CROWDFUNDING FOR A CAUSE HOW BROAD BASED FUNDING MODELS ARE CHANGING TRADITIONAL PHILANTHROPY GARRETT GOLDBERG IDAHO NONPROFIT CENTER – 10 TH ANNUAL CONFERENCE SEPTEMBER 27, 2013

QUICK CROWDFUNDING OVERVIEW CF is a method of soliciting small amounts of investment from a large group of people (micropatronage) Sometimes equity and sometimes for goods or services Companies can more openly advertise for funding as SEC has lifted the general solicitation ban How new generation is starting to (and will) support its favorite causes – including charities

PROGRAM RELATED INVESTMENTS [PRI] CF is consistent with PRIs: Sometimes equity and sometimes for goods or services Furthers mission and expects accountability Foundations have more leeway (and less penalty) to make investments How new generation is starting to (and will) support its favorite causes – including charities

CASE STUDY Trey McIntyre Project maison-a-documentary

QUICK CROWDFUNDING FACTS 536: estimated number of crowdfunding sites [2012] $2.7B: estimated volume of funds raised on crowdfunding sites [2012] $5.1B: estimated volume of funds raised on crowdfunding sites [2013] Donation based crowdfunding increased by 43% in 2012, representing 29% of the market share. SOCIAL CAUSES was the most active crowdfunding category in 2012, with almost 30% of the activity The average successful crowdfunding campaign is $7000 and last for 9 weeks source:

DEVELOPING A THESIS 1)Concepts vs. Projects [new PRI rules] Crowdfunding inherently helps nonprofits define project scopes and goals, thereby increasing accountability to the donors; consistent with PRI 2)Joint Conversation on Accountability Given the changing landscape of funding models (both for profit and nonprofit), this is an opportunity for a joint discussion to shape path forward 3)Group Thoughts?

KEY ASPECTS TO A CROWDFUNDING CAMPAIGN 1)Tell Your Story 2)Provide Value for Value 3)Introduce Scarcity 4)Create a Marketing Event 5)Highlight Examples of Social Proof 6)Build Credibility and Legitimacy 7)Interact with your Supporters