How to Use Crowdfunding for Major Gifts to Generate Tons of Revenue

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Greg Warner is CEO and Founder of MarketSmart, a revolutionary marketing software and services firm that helps nonprofits raise more for less. In 2012 Greg coined the phrase “Engagement Fundraising” to encapsulate his breakthrough fundraising formula for achieving extraordinary results. Using their own innovative strategies and technologies, MarketSmart helps fundraisers around the world zero in on the donors most ready to support their organizations and institutions with major and legacy gifts.

CrowdfundingCrowdfunding is growing.  In 2012, the amount of funds raised from this amazing technological innovation hit $2.7 billion (yes, with a “b”). That was an 81% increase over 2011— a huge growth spurt. The numbers aren’t in yet but many have predicted that the amount of funds raised last year will have reached about $5.1 billion.
So how can your organization generate some serious cash from this new concept?
Here’s a great idea I got from Melinda McBride when I asked that same question in the Smart Major Gift Marketers group on LinkedIn:

Align crowdfunding with a major donor to develop a challenge campaign.

Melinda wrote, “I haven’t heard of anyone using crowdfunding to acquire major gifts. But I have heard of people who leveraged major gifts into successful crowdfunding campaigns. A major donor agrees to match a certain amount if certain conditions are met–100 donors make gifts of at least $100, for example.”
She went on to say, “the two keys to success were the match and the minimum participation level. Just one or the other was not as successful. People like having their gifts matched and the minimum participation level means everyone’s participation is needed. For the major donor, their gift not only provides direct support to the organization, it inspires more people to give.”
A very interesting idea indeed! If you have tried this, please let us know the results.
 

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