Wednesday, June 4, 2014

How Crowdfunding Isn't Stealing Your Job

We occasionally hear from nonprofit development directors that have significant reservations about crowdfunding. Among are the top are:
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  1. Crowdfunding is a fad 
  2. You can't raise much with crowdfunding
  3. Crowdfunding may eventually replace development

These are valid concerns, but allow me to put your mind at ease.

1. Crowdfunding is a fad. 
Crowdfunding by name might be a fad, but it is the natural evolution of peer-to-peer fundraising that development directors have used and encouraged for years. While micro-donations can't take the place of those big endowments that come from relationship building, it's unlikely that in today's uber-connected world, getting people to frequently donate small amounts and ask their friends to support the causes they care about is going to change. We might call it something else, but crowdfunding as a practice is here to stay.

2. You can't raise much with crowdfunding.
While we think of crowdfunding in terms of microdonations, small things can add up to big things. At HuTerra, we've had individuals create creative fundraiser that raised thousands for their favorite charities-- money the organizations weren't expecting! What could you do with an extra $10,000?

3. Crowdfunding may eventually replace development.
Crowdfunding offers a great opportunity to get younger people involved in your cause. But it still takes development and relationship building to move those people up the pyramid of giving. Crowdfunding can't replace a great development director. It is another arrow in your quiver, but only you can make your next crowdfunding campaign great, and only you can build relationships that make first-time supporters turn into endowment supporters.

We created HuTerra to help connect nonprofit development to crowdfunding in a way that builds your nonprofit's support community- in short, to make crowdfunding a free tool in your development strategy. So, what other concerns do you have about crowdfunding?