Crowdfunding is an increasingly popular method of fundraising for individuals and charities. Generally it involves an individual or organisation establishing a fundraising target online for their cause, then calling for support from the public.
The technique has expanded rapidly in recent years and there are now many crowdfunding websites to choose from. But some people are asking if crowdfunding is getting too crowded. We asked some of the experts presenting at FIA Conference 2018 what they thought and got a mixture of yes, no and maybe answers!
Trent Osborn MFIA and Will Kirsop MFIA feel that the crowdfunding space isn’t too crowded. “It’s not if it’s done well and you stand out from the crowd,” said Trent.
“We’re only seeing the beginnings with crowdfunding spreading its wings (e.g. equity crowdfunding). People crave the intimacy of involvement with causes/issues they are passionate about, especially if they’re receiving something in return,” suggests Will.
Leukaemia Foundation’s Ash Knop is in the maybe camp: “The principles of crowdfunding are good to follow. Identify a need, recognise its value, then demonstrate the impact that value will have on the need.”
Fred Hollows Foundation’s Vikram Chowdhary said his organisation has been considering experimenting with crowdfunding but he isn’t entirely sure about the technique.
“I think it’s great for smaller charities but at the moment I’m not personally seeing the value in larger organisations with a strong base entering the arena.”
Homemade Digital’s Meredith Dwyer FFIA CFRE feels that the space is “indeed crowded.” But she also thinks that this will change.
“Facebook Fundraising -- the biggest disruptor to this sector -- has now launched in the USA and Europe. I expect to see some major shake outs in this sector as Facebook Donate and Facebook Fundraisers begin to gain traction."
It is a yes…and no…for Act for Peace’s Karen McGrath.
“If we, as an industry, do not design inspiring, personalised and data-driven crowdfunding campaigns, then quickly participants and donors will have negative experiences and become fatigued by too many organisations engaging in this space,” she warns.
“However, if all the organisations acting in the space learn more about their target audience, focus their efforts on these people and create authentic, engaging and insight-driven supporter journeys and experiences, then I feel like the space, although crowded, won’t feel this way to donors/supporters. Instead they will walk away wanting more and with a higher propensity to give in the future.”
Going to the Conference? Let us know!
If you’re also attending FIA Conference 2018, reach out to us in the comments section below or on Twitter (@FundInstituteAu). We’d love to hear your opinion on whether it’s getting too crowded out there in the crowdfunding landscape. And don’t forget to register now to get your Conference ticket!