Mar 25, 2013
There is a new trend gaining popularity worldwide of individual donors offering modest gifts to nonprofits and charities in an effort to fund small-scale projects and developments incrementally. The micro-funding platforms engage donors online with information on various causes and communities in need. Donors then have the option to support an initiative in numerous ways through small contributions, some with tangible results.
For example, some organizations launch online donation pages that enable donors to purchase certain tools and resources for communities in need, rather than submitting money to the nonprofit. Others launch digital campaigns to generate interest among a large pool of donors, all willing to offer support in manageable amounts that total significant gifts when combined. No matter the specific model, the idea of crowdfunding, or optimizing the interests of many in a nonprofit's work, is becoming a popular source of fundraising worldwide.
Power of many
Of course nonprofits seek to inspire large donations from individuals or organizations to support long-term projects and missions. However, the birth of digital technology and online donation pages has allowed charities to reach larger populations faster and more efficiently, making it easier to spread awareness and generate financial contributions. As a result, leveraging the power of online communication has become commonplace in fundraising strategies, with many campaigns focusing on reaching more people rather than generating large donations, DW reported.
Known as crowdfunding, these efforts aim to engage vast numbers of donors with the expectation that most contributions will be smaller, but the total number offered will be much higher than for traditional giving campaigns. By connecting with numerous donors online, nonprofits can increase the reach of the cause and opportunities for repeat gifts in the future. While many small gifts may seem more complicated than a few large donations, having more contributors involved in the cause has a greater chance of sustaining long-term contribution trends. Furthermore, greater participation numbers increase networking capabilities, often seen when individuals share information online via social media networks, the source explained.
Minnesota's GiveMN, for example, was able to raise $16.3 million in one day after deploying a campaign on a crowdfunding website. The crowdfunding tool helps connect organizations to a large population of interested donors, while also directing viewers to seek more information on the nonprofit's website and other digital channels. The experience generated participation from 4,381 nonprofits across the state while accepting donations from 53,339 people in a 24-hour period, Forbes reported.