How to run a crowdfunding campaign

This page takes you through the steps you need to get started with crowdfunding. We recommend using it together with guides provided by the crowdfunding platform you choose.

You need to have a specific campaign with a clear outcome. This could be launching a new service, creating a new product or holding an event.

You need to think about crowdfunding the same way as you do other types of fundraising or marketing.

• Who will you aim to reach? Where on social media do they hang out?
• Who will help you reach them? Which of your volunteers or supporters can you ask to help?
• What kind of rewards will appeal to them? Can you persuade anyone to donate those rewards?

You need to be clear about how much money you need and where it is going to go.

Include the costs of your project that you need to cover from this funding. Decide which parts of the project you need to pay fees for and which parts can be done by volunteers.

Don’t forget the costs of fees paid to the crowdfunding site and the costs of offering rewards. Add everything up to set your target.

You’ll need to explain what your project is. You have to tell people what you need the money for and what difference you will make. You need to be clear, concise and grab attention.

You can use:

• a short video
• a selection of photos
• a short written message.

There is lots of advice from crowdfunding sites on how to do these well. You don’t need to pay for professional support but you do need to plan well and follow guidance.

When you are choosing your digital crowdfunding platform you need to think about the different types of crowdfunding you could do. Types of crowdfunding include the following.

• Donation-based crowdfunding. This is when your supporters donate small amounts to a larger target while receiving no benefits themselves. This is great if you have a project that needs funds, and won’t be able to offer backers anything. They support you for the feel-good benefits of making the project happen. It is more like other digital fundraising.
• Rewards-based crowdfunding. This type of crowdfunding is when your supporters give towards a specific project in return for receiving a reward or product at a later date. It is the type of crowdfunding that is most like commercial crowdfunding for new business or hobby ideas.
• ‘All or nothing’ crowdfunding. This type of crowdfunding means you won’t get any of the funds raised if you don’t reach your target. Many crowdfunding sites use this 'all or nothing' rule. It means you never have to work out how to deliver a project when you don’t have enough funds for it. It also helps create a 'buzz' about giving in the last few days of the campaign as you make posts about how much you need to hit that target.
• ‘Keep it all’ crowdfunding is the opposite to ‘all or nothing’ crowdfunding. You get to keep all the funds raised, even if you don’t reach your target. This is allowed on some platforms. It could mean you have to deliver the project you pitched with a small amount of money.

To choose your platform you need to decide what type of crowdfunding campaign you want to run.

• Do I want to run a donation-based or a rewards-based crowdfunding campaign?
• Do I want to run an ‘all or nothing’ or a ‘keep it all’ crowdfunding campaign?

Then you also need to check the following questions.

• What fee does the platform charge?
• Is there also a Paypal or credit card fee as well as the platform charge?
• Does the platform offer any support?
• Is the support from the platform useful to my organisation?

Three platforms with particular interest in groups and organisations.

• Crowdfunder – a platform that offers services for charities.
• Spacehive – a platform that focuses on local community projects.
• Global giving – a platform focused on work overseas.

There are many other crowdfunding platforms available. They are designed for businesses, but they can work for groups and organisations.

The most well known are:

• Kickstarter
• Indiegogo

There are many platforms for raising money online that are not crowdfunding platforms. You can use them to collect donations. They are not as good at helping you stay in touch with your supporters as crowdfunding platforms but you can set them up very quickly. Use them to test whether you can reach people who want to make online donations.

The most well known are:

• Justgiving
• Gofundme

You’ll need to coordinate an online campaign to get people to your crowdfunding page and donating. It shouldn’t be a surprise on the day you launch. You need to let your supporters know what to expect and when.

Then invite your community through email and social media to back the project with pledges of cash. Encourage people to share your campaign and when they donate.

Try to get your most loyal supporters contributing right at the start. When the numbers go up quickly that makes others more likely to give.

Also have people ready to help when the time limit is about to end. Lots of 'all or nothing' campaigns get surges of donations right at the last minute by talking about it on social media.

Use the advice given by the platform you have chosen. They will have blogs and video tutorials to help you.

Know what level of professionalism your supporters will expect. This will depend on the size of your organisation and how your target audience likes to behave online. Do your research with your closest supporters.

Keep your supporters updated about the progress of the campaign and how close you are to the target. Thank them when they do contribute, let them know what difference their money will make.

Related advice

• Want to look at the bigger picture of where you get funding and income from? NCVO members can use the funding and income planner.
• Find out about different types of fundraising from individuals or companies. Use our fundraising methods page.