Mark Townsend
Director of Funding Solutions
Fund Fine Arts (FFA)
June 27, 2018, 2-2:40pm
(After June 27, you can view the recorded webinar at www.fundfinearts.com)
Crowdfunding Facts
- The average amount raised by organizations using crowdfunding campaigns is $9,237.55
- Individuals raise $568 on average using crowdfunding
- The average size of a donation to a crowdfunding campaign is $66
- Mobile devices are used to make almost 17% of these donations.
Source: https://nonprofitssource.com/online-giving-statistics/#Online
Three types of fundraisers:
- event (hold an event)
- product-based (sell something)
- crowdfunded, or crowdfunded + gift (done via social media, mobile devices)
Key Metrics to Help You Choose a Program
- How much do you need to raise?
- How many people are in your organization?
- 1/3 of them will participate in event and product-based fundraising, BUT…
- 1/2 of them will participate in crowd-funding with a product fundraising.
- What is your SALE PRICE?
- 70% profit on a $20 sale is obviously a lot better than…
- 70% profit on a $2 chocolate bar!
- How many transactions can you expect from each participant?
- FFA uses a base of 5 transactions per participant.
- Use that, no matter what type of fundraiser you choose, and then break down the numbers from there.
Comparison:
Popcorn Fundraiser vs. Crowdfunded/Mobile Device Fundraiser
Popcorn:
- $20 cost
- 50% profit
- $10 proceeds
- 5% total margin to organization
- Gift value is LESS than donation
Crowdfunding:
- Variable donation tiers (typically set at $15, $25, $50, $100) as opposed to a set price
- FFA sees typically higher donations than then minimum
- With FFA programs, they take $8 per donation cost, plus a 3.5% credit card fee
- This results in 80% margin to organization ($50 average)
- Give back value GREATER than donation.
Key Roles in Fundraisers:
- Leaders – usually volunteers.
- Participants – the arts makers (performers)
- Supporters – the arts consumers or friends/family of the participants
Key Characteristics of Good Fundraisers:
- Make it easy for the leaders to do their job, to manage the task
- Leaders should be MOTIVATIONAL
- It should be easy for the leaders to communicate IN REAL TIME to:
- other leaders
- the participants
- the supporters
- Empower the participants.
- New leadership should come from the participants!
- They should see a higher level of benefit coming back TO THEM.
- Make it easy for the supporters to give their money.
- Help them understand easily why you need their support.
- THANK THEM immediately.
- Create an experience for them that is positive, so they want to come back to it again.
- Eliminate the logistics.
- Product distribution should be as easy as possible.
- Make it scalable.
- Any program you use should be able to accept participants and supporters all over the nation, not just from your area.
- This enables friends and family of participants to contribute easily too.
Crowdfunding with a Gift – Case Study
- A fine arts group needed to raise $12,000 for uniforms and travel.
- With 90 members, they expected about 45 to participate.
- A crowdfunding program with a gift was selected.
- 54 ended up participating
- They collected an average of 6 donations per participant.
- Average donation of $52.00.
- Using email and social media, the collective campaign generated
- $16,848 in gross dollars
- raised in four weeks.
- After fees of $3,182, the group raised $13,666.32 in net profit (over 81%).
- FFA asked them to ask their supporters, “Would you do it again?” and the vast majority said they were in, year after year.
Speech and Singing 