More on Crowdfunding - for business and community projects

Did you know that there are four types of Crowdfunding campaigns: by donation, by reward (where the donor gets something in return), by equity (shares) and by debt (loan).  The most common is by donation as these campaigns are easiest to administer - however the most lucrative in fundraising terms are the campaigns where you can offer something in return.  Sometimes it can be as simple as their name appearing on your website, or other promotional material, or even just a simple tee-shirt. However, the best rewards are the "money couldn't buy" rewards. We're not talking about expensive activities either - a personal guided tour of your project once completed, for example, or dinner with the board of directors?! A bike ride with a local celebrity or a specially made pot of jam.  Although, do think about postage costs - so a pot of jam might require being picked up!  The average donation for a reward campaign is £50 per donor - this quickly racks up if you have gradually more lucrative rewards.  By comparison the average reward for donation campaigns is £20 (so not to be sneered at) but it also depends on the quality and persistence of your campaign. It also helps if your campaign has global reach and whether you can tug at the heart strings of people from far away who have a connection with your area (Have they visited on an amazing holiday? Have they a family connection with the area?). Use this as much as you can!

Crowdfunding campaigns are time intensive and need a very dedicated person - or better still a team of dedicated individuals who have the time to manage and keep pushing the campaign whilst the campaign is live (this can be from a month up to three months).  You also need to be pretty good with social media - which is a lot easier than most people fear. On the plus side, increasingly there are more people around to support the development of campaigns. 

And this is potentially where LEADER can come in. Some LEADER areas already have Crowdfunding portals which are based on geographic areas (checkout others are looking at providing campaign support. Some are doing both.  Here in Forth Valley and Lomond we are looking at both - so we would love to hear from you if you are thinking about Crowdfunding for either your business or your community project. Tell us how we can best support you with your Crowdfunding campaign!

Please do get in touch