6 reasons non-profits should consider crowdfunding

ATB | ATB Financial | Sep 14, 2020 |

crowdf 300x166 - 6 reasons non-profits should consider crowdfunding At its most basic level, crowdfunding is the use of a platform to raise money from a large number of people online. Beyond the surface level-definition, it’s an opportunity to tell your story which compels a crowd to give.

Unlike funding from investors, financial institutions or the government, crowdfunding is passion-driven. When you connect with people on a heart-level, they’ll be excited to support you.

See: [Breaking] SEC Votes to Approve Changes to Regulation Crowdfunding Increasing the Maximum Raise to $5 Million

Non-profits can use crowdfunding too. In fact, crowdfunding for non-profit organizations doesn’t look too different from crowdfunding for for-profits. Both types of organizations set a funding goal, share the “why” behind the goal through video, words and images, and get funding from the crowd.

Here are 6 reasons non-profits should consider crowdfunding:

1. Reach a different demographic

Crowdfunding can help your nonprofit reach a different generation or audience than you may normally connect with. Specifically, Millennials and Gen Z (between the ages of 24-35) are the most likely to participate in crowdfunding campaigns than any other age group. Human Rights and International Development, Child Development, Environmental and Victims of Abuse charities and causes are a soft sport for these generations.

2. Campaign supporters will help spread the word

Another thing you probably already know about Millenials and Gen Z—technology comes second nature to them. If you create a crowdfunding campaign, you’ll likely not only reach that demographic, but potentially some of their followers and friends on social media. An online crowdfunding campaign is incredibly shareable, making it easy for one person’s interest in your cause to grow to tens or hundreds through one share on social media.

See: NEW REPORT: Small Business SOS – It’s Time to Supercharge Local Crowdfunding to Unlock Needed Capital

3. Start a conversation about what your organization supports

Along with shareability comes the potential for your cause to start conversation online. If you or the crowd shares your campaign on social media, there's an opportunity to have important conversations around the topic, bringing awareness to the issue you’re fundraising for and to your organization. That’s a double-win for you!

4. Crowdfunding is passion-driven

People give towards a crowdfunding campaign because they see that the person or organization behind it is passionate, and the individual shares that passion. Luckily, non-profits are also passion-driven at their core—it’s not something that’s tacked on at the end as an afterthought.

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NCFA Jan 2018 resize - 6 reasons non-profits should consider crowdfunding The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org