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MenuKickstarter for charity?
A marketplace where charities, orphanage, non profits can post what resources or finances they need along with a breakdown of what the finances will be used for and then individuals or corporations can donate to them and money is released when they hit the amount needed.
Pro and cons of this?
Answers
It's a very nice and worthy idea. Please kindly note that there already are a few of these platforms (but maybe there is room for more - perhaps if you add something unique to the model).
Examples:
https://chuffed.org/
https://www.thebalancesmb.com/giving-to-charity-online-2501931
https://www.gofundme.com/
https://doublethedonation.com/tips/crowdfunding-platforms-for-nonprofits/
Good luck
I've successfully helped over 350 entrepreneurs, startups and businesses, and I would be happy to help you. After scheduling a call, please send me some background information so that I can prepare in advance - thus giving you maximum value for your money. Take a look at the great reviews I’ve received: https://clarity.fm/assafben-david
Having done a crowdfunding campaign on Kickstarter & Indiegogo last year to launch a new brand, I think crowdfunding sites have amazing potential and are here to stay.
That being said, Gofundme will definitely be your biggest competitor in that space, but I think you can definitely add more value to this marketplace to connect people closely with the charities they want to support.
Having the organization who receives the fund obligated to "show" how they are using the fund and giving a detailed update to the backers would be great to avoid people taking advantage of the system like many have done on gofundme...
I think as long as you can connect people with their favorite organization and give them the trust and confidence that the money is going to the right place, a Kickstarter for charity will always be a success.
Check out the Kickstarter campaign I did last year that raised $154k - I'd like to share with you what I learned from this experience and what I like/dislike about Kickstarter that could be improved.
Feel free to book a call if you want to chat: https://clarity.fm/xavier-cl/expertise/how-to-launch-a-succesful-kickstarter-indiegogo-campaign
Good luck with this project!
Xavier
There are many pros and cons of launching a Kickstarter.
Pros:
1. Generally safe - There is a low venture to dispatch a crowdfunding effort.
2. No Equity - You can fund-raise without parting with part of your organization (value).
3. Leverage small donations - A heft of crowdfunding gifts originate from limited quantities. A star of crowdfunding is you can gather these gifts you would normally not get if raised from enormous contributors.
4. Increase Feedback - People are exceptionally vocal about crowdfunding efforts. It's an extraordinary time to get input for your thoughts.
5. Negative money to money - This is one of my preferred motivations to crowdfund. You can gather the money before you put resources into making your venture. In bookkeeping we call this negative money to money. It makes dealing with your cash 1000x simpler than the customary way. With a normal income you pay for the materials first and afterward need to sell the item/administration to recover the cash.
Cons:
1. Risk of failure- You could fail, and that always sucks. Again better to fail early than after investing a ton of your own money in creating something people do not want.
2. Advertising - Most creators are not experts at marketing. This makes getting people to hear about your campaign difficult. There are a ton of tactics and tricks to gaining traction on a crowdfunding platform. But it takes time and you need to be committed to the strategy.
3. Investment of time- When I talk to successful crowdfunding creators they are always surprised at how much time it took. Plan ahead and give yourself a realistic timeline for the campaign.
4. Expenses - On Kickstarter you possibly pay in the event that you raise the measure of your objective. On the off chance that this happens you do need to pay expenses.
5. Rules - There are additional rules to most stages about what you can and can not do. Try to understand them so you are not in infringement!
If you have any further questions, please schedule a call.
Before we get into why the Kickstarter approach is teed up for success, or how it can be applied to charity fundraising, we need to touch on its main elements in a little more detail.
Time Bound– Kickstarter projects must be finite.
Tangible Outcome– Every project on Kickstarter must produce some sort of tangible result. Potential supporters can see upfront what the intended outcome is, and if they decide to give, they know exactly what their money will be used to achieve. For example, if the project is to build a new park, then the fundraising goal will be determined by the estimated cost of building the park.
Video Appeal– Kickstarter projects all include a video appeal that the projects’ creators use to make the case for support.
Backer Incentives– Supporters of Kickstarter projects are generally given something in return for their financial support.
All or Nothing- For a project to receive the money it raises on Kickstarter; it has to reach the funding goal.
Recent studies have confirmed that tangibility is positively correlated with generosity. The takeaway is that when supporters can connect their giving with specific positive outcomes, they feel like they have made a real impact and they get more satisfaction out of the experience. Keeping these findings in mind, it is easy to see why Kickstarter’s project-based approach is set up for success. Kickstarter projects are inherently tangible.
Each project is required to have a well-defined outcome. When people give to a project, they know exactly where their money is going and what it will be used to accomplish. Kickstarter combines this highly tangible approach with other best practices like time limits to create urgency, incentives for supporters, and engaging content, to create an atmosphere primed for fundraising success.
Like Kickstarter projects, most fundraising campaigns are of limited duration, they have predefined fundraising goals, and they often use incentives to encourage supporter participation . One thing that many fundraising campaigns lack, however, is a tangible and clearly articulated outcome. As the research suggests, this is an area where charities would do well to learn from the Kickstarter approach. The Society for the Prevention of Cruelty to Animals International operates a program that helps transport military pets back to the U. In April they launched a special campaign to raise enough money to bring over thirty animals back to the States.
They needed to raise the money before June 1st when the airlines would shut down all animal travel because of the extreme heat of summer in the Middle East. Any animals left behind would be separated from their soldier companions and would almost surely die. SPCAI succeeded in making the campaign highly tangible for its donors and fundraisers. Pictures and names of the actual animals in need of rescue were included on the campaign landing page.
If you donated or raised money for the campaign, you knew that you would be helping these specific animals, saving them from an untimely death and keeping them united with the soldiers they’d befriended. Of course, it’s not always possible to have such a laser-focused goal. The SPCAI campaign was highly specific because it was part of a special appeal meant to fulfill a clearly defined need. It’s still entirely possible, however, to make even your general fundraising appeals more tangible for supporters.
Fundraisers are told upfront that their money will help fund a water project to provide people in the developing world with clean water. Even better, fundraisers are assured that after they finish fundraising, they will receive a packet showing exactly where the money they raised has gone. The digital report fundraisers receive is filled with specifics about the water project they helped fund. It’s the ultimate proof of impact.
They’ll feel empowered and you’ll raise more money. It’s the ultimate win-win. The Critical Link Between Tangibility and Generosity.
Besides if you do have any questions give me a call: https://clarity.fm/joy-brotonath
Related Questions
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How would you monetize this idea?
I would not monetize this idea at first. I feel your platform needs to be able to provide this service prior to trying to charge companies to list their services. I feel this way for two reason, I as a customer would not trust the platform as I would believe that it only exists to pressure me to contract the services of the companies that paid to be there. I as a company would not want to put my company's reputation at risk prior to the platform having a good reputation on the market.JC
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How can I go about starting a food bank, not just a pantry?
Find a place to store the food so nothing spoils. Contact local organizations around in your area that can help you bring in food donations. Let other food banks know of your operation. Set up a specific and time schedule that lets others know when they can receive from food you. Hold a food drive. Make sure you get boxes and grocery bags prepared to put food in for your clients. You should have no problems and, yes, there is hope.AD
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So I have an invention idea but do not really know how to go about
Everybody has an invention. The question is this....Is there a demand for your invention. My experience with the invention idea companies is that they are out to make money for themselves and will submit your ideas to companies and sites that you can to without spending 10 grand. If it is a great invention there will be a great demand. Start with google adwords to find out if there is real interest in the product. Don't stop taking massive action. Best of Luck, Michael T. Irvin michaelirvin.net My books are available exclusively through Amazon Books. Check out my book "Copywriting Blackbook of Secrets" Copywriting, Startups, Internet Entrepreneur, Online Marketing, Making MoneyMV
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How should you decide which business idea to pursue? How do I decide which direction to invest my energy in and how can I develop my idea further?
These are some great questions. As an entrepreneur, growing and scaling my business has been both a challenging and rewarding task. I'll answer both your questions separately: 1. How should you decide which business idea to pursue? Your decision should take into account both personal factors and should have regard to your environment, your market and your resources. From a personal perspective, choose an industry which (1) you are passionate about and (2) you have knowledge/experience in. This will considerably reduce your risk of failure. As a startup founder, you will find your job to be extremely challenging and the only way to succeed is through resilience. If you are not passionate, you will easily give up. Having the knowledge and expertise of your industry will not only give you more gravitas but also save you lots of time in research and understanding the wants and needs of your customer. From a larger perspective - ensure your business solves a problem that is large enough to build a profitable business out of. Here is a non-exhaustive list of questions to help you get there: 1. What is your intended customer base? It is harder to target a broad and general audience - try to establish a niche customer base which needs your products and/or services. 2. What problem does your service/product solve? Identifying a problem and providing a solution is the heart of every innovative idea. 3. How can you add value to the product and customer experience? Your customers need to gain benefit from purchasing your goods/services. 4. What are the most unusual characteristics of your business which will give you competitive advantage on the market? Establishing yourself in the market means you need some advantage over your competitors to attract their customers or new ones. 5. Have you researched your competition? In what ways do you feel you can do better than the competition? You need to know who are you facing to understand your market share, and how can you provide better solutions. 6. Do you have access to all the resources you need to launch the business? This includes funding, manpower, premises, equipment etc. 7. What is the size of the market? Do your research! 8. What would it take to create a minimum viable product and test it on the market? You don’t need a finished product to launch, start small and test your ideas. 9. What will it take to make profit? You need to have at least some estimated financial projections as to what you need to spend and what you need to earn in order to break even and then make a profit. 10. Is the problem you are trying to solve on the top priority list of the potential customers? Important consideration to see whether your products will sell. 11. What is your business model? How do you plan on charging your customers, how do your competitors do it, can you create additional revenue streams? 12. Is there a potential for growth? Think in the long term, can you scale the business further? 13. What are the possible roadblocks you are likely to face? You should attempt to find a solution for each problem you can think of. 14. Have you chosen a business name? Make sure that your name is descriptive of the branding and targets your customers. Ask people their input - choosing a name is an important matter as it will affect the rest of your branding. 15. Have you looked for your business name online? Ensure that no other business can be confused with yours. Ensure that the domain name and all social media accounts for your business name are available. I hope this answers your first question. 2. How do I decide which direction to invest my energy in and how can I develop my idea further? This will come to you much more clearly once you have found the answers to your first question. Ensure that you are spending your time in a way that produces results. Your first goal is to bring your MVP, to test it amongst customers, to learn from feedback and then to improve your product. Repeat this formula until you reach product market fit. I hope this helps - please don't hesitate to get on a call with me if you'd like to drill this down further.AI
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I have an idea of a hardware product, that has received good feedback until now.Should I fill for a provisional patent or start an indiegogo campaign?
The answer: do both. The first thing you need to know about patents is that the U.S. now has a first-inventor-to-file system after the American Invents Act (AIA) went into effect in 2013. I have to disagree with Dan above: for hardware inventions especially, a patent is an important part of the business plan. The first inventor who "races to the patent office" now is typically the winner. This means if you do not file for a patent on your invention, you can lose the rights to your invention much easier than before the AIA. The next step is to think about how a patent fits into your business plan. A patent application is but a tool in your bag when starting up. A crowdsourcing campaign on a site like Indiegogo can validate the idea. But it also puts the idea out to the public and starts the 1-year clock ticking on when you can get a patent. For hardware startups, however, if you're not thinking about a patent upfront -- you're likely leaving a massive amount of your product's value on the table.JP
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