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Fractured Atlas & IndieGoGo - Spacetaker

Dianne Debicella, Fractured Atlas
Danae Ringelmann, IndieGoGo         March 10, 2011
Agenda
1.  Overview of Fiscal Sponsorship & Crowdfunding

2.  Taking advantage of fiscal sponsorship program and the
    IndieGoGo platform

3.  Fundraising for artists and small arts organizations

4.  Tips on Successful Fundraising campaigns




                                                  +
But first… Nice to meet you!
•  Fractured Atlas & IndieGoGo
•  Dianne Debicella and Danae Ringelmann


•  Fractured Atlas staff                   IndieGoGo Staff




                                                +
Who Is Fractured Atlas?
Fractured Atlas is a non-profit organization that serves a national
community of artists and arts organizations. Our programs and
services facilitate the creation of art by offering vital support to the
artists who produce it.

We help artists and arts organizations function more effectively as
businesses by providing access to funding, healthcare, education, and
more, all in a context that honors their individuality and independent
spirit.
What is Fiscal Sponsorship?
•  Fiscal sponsorship is a legal agreement between an artist or arts
   organization and a 501(c)(3) charity (like Fractured Atlas)

•  It allows the sponsee to raise tax-deductible contributions through
   individuals and grants

•  Funds are given to the sponsor and are restricted to the specific
   purpose and use of the sponsee

•  Without getting tax exempt status, you can use fiscal sponsorship
   to solicit contributions from individuals and institutional funding
   agencies.
Benefits of the Fractured Atlas
Fiscal Sponsorship Program
•  Fundraising: having the ability to give your donors a tax-deductible
   receipt for their contribution of cash (checks or credit card) or tangible
   items

•  Grants: having access to foundations that only allow tax-exempt
   charities to apply

•  Also, with FA fiscal sponsorship, you can gain access to:

           •  IndieGoGo partnership – more on this in a few
           •  Nonprofit rates with vendors and companies who offer them
           •  Review of all grants and solicitation materials
Arts Fiscal Sponsors:
Best Practices
• All fiscal sponsors charge a fee, usually between 5 and 10%. FA's fee
is 6%

• The sponsor provides oversight for the funds that are raised and how
they are spent (May request receipts, invoices, contracts)

• Most sponsors, including FA, will never own any of your work, or any of
the rights to it

• Many sponsors, including FA, will review grant proposals to make sure
that they are appropriate and that the foundations are good matches

• All fiscal sponsors should have some sort of written agreement for the
fiscal sponsorship arrangement
Who Can Use the FA Fiscal
Sponsorship Program?
•  Individuals and organizations with a US social security number or
   Federal Tax ID (also called an EIN)

•  The individual or organization must have an artistic focus or strong
   arts component

•  Individuals must have a project in mind or ongoing work and creative
   development

•  Organizations that are waiting on their own 501c3 status, or who are
   not planning on filing for their own status

•  The potential sponsee must NOT have investors or commercial intent;
   they should be nonprofit and have a charitable purpose (But please
   pay yourself if you can!)
Applying for Fiscal Sponsorship
1.  Become a member of Fractured Atlas
2.  Carefully review the agreement, eligibility, benefits, and policies
    and procedures
3.  Submit the application
4.  Deadline is the last day of the month, approvals are sent no
    later than the 15th of the following month
5.  We do not judge the quality of your work and simply need to
    see that it is artistic and nonprofit in nature
Post-Original Productions – Hulk
Raised $239,396 through fiscal sponsorship
        $69,396 of that through IndieGoGo
NEA Breakdown of Revenue

•  The 2007 NEA publication “How the U.S. Funds the Arts”
   provides a clear, statistical analysis of how arts organizations
   fund their operations and programs.

•  www.nea.gov

•  They surveyed both large and small arts organizations in a
   variety of disciplines and found that money is raised from the
   following sources in the following percentages:
How do the Arts Fund Operations?
•  Earned Revenue 44% (e.g., ticket sales, selling your work)

•  Individuals 31% (e.g., your family, friends, and donating
   patrons)

•  Foundations 9% (e.g., The Puffin Foundation and The
   Rockefeller Foundation)

•  Governmental Sources 13% (e.g., your state arts council)

•  Corporations 3% (e.g., The Altria Group, Citibank, and Target)
Individuals
                              Economics


                  Altruism/Personal Connection


Donor recognition (thank you letters, invitation only events, newsletters,
                        periodic company updates



                      Earn it, ask for it
          The creative economy is a social economy
Individual Appeal Letters

•    Write in simple, straightforward English
•    Format your letter so it’s easy to read
•    Ask for money, not support
•    Give them a reason to send money now
•    Use “I” and “you,” but mostly “you”
•    Base the appeal on benefits and not needs
•    Use online resources to search for examples of amazing
     appeal letters.
Crowdfunding – what is it?
•  Is the collective cooperation, attention and trust by people who
   network and pool their money together, usually via the Internet,
   in order to support efforts initiated by other people or
   organizations. (from wikipedia)

•  Use an online community to solicit pledges

•  It uses word of mouth and wisdom of the crowd to generate
   interest and donations

•  Engages donors as part of a community of donors that provides
   transparency on who is giving and how much is being raised
IndieGoGo: quick overview
•  Credit Card Contributions – People contribute to your project on
   IndieGoGo via credit/debit cards. All funds raised for your project
   via IndieGoGo go directly to Fractured Atlas and are treated like
   online donations.

•  No Double Fees - Because your project is fiscally sponsored by
   Fractured Atlas, IndieGoGo is available at no additional charge.

•  Opt-in for IndieGoGo - To launch an IndieGoGo campaign that is
   integrated with your Fractured Atlas fiscal sponsorship, activate
   IndieGoGo in the Manage Fundraising Campaigns section of the
   Managed Sponsor Fund Page.
What is IndieGoGo?

   IndieGoGo is a funding platform for ideas.



                   Anyone with a project
           (creative, cause, or entrepreneurial)
 can raise money, offer perks, and keep 100% ownership.
Crowdfunding: Let’s Define
          What is it?
                                                   Funding
   People pooling their money
  together to support an idea or
   effort initiated by a person or
             organization

 Complementary funding channel                   Crowdfunding
 that helps you jumpstart funding,
                                     Marketing                  Distribution
      marketing & distribution:
             all in one.


           Involves?
         Personal pitch
       Online community
       Proactive outreach
Crowdfunding: Let’s Define
                                            What it is           What it is NOT

                                        Sharing & Inviting            Advertising

                                                     Telling             Selling

                                   Goal & Deadline Driven        Open-ended & Infinite
  Sound It Out: shoot
        BY: Jeanie Finlay
Thank you!! Please visit our new        Audience-Building          Audience-Buying
 page to see more and support
 our independent documentary
                                            Contributions           Just donations


                                               DIWO                      DIY
                                           (Do It With Others)        (Do It Yourself)
5 Benefits of Crowdfunding
1. Money                                                         Money is just
That’s clear. You get funds to help you make your film.          ONE Benefit!
2. Market Validation
A Successful crowdfunding campaign shows that people want
it to happen because they are voting with their wallet.


3. Marketing
Authentic “Word of Mouth” marketing is most authentic. Takes
multiple impressions before people act on a call to action.


4. Monetization                                                   Hava Nagila, What Is
                                                                          It?
Crowdfunding jumpstarts distribution (pre-sells) and allows            BY: Roberta Grossman
you to monetize “outside your copyright” (via perks)             IS CONNIE FRANCIS JEWISH?
                                                                   Click on “GALLERY” below to
                                                                              find out!

5. Mojo
Let’s fans and followers participate in the exclusive world of
filmmaking – a world they’ve always been locked out of.
Faces of Success
  Raise $ from Friends, Followers, Customers                           Offer Unique Perks                                           Pre-sell Your Work
Let those who love your goods can now help you grow.     “Dancing lessons Brother Finian? Sign me up!”               Start selling your product before you even build it.




 Emmy’s Organics          $13,412         63           Makepeace Brothers          $5,810          114                  Satarii Star           $10,635           54
       FOOD               RAISED       FUNDERS                 MUSIC               RAISED      FUNDERS               TECHNOLOGY                RAISED       FUNDERS


                   Engage strangers!                               Gauge Interest & Demand                                  Do It With Others and Have Fun!
  Those who share your passion, can now take action.   When people vote with their wallets, you’re good to go.     Project “for the people” brought to you “by the people.”




Rebuilding Haiti          $10,185         55           New Left Media              $21,837         363           Walking Audio Tour             $7,281           69
    CAUSE                 RAISED       FUNDERS         JOURNALISM                  RAISED      FUNDERS             COMMUNITY                   RAISED       FUNDERS
How IndieGoGo Works
                  1.  Post a Project

                  2.  Engage Audience
                      Social media integration
                      Campaign tools


                  3.  Get Funded

                  4.  Track Analytics

                  5.  Collect Money

                  6.  Fulfill Perks
KEYS TO SUCCESS: 5 P’s

Pitch
Clear Goals. Transparent. Personal. Right-size
financial target & deadline.
                                                     Personal!
Perks
Unique. Creative. Not “copyable.” Pre-sell your
work. Offer financial discounts & scarcity
incentives (i.e. limit supply).


Promotion
Start with core base (friends, fans & followers).
Use email, facebook, twitter. Engage through
UPDATES.


Partners
Connect with influencers (bloggers, organizations,
reporters, & facebook group/online forum leaders)
whose readership/membership mirror your target
audience.
INDIEGOGO BENEFITS

Start Immediately                                International
There is no fee or application process to post   No restrictions on locations for campaigns.
a project.                                       Currently IndieGoGo is in over 130 countries.


Keep Your Funds                                  Fiscal Sponsorship
You keep all the money raise (after fees),       Integrate fiscal sponsorship with your crowd-
even if you don't meet your funding goal.        funding campaign via our Fractured Atlas & SF
4% fee when you reach goal (9% if don’t).        Film Society partnerships. No double fees.


PayPal Integration & Flexibility                 Customer Service
Contributors can pay via their PayPal accounts   We have a 24-hour response policy for any
or credit cards (no PayPal account required!)    questions. Every campaign gets a FREE
All you need is a bank account to get started.   1-on-1 Coaching Call pre-campaign launch.


Campaign Analytics and Info                      Strong Partnerships
Analytics dashboard shows who is referring       MTV New Media partnered with IndieGoGo
people and dollars contributed. Fulfillment      to source new projects. Every campaign on
dashboard keeps track of contact information     IndieGoGo is eligible for MTV selection.
and perks owed.
Fr. Atlas & IndieGoGo Partnership
Single platform solution integrating fiscal sponsorship with
audience-building, engagement and crowdfunding tools


                                 IndieGoGo
                                                  +

 Fundraising          X              X                X
 Fiscal
 Sponsorship          X                               X
 Campaign Tools                      X                X
 Social Media
 Integration                         X                X

 Analytics                           X                X
                                                           Save
 Fees                6%             9%                6%    9%
Partnership Benefits
  Single platform solution to streamline fundraising
  Tax deductions for contributions on IndieGoGo
  Integrated social media and community management/
   tracking tools
  Automatic IndieGoGo pitch page creation upon opt-in
  Cost savings: No double service fees & no processing fees




                                                   +
How It Works
Set-Up

1.    Fractured Atlas Projects opt-in to IndieGoGo tool from FracturedAtlas.com
2.    IndieGoGo campaigns are automatically started
3.    Project owners receive instructions on how to complete and promote their
      IndieGoGo campaign
4.    All Fractured Atlas campaigns on IndieGoGo receive a Fractured Atlas
      badge

Fundraising & Disbursement
1.    All funds contributed to on IndieGoGo are deposited to Fractured Atlas
2.    For each contribution, IndieGoGo issues a confirmation receipt to the
      project owner and contributor, and Fractured Atlas issues a tax receipt to
      the contributor
3.    Fractured Atlas disburses the funds to the project per project’s request.



                                                                   +
How to Opt-In
Projects With Fractured Atlas Fiscal Sponsorship

 Step 1    Login into Fractured Atlas & go to Managed Sponsor Fund page

 Step 2    Go to Your “Managed Fundraising Campaigns” section

 Step 3    Activate IndieGoGo in the External Tools section
           New to IndieGoGo? Click: “Create a new IndieGoGo Campaign”
           Already on IndieGoGo? Click” Connect my IndieGoGo Account”

Projects Without Fractured Atlas Fiscal Sponsorship

 Step 1     Become a member of Fractured Atlas

 Step 2     Apply for Fiscal Sponsorship

 Step 3     Once accepted, follow the steps above
                                                               +
+
How to Get Started on IndieGoGo
Projects New to IndieGoGo

 Step 4    Receive set-up emails:
           1. Welcome message with login details
           2. Fractured Atlas opt-in confirmation


 Step 5    Head to your project’s campaign page:
           1. In your Welcome message, clink the link to activate your IndieGoGo account
           and login.
           2. Click on your name in the login area to be taken to your individual profile
           3. Click EDIT MY PROFILE to fill in your personal info and your picture
           4. Click DONE EDITING to return to your individual profile page
           5. Click on your project listed in the “PROJECTS I’M ON” area

Projects Already on IndieGoGo

 Step 4    Receive Fractured Atlas opt-in confirmation email

 Step 5    Return to your Project Page
                                                                     +
How To Create Campaign
Projects New to IndieGoGo

 Step 6    Click EDIT in the upper right

 Step 7a   Update INFO & TEAM
           Set Appearance to “Hidden” in Info section to remain in DRAFT mode
           Set Appearance to “Visible” in Info section to go LIVE to public

 Step 7b   Complete FUNDING section
           Set Funding Goal, Deadline & Use of Funds
           Determine Perks


 Step 7c   Complete GALLERY and EVENTS sections (optional)

Projects Already on IndieGoGo

 Step 6    Click EDIT in the upper right

 Step 7    Fill in Non-Deductible Portion for each                 +
           of your Perks
How To Launch a Campaign
All Projects

  Step 8       Click on VIEW

               Launch an email campaign
  Step 9
               Use your Gmail, Yahoo, Hotmail Invite Tool
               Include your GoGoWidget in any email campaign your do

               Use Social Media
 Step 10
               Facebook
               Twitter
               MySpace
               YouTube


 Step 11       Reach out to Influencers with followers
               Bloggers
               Organizations
               Press
                                                                       +
How To Track your Campaign
All Projects

 Step 12       Click on DASHBOARD

               Review your ANALYTICS
 Step 13       Track which fans are driving the most traffic and dollars to your campaign


                                                         Step 14
                                                        Click on FULFILLMENT tab
                                                        Export your contributor details (perks,
                                                        amounts, emails, addresses) to fulfill
                                                        PERKS




                                                                           +
How To Get Paid
All Projects

 Step 15       Return to Fractured Atlas and your Managed Sponsor Fund Page


 Step 16       Request a Fund Release




                                                               +
                                                                   +
TIPS & RESOURCES

DIWO Live                                       Tips      http://www.indiegogo.com/blog/tips
No restrictions on locations for campaigns.
                                                "10 Places to Promote Your IndieGoGo Project ONLINE“
Currently IndieGoGo is in over 130 countries.   http://www.indiegogo.com/blog/2010/09/10-places-to-promote-your-
                                                indiegogo-project-online.html

                                                "10 Places to Promote Your IndieGoGo Project OFFLINE“
1-on-1 Coaching Calls                           http://www.indiegogo.com/blog/2010/09/10-ways-to-promote-your-
Every campaign can sign-up to have a            indiegogo-project-off-line.html
1-on-1 Coaching Call with one of our
campaign experts.                               "Reaching the Media: Smart Tactics for Getting Your
                                                Project into the News“
                                                http://www.indiegogo.com/blog/2010/10/reaching-the-media-smart-
                                                tactics-for-getting-your-project-into-the-news.html
DIWO Download
Blog to help people run a successful            Insights http://www.indiegogo.com/blog/insights
campaign. http://www.indiegogo.com/blog
You’ll find:                                    “IndieGoGo Insight: More Team Members Means More
       •  Tips                                  Money“
       •  Insights                              http://www.indiegogo.com/blog/2010/10/diwo-tactics-using-your-whole-
                                                team.html
       •  Case studies
       •  6Q interview series w/ successes
                                                6Q      http://www.indiegogo.com/blog/6Q

                                                “6Q with Jeanie Finley of Sound it Out“
                                                http://www.indiegogo.com/blog/2010/11/6q-with-jeanie-finlay-of-sound-it-
                                                out.html
Helpful Resources
Keys to Crowdfunding Success
http://www.indiegogo.com/blog/2010/01/keys-to-crowdfunding-success-on-indiegogo.html


5 Benefits of Crowdfunding
http://www.indiegogo.com/blog/2010/01/benefits-of-crowdfunding.html


Things I Relearned While Crowdfunding (Insightful customer blog!)
http://ventriloqui.posterous.com/things-reaffirmed-to-me-while-crowdfunding

Audience-Building 101
http://www.indiegogo.com/blog/2009/06/audiencebuilding-101-stepbystep-guide-from-indiegogo.html




                                 Fractured Atlas Support
                                 support@fracturedatlas.org


                                 GoGoSupport
                                 support@indiegogo.com
Additional Resources
•  Chronicle of Philanthropy: www.philanthropy.com
•  Philanthropy News Digest: www.fdncenter.org/pnd
•  Wikipedia on 501(c)(3): www.en.wikipedia.org/wiki/
   501(c)(3)
•  IRS Website on Exempt Organizations: www.irs.gov/
   eo
Our Staff is Here to Help
•  Call us at 212-277-8020
•  Email us at support@fracturedatlas.org
•  Tara, Theresa, and Brittany answer the phones, process
   donations and mail fund release checks
•  Kara processes donations, deals with text approvals and
   answers many questions
•  Juliana and I review grants, provide fundraising
   consultations, and develop the program
Check out the FA webinars
offered monthly online:
1.    Introduction to Fiscal Sponsorship
2.    Orientation for Newly Accepted Fiscally Sponsored Projects
3.    Overview of Individual Donors and Online Campaigns
4.    Proposals and Grants for Fiscally Sponsored Projects


For more information on these webinars visit
www.fracturedatlas.org/site/fiscal and check out the
schedule under “Upcoming Info Sessions”

Please email us at support@fracturedatlas.org for all
questions.
Appendix
Keys To Success
4 P’s
How to Set Your Funding Goal
How to Set your Deadline
Importance of Updates




More On How IndieGoGo Works
Steps to Launch
Optimized Funding User Experience
How Sharing Works
How to Track Your Analytics
How to Check Your Funds’ Status
How to Fulfill Perks

MTV New Media Partnership
How To Set Your Funding Goal
How To Set Your Funding Goal                                Helpful Tips
1. Breakdown your total funding need into
specific “Use of Funds” chunks (i.e. budget                 IndieGoGo Blog
items)                                                www.indiegogo.com/blog/tips

2. Assess the size of your community               “Value of Transparency & Specificity
     •  Email list                                           in Raising Money”
     •  Facebook friends
     •  Twitter friends
     •  Audience reach through influencers
     •  Audience reach through press

3.  Set a Goal to cover one or a few budget items at a time, knowing your
    community will grow over time and multiple campaigns.

         •    IMPORTANT: You DO NOT need to raise 100% of budget in one campaign.
              You can launch multiple campaigns if needed.

         •    KEEP MONEY: On IndieGoGo you keep the money you raise whether you
              reach goal or not.
Keys to Success: 5 P’s
Pitch
Clear Goals. Transparent. Personal. Right-size
financial target & deadline.
                                                     Personal!
Perks
Unique. Creative. Not “copyable.” Pre-sell your
work. Offer financial discounts & scarcity
incentives (i.e. limit supply).


Promotion
Start with core base (friends, fans & followers).
Use email, facebook, twitter. Engage through
UPDATES.


Partners
Connect with influencers (bloggers, organizations,
reporters, & facebook group/online forum leaders)
whose readership/membership mirror your target
audience.
Multiple Campaigns
                             1   Campaign one
                                 Specific Use of Funds:
                                 To cover costume and FX
                                 costs




 Campaign two            2
 Specific Use of Funds:
 To cover editing, post-
 Production & distribution
How To Set Your Deadline
Pick a Deadline that:                                  Helpful Tips
1. Gives you time to reach your target
audiences                                              IndieGoGo Blog
    •    Just friends, family & followers? 30   www.indiegogo.com/blog/insights
         days is probably fine
    •    Plans for influencers & press? Allow    “IndieGoGo Insight: More Time
         2- 3 months for activity               Doesn’t Always Mean More Money”

3. Ends right after a major milestone so
there’s urgency to fund NOW
    •    Fundraising party
    •    Screening / premiere
    •    Principle photography launch


Insight:
On IndieGoGo campaigns that set a
funding deadline between 60 and 70 days
raise, on average, 141% more money
than shorter or longer campaigns

IndieGoGo: Campaigns are 1 to 120 days
Deadlines: Aim for 60-70 days
                        Pick a Milestone:
                        Antoinette chose the
                        deadline to be the day
                        she had to leave for
                        Africa where she was
                        going to complete her
                        photo project


                        Sweet Spot:
                        Campaigns between
                        60 and 70 days raise, on
                        average, 141% more
                        money than shorter
                        or longer campaigns
How to Communicate with Funders
Frequent & Creative Updates                                      Helpful Tips
1. Advantages of Updates                                         IndieGoGo Blog
    •    Build trust                                          www.indiegogo.com/blog
    •    Builds community
    •    Builds GoGoFactor                              “How To Use Updates on IndieGoGo”

                                                      “IndieGoGo Insight: Campaigns that send
2. When To Use Updates                                   11 or more updates raise 137% more
    •    To celebrate success                                          money”
    •    To keep people posted on progress
    •    To inform on news/events relevant to topic
    •    To share press & other news
    •    To post images & videos

3. How Updates Work
    •    Automatic emails
    •    Gallery Archive

Insight
Campaigns that send 11 or more updates raise
137% more money than campaigns that don’t.
Updates
          Celebrate Success
          Recognize key milestones

          Thank funders publicly – big
          and small


          Automatic Email
          All updates are aggregated
          from the day and packaged
          into one email to all funders
Updates
          Share Progress
          Preview perks

          Ask questions & engage funders


          Gallery Archive:
          All video & images
          Shared in updates get
          archived in the Gallery.
Updates
          Share Your Press
                               Press is exciting &
                               validates to funders
                               that they’re a part
                               of something super
                               cool. It gives them
                               another reason to
                               share with more
                               friends too!



          Inform & Give Free Info
          You’re an expert!
          People appreciate
          it when they’re kept
          informed of relevant
          info & news. Getting
          free stuff / info
          makes people more
          likely to want to help when asked.
Updates
      Create a Campaign.
  1   Successful campaigns start with a great idea. Post a campaign
      and make your pitch. Share your vision, and answer the
      question: “why should I care?”



      Set Your Goal & Deadline.
  2   Think smartly about how much money you need to raise, how it
      will be used and how long it will take to reach your goal.
      (Note, You don’t need to raise 100% of your funding need in one campaign. You can launch
      multiple subsequent campaigns.)




  3   Make Some Noise!
      Tell people about it. Share. Update. Inspire.
Optimized Funding User Exper.
 Enhance Contributions
 Most people prefer to be above
  average. So IndieGoGo helps
them, and you benefit from higher
          contributions.



   Sharing Made Easy
   Funders are mobilized into
      promoters instantly.



        Data is Power
  All sharing activity is tracked &
 given to you so you know who is
 driving referrals & dollars to your
             campaign.
More on Sharing
Share From the Campaign Page
People don’t have to wait to fund to be prompted to share.




                          FAN SHARE                              CAMPAIGN
                            TOOLS                               TEAM SHARE
                                                                   TOOLS




Share via Widgets                       Gmail/Yahoo Invites
You and anyone can share your           As campaign owners, you and team
widget on their website or blog.        members can import & invite any/all your
No coding required.                     gmail & yahoo contacts seamlessly TOO!
HOW TO TRACK YOUR CAMPAIGN
DASHBOARD: Your Campaign Title   CAPTURE REFERRAL
                                   & FUNDING DATA




                                       TRACK YOUR
                                      CAMPAIGNERS’
                                          SHARE
                                         RESULTS

                                      “Kaleena referred 4
                                       people who then
                                       contributed $226”
HOW TO CHECK YOUR FUNDS STATUS

DASHBOARD: Your Campaign Title    CHECK YOUR
                                  CONRIBUTED
                                 FUNDS’ STATUS




                                    CHECK
                                 CONTRIBUTOR
                                   DETAILS
HOW TO FULFILL YOUR PERKS
                                         EXPORT
       DASHBOARD: Your Campaign Title   YOUR DATA


VIEW YOUR PERK
FULFILLMENT DATA

                                          NAMES, EMAILS &
                                           ADDRESS INFO
                                            HIDDEN FOR
                                          CONFIDENTIALITY
MTV NEW MEDIA




 Get Discovered by MTV New Media
  Create a campaign. The greater the DIWO
        The greater the consideration


            Monthly Selections
 Each month, IndieGoGo shares a selection of
 projects with MTV New Media that meet their
                   criteria.


              Target Content
Web series, documentaries, features, shorts for
      online, VOD, Mobile, DTV & DTO

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IndieGoGo & Fiscal Sponsorship

  • 1. + Fractured Atlas & IndieGoGo - Spacetaker Dianne Debicella, Fractured Atlas Danae Ringelmann, IndieGoGo March 10, 2011
  • 2. Agenda 1.  Overview of Fiscal Sponsorship & Crowdfunding 2.  Taking advantage of fiscal sponsorship program and the IndieGoGo platform 3.  Fundraising for artists and small arts organizations 4.  Tips on Successful Fundraising campaigns +
  • 3. But first… Nice to meet you! •  Fractured Atlas & IndieGoGo •  Dianne Debicella and Danae Ringelmann •  Fractured Atlas staff IndieGoGo Staff +
  • 4. Who Is Fractured Atlas? Fractured Atlas is a non-profit organization that serves a national community of artists and arts organizations. Our programs and services facilitate the creation of art by offering vital support to the artists who produce it. We help artists and arts organizations function more effectively as businesses by providing access to funding, healthcare, education, and more, all in a context that honors their individuality and independent spirit.
  • 5. What is Fiscal Sponsorship? •  Fiscal sponsorship is a legal agreement between an artist or arts organization and a 501(c)(3) charity (like Fractured Atlas) •  It allows the sponsee to raise tax-deductible contributions through individuals and grants •  Funds are given to the sponsor and are restricted to the specific purpose and use of the sponsee •  Without getting tax exempt status, you can use fiscal sponsorship to solicit contributions from individuals and institutional funding agencies.
  • 6. Benefits of the Fractured Atlas Fiscal Sponsorship Program •  Fundraising: having the ability to give your donors a tax-deductible receipt for their contribution of cash (checks or credit card) or tangible items •  Grants: having access to foundations that only allow tax-exempt charities to apply •  Also, with FA fiscal sponsorship, you can gain access to: •  IndieGoGo partnership – more on this in a few •  Nonprofit rates with vendors and companies who offer them •  Review of all grants and solicitation materials
  • 7. Arts Fiscal Sponsors: Best Practices • All fiscal sponsors charge a fee, usually between 5 and 10%. FA's fee is 6% • The sponsor provides oversight for the funds that are raised and how they are spent (May request receipts, invoices, contracts) • Most sponsors, including FA, will never own any of your work, or any of the rights to it • Many sponsors, including FA, will review grant proposals to make sure that they are appropriate and that the foundations are good matches • All fiscal sponsors should have some sort of written agreement for the fiscal sponsorship arrangement
  • 8. Who Can Use the FA Fiscal Sponsorship Program? •  Individuals and organizations with a US social security number or Federal Tax ID (also called an EIN) •  The individual or organization must have an artistic focus or strong arts component •  Individuals must have a project in mind or ongoing work and creative development •  Organizations that are waiting on their own 501c3 status, or who are not planning on filing for their own status •  The potential sponsee must NOT have investors or commercial intent; they should be nonprofit and have a charitable purpose (But please pay yourself if you can!)
  • 9. Applying for Fiscal Sponsorship 1.  Become a member of Fractured Atlas 2.  Carefully review the agreement, eligibility, benefits, and policies and procedures 3.  Submit the application 4.  Deadline is the last day of the month, approvals are sent no later than the 15th of the following month 5.  We do not judge the quality of your work and simply need to see that it is artistic and nonprofit in nature
  • 10. Post-Original Productions – Hulk Raised $239,396 through fiscal sponsorship $69,396 of that through IndieGoGo
  • 11. NEA Breakdown of Revenue •  The 2007 NEA publication “How the U.S. Funds the Arts” provides a clear, statistical analysis of how arts organizations fund their operations and programs. •  www.nea.gov •  They surveyed both large and small arts organizations in a variety of disciplines and found that money is raised from the following sources in the following percentages:
  • 12. How do the Arts Fund Operations? •  Earned Revenue 44% (e.g., ticket sales, selling your work) •  Individuals 31% (e.g., your family, friends, and donating patrons) •  Foundations 9% (e.g., The Puffin Foundation and The Rockefeller Foundation) •  Governmental Sources 13% (e.g., your state arts council) •  Corporations 3% (e.g., The Altria Group, Citibank, and Target)
  • 13. Individuals Economics Altruism/Personal Connection Donor recognition (thank you letters, invitation only events, newsletters, periodic company updates Earn it, ask for it The creative economy is a social economy
  • 14. Individual Appeal Letters •  Write in simple, straightforward English •  Format your letter so it’s easy to read •  Ask for money, not support •  Give them a reason to send money now •  Use “I” and “you,” but mostly “you” •  Base the appeal on benefits and not needs •  Use online resources to search for examples of amazing appeal letters.
  • 15. Crowdfunding – what is it? •  Is the collective cooperation, attention and trust by people who network and pool their money together, usually via the Internet, in order to support efforts initiated by other people or organizations. (from wikipedia) •  Use an online community to solicit pledges •  It uses word of mouth and wisdom of the crowd to generate interest and donations •  Engages donors as part of a community of donors that provides transparency on who is giving and how much is being raised
  • 16. IndieGoGo: quick overview •  Credit Card Contributions – People contribute to your project on IndieGoGo via credit/debit cards. All funds raised for your project via IndieGoGo go directly to Fractured Atlas and are treated like online donations. •  No Double Fees - Because your project is fiscally sponsored by Fractured Atlas, IndieGoGo is available at no additional charge. •  Opt-in for IndieGoGo - To launch an IndieGoGo campaign that is integrated with your Fractured Atlas fiscal sponsorship, activate IndieGoGo in the Manage Fundraising Campaigns section of the Managed Sponsor Fund Page.
  • 17. What is IndieGoGo? IndieGoGo is a funding platform for ideas. Anyone with a project (creative, cause, or entrepreneurial) can raise money, offer perks, and keep 100% ownership.
  • 18. Crowdfunding: Let’s Define What is it? Funding People pooling their money together to support an idea or effort initiated by a person or organization Complementary funding channel Crowdfunding that helps you jumpstart funding, Marketing Distribution marketing & distribution: all in one. Involves? Personal pitch Online community Proactive outreach
  • 19. Crowdfunding: Let’s Define What it is What it is NOT Sharing & Inviting Advertising Telling Selling Goal & Deadline Driven Open-ended & Infinite Sound It Out: shoot BY: Jeanie Finlay Thank you!! Please visit our new Audience-Building Audience-Buying page to see more and support our independent documentary Contributions Just donations DIWO DIY (Do It With Others) (Do It Yourself)
  • 20. 5 Benefits of Crowdfunding 1. Money Money is just That’s clear. You get funds to help you make your film. ONE Benefit! 2. Market Validation A Successful crowdfunding campaign shows that people want it to happen because they are voting with their wallet. 3. Marketing Authentic “Word of Mouth” marketing is most authentic. Takes multiple impressions before people act on a call to action. 4. Monetization Hava Nagila, What Is It? Crowdfunding jumpstarts distribution (pre-sells) and allows BY: Roberta Grossman you to monetize “outside your copyright” (via perks) IS CONNIE FRANCIS JEWISH? Click on “GALLERY” below to find out! 5. Mojo Let’s fans and followers participate in the exclusive world of filmmaking – a world they’ve always been locked out of.
  • 21. Faces of Success Raise $ from Friends, Followers, Customers Offer Unique Perks Pre-sell Your Work Let those who love your goods can now help you grow. “Dancing lessons Brother Finian? Sign me up!” Start selling your product before you even build it. Emmy’s Organics $13,412 63 Makepeace Brothers $5,810 114 Satarii Star $10,635 54 FOOD RAISED FUNDERS MUSIC RAISED FUNDERS TECHNOLOGY RAISED FUNDERS Engage strangers! Gauge Interest & Demand Do It With Others and Have Fun! Those who share your passion, can now take action. When people vote with their wallets, you’re good to go. Project “for the people” brought to you “by the people.” Rebuilding Haiti $10,185 55 New Left Media $21,837 363 Walking Audio Tour $7,281 69 CAUSE RAISED FUNDERS JOURNALISM RAISED FUNDERS COMMUNITY RAISED FUNDERS
  • 22. How IndieGoGo Works 1.  Post a Project 2.  Engage Audience Social media integration Campaign tools 3.  Get Funded 4.  Track Analytics 5.  Collect Money 6.  Fulfill Perks
  • 23. KEYS TO SUCCESS: 5 P’s Pitch Clear Goals. Transparent. Personal. Right-size financial target & deadline. Personal! Perks Unique. Creative. Not “copyable.” Pre-sell your work. Offer financial discounts & scarcity incentives (i.e. limit supply). Promotion Start with core base (friends, fans & followers). Use email, facebook, twitter. Engage through UPDATES. Partners Connect with influencers (bloggers, organizations, reporters, & facebook group/online forum leaders) whose readership/membership mirror your target audience.
  • 24. INDIEGOGO BENEFITS Start Immediately International There is no fee or application process to post No restrictions on locations for campaigns. a project. Currently IndieGoGo is in over 130 countries. Keep Your Funds Fiscal Sponsorship You keep all the money raise (after fees), Integrate fiscal sponsorship with your crowd- even if you don't meet your funding goal. funding campaign via our Fractured Atlas & SF 4% fee when you reach goal (9% if don’t). Film Society partnerships. No double fees. PayPal Integration & Flexibility Customer Service Contributors can pay via their PayPal accounts We have a 24-hour response policy for any or credit cards (no PayPal account required!) questions. Every campaign gets a FREE All you need is a bank account to get started. 1-on-1 Coaching Call pre-campaign launch. Campaign Analytics and Info Strong Partnerships Analytics dashboard shows who is referring MTV New Media partnered with IndieGoGo people and dollars contributed. Fulfillment to source new projects. Every campaign on dashboard keeps track of contact information IndieGoGo is eligible for MTV selection. and perks owed.
  • 25. Fr. Atlas & IndieGoGo Partnership Single platform solution integrating fiscal sponsorship with audience-building, engagement and crowdfunding tools IndieGoGo + Fundraising X X X Fiscal Sponsorship X X Campaign Tools X X Social Media Integration X X Analytics X X Save Fees 6% 9% 6% 9%
  • 26. Partnership Benefits   Single platform solution to streamline fundraising   Tax deductions for contributions on IndieGoGo   Integrated social media and community management/ tracking tools   Automatic IndieGoGo pitch page creation upon opt-in   Cost savings: No double service fees & no processing fees +
  • 27. How It Works Set-Up 1.  Fractured Atlas Projects opt-in to IndieGoGo tool from FracturedAtlas.com 2.  IndieGoGo campaigns are automatically started 3.  Project owners receive instructions on how to complete and promote their IndieGoGo campaign 4.  All Fractured Atlas campaigns on IndieGoGo receive a Fractured Atlas badge Fundraising & Disbursement 1.  All funds contributed to on IndieGoGo are deposited to Fractured Atlas 2.  For each contribution, IndieGoGo issues a confirmation receipt to the project owner and contributor, and Fractured Atlas issues a tax receipt to the contributor 3.  Fractured Atlas disburses the funds to the project per project’s request. +
  • 28. How to Opt-In Projects With Fractured Atlas Fiscal Sponsorship Step 1 Login into Fractured Atlas & go to Managed Sponsor Fund page Step 2 Go to Your “Managed Fundraising Campaigns” section Step 3 Activate IndieGoGo in the External Tools section New to IndieGoGo? Click: “Create a new IndieGoGo Campaign” Already on IndieGoGo? Click” Connect my IndieGoGo Account” Projects Without Fractured Atlas Fiscal Sponsorship Step 1 Become a member of Fractured Atlas Step 2 Apply for Fiscal Sponsorship Step 3 Once accepted, follow the steps above +
  • 29. +
  • 30. How to Get Started on IndieGoGo Projects New to IndieGoGo Step 4 Receive set-up emails: 1. Welcome message with login details 2. Fractured Atlas opt-in confirmation Step 5 Head to your project’s campaign page: 1. In your Welcome message, clink the link to activate your IndieGoGo account and login. 2. Click on your name in the login area to be taken to your individual profile 3. Click EDIT MY PROFILE to fill in your personal info and your picture 4. Click DONE EDITING to return to your individual profile page 5. Click on your project listed in the “PROJECTS I’M ON” area Projects Already on IndieGoGo Step 4 Receive Fractured Atlas opt-in confirmation email Step 5 Return to your Project Page +
  • 31. How To Create Campaign Projects New to IndieGoGo Step 6 Click EDIT in the upper right Step 7a Update INFO & TEAM Set Appearance to “Hidden” in Info section to remain in DRAFT mode Set Appearance to “Visible” in Info section to go LIVE to public Step 7b Complete FUNDING section Set Funding Goal, Deadline & Use of Funds Determine Perks Step 7c Complete GALLERY and EVENTS sections (optional) Projects Already on IndieGoGo Step 6 Click EDIT in the upper right Step 7 Fill in Non-Deductible Portion for each + of your Perks
  • 32.
  • 33. How To Launch a Campaign All Projects Step 8 Click on VIEW Launch an email campaign Step 9 Use your Gmail, Yahoo, Hotmail Invite Tool Include your GoGoWidget in any email campaign your do Use Social Media Step 10 Facebook Twitter MySpace YouTube Step 11 Reach out to Influencers with followers Bloggers Organizations Press +
  • 34.
  • 35. How To Track your Campaign All Projects Step 12 Click on DASHBOARD Review your ANALYTICS Step 13 Track which fans are driving the most traffic and dollars to your campaign Step 14 Click on FULFILLMENT tab Export your contributor details (perks, amounts, emails, addresses) to fulfill PERKS +
  • 36. How To Get Paid All Projects Step 15 Return to Fractured Atlas and your Managed Sponsor Fund Page Step 16 Request a Fund Release + +
  • 37. TIPS & RESOURCES DIWO Live Tips http://www.indiegogo.com/blog/tips No restrictions on locations for campaigns. "10 Places to Promote Your IndieGoGo Project ONLINE“ Currently IndieGoGo is in over 130 countries. http://www.indiegogo.com/blog/2010/09/10-places-to-promote-your- indiegogo-project-online.html "10 Places to Promote Your IndieGoGo Project OFFLINE“ 1-on-1 Coaching Calls http://www.indiegogo.com/blog/2010/09/10-ways-to-promote-your- Every campaign can sign-up to have a indiegogo-project-off-line.html 1-on-1 Coaching Call with one of our campaign experts. "Reaching the Media: Smart Tactics for Getting Your Project into the News“ http://www.indiegogo.com/blog/2010/10/reaching-the-media-smart- tactics-for-getting-your-project-into-the-news.html DIWO Download Blog to help people run a successful Insights http://www.indiegogo.com/blog/insights campaign. http://www.indiegogo.com/blog You’ll find: “IndieGoGo Insight: More Team Members Means More •  Tips Money“ •  Insights http://www.indiegogo.com/blog/2010/10/diwo-tactics-using-your-whole- team.html •  Case studies •  6Q interview series w/ successes 6Q http://www.indiegogo.com/blog/6Q “6Q with Jeanie Finley of Sound it Out“ http://www.indiegogo.com/blog/2010/11/6q-with-jeanie-finlay-of-sound-it- out.html
  • 38. Helpful Resources Keys to Crowdfunding Success http://www.indiegogo.com/blog/2010/01/keys-to-crowdfunding-success-on-indiegogo.html 5 Benefits of Crowdfunding http://www.indiegogo.com/blog/2010/01/benefits-of-crowdfunding.html Things I Relearned While Crowdfunding (Insightful customer blog!) http://ventriloqui.posterous.com/things-reaffirmed-to-me-while-crowdfunding Audience-Building 101 http://www.indiegogo.com/blog/2009/06/audiencebuilding-101-stepbystep-guide-from-indiegogo.html Fractured Atlas Support support@fracturedatlas.org GoGoSupport support@indiegogo.com
  • 39. Additional Resources •  Chronicle of Philanthropy: www.philanthropy.com •  Philanthropy News Digest: www.fdncenter.org/pnd •  Wikipedia on 501(c)(3): www.en.wikipedia.org/wiki/ 501(c)(3) •  IRS Website on Exempt Organizations: www.irs.gov/ eo
  • 40. Our Staff is Here to Help •  Call us at 212-277-8020 •  Email us at support@fracturedatlas.org •  Tara, Theresa, and Brittany answer the phones, process donations and mail fund release checks •  Kara processes donations, deals with text approvals and answers many questions •  Juliana and I review grants, provide fundraising consultations, and develop the program
  • 41. Check out the FA webinars offered monthly online: 1.  Introduction to Fiscal Sponsorship 2.  Orientation for Newly Accepted Fiscally Sponsored Projects 3.  Overview of Individual Donors and Online Campaigns 4.  Proposals and Grants for Fiscally Sponsored Projects For more information on these webinars visit www.fracturedatlas.org/site/fiscal and check out the schedule under “Upcoming Info Sessions” Please email us at support@fracturedatlas.org for all questions.
  • 42. Appendix Keys To Success 4 P’s How to Set Your Funding Goal How to Set your Deadline Importance of Updates More On How IndieGoGo Works Steps to Launch Optimized Funding User Experience How Sharing Works How to Track Your Analytics How to Check Your Funds’ Status How to Fulfill Perks MTV New Media Partnership
  • 43. How To Set Your Funding Goal How To Set Your Funding Goal Helpful Tips 1. Breakdown your total funding need into specific “Use of Funds” chunks (i.e. budget IndieGoGo Blog items) www.indiegogo.com/blog/tips 2. Assess the size of your community “Value of Transparency & Specificity •  Email list in Raising Money” •  Facebook friends •  Twitter friends •  Audience reach through influencers •  Audience reach through press 3.  Set a Goal to cover one or a few budget items at a time, knowing your community will grow over time and multiple campaigns. •  IMPORTANT: You DO NOT need to raise 100% of budget in one campaign. You can launch multiple campaigns if needed. •  KEEP MONEY: On IndieGoGo you keep the money you raise whether you reach goal or not.
  • 44. Keys to Success: 5 P’s Pitch Clear Goals. Transparent. Personal. Right-size financial target & deadline. Personal! Perks Unique. Creative. Not “copyable.” Pre-sell your work. Offer financial discounts & scarcity incentives (i.e. limit supply). Promotion Start with core base (friends, fans & followers). Use email, facebook, twitter. Engage through UPDATES. Partners Connect with influencers (bloggers, organizations, reporters, & facebook group/online forum leaders) whose readership/membership mirror your target audience.
  • 45. Multiple Campaigns 1 Campaign one Specific Use of Funds: To cover costume and FX costs Campaign two 2 Specific Use of Funds: To cover editing, post- Production & distribution
  • 46. How To Set Your Deadline Pick a Deadline that: Helpful Tips 1. Gives you time to reach your target audiences IndieGoGo Blog •  Just friends, family & followers? 30 www.indiegogo.com/blog/insights days is probably fine •  Plans for influencers & press? Allow “IndieGoGo Insight: More Time 2- 3 months for activity Doesn’t Always Mean More Money” 3. Ends right after a major milestone so there’s urgency to fund NOW •  Fundraising party •  Screening / premiere •  Principle photography launch Insight: On IndieGoGo campaigns that set a funding deadline between 60 and 70 days raise, on average, 141% more money than shorter or longer campaigns IndieGoGo: Campaigns are 1 to 120 days
  • 47. Deadlines: Aim for 60-70 days Pick a Milestone: Antoinette chose the deadline to be the day she had to leave for Africa where she was going to complete her photo project Sweet Spot: Campaigns between 60 and 70 days raise, on average, 141% more money than shorter or longer campaigns
  • 48. How to Communicate with Funders Frequent & Creative Updates Helpful Tips 1. Advantages of Updates IndieGoGo Blog •  Build trust www.indiegogo.com/blog •  Builds community •  Builds GoGoFactor “How To Use Updates on IndieGoGo” “IndieGoGo Insight: Campaigns that send 2. When To Use Updates 11 or more updates raise 137% more •  To celebrate success money” •  To keep people posted on progress •  To inform on news/events relevant to topic •  To share press & other news •  To post images & videos 3. How Updates Work •  Automatic emails •  Gallery Archive Insight Campaigns that send 11 or more updates raise 137% more money than campaigns that don’t.
  • 49. Updates Celebrate Success Recognize key milestones Thank funders publicly – big and small Automatic Email All updates are aggregated from the day and packaged into one email to all funders
  • 50. Updates Share Progress Preview perks Ask questions & engage funders Gallery Archive: All video & images Shared in updates get archived in the Gallery.
  • 51. Updates Share Your Press Press is exciting & validates to funders that they’re a part of something super cool. It gives them another reason to share with more friends too! Inform & Give Free Info You’re an expert! People appreciate it when they’re kept informed of relevant info & news. Getting free stuff / info makes people more likely to want to help when asked.
  • 52. Updates Create a Campaign. 1 Successful campaigns start with a great idea. Post a campaign and make your pitch. Share your vision, and answer the question: “why should I care?” Set Your Goal & Deadline. 2 Think smartly about how much money you need to raise, how it will be used and how long it will take to reach your goal. (Note, You don’t need to raise 100% of your funding need in one campaign. You can launch multiple subsequent campaigns.) 3 Make Some Noise! Tell people about it. Share. Update. Inspire.
  • 53. Optimized Funding User Exper. Enhance Contributions Most people prefer to be above average. So IndieGoGo helps them, and you benefit from higher contributions. Sharing Made Easy Funders are mobilized into promoters instantly. Data is Power All sharing activity is tracked & given to you so you know who is driving referrals & dollars to your campaign.
  • 54. More on Sharing Share From the Campaign Page People don’t have to wait to fund to be prompted to share. FAN SHARE CAMPAIGN TOOLS TEAM SHARE TOOLS Share via Widgets Gmail/Yahoo Invites You and anyone can share your As campaign owners, you and team widget on their website or blog. members can import & invite any/all your No coding required. gmail & yahoo contacts seamlessly TOO!
  • 55. HOW TO TRACK YOUR CAMPAIGN DASHBOARD: Your Campaign Title CAPTURE REFERRAL & FUNDING DATA TRACK YOUR CAMPAIGNERS’ SHARE RESULTS “Kaleena referred 4 people who then contributed $226”
  • 56. HOW TO CHECK YOUR FUNDS STATUS DASHBOARD: Your Campaign Title CHECK YOUR CONRIBUTED FUNDS’ STATUS CHECK CONTRIBUTOR DETAILS
  • 57. HOW TO FULFILL YOUR PERKS EXPORT DASHBOARD: Your Campaign Title YOUR DATA VIEW YOUR PERK FULFILLMENT DATA NAMES, EMAILS & ADDRESS INFO HIDDEN FOR CONFIDENTIALITY
  • 58. MTV NEW MEDIA Get Discovered by MTV New Media Create a campaign. The greater the DIWO The greater the consideration Monthly Selections Each month, IndieGoGo shares a selection of projects with MTV New Media that meet their criteria. Target Content Web series, documentaries, features, shorts for online, VOD, Mobile, DTV & DTO