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ReachBack Contributor: Daphane Simmons, Executive Director of ReachBack and Micro-Entreprise Founder of Nvest Wise, LLC

💰 Crowdfunding

Best Practice: Grow Your Business With Crowdfunding

💡 What is Crowdfunding?

Crowdfunding is a fundraising strategy that uses online platforms to collect small to mid-sized donations from a large number of people. It's typically time-limited and centered around a compelling story or project goal.

🧾 This method works best when you engage your community, set a clear financial target, and provide regular updates and calls to action. Crowdfunding builds excitement, expands your donor base, and creates momentum through shared purpose.

🎯 Best Practice for Crowdfunding

✅ Raise Capital Before Launching Your Crowdfunding Campaign

🚀 Why it's Best Practice and What It Means:

Before your public crowdfunding campaign officially goes live, you proactively secure donations or commitments from key supporters — such as board members, close donors, partners, or friends — to “seed” the campaign. This initial capital helps build momentum and credibility once your campaign becomes public.

🛠️ Crowdfunding takes Work

Preparing for a successful crowdfunding campaign takes thoughtful planning and behind-the-scenes work.

Step-by-Step Workflow to Run a Successful Crowdfunding Campaign:

(1) Choose the Right Platform

Select a crowdfunding site (like GoFundMe, Kickstarter, or Givebutter) that aligns with your mission and allows nonprofit or social-good campaigns.

(2) Set a Clear Goal and Timeline

Define a realistic fundraising goal and campaign duration (typically 30–45 days). Be specific about what the funds will support.

(3) Craft a Compelling Story

Use videos, images, and emotionally resonant storytelling to explain the impact of the project. Make your appeal personal and mission-driven.

(4) Build Your Campaign Page

Project Summary

Funding Goal

Visuals (photos or videos)

Donation tiers or incentives (if applicable)

Progress bar and social sharing tools

(5) Mobilize Your Network

Engage board members, volunteers, partners, and ambassadors to donate early and share widely. Early momentum attracts more backers.

(6) Promote Across Channels

Use email, social media, and text messaging to regularly promote your campaign. Create a promotion calendar for consistent outreach.

(7) Provide Frequent Updates

Keep your audience informed with updates, thank-you messages, and new milestones. Highlight donor contributions and progress.

(8) Thank You and Steward Support

After the campaign ends, thank all donors and share the results. Report on how the funds are being used and the outcomes achieved.

📌 How to Implement It

Set a Pre-Launch Target

Aim to raise 25%–40% of your total goal before the official launch.

Identify Your "Inner Circle"

These are the supporters most invested in your mission — board members, major donors, staff, long-time volunteers, or business partners.

Make It Exclusive and Strategic

Let them know they’re being asked early because their support is vital to launching successfully. This often makes them feel more valued and invested.

Use Matching Gifts If Possible

Offer to match future donations with early commitments — e.g., “Every $1 you give now will help unlock $2 from the crowd.”

Launch with Confidence

Once you’ve seeded the campaign, go live publicly with strong messaging:

“Thanks to our early supporters, we’re already 30% of the way there — now we need you to take us across the finish line!”