Community funding may sound like some hot new buzzword, but it’s actually a very simple concept. Community funding, at its core, is simply the process of acquiring many donations or investments from a large group of people, or a “community”. This new model is different because it relies on a large and varied group of supporters, instead of a small crew of wealthy individuals.
Community funding encourages support on a wide spectrum – at CollectiveSun investments range from $25 to over $10,000 – this wide range allows many people to participate that may have been priced out of older, top-down fundraising models.
At CollectiveSun we work hand-in-hand with the nonprofits that we are helping to finance, and we can provide guidance on how to make the most out of your community funding campaign. Yet you’re probably asking yourself a few very important questions, so let’s dig a little deeper.
Community funding tends to work best with projects that play to people’s passions. This is especially valuable when discussing nonprofits because they tend to the causes that people feel very passionately about.
Passion is important for community funding because you are often asking donors to give with almost no expectation of a return. This is different than the CollectiveSun community funding model, where participants are not donating but rather investing in the project, and they can expect to see significant returns while also helping advance the project’s goals.
Community funding provides a unique opportunity to reach a very broad base of participants. Gone are the days when nonprofits could rely on the massive donations of a few wealthy individuals. In this day and age, the most reliable way to garner funds is to mobilize the full extent of your member base. Community funding allows people from all walks of life to participate in whatever capacity they feel comfortable with. Not only can this lead to huge financial support, but participants in the campaign also feel a vested interest in the organization and will be more active members in the future.
Community funding tends to be the most effective when organizations are willing to contact everyone they can for support. Compare community funding to traditional grassroots efforts, it will be successful when you can mobilize large numbers of people to participate and spread the word. You must engage your community of supporters. Self-promotion is key.
Luckily, CollectiveSun is here to help spread the word and reach those people interested in supporting the project. Our behind-the-scenes efforts will aid in the marketing and promotion of the project so that all of the burden doesn’t fall on the nonprofits themselves.
Community funding is an incredibly powerful tool and a great resource for any organization looking to raise money. Community funding with CollectiveSun is especially potent because of our extensive experience and our ability to call on a large network of investors.
If you have any questions about community funding for nonprofits or investing in a project with CollectiveSun please contact us for more information.