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ExpressTaxExempt Blog

Tuesday, January 19, 2016

Boost Fundraising Through Crowdfunding




As the future of crowdfunding is becoming more promising, there are many nonprofits and charities that are realizing the potential of incorporating crowdfunding within their fundraising efforts. To keep it short and sweet, crowdfunding uses an online platform in which anyone can easily contribute a donation with just a few clicks of the mouse. With some sites, you can even set donation levels, give prizes at certain amounts, and create teams.

When used properly crowdfunding can produce revenue greater than traditional fundraising means. But it’s not as simple as creating a page and then reaping the rewards - nothing is ever that easy. For your fundraiser to be successful through crowdfunding, there is a level of effort required to get your campaign seen and heard. And with these three steps, you can build a solid campaign or save an existing one.

Step 1 - Set Clear Goals
Keep in mind - this isn’t a get rich quick scheme, or get funds rather. Hundreds of thousands of dollars aren’t going to miraculously fall into your organization simply because you kicked-off a crowdfunder. And while you’re probably thinking “It’s possible,” the point is that asking for “hundreds of thousands of dollars” won’t yield favorable results.

The best outcomes are going to come from setting a reasonable amount to reach, a clear deadline to reach that amount, and stating how the money will be used. Keep your expectations grounded, and your goals realistic. Worst case scenario - you raise much more funds than you thought you would because the goal was set low.

Step 2 - Nurture Your Campaign
This cannot be stressed enough; you can’t just create your crowdfunding event and then casually go about your business… This fundraiser is your business! Get the word, and the link, out to your donors, to your volunteers, to everyone. In hindsight, all of your regular contributors should know about your campaign weeks before it goes live so they can initiate donations.

A little notice here and there isn’t going to do too well. Get creative on how you get the word to others. The donation page is already created, so what are 101 ways you can share a URL link to people? For some helpful and easy tips to promote your campaign, check out our blog:
Promote Holiday Giving

Step 3 - Use Social Media
It should come as no surprise that social media plays a part in the marketing or promoting of anything. If big name businesses and Fortune 500 companies are using it, then why should you shun away from it? Crowdfunding and social media are like two sides of the same coin.

Create a plan to engage with your followers on a regular basis, or organize online contests with a prize to get people donating. Studies have shown that Facebook can increase crowdfunding donations by 350 percent - how’s that for some serious motivation?

Crowdfunding can work as a great alternative to traditional fundraising, if you know what you’re doing. And with those significant donations pouring in, you have to report it all come tax season. That’s where we make it easy for you; ExpressTaxExempt offers the most simplistic way to report contributions from fundraising events with your Form 990. Not only that - it will automatically subtract any expenses entered from your event and factor the net income into your overall, total revenue.

Learn step-by-step how to report fundraising events with ExpressTaxExempt.

For more assistance, or for questions in regard to e-filing any of our available 990 forms, our live support team in Rock Hill, South Carolina can help with the filing process. We’re available at (704) 839-2321, Monday through Friday from 9 a.m. to 6 p.m. EST, or email us anytime from anywhere at support@expresstaxexempt.com.





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