When organizing a fundraising campaign for your organization or organization, there are many options available to you. Classic fundraising campaign, collection of donations, sale of products, benefit activities… Each has different advantages and benefits and we will try to demystify everything by providing some advice. Your fundraising campaign will run like clockwork!
Crowdfunding or crowdfunding campaign
Crowdfunding, often referred to as crowdfunding in Canada, is growing in popularity. It is used mainly for new projects or new businesses. Through a website, citizens can participate financially in a project they like. If the funding goal is reached after a specified period, the money is debited and the funding takes place. Most of the time, in order to encourage people to finance the project, rewards are given according to the size of the donation.
Many companies use this type of crowdfunding to pre-sell their products, test the market and acquire liquidity. Among the most popular platforms are Kickstarter, Indiegogo, and in Quebec, La Ruche.
It interests you ? here is an article that offers 9 crowdfunding platforms that can help your business.
here are some benefits the crowdfunding:
- Be independent of bank financing;
- Have access to a process that can be very fast depending on the interest you generate;
- Help assess your final prices;
- Make pre-sales.
Now let's move on to disadvantages the crowdfunding:
- Costly in energy: you will have to put a lot of communication and marketing effort into it;
- "Hidden" Fees: Platforms often keep themselves a commission on funds raised;
- Pressure to Succeed: A project that fails to meet its funding goal can have an impacted reputation.
Fundraising campaign through the sale of a product
A fundraising campaign through the sale of a product represents the most effective way to accumulate funding, since people instantly get a reward for their donation. Even better: they don't feel like they've donated, since they're paying for something they need.
Also, if you have several members in your team, the group will get a large sales force. With everyone's participation, funding will be easier, faster and more efficient. Especially if you have chosen a product that everyone needs like batteries.
To maximize your chances of success, we invite you to download our guide to a successful fundraising campaign designed specifically for this purpose. We recommend selling eco-friendly batteries where your profit margin is 55%!
here are some benefits from the sale of products:
- High profit margin;
- Ease of sale;
- Instantaneous, both for the organization and for the customers.
Now let's move on to disadvantages from the sale of products:
- High participation rate necessary for success;
- Inventory management.
Fundraising by collecting donations
According to the latest statistics from 2013, there is consistency in the proportion of Quebecers who make donations. It is considered that 61% of Quebecers have made at least one donation in the last year, and that the annual average is estimated at $252 per person. Of these donations, 56% are made to organizations in the health sector. Organizing a fundraising campaign by collecting donations makes it possible to raise money without commitment on the part of the organization responsible for the project.
On the other hand, since people have no compensation or reward, it is more difficult to collect the amount necessary for your activity. If you request large amounts from companies, you can offer them rewards in the form of visibility. The most popular fundraising platforms are undoubtedly GoFundMe or, closer to home, memboGo.
here are some benefits fundraising by collecting donations:
- Very low cost: donations usually cover expenses;
- Tax incentives for donors;
- Minimum commitment of the organization responsible for the project.
Now let's move on to disadvantages fundraising by collecting donations:
- Much harder to fund projects not associated with a charitable cause;
- Requires investment of time and marketing to publicize your fundraiser;
- Arouse donor sympathy and be original;
- Provide a certain percentage of commission fees.
Does this information enlighten you? All you have to do is choose the best option for your organization and move forward with your fundraising campaign! For effective, profitable and well-organized fundraising, do not hesitate to download our guide to a successful fundraising campaign.