Do you use crowdfunding for anything different from new programs and projects? Indeed, the tried and proven way to be successful when it comes to fundraising is to ask the donors to help with something specific, usually neglecting the overhead expenses associated with it. In this post by CauseVox, however, Hila Miller explains that there are ways to get much more from fundraising and sort out not only the immediate financial needs for a particular project, but also all the operational costs associated with it.

The TED video

In order to make a point, Miller makes use of a video in which entrepreneur and successful fundraiser Dan Pallotta gives a really insightful, mind-blowing TED talk on the double standards in fundraising. In this talk, Pallotta explains that when you are dealing with charity, you need to take risks and that you need to be patient. Playing safe will only take you so far, but experimenting and giving time for your projects to work has the potential to be truly successful. So how does all this relate to crowdfunding and overhead?

According to Miller and Pallotta, you need to stop telling donors what they want to hear. Actually, it is better to put it in other words: you should stop assuming what people want to hear and tell them what you actually need, not what you think they want to give you. The history of crowdfunding so far was written in a tone which suggest that operational expenses are not part of the cause. So what you, as someone who needs help fulfilling your ideas, would do is write in your fundraising that you don’t need to spend much on the operational side of the project – when you actually do.

Identify the need

Whatever project you decide to fundraise for, you will need a lot more than people who are not specialists in the area understand. You will need office, resources, materials, money for salaries, unexpected expenses, advertisement, transport etc. and you will end up sourcing all this from your annual budget. Indeed, getting help with the ‘main’ costs related to the cause is also important and better have something than having nothing, but in this case you can have much more without straining the budget of your organisation. Because not asking for what you need and working with what you have prevents you from growing big.

Explain the need.

The right thing to do in this situation is to explain that overhead expenses are an indispensable part of the project you are fundraising for. Even the fundraising campaign itself is often a costly thing, but you need to pay for it because that is the only way to achieve your goals. So what you need to do is clearly and explicitly say what you need and why you need it. Don’t forget that people are there because they are considering to help by donating money. If you have convinced them that your campaign is worth donating for, you should not be afraid to tell them how much you need – as long as you give appropriate and logical reasons, you will be fine. Asking for more may require more donors or bigger donations, but at the end of the day you will be able to make a difference much more effectively when you have everything it takes to fulfil your project.

To cut a long story short, crowdfunding is starting to go in a new direction as organisations are starting to experiment with their fundraising campaigns and to reshape the ideas of donating. If you are ready to try yourself, make sure you listen to Dan Pallotta and plan your next fundraising campaign with some of his points in mind. And don’t be afraid to experiment – you lose nothing, but you can win a lot. Sky’s the limit!