your decision-making process? Don’t get mired in top-down thinking, and don’t be afraid to take risks or listen to criticism from your constituents or the public. Running a crowdsourcing project is a lot of work. The best approach to accomplishing it is to take your time and just chip away at it. Read through all the necessary steps and complete one task at a time. Unless you are in a rush, there is no rush to complete this. In the end, the tools don’t matter. What’s important is coming up with meaningful ways to engage, learning from other organizations that have successfully used crowdsourcing and have faith in the process.

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Expanding online fundraising options for change-makers of all shapes and sizes

Target audience: Nonprofits, NGOs, cause organizations, social enterprises, community organizations, social entrepreneurs, change-makers, activists, organizers.

Guest post by Tom Dawkins
Co-founder, StartSomeGood

The last half-decade has given rise to many exciting advances in the area of online giving and community building. The Obama for America campaign was powered by an unprecedented flood of small donations. Kiva made microfinance something we could all participate in, and Global Giving connected us to development projects around the world.

A variety of platforms, including Causes, Razoo and Jolkona, now allow nonprofits to leverage the power of social networks to aid in their fundraising goals. But not all nonprofits, or even most. Without an U.S.-based 501(c)(3) charity registration, an organization cannot use most of these sites. And while a newer group of “crowdfunding” (we prefer the term peerfunding) websites, including Kickstarter and IndieGoGo, allow fundraising by all kinds of groups, charities, nonprofits, for-profits and unincorporated organizations, none of these are focused on social impact projects. In fact, as stated in its guidelines, Kickstarter specifically prohibits “charity or cause fundraising.”

So despite the seemingly diverse fundraising opportunities now available, a huge number of potential social change-makers as well as for-profit social enterprises, pre-tax deductible nonprofit startups and unincorporated community groups (for example the Occupy movement) are not well-serviced by by those offerings. To address this gap and inspire more people to get involved in creating social impact, we launched StartSomeGood eight months ago.

The social impact solution

StartSomeGood provides a platform for all social impact initiatives, whether incorporated as a nonprofit or for profit, or not yet incorporated at all, to grow a community of supporters to help fuel their growth and impact.

We are moving social change fundraising beyond the boundaries of tax-deductible organizations and moving peer-funding beyond the creative projects it is most associated with. By allowing all types of social impact initiatives to promote themselves alongside each other, inspiring and mobilizing their communities to make change happen, we hope to speed up the process of social innovation and cultivate a new generation of change-makers.

How it works

StartSomeGood is not simply a clone of existing crowdfunding sites but a unique model designed to suit the needs of social entrepreneurs. Rather than the “all-or-nothing” model ala Kickstarter or “keep what you raise” model of IndieGoGo, StartSomeGood employs a “tipping point” model that better communicates the context of the project’s fundraising needs. Individual entrepreneurs determine the tipping point for their campaign, anywhere from 25 to 100 percent of the total campaign goal. It is only if the campaign reaches this tipping point that pledges are processed.

The architecture of the site also balances fundraising campaigns with organizational profile pages, providing a more stable fundraising home for growing social enterprises and organizations that want to run multiple campaigns over time. Here’s a comparison we put together of some of the leading peerfunding sites.

Inspiring people to give

We believe that the “nonprofit sector” is less important than the “social good sector” — that great world-changing ideas can come from anywhere and that socially minded for-profits can be as effective at bringing about change as traditional nonprofits. We know that important work is being done by unincorporated groups and social change free-agents. We want to break down the silos that say only a specific type of incorporated institution in one country on earth are given access to sophisticated online fundraising tools. We want to dispel the myth that being tax-deductible is the most important driver of giving behavior because, truth be told, below a certain threshold it simply doesn’t matter.

What are important drivers of giving behavior? Great stories, inspiring visions for a better world, a personal connection to an issue and relationships with people affected or involved are just some of the elements we know inspire people to contribute to a social good initiative. These elements are powerful, irrespective of tax status. More important by far are the ideas, inspiration and credibility of the entrepreneur doing the asking.

This is why we prefer calling what we do peer-funding rather than crowdfunding. “Crowd” implies an anonymous, atomized group of individuals. But this is not who will support your project. Your supporters will be your existing networks and the wider cultural and geographic communities connected to your initiative. We prefer to think of these people as collaborators, or peers, in making change happen.

If you are passionate about an issue facing your community, have a unique vision to share and the commitment to implement it, we would love to hear from you. StartSomeGood might be the toolkit you have been looking for to raise the funds you need and get started.

Related

• What social fundraising means for your nonprofit (Socialbrite)

• Social fundraising tools: Our top 5 picks (Socialbrite)

• Fundly: Tap into your supporters’ social networks (Socialbrite)

• Rally: Raise money for your favorite cause (Socialbrite)

• HelpAttack!: Unleash the charitable power of social media (Socialbrite)

The post StartSomeGood: Grow your social impact appeared first on Socialbrite.

Target audience: Nonprofits, social enterprises, NGOs, foundations, businesses, educators. This is part two of a two-part series on crowdsourcing. Also see:

• How nonprofits can use crowdsourcing to work smarter and save money

One of the most fascinating phenomena in the Web 2.0 world the past couple of years has been the rise of crowdsourcing.

Crowdsourcing comes in a few different flavors (which part 1 covered yesterday). For nonprofits, social enterprises and businesses, the real potential for disruption comes when a global labor force applies itself to a crowdsourced project.

That’s where CrowdFlower comes in. Since my interview with founder-CEO Lukas Biewald at SXSW 15 months ago, the start-up has grown from 15 to 60 employees and is now headquartered in a spiffy second-floor space in San Francisco’s Mission District.

Mollie Allick, director of PR and events for CrowdFlower, talks about what crowdsourcing is and how nonprofits and other organizations can use the power of the crowd to advance their mission in this 4 1/2-minute interview at their offices. “We take large datasets and break them down into small tasks and distribute them to a labor force across the Internet,” she says.

Watch, embed or download the video on Vimeo

It’s not just about reducing costs. CrowdFlower was one of the partners in the collaborative mobile relief effort Mission 4636, which we wrote about following the Haiti earthquake last year. The short code emergency response communication system enabled earthquake victims in Haiti to get life-saving aid by sending a free mobile text message, which local volunteers translated as needed.

One important thing CrowdFlower brings to the party today is that they’re the organizers behind the biggest crowdsourcing gathering around: CrowdConf, to be held Nov. 1-2 at the Mission Bay Conference Center in San Francisco, geared to both industry and the academic sector. Last year’s event drew almost 500 people.

Crowdflower is also organizing smaller events in Washington, DC, New York, Boston and Austin, Texas. Other crowdsourcing events include ClickWorker, held June 15 in Berlin, and the Crowdsortium Symposium, held in May at Google.

Some of CrowdFlower’s nonprofit customers include the University of Southern California, the environmental media organization Dialogue Earth, Caring.com, a portal for aging parents, spouses and loved ones, Doximity, a mobile collaboration network for physicians, and the social good organization GVF, whose team has spent the last 10+ years developing a global system to prevent pandemics.

Keep your eye on crowdsourcing and see whether you might find a use for it in the months or years to come.

Related

• Helping Haitians via mobile, crowdsourcing & social media (Socialbrite)

• CrowdFlower: Toward a world of crowdsourced labor (Socialbrite, 2010)

• The Extraordinaries: Building the ‘micro-volunteering’ movement (Socialbrite)

• Harnessing the crowd for social good (Socialbrite)

• Is Crowdsourcing Really the Industry’s Dark Side? (Waxing Unlyrical)

The post How CrowdFlower powers crowdsourced labor appeared first on Socialbrite.

Have you considered asking the community to support your new enterprise?

Target audience: Social enterprises, nonprofits, volunteer groups, sustainable businesses, community organizations.

Guest post by Kerry Given
Green Marketing TV

Finding funding can be one of the biggest challenges for social entrepreneurs. Fortunately, there is a growing number of options for social entrepreneurs and founders looking for capital to start or expand their social enterprise, startup or nonprofit organization and do more good in the world.

One non-traditional funding opportunity that has seen exponential growth in recent years is the phenomenon of “crowdfunding.” Family and friends have been one of the most common sources of venture funding capital for centuries. Crowdfunding takes this age-old source of venture funding and brings it into the digital age.

Thanks to social media and other forms of modern technology, entrepreneurs are able to build networks of friends, colleagues and like-minded individuals more easily and effectively than ever before. Crowdfunding websites allow entrepreneurs or project leaders to leverage these networks to gain funding.

Typically, entrepreneurs post a request for funding on a crowdfunding site with a detailed project description. Depending on the site, funding may be provided as a loan or a donation. Once the funding request is posted, the entrepreneurs use their networks to spread the word about their project to potential donors through word of mouth, email, Facebook, Twitter and other social media platforms.

Crowdfunding is not for everyone. The majority of crowdfunding sites fund entrepreneurs on an all-or-nothing basis. If the project is fully funded when the deadline arrives, the money is given to the entrepreneur. If it is not fully funded, it is returned to the donors to keep or donate to another project. So it’s important to have a compelling project or story and to be a skillful marketer and networker to ensure that word about your project reaches enough potential donors to fully fund the project before the deadline. If you’re confident that your social enterprise has what it takes to become a crowdfunding success story, you may find crowdfunding to be the perfect option for your fundraising efforts.

The following is a list of crowdfunding websites that can help your social enterprise, sustainable business or nonprofit organization get off the ground:

33 Needs: Connecting microinvestors & social enterpreneurs

133needs is a recent crowdfunding startup that connects microinvestors with social entrepreneurs who have big ideas in categories such as sustainable food, health, education and the environment. Investors can earn a percentage of revenue in exchange for their support.

AppBackr: Offset app development costs

2A specialty crowdfunding site that may be useful to some social enterprises, AppBackr allows Apple developers to get funding upfront for iPhone, iPod and iPad apps in the concept stage by selling the app wholesale to backers, who receive a percentage of the profits for the apps they have purchased. Many app buyers also assist developers with marketing and promoting their apps to ensure that their investment is fully recouped. With a growing number of social enterprises tapping into the explosive apps market to raise awareness and sell products or services, AppBackr may be a useful tool to help offset app development costs, and even gain some extra promotional help.

Buzzbnk: Supporting a wide range of fields

3Buzzbnk is a crowdfunding platform especially for social enterprises that allow funders to donate either money or time to support social enterprises working in a wide variety of fields. Though based in the UK, it is open to social ventures operating anywhere in the world. Social enterprises must submit their project proposal to Buzzbnk and the Buzzbnk team will work with the social enterprise to help develop appropriate fundraising targets and benefits or rewards to offer funders.

CauseVox: Fundraising pages for nonprofits

4CauseVox offers nonprofit organizations a fully customizable fundraising page that makes collecting money from supporters easy. Supporters can also create their own personalized fundraising pages. Social media integration makes it easy to embed YouTube videos, Flickr slideshows and more.

ProFounder: Investors share in the profits

5ProFounder caters to entrepreneurs – social or otherwise – who are looking for alternative sources of venture capital. ProFounder provides a secure platform where entrepreneurs can raise money from family members, friends and other connections, who then receive a share of the profits when the business they have invested in succeeds. This revenue sharing system is good for investors and good for entrepreneurs, because it doesn’t commit entrepreneurs to making debt payments (potentially with high interest rates) during periods of bad business, only when the business is successful and profitable.

Kickstarter: Supporting a wealth of creative projects

6One of the best-known crowdfunding websites is Kickstarter, which rose to fame after the open source Facebook alternative Diaspora raised more than $200,000 on the site. Kickstarter funds creative projects such as independent films and music albums, books, software, citizen journalism, theatrical productions and more. Project creators are required to offer rewards to donors, such as bonus musical tracks, autographed books, signed prints, free performance tickets or something similar. Although Kickstarter cannot be used to fund social enterprise start-ups, it can be a great source of funding for social enterprises and nonprofits hoping to use creative projects to raise awareness of their cause, as well as for social-minded creative enterprises such as nonprofit theater companies and independent music producers. Other great crowdfunding sites focusing on creative projects include IndieGoGo, RocketHub, UK-based Crowdfunder and Australian-based Pozible.

ChipIn: Embed a widget, raise $

7ChipIn is a simple widget that can be posted on blogs, websites and many social media profiles. It allows individuals, private groups, non-profits and others to raise money easily online.

Crowdcube: Equity-based investment community

8UK-based Crowdcube bills itself as “the world’s first equity-based crowdfunding community dedicated to business investment.” In exchange for microinvestments of as little as £10, investors can fund worthy enterprises and in exchange gain a share of direct equity in the business. Crowdcube is currently available only to UK-based investors and entrepreneurs who have or can start a UK Limited Company, but hopes to expand to other regions in the future.

Give.fm: Create your own campaign

9Give.fm allows nonprofits and individuals to set up a campaign to raise money for causes ranging from local soccer teams to international efforts to fight poverty, hunger, disease, environmental degradation and more. The site works by allowing donors to set up recurring microdonations of as little as 10 cents per day.

Peerbackers: Raise funds from your peers

10Peerbackers offers entrepreneurs and nonprofits of all types the opportunity to raise funding for their idea from their friends, family and peers. Rather than receive financial returns or equity, backers receive rewards such as free or discounted versions of the products or services offered by the company.

FirstGiving: Raise funds for your favorite cause

11FirstGiving has helped more than 8,000 nonprofit organizations connect with more than 13 million donors and raise more than $1 billion to date, it reports. The site allows nonprofit supporters to create their own fundraising page to raise money for the cause of their choice.

Razoo: Simple, secure tools to raise funds

12Razoo is a crowdfunding platform for nonprofits and charities that allows individuals, organizations, corporations and foundations to set up a fundraising page to raise money for their own cause or their other cause of choice. Razoo also allows team campaigns.

Sponsume: Free fundraising platform

13Sponsume is a crowdfunding startup, launched in 2010, that allows both creative projects and social enterprises to raise funding on the site. Sponsume is currently free to use, but does plan to start charging fees in the future.

Spot.us: Funding citizen journalism

14Spot.us is a one-of-a-kind crowdfunding platform that supports citizen journalists by funding their investigations of specific topics. Spot.us can be a very useful tool for organizations seeking to raise awareness through hard-hitting investigative journalism, community reporting or similar means.

Start Some Good: New kid on the block

15Start Some Good is a new crowdfunding startup that launched in February with the goal of connecting social entrepreneurs with crowdfunded venture capital. Start Some Good allows both for-profit and nonprofit social enterprises to post fundraising campaigns to the site. Team members will help review the campaign’s goals and rewards to ensure they’re a good match for Start Some Good’s philosophy.

Have we left any crowdfunding websites off this list? Please leave a comment below!

Related

• 24 tools for fundraising with social media (Socialbrite)

• 9 Web platforms to help you change the world (Socialbrite)

• 12 awesome platforms for social good (Socialbrite)

• Ideavibes: A new way to do crowdsourcing & crowdfunding campaigns (Socialbrite)

The post 15 ways to crowdfund your startup or project appeared first on Socialbrite.

Engage4change contest asks SF residents for ideas to improve housing & transportation

Editor’s note: A start-up called Ideavibes has created a crowd-engagement platform that can be purchased by nonprofits, government agencies or businesses to do their own crowd engagement or crowd funding. It’s one of the more interesting companies we spotted at Web 2.0 Expo this week.

Guest post by Paul Dombowsky
Founder & CEO, Ideavibes

As every nonprofit, business or government knows, the more engaged your constituents, the more likely they are to give or participate. What’s the best way to engage, then? A new technology, fresh on the market, promises to make it easier for people to participate and have their voices heard.

Ideavibes, a start-up based in Ottawa, Ontario and displaying at San Francisco’s Web 2.0 Expo (ending today), has developed a Crowd Engagement Platform that enables organizations to create crowdsourcing and crowdfunding campaigns. Nonprofits, municipalities and businesses can use the platform to engage a wide swath of constituents by seeking input or project funding in a highly visible and transparent interaction.

What we’re seeing is this: Participants feel involved, visible and acknowledged with the platform. When individuals can see their input or dollars recognized and valued, they are more likely to participate, and more likely to encourage others to follow suit.

The Ideavibes platform can be easily deployed on a current or a newly developed website built with the organization’s branding. The platform includes everything needed to run a crowdsourcing or crowdfunding campaign: Submit an idea, fund a project or make a donation and have the opportunity to comment and vote on the submissions of others. The immediate feedback of viewing their submissions provides participants an immediate public acknowledgement. They are further compelled to invite friends and family to support their idea or donation, to raise its visibility.

Engage4change, a crowdsourcing contest, kicks off

To demonstrate its crowd engagement platform, we’ve just launched Engage4change, a 14-day crowdsourcing contest focused on culling innovative ideas for improving housing and transportation in the city of San Francisco. It ends April 10. The idea that receives the most votes will be presented to San Francisco Mayor Edwin Lee on April 12, and the person who submitted it will be awarded $250.

The Ideavibes platform has already been used in crowdsourcing campaigns for the Pathways2Sustainability conference, the University of Toronto and TELUS. The platform is also the backbone for the recently launched Fundchange crowdfunding initiative with TELUS in Canada.

For more info, visit:
• Engage4change.com
• ideavibes.com

Related

• 24 tools for fundraising with social media (Socialbrite)
• Behind the success of 10 top Causes (Socialbrite)
• 10 mobile apps for social good (Socialbrite)
• A directory of top cause organizations (Socialbrite)

The post Ideavibes: A new way to do crowdsourcing & crowdfunding campaigns appeared first on Socialbrite.

Invest in entrepreneurs for social good from JD Lasica on Vimeo.

InVenture supports small business owners in developing world

Here’s a short interview with Shivani Siroya, the personable and passionate founder and CEO of InVenture (“Invest in good”), an online platform that allows everyday individuals to invest directly in business owners of their choosing in Ghana, Mali, India and Mexico, thus helping lift their communities out of poverty.

It’s another brilliant example of how micro-finance and crowd-funding can make a real difference in the lives of both individuals and local communities.

Here’s how it works: Sort through the list of 36 participating entrepreneurs. Invest any amount, beginning at $25. Now, feel the power of socially enlightened capitalism. As the site points out, “Each entrepreneur has paid back his/her original principal, is meeting returns of 15% or higher, and is reinvesting in local social causes like public health and vocational training for school girls.”

Says Shivani: “As opposed to a loan, where you just get your money back, you’re able to actually participate in the growth of this business.” As their business grows, you get a chunk of it, but instead of cashing out — remember, this is for social good — you can reinvest in other small businesses in InVenture or donate to the community. Each business owner reinvests back into his or her local community.

“This is really about creating jobs and reinvesting back into the underlying community,” she says. “It’s powerful and amazing to see the entrepreneurs succeeding, giving back and becoming leaders in their own right.”

Watch or embed the video (or download the hi-def version) on Vimeo

InVenture recently received an award from Startup Chile along with the Chilean government to bring its model to Chile and will begin the process of finding a partner and logistical planning there in January.

Shivani, whose background is in microfinance and public health, notes that her organization partners with microfinance institutions and non-governmental organizations to identify business owners to include in the marketplace and then goes beyond those traditional ties to bring the wider community to the table as well. I’ve made an investment and hope you will, too.

(Production note: It was very, very, very loud outside on the Embarcadero in San Francisco, and we didn’t have a lavalier mike.)

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