Intro to Crowdfunding For NonProfits

Patch of Land
Patch of LandCrowdfunding, Digital Media, & Network Effects. Expert in Fundraising & User Acquisition. Matching Investors to Startups à Patch of Land
Intro to 
Crowdfunding 
For NonProfits 
Jessica Sun, CEO RCTV 
Manolis Sfinarolakis, Founder 
RCTV
Purpose 
● Gain a better understanding of 
what crowdfunding is 
● Introduce you to the 9 stages of 
crowdfunding 
● Understand the difference 
between Rewards, equity, and 
debt based crowdfunding 
● Motivate you to use crowdfunding 
to achieve your organizations 
goals 
● Understand how nonprofits use 
crowdfunding to their advantage 
NPower / Proprietary and Confidential / Not for Distribution
Ground Rules 
● Participate 
● One conversation at a time 
● Cell phones off during class 
● No laptops 
● Ask questions 
● Respect others’ opinions 
● Respect confidentiality 
NPower / Proprietary and Confidential / Not for Distribution
Introduction to Jessica Sun 
● CoFounder & CEO, Reality Crowd TV Media Corp. 
● Brand Management, Marketing, and Brokerage Operations experience 
in multiple industries 
● Educated/consulted multiple crowdfunding campaigns on what 
crowdfunding is and the process around it 
● Attended multiple crowdfunding events to get the mission of our 
company out there and further educate people on Crowdfunding 
● Education experience with the NYC Department of Education. Created 
curriculums for both Math and Science Classes 
● Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S- 
1 documentation for broker/dealer that raised 1.2 billion during IPO. 
● BA in Math, Finance, and Economics from Binghamton University 
NPower / Proprietary and Confidential / Not for Distribution
Introduction to Manolis Sfinarolakis 
● Founder, Reality Crowd TV Media Corp. 
● Member of Crowdfunding Professional Association (CfPA), Crowdfund 
Intermediary Regulatory Advocates (CFIRA), and National 
Crowdfunding Association (NLCFA) 
● Multiple speeches given on the topic of Crowdfunding in states across 
the U.S., including Connecticut, New York, Georgia, Denver, Seattle, 
Texas, Washington D.C., and Florida 
● Insurance Industry experience with The Hartford Insurance Group 
within the Internal Audit Department. 
● Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S- 
1 documentation for broker/dealer that raised 1.2 billion during IPO. 
● BS in Business Administration, Concentration in Accounting from 
University of Connecticut 
NPower / Proprietary and Confidential / Not for Distribution
What is Crowdfunding? 
“Crowdfunding is converting social capital into actual capital through the 
NPower / Proprietary and Confidential / Not for Distribution 
internet.”
Crowdfunding is growing rapidly 
NPower / Proprietary and Confidential / Not for Distribution
The 9 Stages of Crowdfunding 
● Successful campaigns take at least 3 months of pre-launch activities 
before they launch their project (to go into detail later in the 
presentation): 
• Business Planning 
• Intellectual Property 
• Social Media 
• Public Relations 
• Campaign Strategy 
• Networking & Team Building 
• Website Development 
• Profile & Video 
• Fulfillment 
NPower / Proprietary and Confidential / Not for Distribution
Donation-Based Crowdfunding 
● Used mainly by charities, medical emergencies, or natural disasters. 
● Top websites used for donation based crowdfunding: 
• YouCaring.com 
• DonorsChoose.org 
● No rewards offered, straight donation. 
● Must have a compelling story that inspires action. 
● Highly dependent on social capital and relationships. 
● Amplified by PR and Social Media execution ahead of time. 
● If 501(c)3, tax benefit to the donors. 
NPower / Proprietary and Confidential / Not for Distribution
Rewards-Based Crowdfunding 
● Contribution in exchange for a reward. Used by many different non-profits, 
businesses, artists, film makers, and entrepreneurs. The 
crowdfunding of choice for Startup companies. Capital raised without 
giving up equity / taking on debt! 
● Top websites used for rewards based crowdfunding: 
• Kickstarter.com 
• IndieGoGo.com 
● Highly dependent on social capital and relationships. 
● PR is most important, followed by social media. 
● Video must be top notch to tell a compelling reason why they should 
invest in the person’s project, especially if it is a for profit enterprise. 
● Must reach 30% of funding within the first week of the campaign (90% 
success). 
NPower / Proprietary and Confidential / Not for Distribution
Equity-Based Crowdfunding 
● Investment in exchange for equity. Title II, Title III, and Title IV of the 
2012 JOBS act. 
● Title II allows for the general solicitation of Accredited Investors for 
investment in small businesses via the internet or crowdfunding 
websites. 
● Title III will allow for the general solicitation of Un-Accredited investors 
for investment in small businesses via the internet / crowdfunding 
websites. 
● Title IV allows for general solicitation of both Accredited and Un- 
Accredited investors, however, it is state by state crowdfunding and 
takes months to close. 
● Top websites used for equity based crowdfunding: 
• Angellist.com 
• Realtymogul.com 
NPower / Proprietary and Confidential / Not for Distribution
Debt-Based Crowdfunding 
● Investment in exchange for bond. Title II, Title III, and Title IV of the 
2012 JOBS act. 
● Title II allows for the general solicitation of Accredited Investors for 
investment in small businesses via the internet/ crowdfunding websites. 
● Title III will allow for the general solicitation of Un-Accredited investors 
for investment in small businesses via the internet/ crowdfunding 
websites. 
● Title IV allows for general solicitation of both Accredited and Un- 
Accredited investors, however, it is state by state crowdfunding and 
takes months to close. 
● Top websites used for debt based crowdfunding: 
• Patchofland.com 
• LendingClub.com 
• CircleUp.com 
NPower / Proprietary and Confidential / Not for Distribution
Successful Crowdfunding Examples 
● Case Study: The Pebble Watch 
https://www.kickstarter.com/projects/597507018/pebble-e-paper-watch- 
for-iphone-and-android 
● Case Study: Rotunda Ball 
https://www.indiegogo.com/projects/rotunda-ball 
Raised more than $22,000 to restore the historic UVA Rotunda 
● Case Study: Parkinson's. We're In This Together 
https://www.indiegogo.com/projects/parkinson-s-we-re-in-this-together# 
home 
Donor and prominent Venture Capitalist Bill Draper made his annual 
contribution publicly via a crowdfunding campaign, where he pledged 
to match every donation up to $100,000 
NPower / Proprietary and Confidential / Not for Distribution
5 ways Nonprofits can use Crowdfunding 
● Generate buzz, get media coverage, promote your brand 
• Crowdfunding is new. You will be the forefront in media coverage on 
crowdfunding news 
• People will begin to see your organization's values and learn what 
your brand is all about 
● Engage your supporters 
• Utilize rewards tiers to get your supporters interested. 
• Choose rewards that will have your supporters directly involved 
● Grow your network 
• Getting yourself out there helps grow your network. As people look 
for organizations to donate to, your campaign will be at the forefront 
for people to see. 
NPower / Proprietary and Confidential / Not for Distribution
5 ways Nonprofits can use Crowdfunding 
● Attract Corporate Attention 
• Corporate sponsors love seeing numbers from fundraising efforts. 
• The more you engage the more sponsors will be interested in your 
cause 
● Gauge public interest 
• Test the market. Is your project something that resonates with the 
public? 
• Get feedback from the public. What can you change to make it more 
appealing for people to donate or for sponsors to want to get 
involved? 
NPower / Proprietary and Confidential / Not for Distribution
Top 10 Nonprofit Crowdfunding Platforms 
1. Razoo: “a movement of people who want to make generosity a part of 
everyday life.” Over 14,000 nonprofits have used this platform to raise 
around 100 million. 
2. Causes: For people who want to change the world. Categories vary 
from disaster relief efforts to human rights. Causes has raised more than 
30 million for nonprofits. 
3. Buzzbnk: A UK platform that supports social entrepreneurs and 
innovators. “Positive People Backing Bright Ideas.” 
4. StartSomeGood: StartSomeGood empowers “social innovators,” and 
forwards the trend of social entrepreneurship. It is a relatively new social 
site. 
5. Crowdrise: Named the “Top 25 Best Global Philanthropist.” Since 2009, 
Crowdrise has helped bring together volunteers and philanthropists to 
spread the call of service. 
NPower / Proprietary and Confidential / Not for Distribution
Top 10 Nonprofit Crowdfunding Platforms 
6. CauseVox: Is a NYC startup social site that focuses on helping small to 
medium sized nonprofits raise funds and have a social impact. 
7. Kickstarter: A project crowdfunding website that any organization or 
individual can use to finance their event or project. 
8. Indiegogo: An international crowdfunding site for creative types that can 
also be used to raise money for charity and non-profit organizations. 
9. Rockethub.com: A crowdfunding platform used by all types of 
organizations and individuals ranging from scientists to philanthropists. 
10. Pozible.com: An Australia-based website that encourages creative 
projects and ideas. This website can also be used for charity purposes. 
NPower / Proprietary and Confidential / Not for Distribution
Workshop Activity 
● Get into groups of 4 
A. Discuss ways you can utilize crowdfunding to get your cause to 
reach your target audience 
B. Discuss project ideas. What types of campaign can you use 
crowdfunding for within your organization? 
C. What are some obstacles your organization is facing now? Can 
crowdfunding help? 
D. What are some things your organization uses currently to get 
funding? Come up with ideas how you can utilize crowdfunding to 
enhance these activities. 
We will then come together and discuss as a group. 
NPower / Proprietary and Confidential / Not for Distribution
Questions? 
● Our contact information: 
Email: Info@realitycrowdtv.com 
Website: www.realitycrowdtv.com 
Phone: 203-232-2462 
NPower / Proprietary and Confidential / Not for Distribution
NPower’s HandsOn Tech Workshops: 
• Symantec Cybersecurity for Nonprofits (PRO BONO WEEK) 
Thursday October 23rd, 11:30 am to 12:30pm 
• Intro to Google for Nonprofits (PRO BONO WEEK) 
Thursday Oct. 23rd, 1 to 2:30 pm 
• Google Analytics for Nonprofits 
Wednesday October 29th, 10:00 to 11:30 am 
• YouTube, One Today & Consumer Surveys for Nonprofits 
Wednesday November 19th, 10:00 to 11:30 am 
Register for these workshops and more at: http://bit.ly/HandsOnTechNYC 
NPower / Proprietary and Confidential / Not for Distribution
NPower’s Resources 
• Register for The Community Corps: Register your nonprofit today 
with NPower’s network of 4,300+ skilled tech volunteers. It takes 
about 3 minutes. http://bit.ly/TCCorp 
• Post a project: When you post a project on The Community Corps 
you will receive free tech support! Need more help with social media? 
We have a project. Need an internal tech assessment? We have that 
too. Check out our complete project listing here: http://bit.ly/1A8K53t 
• Ask for support: Not sure where to begin? Need some help getting 
started? Reach out and talk to someone: Esteban.Cruz@NPower.org 
or call 212-444-7282 
NPower / Proprietary and Confidential / Not for Distribution
Thank you for attending the workshop! 
For more information on NPower and 
The Community Corps visit 
thecommunitycorps.org
1 sur 22

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Intro to Crowdfunding For NonProfits

  • 1. Intro to Crowdfunding For NonProfits Jessica Sun, CEO RCTV Manolis Sfinarolakis, Founder RCTV
  • 2. Purpose ● Gain a better understanding of what crowdfunding is ● Introduce you to the 9 stages of crowdfunding ● Understand the difference between Rewards, equity, and debt based crowdfunding ● Motivate you to use crowdfunding to achieve your organizations goals ● Understand how nonprofits use crowdfunding to their advantage NPower / Proprietary and Confidential / Not for Distribution
  • 3. Ground Rules ● Participate ● One conversation at a time ● Cell phones off during class ● No laptops ● Ask questions ● Respect others’ opinions ● Respect confidentiality NPower / Proprietary and Confidential / Not for Distribution
  • 4. Introduction to Jessica Sun ● CoFounder & CEO, Reality Crowd TV Media Corp. ● Brand Management, Marketing, and Brokerage Operations experience in multiple industries ● Educated/consulted multiple crowdfunding campaigns on what crowdfunding is and the process around it ● Attended multiple crowdfunding events to get the mission of our company out there and further educate people on Crowdfunding ● Education experience with the NYC Department of Education. Created curriculums for both Math and Science Classes ● Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S- 1 documentation for broker/dealer that raised 1.2 billion during IPO. ● BA in Math, Finance, and Economics from Binghamton University NPower / Proprietary and Confidential / Not for Distribution
  • 5. Introduction to Manolis Sfinarolakis ● Founder, Reality Crowd TV Media Corp. ● Member of Crowdfunding Professional Association (CfPA), Crowdfund Intermediary Regulatory Advocates (CFIRA), and National Crowdfunding Association (NLCFA) ● Multiple speeches given on the topic of Crowdfunding in states across the U.S., including Connecticut, New York, Georgia, Denver, Seattle, Texas, Washington D.C., and Florida ● Insurance Industry experience with The Hartford Insurance Group within the Internal Audit Department. ● Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S- 1 documentation for broker/dealer that raised 1.2 billion during IPO. ● BS in Business Administration, Concentration in Accounting from University of Connecticut NPower / Proprietary and Confidential / Not for Distribution
  • 6. What is Crowdfunding? “Crowdfunding is converting social capital into actual capital through the NPower / Proprietary and Confidential / Not for Distribution internet.”
  • 7. Crowdfunding is growing rapidly NPower / Proprietary and Confidential / Not for Distribution
  • 8. The 9 Stages of Crowdfunding ● Successful campaigns take at least 3 months of pre-launch activities before they launch their project (to go into detail later in the presentation): • Business Planning • Intellectual Property • Social Media • Public Relations • Campaign Strategy • Networking & Team Building • Website Development • Profile & Video • Fulfillment NPower / Proprietary and Confidential / Not for Distribution
  • 9. Donation-Based Crowdfunding ● Used mainly by charities, medical emergencies, or natural disasters. ● Top websites used for donation based crowdfunding: • YouCaring.com • DonorsChoose.org ● No rewards offered, straight donation. ● Must have a compelling story that inspires action. ● Highly dependent on social capital and relationships. ● Amplified by PR and Social Media execution ahead of time. ● If 501(c)3, tax benefit to the donors. NPower / Proprietary and Confidential / Not for Distribution
  • 10. Rewards-Based Crowdfunding ● Contribution in exchange for a reward. Used by many different non-profits, businesses, artists, film makers, and entrepreneurs. The crowdfunding of choice for Startup companies. Capital raised without giving up equity / taking on debt! ● Top websites used for rewards based crowdfunding: • Kickstarter.com • IndieGoGo.com ● Highly dependent on social capital and relationships. ● PR is most important, followed by social media. ● Video must be top notch to tell a compelling reason why they should invest in the person’s project, especially if it is a for profit enterprise. ● Must reach 30% of funding within the first week of the campaign (90% success). NPower / Proprietary and Confidential / Not for Distribution
  • 11. Equity-Based Crowdfunding ● Investment in exchange for equity. Title II, Title III, and Title IV of the 2012 JOBS act. ● Title II allows for the general solicitation of Accredited Investors for investment in small businesses via the internet or crowdfunding websites. ● Title III will allow for the general solicitation of Un-Accredited investors for investment in small businesses via the internet / crowdfunding websites. ● Title IV allows for general solicitation of both Accredited and Un- Accredited investors, however, it is state by state crowdfunding and takes months to close. ● Top websites used for equity based crowdfunding: • Angellist.com • Realtymogul.com NPower / Proprietary and Confidential / Not for Distribution
  • 12. Debt-Based Crowdfunding ● Investment in exchange for bond. Title II, Title III, and Title IV of the 2012 JOBS act. ● Title II allows for the general solicitation of Accredited Investors for investment in small businesses via the internet/ crowdfunding websites. ● Title III will allow for the general solicitation of Un-Accredited investors for investment in small businesses via the internet/ crowdfunding websites. ● Title IV allows for general solicitation of both Accredited and Un- Accredited investors, however, it is state by state crowdfunding and takes months to close. ● Top websites used for debt based crowdfunding: • Patchofland.com • LendingClub.com • CircleUp.com NPower / Proprietary and Confidential / Not for Distribution
  • 13. Successful Crowdfunding Examples ● Case Study: The Pebble Watch https://www.kickstarter.com/projects/597507018/pebble-e-paper-watch- for-iphone-and-android ● Case Study: Rotunda Ball https://www.indiegogo.com/projects/rotunda-ball Raised more than $22,000 to restore the historic UVA Rotunda ● Case Study: Parkinson's. We're In This Together https://www.indiegogo.com/projects/parkinson-s-we-re-in-this-together# home Donor and prominent Venture Capitalist Bill Draper made his annual contribution publicly via a crowdfunding campaign, where he pledged to match every donation up to $100,000 NPower / Proprietary and Confidential / Not for Distribution
  • 14. 5 ways Nonprofits can use Crowdfunding ● Generate buzz, get media coverage, promote your brand • Crowdfunding is new. You will be the forefront in media coverage on crowdfunding news • People will begin to see your organization's values and learn what your brand is all about ● Engage your supporters • Utilize rewards tiers to get your supporters interested. • Choose rewards that will have your supporters directly involved ● Grow your network • Getting yourself out there helps grow your network. As people look for organizations to donate to, your campaign will be at the forefront for people to see. NPower / Proprietary and Confidential / Not for Distribution
  • 15. 5 ways Nonprofits can use Crowdfunding ● Attract Corporate Attention • Corporate sponsors love seeing numbers from fundraising efforts. • The more you engage the more sponsors will be interested in your cause ● Gauge public interest • Test the market. Is your project something that resonates with the public? • Get feedback from the public. What can you change to make it more appealing for people to donate or for sponsors to want to get involved? NPower / Proprietary and Confidential / Not for Distribution
  • 16. Top 10 Nonprofit Crowdfunding Platforms 1. Razoo: “a movement of people who want to make generosity a part of everyday life.” Over 14,000 nonprofits have used this platform to raise around 100 million. 2. Causes: For people who want to change the world. Categories vary from disaster relief efforts to human rights. Causes has raised more than 30 million for nonprofits. 3. Buzzbnk: A UK platform that supports social entrepreneurs and innovators. “Positive People Backing Bright Ideas.” 4. StartSomeGood: StartSomeGood empowers “social innovators,” and forwards the trend of social entrepreneurship. It is a relatively new social site. 5. Crowdrise: Named the “Top 25 Best Global Philanthropist.” Since 2009, Crowdrise has helped bring together volunteers and philanthropists to spread the call of service. NPower / Proprietary and Confidential / Not for Distribution
  • 17. Top 10 Nonprofit Crowdfunding Platforms 6. CauseVox: Is a NYC startup social site that focuses on helping small to medium sized nonprofits raise funds and have a social impact. 7. Kickstarter: A project crowdfunding website that any organization or individual can use to finance their event or project. 8. Indiegogo: An international crowdfunding site for creative types that can also be used to raise money for charity and non-profit organizations. 9. Rockethub.com: A crowdfunding platform used by all types of organizations and individuals ranging from scientists to philanthropists. 10. Pozible.com: An Australia-based website that encourages creative projects and ideas. This website can also be used for charity purposes. NPower / Proprietary and Confidential / Not for Distribution
  • 18. Workshop Activity ● Get into groups of 4 A. Discuss ways you can utilize crowdfunding to get your cause to reach your target audience B. Discuss project ideas. What types of campaign can you use crowdfunding for within your organization? C. What are some obstacles your organization is facing now? Can crowdfunding help? D. What are some things your organization uses currently to get funding? Come up with ideas how you can utilize crowdfunding to enhance these activities. We will then come together and discuss as a group. NPower / Proprietary and Confidential / Not for Distribution
  • 19. Questions? ● Our contact information: Email: Info@realitycrowdtv.com Website: www.realitycrowdtv.com Phone: 203-232-2462 NPower / Proprietary and Confidential / Not for Distribution
  • 20. NPower’s HandsOn Tech Workshops: • Symantec Cybersecurity for Nonprofits (PRO BONO WEEK) Thursday October 23rd, 11:30 am to 12:30pm • Intro to Google for Nonprofits (PRO BONO WEEK) Thursday Oct. 23rd, 1 to 2:30 pm • Google Analytics for Nonprofits Wednesday October 29th, 10:00 to 11:30 am • YouTube, One Today & Consumer Surveys for Nonprofits Wednesday November 19th, 10:00 to 11:30 am Register for these workshops and more at: http://bit.ly/HandsOnTechNYC NPower / Proprietary and Confidential / Not for Distribution
  • 21. NPower’s Resources • Register for The Community Corps: Register your nonprofit today with NPower’s network of 4,300+ skilled tech volunteers. It takes about 3 minutes. http://bit.ly/TCCorp • Post a project: When you post a project on The Community Corps you will receive free tech support! Need more help with social media? We have a project. Need an internal tech assessment? We have that too. Check out our complete project listing here: http://bit.ly/1A8K53t • Ask for support: Not sure where to begin? Need some help getting started? Reach out and talk to someone: Esteban.Cruz@NPower.org or call 212-444-7282 NPower / Proprietary and Confidential / Not for Distribution
  • 22. Thank you for attending the workshop! For more information on NPower and The Community Corps visit thecommunitycorps.org