Creative Ways in Which Non Profits Can Continue to Fundraise When In-Person Events are Canceled

Creative Ways in Which Non Profits Can Continue to Fundraise When In-Person Events are Canceled

Crowdfunding and peer-to-peer fundraising are two creative ways in which nonprofits can continue to fundraise when in-person events are canceled. Crowdfunding, which will be a $96 billion industry by 2025, allows nonprofits to share their story creatively on an online platform. Peer-to-peer fundraising allows nonprofits to leverage social networks to fundraise on behalf of them. Nonprofits that utilize the latter method often raises twice as much compared to traditional techniques.

1. Crowdfunding

  • β€ŠCrowdfunding is a creative way to tell an organization’s story and attract donations for small campaigns all year-round.
  • The crowdfunding industry is expected to be worth up to $96 billion by 2025β€Š, and many believe it’s “a valuable tool” for charitable nonprofits looking to fundraise. As of August 2018, the biggest crowdfunding achievement in the United States raised $41.6 million, which assisted victims of Hurricane Harvey.
  • Nonprofits implement this strategy by first exploring the best crowdfunding platform for them since some are specific to various industries. Then, nonprofits should detail their personal story, create marketing materials that will attract the targeted audience, potentially have a reward system for donors, and spread the word about the crowdfunding campaign.
  • Crowdfunding is a successful method for nonprofits during COVID-19 because at a time when in-person events are canceled, crowdfunding platforms “reach a much more diverse audience than a nonprofit’s regular audience.” The crowdfunding campaign can also be easily shared online, which creates discussion and builds relationships among donors and nonprofits.
  • For example, the San Francisco Ballet canceled more than 60 percent of their season because of the coronavirus pandemic. To compensate for lost revenue, which is $9.5 million, and keep employing their staff members, the organization started a crowdfunding campaign. They used videos and photos to attract attention, and by clearly stating how donations will be used, they help supporters feel connected to the organization’s mission. Donations have been pouring in for the organization, including from Hearst Foundations, which donated a $500,000 grant.
  • Another example includes Another Round, Another Rally, “a nonprofit financial resource for the hospitality industry.” They created a virtual hospitality tip jar on a crowdfunding platform and explained what each amount of donation will fund. To date, they have already raised $1,232,075 out of their $1,500,000 goal.

2. Peer-to-Peer Fundraising

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