June 27, 2022

Top 10 Crowdfunding Questions You Have And Our Answers To It

Top 10 Crowdfunding Questions You Have And Our Answers To It

Do you know if not for crowdfunding, the Statue of Liberty would never be completed? Yes, when funds weren’t enough to complete building the statue, publisher Joseph Pulitzer, of the New York World, started a donation drive to finish the project. It attracted more than 120,000 donors. And an interesting fact is most of them gave less than a dollar! And today, the Statue of Liberty stands tall thanks to the united efforts.

Crowdfunding has gone online now and numerous campaigns have found success in fulfilling their goals. The first recorded instance of online crowdfunding was in 1997 when a British rock band sought online donations from their fans to fund their reunion tour. Inspired by this concept, the first dedicated crowdfunding platform was built in 2000 by the name ArtistShare. Within a couple of years, many such online fundraising platforms emerged as they became a popular option to raise money. Today, online fundraising platforms help millions to raise funds for diverse causes such as entrepreneurship, medical treatment, tours, ideas, sports, art, employment, building homes, feeding the hungry, and many others.     

We are sure before you start crowdfunding, you have a lot of questions regarding the concept and online fundraising platforms. Let’s try answering some of your queries here.  

 1. What is crowdfunding?

Crowdfunding is a concept of raising money for various causes by creating an online fundraising page and sharing its link to solicit donations. It is widely used by individuals or nonprofits because of its ease of use and effectiveness to raise money fast. Crowdfunding works on the concept of collecting small donations from many supporters rather than trying to get larger donations from major contributors.

 2. How does crowdfunding work?

An individual or nonprofit interested in raising funds first sets up a donation page on an online fundraising platform. The process is quick and should not take more than a couple of hours. Now, they use social sharing and email to reach people and encourage potential donors to give. The benefit of crowdfunding is you need not stick to your network for support. In fact, you reach out to new supporters as your page keeps getting shared and re-shared among their networks.  

 3. How do you promote your fundraising campaign?

Since crowdfunding relies heavily on social media sharing, it is crucial for you to design a page on the online fundraising platform that tells your story in a compelling way. Use visuals such as images and videos and write a good description including reasons why you’re raising money and how you plan to spend it. Share the donation page link on social media asking for contributions from supporters. In parallel, you run your email campaign to get maximum traction for the link.     

 4. What are the features offered by the online fundraising platform?

The online fundraising platforms offer varied features. But you have to pick the one based on your campaign type. Some platforms support niche causes such as animal fundraisers, children fundraisers, cancer fundraisers, study fundraisers, and so on. If you have to sell tickets for a fundraiser event, all you need is to build a landing page, add CTA for people to buy tickets, and collect data for analysis. Of course, you need extra features to promote your fundraiser. So, make sure you select an online fundraising platform that has features to help you set up your campaign and promote it on social media platforms. Also, another necessary feature is to enable donors to pay seamlessly.

 5. Is it necessary to invest in an expensive fundraising platform?

When charities seek to set up their donation campaigns on online fundraising platforms, their goal is to raise maximum money and they are under the myth that a lot of features are needed to make your campaign a success. The fact is you just need some basic features and the success of your crowdfunding really depends on the efforts you put into sharing it so that it reaches the maximum number of people. If you are a small charity or an individual raising money for a cause, look for a basic virtual fundraising platform without all the bells and whistles. If any online fundraising platform, like GivingX, has all the basic features, is easy to use, and is lighter on the wallet, it is a better option to go with it rather than finding a platform which promises advanced features but is not of much use for your campaign.    

 6. What do others say about the online fundraising platform?

It is crucial that you research the online fundraising platform before zeroing in on it. See what the past clients have to say about the platform. These platforms publish online reviews on their website. Search the internet for reviews from third-party websites. There are review publishing sites that give an honest opinion on past customer experiences. Some platforms may have resolved issues later on so be careful while looking into the reviews and the response of the platforms for these reviews.     

 7. What fees will you pay to the online fundraising platform?

The online fundraising platforms have different fee structures and you’ll have to select one based on your campaign requirements. Some are for free while some charge a flat platform fee when you sign up. Others take a percentage or commission from the donations earned. Some charge a fee for every transaction. The credit card processing fee is taken separately and it depends on the third-party payment provider. These usually offer discounts if the funds are for charity. Study the fee structure of every online fundraising platform. If it’s free make sure you know beforehand the additional expenses that may incur once you start collecting funds. Read their terms and conditions carefully or chat with their representative requesting transparency in the fee structure.  

 8. How easy is it to start crowdfunding on an online fundraising platform?

A fundraising platform needs to be easy not only for you but also for the donors. A simple user-friendly platform with minimal but necessary features makes it simple for your onboarding. If an online fundraising platform has advanced features, the interface will be complicated and your learning curve will be steeper. That is not how charities want their fundraisers to be. One way to find out the complexity is to go through video tutorials or request the platforms for a demo session or email you the user guide. When the online fundraising platform is simple to operate, the onboarding is easy and you can start crowdfunding in minutes.      

 9. How good is the customer support for your online fundraising platform?

A good online fundraising platform will make it easy for their customers to set up a donation page and start crowdfunding. They provide enough resources such as FAQs, blogs, videos, and downloadable document guides on how to set up the donation page. But sometimes, even with many training resources, issues arise. In such situations, what helps is excellent customer service. Avoid online platforms that keep connecting the call between its various grades of customer executives. Such calls are tiring as you have to keep repeating your query again and again. Instead, focus on online fundraising platforms that get your query resolved immediately.  

 10. What fundraising support will the platform provide?

Select a platform that makes crowdfunding easy for you. For crowdfunding to be a success, you have to share the word across various social media platforms. Be certain your platform has integration features for you and your supporters to share the campaign link. If you prefer to share it via email, your platform should easily allow you to do so.      

Some online fundraising platforms have a significant media impact and run ads in their personal capacity. They are constantly giving ads on digital media for various fundraising campaigns set up on their platform. Some even have a strong presence on social media and are actively sharing the links of donation pages. Many pay for retargeting ads so that the important causes get higher impressions. See if the platform can help you share your donation page link and what are the criteria to do so.  

Start crowdfunding today

If we’ve answered your queries and you’re satisfied that it is the best option to raise funds for your cause, start crowdfunding today. GivingX, an online fundraising platform will guide you from start to finish to make your campaign a success. Many charities and individuals have benefited from crowdfunding, so why shouldn’t you?