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ExpressTaxExempt Blog

Tuesday, April 19, 2016

Are You Making These 5 Crowdfunding Mistakes?

Back in the day, fundraising was usually a face-to-face, spoken word kind of venture. But in the digital age, things have changed.

In order to maintain competitive fundraising, you need to look towards the Internet! But with great crowdfunding comes great responsibility.

I mean, there are certain rules, drawbacks, and benefits to Kickstarter, IndieGoGo, and GoFundMe. But no matter what, there are mistakes you can make on every crowdfunding site.

Your Campaign Is Not Clearly Defined


Don’t use a crowdfunding campaign for general fundraising.

Instead, focus your crowdfunding to a specific project, and how it will inspire donors to be a part of it.

Also, a specific project will have a smaller goal ($10k is a lot more palatable than $100k).

You Have No Mass-Market Appeal


Be realistic. You’re a big supporter of your cause, but the Average Joe isn’t.

If you do your market research, you can find the broadest appeal for your project. Research allows you to target your fundraising efforts.


You Have No Dedicated Resources


After you research, you need to make sure you have the capabilities to manage a big campaign.

If you don’t have a dedicated marketing professional on your team, you need to split the duties of a marketer between your current staff.

Also, you need to spend a little to earn a little in most situations, so make sure you have a budget that accounts for marketing.

You Don't Have a Plan


With proper resources, a real plan comes together.

Every plan has a before, a during, and an after. Start by setting goals you plan to meet, metrics you will measure with, and a time frame for all of this to occur.

With prepared content and continuous outreach, you can build relationships with your new donors even after your campaign ends.

You Have No Existing Donor Network


In order for your campaign to succeed, you need a relationship with your existing donors. First of all, they’re passionate about your cause.

Second, they have friends and family to share your project with. New donors are more likely to give if their loved ones have vetted the cause already.

Once you have your crowdfunding road-map in order, you can implement your plan!

With a solid crowdfunding campaign, your project is sure to be successful.

And it’s never too early to start planning your tax exempt return—once all these donations roll in, use the awesome recordkeeping features of ExpressTaxExempt to import donations. If you have any issues e-filing your 990 form, contact our support team at 704.839.2321.

Are you making these crowdfunding mistakes?


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