When searching crowdfunding sites for nonprofits to invest in, you must consider their best features. Crowdfunding is an invaluable tool to utilize for nonprofits. By 2025, it is projected to be an over $85 billion industry. In just 2018, the largest crowdfunding effort was conducted which raided over $40 million. Crowdfunding efforts are operated through websites that offer many beneficial features to donors. To learn more about some of the features to consider when seeking a crowdfunding site, read on.
No Platform Fee
The first good feature of certain crowdfunding sites is the lack of platform fee. The advantages of these platforms are similar to those from a no fee bank account. Most crowdfunding sites have a platform fee attached to their campaigns. This fee is typically 5%. This works well for campaigns as that money can be better spent on the cause itself. The platform fee is in addition to a processing fee per donation of approximately 2.5 – 4%. Seeking a crowdfunding site with no platform fee will ensure that the most funds possible will reach the campaign. This way, you can maximize your campaign ROI and meet your nonprofit goals. This is an important feature of the best crowdfunding sites for nonprofits to invest in.
Fixed vs. Flexible Funding
Next, fixed vs. flexible funding is a critical feature to consider when seeking a crowdfunding site for nonprofits. The former is best for campaigns that require a specific amount of funds. While the latter option is best for campaigns that desire any amount of funds over their lifespan. With flexible funding, a campaign will receive any funds received when the final goal is reached. However, campaigns with fixed funding won’t receive all the funds raised if the campaign reaches its final goal. This would lead to the funds being returned to donors. If you desire to invest in a campaign that will receive the funds donated, whether it reaches its goal or not, then a flexible funded campaign may be right for you. When investing in a crowdfunding site for nonprofits, this feature is of critical importance.
Powerful Reporting and Analytics
In addition, a site that offers powerful reporting and analytics is highly beneficial to investors. Crowdfunding sites often have health metrics that track total donations and a gift tracker for their campaigns. Donors can view the exact amount of money left to be raised for the campaign. You can leverage IoT analytics benefits businesses, and other analytics to reach out to donors with personalized communication. If you wish to be kept up to date on the direction of the campaign you’re interested in, seek a crowdfunding site that offers this feature. Powerful reporting and analytics is a beneficial feature offered by the best of crowdfunding sites.
Event & Team Fundraising
Event and team fundraising is a great feature that many crowdfunding sites can offer. Many campaigns offer leaderboards on their site to increase competition between donors. Of course, this helps you easily interpret, track, and monitor team fundraising data. They also organize events for prospective donors to gather and fundraise for their campaign. Crowdfunding sites like these do this to foster community support. If you desire to be involved with a campaign, it’s important to consider event and team fundraising features. This feature remains significant in the best of crowdfunding sites.
Finally, social sharing is a crucial feature of the most popular crowdfunding sites. There are many ways to join sharing economy business. Notably, campaigns will share any updates on social media to reach out to donors. In addition, they also share information on different messaging platforms. Many campaigns will have widgets for email, sms, and social media sites. This makes it as easy as possible to connect with the campaign and your fellow donors. It’s important for crowdfunding sites to utilize social sharing to ensure its success. Searching for a crowdfunding site with this capability will help you determine the best campaign to invest in.
Crowdfunding sites offer investors such as yourself an opportunity to support a good cause. The above features are several of the best to keep in consideration while searching for a crowdfunding site. Sites with no platform fee will ensure that their campaigns receive as much money as they can. Flexible vs. fixed funding options will determine whether a campaign will receive all or none of the funds raised. In addition, campaigns with event and team fundraising opportunities offer more avenues for raising funds. Social sharing and analytics abilities will enable you as an investor to keep track of how much money is raised and all updates for the campaign. When investing in a nonprofit campaign, you must consider which crowdfunding site offers these features. These features are the most crucial to look for in a crowdfunding site.