can crowd funding work in higher ed?

Blackbaud Enterprise Customer Summit

THE RISE OF CROWDFUNDING:Can it work in Higher Education?

Presented by:

Sarah Davis, Blackbaud Solutions Consultant

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ARE YOU…

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• In September 2013, Academic Impressions conducted an informal survey of 140 higher education fundraisers asking:

“Do you expect to use a crowdfunding tool to raiser dollars at your

institution in the next year?”

• 67% said “no”

• 33% said “yes”

ARE YOU…

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WHY WAS CASSIE SUCCESSFUL?

• She motivated her donors & supporters- People want to believe that their donations matter

- Feedback loops – people wanted to follow her success

- Specific and Individual Goal

- Reciprocal Relationships

- Time Sensitive

• She generated social media buzz which captured the attention of local and national networks

• She leveraged her networks

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CROWDFUNDING DEFINED

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The practice of funding a project or

venture by raising many small

amounts of money from a large

number of people, typically via the

Internet.

Per the Oxford Dictionaries

Syllabification: crowd�fund�ingPronunciation: /ˈkroudˌfəndiNG /

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Beginning of human

civilization

Faith

1852

The Salvation Army

1938

March of

Dimes

1999

P2P Online Event Tools

2006

Crowd Funding coined

2008

Pres. Election

2009

Kickstarter Kicked off

2004

Facebook

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50 SHADES OF CROWDFUNDING

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ANOTHER INTERPRETATION OF

CROWDFUNDING• Any form of online donation forms

• A Day of Giving:

• 24-hour campaign targeted at increasing unrestricted gifts to the annual fund

• Utilization of email solicitation, social media, and peer-to-peer fundraising

• A Micro-Campaign

• 48 – 72 hours (sometimes up to a week or a month) often focused on raising funds for a specific cause

• Often matching gifts involved

• Same techniques as a Day of Giving

• Peer-to-Peer Fundraising

• Leverages a supporters network to raise money and support from their social networks through email and social media

• Common examples are traditional Run Walk Ride events, Class Giving, Memorial/Tribute Gifts, Challenges

• Crowdfunding

• The use of a unique crowdfunding platform (distinct from organization’s online giving site) to fund institutionally-approved projects

• Typically project owners are given autonomy to reach out to their personal networks – can bring in donors outside of alumni base

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SUCCESSFUL “CROWDFUNDING” CAMPAIGNS

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DECIDING HOW CROWDFUNDING CAN WORK

FOR YOUR ORGANIZATION

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CROWDFUNDING IN HIGHER EDUCATION CAN:

• Engage your donors

• Help drive alumni participation rates

• Broaden fundraising constituency bases

• Serve as a lead generation and data capture tool

• Educate students and your alumni about the impact of philanthropy

• Provide a seamless experience for newly acquired donors as they transition to be major gift donors

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BUT THERE ARE SOME CONSIDERATIONS

• Less control over message

• The dangers of third-party sites

• Hard credit vs. soft credit vs. no credit

• Loss of brand control

• Donor cultivation

• Proliferation of start-ups

• Oversaturation of constituency

• Crowdfunding does not replace traditional annual giving strategies

• And finallyG

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CROWDFUNDING (FUNDRAISING) IS HARD WORK

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KNOW WHO YOU ARE

Define Needs & Timeframe

Program Expectations:• Revenue potential• Program costs• Program and Constituent Support

Benefits• Less affected by economic state• Expanded reach for the organization• Building stronger, more loyal

supporters

Make it Part of Your Culture

•It starts at the top; executive buy in

•Staff buy in

Constituents: What is your comfort level?

Business Plan

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MARKETING, MARKETING, MARKETING

• Promote program in donor welcome series email campaign - encourage donors to get more involved.

• Use it as an opportunity to engage board members and

major donors and to tap into their personal networks

• Connect with lapsed donors

GET THE WORD OUT

• Make it an option to support your organization.

• Consider picking a few key dates to rally supporters

• Feature successful fundraisers – both individuals & activities in: website, e-newsletters and printed materials.

• Show diversity in ways to get involved • Donation vs. Participation

Acquire & Recruit

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WE LIKE YOU AND WE LIKE WHAT YOU DO

• Personal Customer Service• Organization Fact Sheet• Approved Logos and Letters of Support• “Ask” and Press Release Templates

• Basics of Fundraising• Basics of Hosting an Event

• Online Tools for invitations, communication, and money collection

• Instructions for Online Tools

• Recognition & Thanks

YOUR

FUNDRAISERS:

• Care

• Are Motivated

• Volunteer

and are asking

and in need of

guidance

Educate, Empower and Encourage

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MEASURE PERFORMANCE

• Number and Date of registered fundraisers or events

• Number of participants• Conversion & completion rate• Number of repeat vs. new• Number of donors

• Overall fundraising revenue• Fundraising amount per

participant• Number of donations per

participant

HOW WILL YOU TRACK PERFORMANCE?

WHAT DOES SUCCESS LOOK LIKE?

Measuring Success

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QUESTIONS?