A recent report by Nesta and the University of Cambridge, Understanding Alternative Finance, found that the total market, including crowdfunding, is set to grow to £1.74bn by the end of 2014.
In an article for the Guardian Voluntary Sector network, Nesta researchers Peter Baeck and Liam Collins share nine facts which charities need-to-know when it comes to crowdfunding.
1. Supporters are likely to donate their time. 34% of fundraisers have seen an increase in volunteering after they fundraised through donation–based crowdfunding
2. People are your best promoters. 70% of backers in rewards-based crowdfunding also gave other support, such as social sharing
3. Supporters don’t just donate cash. 7% of funders using donation-based crowdfunding have supported campaigns by allowing the fundraisers to use their space, while 5% gave physical goods to the campaign
4. Donation-based crowdfunding is often used to back projects others could benefit from rather than what they could use themselves
5. Crowdfunding raises money for those who would struggle to find money elsewhere
6. Fundraisers are likely to use similar methods of raising money in the future
7. Social media is one of the best ways of finding backers for projects with a social purpose
8. Donations are often small. 75% of those donating through donation-based crowdfunding give less than £50 in total
9. Social tax reliefs would make more people use these models
Click here for the full article.
GlobalGiving has announced a three-week programme of free online training on crowdfunding – but only for charities who apply before the 5 October deadline
Increased cloud adoption is being fuelled by cloud-native applications, including security and the Internet of Things (IoT) cloud-based solutions
As readers of this site will no doubt be aware, digital has a massive part to play in the future growth of ... read more
eBay has proved to be one of the more effective ways to engage donors online and raise funds. While a lot of the money raised comes from the sale of goods, successful charities have also managed to establish a donor base that allows them to raise ongoing funds.