Overview presentation to Vancouver Alliance for Arts and Culture.

1. Crowdfunding and
Arts Funding
Paul
Dombowsky

2. Introduction
Social
enterprise
web
development
company
that
has
developed
the
first
Crowd
Engagement
Pla>orm
for
crowdsourcing
and
crowdfunding.
One
of
Canada’s
first
crowdfunding
sites
for
chariCes,
non-­‐profits
and
arts
groups
to
fund
change
in
our
communiCes
one
project
at
a
Cme.
9

3. Starting Point
7.7%
Percentage
of
Canadians
that
aIended
5+
arts
events
in
2007
1%
Percentage
of
donaCons
in
Canada
given
to
arts
&
culture
3.7%
Average
number
of
organizaCons
each
donor
in
Canada
gave
to
25%
of
all
arts
donors
gave
75%
of
the
total
donated
2

4. Online Giving
“Fundraising
Trends
and
Challenges
in
the
Canadian
Direct
MarkeCng
Sector”-­‐
a
research
paper
from
2009
by
Cornerstone
Group
of
Companies
shows:
• Donors
who
make
their
first
giZ
to
an
organizaCon
online
as
opposed
to
via
direct
mail
have
a
much
higher
average
giZ
$73
vs.
$30
• There
are
now
more
than
4
Cmes
the
number
of
new
donors,
per
organizaCon,
from
online
iniCaCves
than
5
years
ago
(9M
to
40M).”
7

5. Opportunity
Perhaps
there
is
an
opportunity
to
try
something
new
to
engage
more
donors
to
support
the
arts?
3

6. Crowdfunding - What do you need?
•
A
crowd
•
A
challenge
or
a
project
•
A
process
and
tool
for
engagement
•
Trust
and
commitment
in
your
crowd
to
take
acCon
•
Key
performance
indicators
–
what
does
success
look
like?
•
Proof
of
acCon
–
your
crowd
wants
to
see
what
happened
4

7. Donor Generations
Millennials
(born
’91
and
aZer)
-­‐
?
Gen
Y
(born
’81-­‐’91)
–
Average
DonaCon
$325
Gen
X
(born
’65-­‐’80)
–
Average
DonaCon
$549
Boomers
(born
’46-­‐’64)
–
Average
DonaCon
$725
Civics
(born
’45
or
earlier)
–
Average
DonaCon
$833
5

8. Where Donors are Giving
Social
Network
Site
SMS
Third
Party
Vendor
Phone
In
Lieu
of
GiZ
Monthly
Debit
Mailed
GiZ
Online
via
Website
Charity
GiZ
Shop
Tribute
GiZ
Fundraising
Event
Checkout
DonaCon
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
6

9. Who is your crowd?
The
crowd
you
know
The
crowd
you
don’t
know
Donors
Donors’
Network
Prospects
Prospects’
Network
Event
AIendees
Event
AIendees’
Network
Mailing
Lists
Mailing
List’s
Network
Social Media Makes
the Connection
8

10. Projects or Doable Asks
• Easier
for
most
people
to
wrap
their
head
around
a
smaller
project
as
opposed
to
an
enCre
opera
producCon
or
building
a
theatre.
• Examples:
• AIendance
at
fesCval
• New
producCon
• New
website
• Film
trailer
• Outreach
program
9

11. Examples: Fundchange
Post
Promote
Share
Search/Filter
Fund
Receipt
Report
Costs:
$99
+
hst
to
join
includes
2
posCngs
3.9%
processing
fee
10

12. Examples: Crowdrise (US only)
Post
Promote
Fund
Report
11

13. Examples: WeDidThis (UK)
11

14. Examples: Kickstarter (Not in Canada)
Successfully
Funded
Projects:
3,910
Dollars
Pledged:
$27,638,318
Total
Pledges:
386,373
Average
Pledge:
$71.53
11

15. Benefits & Challenges
•
It’s
social
–
the
crowd
promotes
projects
it
likes
•
It’s
social
–
the
crowd
won’t
promote
projects
that
aren’t
shareable
•
Success
comes
to
those
that
acCvely
build
a
crowd
•
A
challenge
for
organizaCons
new
to
social
media
•
It’s
the
free
market
at
work
•
It’s
the
free
market
at
work
•
Build
sCckiness
to
the
project
•
Need
to
pay
aIenCon
to
write-­‐up
to
inspire
funders
12

16. Integrating Crowdfunding into Your Organization
Things
to
keep
in
mind:
• Crowdfunding
success
comes
quickest
to
organizaCons
that
are
social
–
media-­‐aware
and
engaged.
If
your
organizaCon
is
not
yet
social
media-­‐
enabled,
it
will
take
Cme
and
human
and
financial
resources
to
do
so.
• Because
your
efforts
are
only
as
good
as
the
crowd
you
are
able
to
mobilize
to
your
cause,
it
makes
sense
that
your
organizaCon
strategically
manages
and
promotes
its
brand
online.
• Make
sure
your
target
audience
is
online
and
will
give
online
• If
you
opt
to
post
your
projects
on
established
crowdfunding
sites,
do
your
homework
–
be
careful
of
the
company
you
keep.
13

17. Why Fundchange?
• Building
our
own
crowd
• Tap
into
the
collecCve
crowd
that
funds
change
• CreaCng
desCnaCon
for
arts
funding
based
on
the
crowd
and
driven
by
social
media
• Now
supports
sharing
on
Facebook
14

18. Joining Fundchange
• $99
to
join
–
includes
3
free
posCngs
• $50
to
post
projects
aZer
first
3
• You
receive
96.1%
of
money
raised
• Max.
project
size
is
currently
$5000
Offer
• First
Alliance
Member
to
fund
project
(+$2000)
gets
an
iPhone
• Media
campaign
focused
on
partnership
with
Alliance
• Eligibility
for
TELUS
matching
campaign
based
on
Facebook
integraCon
–
Summer
Campaign
14

19. Resoruces
• Donor
stats,
etc.
came
from
“The
Next
GeneraCon
of
Canadian
Giving”
–
Nov.
2010
–
by
Vinay
Bhagat,
et
al
• “The
Wisdom
of
Crowds”
–
book
by
James
Surowiecki
• “Crowdsourcing”
–
book
by
Jeff
Howe
• “Fundraising
Trends
and
Challenges
in
the
Canadian
Direct
MarkeCng
Sector”,
a
research
paper
released
in
2009
by
Cornerstone
Group
of
Companies
14

20. Thank you
Paul
Dombowsky
|
613.878.1681
|
paul@ideavibes.com