{"id":107,"date":"2024-04-04T07:48:32","date_gmt":"2024-04-04T04:48:32","guid":{"rendered":"https:\/\/sisu.ut.ee\/sdce\/module-5-3-en-2\/"},"modified":"2024-04-05T12:37:10","modified_gmt":"2024-04-05T09:37:10","slug":"module-5-3-en-2","status":"publish","type":"page","link":"https:\/\/sisu.ut.ee\/sdce\/module-5-3-en-2\/","title":{"rendered":"Topic 3: Crowdfunding Your Civic Engagement Projects \/Causes"},"content":{"rendered":"
\r\n\t

\r\n\t\t\"SDCE_clowd\"This\u00a0topic covers the concept of crowdfunding, and how students can use\u00a0different forms of funding to help establish their DCE projects. The learning outcome of this section is to recognise and understand some of the tools and\u00a0platforms that are available that students will potentially be able to use to help fund their projects.\r\n\t<\/h4>\r\n<\/blockquote>\r\n\r\n

\r\n\t\u00a0\r\n<\/p>\r\n\r\n

\r\n\t\"SDCE5-3\"What is Crowdfunding?<\/strong>\r\n<\/h3>\r\n\r\n

\r\n\tCrowdfunding is where lots of people (a \u201ccrowd\u201d) help to provide funding. It can be a successful way for projects, causes, startups or smaller businesses to get many small donations from multiple people.\r\n<\/p>\r\n\r\n

\r\n\tCrowdfunding requires a project or business to convince the crowdfunders that their project is worthy of being funded.\u00a0 The art of storytelling is vital.\r\n<\/p>\r\n\r\n

\r\n\tThere are four different types of crowdfunding:<\/strong>\r\n<\/p>\r\n\r\n

    \r\n\t
  1. \r\n\t\tDonation<\/b>.\u00a0\u00a0 Donation-based crowdfunding is where backers expect nothing in return, they donate purely out of interest and support for the project.\r\n\t<\/li>\r\n\t
  2. \r\n\t\tDebt.\u00a0 <\/b>A Debt-based donation (or peer-to-peer lending) is a bit like a loan. Donors pledge money as a loan, and this money must be paid back with interest by the recipient by a certain timeframe\r\n\t<\/li>\r\n\t
  3. \r\n\t\tRewards<\/b>. Donors receive something in return for their donation. It is usually something small like a t-shirt or something with the company\u2019s branding. It may also be the product or service itself at a discounted price.\r\n\t<\/li>\r\n\t
  4. \r\n\t\tEquity. <\/b>In some cases, projects will give away a portion of their business in exchange for donations. Participants receive a share in the company equal to the amount they have donated.\r\n\t<\/li>\r\n<\/ol>\r\n\r\n

    \r\n\t\u00a0\r\n<\/p>\r\n\r\n

    \r\n\tExamples of Crowdfunding Websites<\/strong>\r\n<\/h3>\r\n\r\n

    \r\n\tResearching and choosing the right crowdfunding website for you is wise in order to help your campaign be successful. Terms and conditions do apply \u2013 make sure to read them!\r\n<\/p>\r\n\r\n

    \r\n\t\u00a0\r\n<\/p>\r\n\r\n

    \r\n\tKickstarter\u00a0<\/b>is a rewards-based crowdfunding site. Set up in 2009, Kickstarter has helped raise billions for over 100,000 different projects. Kickstarters usually provide their product or service as a reward once they reach their target.
    Link to the Kickstarter website<\/a>\r\n<\/p>\r\n\r\n

    \r\n\t\u00a0\r\n<\/p>\r\n\r\n

    \r\n\tGoFundMe<\/b>\u00a0is a donations-based crowdfunding site. Although usually used for charitable causes, businesses can also use the platform to gain donations for their campaign.
    Link to the GoFundMe website<\/a>\r\n<\/p>\r\n\r\n

    \r\n\t\u00a0\r\n<\/p>\r\n\r\n

    \r\n\tLendingClub<\/b>\u00a0is a debt-based crowdfunding site. It uses the method mentioned earlier of peer-to-peer lending. It offers personal loans and financing for small businesses over the period of 3 \u2013\u00a05 years.
    Link to the LendingClub website<\/a>\r\n<\/p>\r\n\r\n

    \r\n\t\u00a0\r\n<\/p>\r\n\r\n

    \r\n\tHubbub\u00a0<\/b>works with universities on crowdfunding for student and alumni projects. They rightly feel that crowdfunding is also an exciting way for students to develop an array of entrepreneurial skills. From creating their crowdfunding pitch, to promoting the project and thinking outside the box when under pressure to reach the target as the deadline approaches, the whole process is an excellent lesson in marketing.\u00a0
    Link to the hubbub website<\/a>\r\n<\/p>\r\n\r\n

    \r\n\tHubbub\u2019s aims are two-fold.\r\n<\/p>\r\n\r\n

    \r\n\t1) They aim to be the leading provider of digital fundraising solutions for the education and non-profit sectors, helping organisations deliver mass engagement, participation and fundraising campaigns through mobile, web and social media.\r\n<\/p>\r\n\r\n

    \r\n\t2)\u00a0 They aim to educate individuals who want to create crowdfunding campaigns for good causes, on their free platform https:\/\/www.hubbub.net\/solutions\/crowdfunding<\/a>\u00a0\r\n<\/p>\r\n\r\n

    \r\n\t\u00a0\r\n<\/p>\r\n\r\n

    \r\n\tTips for Successful\u00a0Crowdfunding<\/strong>\r\n<\/h3>\r\n\r\n
      \r\n\t
    1. \r\n\t\tMake your campaign stand out with great story telling. <\/b>People invest in campaigns that resonate with them. Maybe they think the campaign leader is genuine, or the product\/service being crowdfunded is relevant and important to them.\u00a0A strong storytelling campaign will help you to stand out from the crowd. Utilising many different platforms such as social media and videos about why people should donate to your campaign can be very helpful.\r\n\t<\/li>\r\n\t
    2. \r\n\t\tKeep communication clear and open.<\/b>
      Your backers are important, so ensure you keep them updated on what\u2019s going on with your campaign. You may encounter difficulties and setbacks during crowdfunding, so it is vital your backers are aware of any potential delays.\u00a0Even after your campaign has ended, let your donors know about the next step for your project. Keeping your backers in the loop can help build repertoire for your project, that feelgood factor that will last.\r\n\t<\/li>\r\n\t
    3. \r\n\t\tAdequately prepare for your campaign. <\/b>Don\u2019t just launch your campaign and assume that backers will come flooding in. Make yourself known well before you start crowdfunding. Keep your social media profiles active. Tell people you know about your upcoming campaign. Word of mouth can be very beneficial for your campaign. Give yourself plenty of time to plan your campaign.\u00a0Rushing to get marketing material out on the day of your crowdfunding launch won\u2019t benefit you. Take your time and get off on the right foot with your backers.\r\n\t<\/li>\r\n<\/ol>\r\n\r\n

      \r\n\t\u00a0\r\n<\/p>\r\n\r\n

      \r\n\tTake a look at this video on how to write a good crowdfunding story in order to succeed\r\n<\/h3>\r\n\r\n

      \r\n\t\"SDCE_video5-3\"https:\/\/www.youtube.com\/watch?v=6fqfQdpYzeQ<\/a>\r\n<\/p>\r\n\r\n

      \r\n\tQuick test\r\n<\/h2>\r\n\r\n
      \n\t\t\t
      \n\t\t\t
      \n\t\t\t
      To view third-party content, please accept cookies.<\/div>\n\t\t\t