Crowdfunding is a method of raising funds from many people in order to fund a project or other venture. Although it is widely used in for-profit entrepreneurial projects, it also has great applications for nonprofits as well. When campaigns are run correctly, nonprofits can realize great returns, including increasing funding and growing their supporter community.
The concept predates the internet, beginning many years ago in a variety of capacities such as authors advertising book projects and the sale of war bonds. The modern online version first gained popularity online in arts and music communities. ArtistShare was launched in 2003, followed by IndieGoGo in 2008, Kickstarter in 2009, Microventures in 2010 and MobileCause in 2014.
The industry as a whole raised $16.2 billion in 2014, $34.4 billion in 2015 and may have topped $60 billion in 2016. It’s an industry that has continually grown in leaps each year.
While there are great successes, roughly two thirds of projects fail to raise their intended funds. Success often pivots on careful planning, and that begins (and ends) with storytelling.