Crowdfunding can be an incredibly powerful tool for arts and cultural organisations – not only because of the funds raised, but (perhaps even more importantly!) for the chance to build a highly engaged and enthusiastic donor community with shared values.
What is crowdfunding?
Crowdfunding is a way of raising money from a large number of people, all contributing towards the same goal. It allows an institution to tap into a diverse group of supporters, all of whom feel a personal connection to the cause.
There are a few different types of crowdfunding, but the type most familiar to the arts and culture sector is rewards-based crowdfunding – in which backers of the campaign get something in return for their support. It could be as simple as their name in the programme, or a tote bag or poster, or an invitation to a VIP drinks event or backstage tour. Rewards work especially well when they’re unusual, or unique to the crowdfunding campaign – such as Queer Britain’s offer of a handpicked selection of books from their shop, along with a personal note from a staff member explaining why they chose those particular titles for you.
Crowdfunding can have a transformative impact on cultural institutions, but it’s not free money. Indeed, some of those I’ve worked with have said that their crowdfunding campaign was more work than their Arts Council England funding bid! So if you need funds, why spend so much extra time on a crowdfunding campaign (which might fail, and – even scarier – publicly) rather than pursuing funding applications?
Donor engagement
It comes down to engagement and community. A good crowdfunding campaign offers backers the chance to feel like they, personally, are making a difference to something that they feel strongly about. And when it goes really well, they can transform into advocates. Backers feel empowered to speak about the campaign as if it’s their own – because it is! They’re the ones who make it possible. And a good campaign gives them that sense of empowerment, as well as offering the chance to connect with perhaps hundreds of others who share the same values.
For development professionals, this may be a newer way of engaging with donors – but it’s not new for marketing teams. When working with more traditional donors, it’s possible to allow abundant time to build personal relationships with each of them, on the assumption that any one donor may make a significant difference. But with donors to a crowdfunding campaign, you may suddenly be looking at hundreds of people. You can’t build those relationships in the same way – these aren’t donors you can call up to check in with. You need a way to communicate with them that doesn’t cost you money as an organisation, that allows you to send mass communications, but also lets them respond.
Getting social
Any organisation running a crowdfunding campaign needs to prioritise fast and effective communication. After all, these can be fast-moving projects, and the message may need to evolve significantly from one day to the next. Naturally, this lends itself to social media; most, if not all, crowdfunding campaigns rely heavily on regular and varied social media communications.
Non-profits Source found in their research that social media is an incredibly motivating channel – 55% of people who engage with non-profits on social media end up taking some sort of action, and 59% of those people donate money.
But to get it right, any organisation needs to use its social communications to be… well, social. Social media can be very cost-effective, but generating and planning content is what can really take up time. So it’s understandable that the temptation to use social media as just a broadcast channel is strong.
To really build a community, though, you can’t just talk at them. You have to talk with them. You have to listen – as the Brunel Museum did in preparation for their crowdfunding campaign on The Art Of Engineering. They conducted audience research both in-person and online, asking people what they most wanted to see in the museum, what would most motivate them to help, and what their priorities were, then used those findings to inform the aim of their crowdfunding campaign.
Nurturing donor relationships
This is where uniting development and marketing professionals is essential. Marketing may understand how to plan out the right content for the right time, and maximise reach and engagement. But Development understands the importance of nurturing the relationship with a donor, and making sure that they feel valued and heard. The big difference with crowdfunding is that nurturing those relationships doesn’t just apply to a short list of names – you’re now trying to build a community of hundreds.
To do that, you need to know who you’re talking to and what motivates them. The Vagina Museum’s urgent fundraising campaign for their own premises is a great example of a well-targeted and well-explained campaign and it makes excellent use of quotes from museum visitors to show the impact of their work – letting supporters feel part of that same community.
Building a genuine and personal connection with this many people can feel overwhelming – so it’s no wonder that many organisations are looking at using AI to ease the load. Whether to generate campaign page copy, to help with social media content planning, or brainstorm potential rewards, a large language model can help generate the basics. But it can’t replace your organisation’s genuine voice. Nor can it convey your opinions, your values, or your humanity. This is an opportunity to create a unique type of connection with your audiences, and AI can’t do that for you – yet!
What’s in it for them?
An organisation thinking about a crowdfunding campaign already knows its organisational benefits. But why would backers support it? Sometimes it comes from self-interest – perhaps you’re planning an event they want to be at, or accessibility improvements they’ll benefit from, or you’re simply (like Pollocks Toy Museum and so many others) are trying to stay open through dramatically-changing times.
But more often, the most engaged supporters are there because you’re making the change they want to see in the world. You’re having an impact in ways they care about, your values are their values, and – short of starting an institution of their own! – this is a great way for them to feel like they’re actually making a difference.
A great crowdfunding campaign makes it easy for donors to see why they should get involved. A clear outcome and impact gives you the foundation to share the underlying values driving the project. And a long-term plan with a focus on communications means that you can keep that engaged and enthusiastic community of donors connected for months – even years – after a crowdfunding campaign closes.