Thursday, March 23, 2017

Crowd funding as marketing tool for non-profits

Crowdfunding has become a marketing tool. Through crowd funding you receive market validation, can better relate and reach to investors, and is an interactive addition to traditional press. However, there are certain requirements to fulfill to be successful with crowd funding marketing. You must make the project very clear and easy to communicate. Remember you’re competing with other projects on the same platform. Make sure to convince your investors that the project has high future success potential.

Crowdfunding has been used more for small scale funding and mostly for start-ups. Non-profit organizations that fit these criteria should more actively use crowd funding to get themselves known in the market. There are organizations, such as Kiva that has used this platform successfully for their marketing. However, there are so many nonprofits that does great work but are known only locally, hindering their growth. Crowdfunding can be one way for non-profits with low budgets to fund raise.

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