June 2015 Toronto Net Tuesday: Crowdfunding
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This document serves as a comprehensive guide for nonprofits and charitable organizations on crowdfunding strategies, emphasizing the growth and significance of crowdfunding participation across Canada. It includes case studies, key factors for successful campaigns, and the importance of marketing and engagement with stakeholders. The guide also highlights lessons learned from past crowdfunding efforts and offers practical tools and resources for effective campaign planning.
June 2015 Toronto Net Tuesday: Crowdfunding
- 1. Crowdfunding Guide for Nonprofits and Charitable Organizations Christopher Charlesworth Email: chris@hivewire.ca Twitter: @hivewireCA © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on June 9, 2015
- 2. © 2014, All rights reserved HiveWire Inc. 2 About Us Christopher Charlesworth Co-Founder Asier Ania Co-Founder Kris Olafson CTO Moira Klein-‐Swormink Finance Arthur Prevot Data Scientist Crowdfunding Guidebook: bit.ly/ESDCstrategyguide
- 3. Consulting and Workshops © 2014, All rights reserved HiveWire Inc. 3 Workshops • Over 45 workshops to date • Government, non-‐profit and chari?es, corporate • Crowdfunding strategy development Consulting • Individual campaign consul?ng • Rapid Campaign Audit • Campaign De-‐Risking Analytics • Custom research • Reports • Trend iden?fica?on and analysis • Innova?on surfacing Platforms • Build custom crowdfunding plaSorms • Tailor features to strategic objec?ves of client
- 4. © 2014, All rights reserved HiveWire Inc. 4 What is: Crowdsourcing ? CrowdFunding: Fund something ~$300 M in funding in 2012 CrowdWisdom: Solve a Problem 75% of people in the crowd already knew the solu?on. CrowdVoAng: Select something Very basic and employed by many sites CrowdLabour: Complete tasks Millions or workers comple?ng simple tasks CrowdCreaAon: Create something Army of graphic designers at your service CrowdAdvocacy: Support something People-‐powered poli?cs to decision making. The practice of obtaining needed services, ideas, or content by soliciting contributions from a large group of people - Wikipedia
- 5. 5 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Stakeholder Engagement Process: • Stakeholder Registra?on • Stakeholder Discussion Guide • Workshop • Survey List of Nonprofits consulted: 1. Halifax Tool Library 2. Community Canoe 3. Cul?vateTO 4. RegentParkFocus 5. Not far from the tree 6. FaceValue 7. WindFest 8. Henry Vanderspek (project with Photographers Without Borders) 9. African Women Ac?ng 10. Canadian Arab Ins?tute 11. Youth Climate Report 12. City Seed Farms 13. Dreamweavers 14. Our Horizon 15. Match Interna?onal 16. Steele Family Founda?on March 16, 2015 Workshop (in-‐person and live streamed)
- 6. 6 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on VS. à The Focus of the publication is on the two most relevant forms of crowdfunding for nonprofits and charities
- 7. 7 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Industry Statistics & Data
- 8. 8 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Industry Statistics & Data à Our data has shown that nonprofits and charitable participation in crowdfunding continues to grow rapidly.
- 9. 9 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Industry Statistics & Data à Nonprofits and charities from all sectors are using crowdfunding
- 10. 10 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Industry Statistics & Data à Participation is Canada wide, although concentrated in BC, Ontario and QC
- 11. 11 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Key Factors of Success
- 12. 12 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on
- 13. 13 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Building Your Campaign à Participation is Canada wide, although concentrated in Ontario and Quebec Why People Back Your Campaign • Shared passion • Solidarity • Tax deduc?on • Emo?onal connec?on • Par?cipa?on • Kindred Spirits • Entertainment • En?cing Rewards
- 14. 14 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Rewards à Campaigns with rewards are clearly more successful
- 15. 15 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Rewards: Metrics of Success à Data was analyzed to demonstrate best practice, and included in multiple infographics throughout the document
- 16. 16 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on
- 17. 17 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Marketing Your Campaign à We build the document to lead the audience through critical steps Planning Your Marketing Campaign • Why Plan? • Get Organized Preparing Your Networks • Gather • Assess • Build • Engage • Communica?ons Plan Conducting Your Campaign • Work in Advance • Using Tools • Coordinate Your Messaging Optimizing Your Marketing • Market Segmenta?on • Social Media • Customer Service • Tes?ng
- 18. 18 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Referral links were included
- 19. 19 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Reward fulfillment -‐ If you’ve included rewards in your campaign you should get started right away in gekng them out the door. Thank you messages -‐ Remember to thank the donors to your campaign, backers, supporters, and of course any volunteers. Managing expectaAons -‐ If you have any hiccups in reward fulfillment or execu?on of your project, we encourage you to be as transparent as possible. Nurture new relaAonships -‐ Those that have that backed your campaign represent an important new connec?on that you should foster, in the hope of turning them into future: backers, partners, clients, champions, volunteers, employees, sponsors, etc.
- 20. 20 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Lessons Learned • “We underes9mated the 9me commitment involved.” • “We didn’t test our campaign adequately.” • “No one wanted a t-‐shirt for $200.” • “We didn’t realize how important having a video was.” • “We didn’t conduct enough planning.” • “We learned that pushing to launch our campaign in 9me for our event was not more important than being ready to crowdfund.” • “We didn’t factor in the 9me and costs (such as shipping) of the rewards properly.” • “We didn’t no+fy our en+re organiza+on or stakeholders properly.” à There is a clear need for education about crowdfunding within the nonprofit and charitable sectors
- 21. 21 © 2015, All rights reserved HiveWire Inc. & Centre for Social Innova?on Fact Sheets à Practical tools and tips were provided on comprehensive fact sheets
- 22. New Crowdfunding Rules © 2014, All rights reserved HiveWire Inc. 22 ParAcipaAng JurisdicAons: • Bri?sh Columbia • Saskatchewan • Manitoba • Quebec • New Brunswick • Nova Sco?a Restric?ons: Cap of $250K per raise, max $500K in calendar year. à Equity Crowdfunding Approved in Canada
- 23. Case Studies – Value Creation is King © 2014, All rights reserved HiveWire Inc. 23
- 24. Case Studies – Value Creation is King © 2014, All rights reserved HiveWire Inc. 24
- 25. Case Study • Rooerdam, Netherlands • Crowdfunded wooden pedestrian bridge • Will span 350 meters, 17K individual wooden planks • Can inscribe name or any text of funders choice • Length of bridge determined by number of planks purchased. • Construc?on has started Stats: © 2014, All rights reserved HiveWire Inc. 25 Goal: ~ €425 000 Raised: > €100,000 People: > 1,000 Platform: I Make Rotterdam Source: hop://en.imakerooerdam.nl/ • Urban Innovation is happening • Novel method for engagement • No public money The Luchtsingel
- 26. 215 Spadina Ave, Suite 400, Toronto, ON Canada M5T 2C7 info@hivewire.ca info@socialinnovation.ca Thank you. WorkshopsWorkshops Presentations Data Speaking Engagements Analytics Seminars Platform Development Consulting Workshop Workshops Data Analytics Seminars Platform Development Consulting Data Presentations bit.ly/ESDCstrategyguide