Home > Wealth Building > Facing the Challenges of Crowdfunding

Facing the Challenges of Crowdfunding

Image Courtesy of www.lakeshorebranding.com

Image Courtesy of www.lakeshorebranding.com

One of the greatest advances in online fundraising has had to do with crowdfunding. Many success stories of crowdfunding have left many fundraisers wondering about the possibility of raising lots of money within very short periods of time. The questions that most fundraisers that are considering crowdfunding include: What needs to be done for a successful crowdfunding? Or will my crowdfunding mission fail? The truth is that not all crowdfunding attempts succeed and neither do all of them fail. There is no one secret that one can use to succeed. It all depends on knowing when to do it and which approach to use.

There are many crowdfunding challenges when using a fundraiser and the biggest one is convincing those who are giving the funds to do so. The cause could be great and genuine or the project creative enough, but if it is not presented or pitched in the right way, the fundraising campaign can fail to catch the attention of contributors. The following tips can help you make a successful pitch when crowdfunding to raise money.

Narrow you goals

Some of the goals that fundraisers place are too general to an extent that they present lots of ambiguity. Such goals look vague and lofty, and donors will have doubts because they will think that even if they make a contribution, it won’t make a big difference or impact in the lives of the would-be beneficiaries of the project.

Target specific audience

Crowdfunding usually targets a large number of online donors that may be willing to donate to your charity, project or cause. The problem is that not all of them can be interested in your kind of fundraising. It is true that those who seek the attention of everyone usually get none, and it is good to direct your efforts to a particular group of people who are interested. For instance, if your project is about putting up a hospital, your best audience is those who work in the health sector.

Set a fixed fundraising period

Crowdfunding is not for long term fundraisers but for those who want to do things immediately. If you leave your fundraising time open, donors will not take you seriously because they will think that your cause is not urgent enough. Donors also want to donate to projects or causes that are immediate because they will witness the impact or change within a short time, not the ones that they will not see the impact in their lifetime. Putting a deadline will create a sense of urgency to those willing to donate who will not wait for another day to make the donation.

Give a breakdown

Even when you are submitting a proposal for funding, you don’t just state a one figure budget and expect to convince your funder. What is needed is a breakdown of how much is needed for specific things which will add up to the total figure. It is the same with crowdfunding because the donors will need to know the specific costs that make up the entire cost. Asking for large sums of money will not only intimidate donors but also clear the doubt of any exaggeration in the total amount needed for funding the project.

Giving is a noble thing to do, but there are things that fundraisers should consider doing to make their fundraising mission success. Genuine projects or causes sometimes fail to get funding because those involved do not know how to raise money effectively.

About Glasses or Contacts

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.