Our Guide to Crowdfunding

Crowdfunding is a modern and effective approach to raising money online for
your not-for-profit, charity, social enterprise, community project or person in need.
We recommend the following process:

1) Before You Start

2) Create Campaign

3) Promote Campaign

4) Getting Pay

5) Following Up



Before You Start

startup-crowdfunding

What is crowdfunding?

Crowdfunding is a way for you to fundraise online for a project, person or cause. At its simplest, you’ll create a crowdfunding page online and promote it to as many people as you can. We’ll collect and transfer the funds to you. You then do your project and then follow up with your supporters to show them what you’ve spent the money on.

The most common campaigns on GoFundMeCanada.com are:

  • Non-profits, charities and social enterprises looking for funding for a social cause project, product or program
  • Individuals looking for funding for a sick friend, family member, or colleague
  • Individuals and organisations looking to fund animal vet bills
  • Individuals or teams doing a challenge and raising funds for a charity or non-profit

How much are the fees?

GoFundMeCanada.com operates on an optional donation model. We don’t charge any fees to people running campaigns. Here’s how it works:

When a donor gives you $100, that $100 goes straight through to you, and the donor will pay the payment processing fees, which for a $100 donation are about $3. This amount goes to the payment processing company and ensures we don’t lose money on a donation. The donor can then choose to give to Gofundmecanada.com on top of that – this is entirely optional, but we do suggest a small amount to each donor.



Create Your Campaign

How to Write up Your Campaign

This is where you tell your supporters about your project. Keep your story short and concise It’s easy to get caught in the narrative and forget to be conscious of your reader’s time. Your story should get to the point quick so donors don’t lose focus. Additionally, looking at a big block of text can overwhelm potential donors and deter them from giving. If you’re using your story for your crowdfunding description, we recommend keeping it around 300-700 words. Here are a few best practices you can use to shorten your story: Avoid writing wordy descriptions – Keep your language concise, and make sure that every word, sentence, and paragraph has a purpose. Focus on the information that is most important for the reader – Not every detail about your organization or cause needs to be mentioned in your story. If you want to give donors more information, link to your website.

Add images – Images can help you get your message across without eating up your word count. Just be careful not to rely on them too much. Break up your story into smaller paragraphs – While this won’t actually shorten the length of your story, it will make your story easier to scan so donors can get the gist of your message. Convey your story in video format – You may find that your story works better as a video. In fact, a well-filmed video can engage donors and compel them to take action. Just remember to keep it short (2-3 minutes works best). Of course, every story will be different, so use your best judgement on whether or not your story is too long. Ask your peers or team members to read your story, as they can spot areas that might need less explanation.
Programming

Promote Your Campaign

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One of the biggest questions to consider when you’ve decided to launch a crowdfunding project is “Can I advertise my project?”  You can absolutely advertise your project but you do have a limited platform.  Both Google and Bing have restrictions against ads requesting donations or fundraising, unless you are an approved non-profit, and this extends to crowdfunding campaigns and projects.  Facebook Ads are one of the only large-audience options available for sending traffic directly to your project.

Many industry experts generally recommend 1-3 months of advance social media build before launching a crowdfunding campaign.   Since studies have shown that 51% of Facebook users say they’re more likely to buy a product after becoming a fan of the product’s Facebook page, getting that fanbase established from the beginning is an essential part of getting your project funded. In addition, most funding comes in the first and last 48 hours of a project’s lifespan, so the larger the audience you have to pull from, the better your chances of meeting your goals.