What can established nonprofits learn from the success of crowdsourcing?

Crowdsourcing is a growing phenomenon that we write about from time-to-time on the blog as this method of online fundraising and networking has quickly become an important way to build momentum, funding and awareness for a given cause. I think that in the next few years we could see a variation of this approach adopted more frequently by established charities for fundraising networking beyond just receiving donations – a pivotal way to connect and build lasting interest. At present crowdsourcing ventures are more typically employed by a nonprofit ‘start-up’, a one-time relief effort or smaller organizations that are hoping to rapidly raise funds via cause awareness.

We’ve seen Kickstarter and Indiegogo grow by leaps and bounds over recent years with no signs of stopping and back in 2010 I wrote about Crowdrise, Edward Norton’s (along with three partners) online crowdsourcing group which is back in the headlines this week with news that $23 million in new financing has been secured by the fundraising company according to this article on Techcrunch which will surely see them join the ‘big two’ in terms of being the starting point for crowdsourcing ventures.

What can be safely assumed is that crowdsourcing will continue to grow in popularity over the coming years and my interest is how can established nonprofits benefit from a trend that at first glance looks like it may only dilute their audience of potential donors and filter them away to other causes that define their goals with an immediacy that is appealing. I think the answer lays in the last few words of that sentence.

Crowdsourcing has grown so quickly because it appears to be very transparent and extremely focused. A very clear and specific fundraising goal is established and the audience are essentially told ‘be part of helping us raise $x million and we will be able to provide these specific benefits to the cause at hand’. It is that immediate “explain-donate-participate-accomplish” message that is motivating and involving the audience with a very black and white window of opportunity for the potential donor. Consider the message  – we need you to get involved by the last day of this month so that we can bring a specific impact to those in need by the last day of next month.

In short, it’s exciting, ambitious and can appeal to anyone who is up for a challenge.

The challenge for established nonprofits is to refine their own message to accomplish the same thing that crowdsourcing is seemingly doing so well. In many cases this may already be happening but can it be improved? It is worth looking internally at your own message to donors and ask can it better clarify the mission, the fundraising goal and the impact that reaching the specific target will have for your cause. Ultimately crowdsourcing within your own website. However I think it goes a little deeper than that.

A consistent message from donors is that they feel nonprofits could sometimes do a better job of explaining how their participation made a difference and what was their donation used for. I feel that the mass appeal of crowdsourcing is that those questions are typically answered at the outset and not after the fact. So ask can your website, emails, telephone fundraising campaigns accomplish that with more finesse?

I find the discussion of crowdsourcing vs. community sourcing to be the fulcrum of this topic and it’s explained really well by Amy Sample Ward in this piece in part quoted below:

“A community shares values, experiences, goals, or interests in a long-term way; the crowd may share those same things but usually for only a specific time period or around a specific event. Introducing a crowdsourcing opportunity to a community means the call to participate, the value of participation and the way participation works all need to match the modes of operation or goals of the community already in place. When creating a crowdsourcing event for the crowd, you match the elements of the event to only your own goals, hoping/expecting that the participants will self-select out of the crowd (and probably opt-out again after the event is over).”

So can the basic principles of crowdsourcing help to transform your nonprofit activities, are there pieces of that approach which can be adopted internally and refine how you broadcast your mission and objectives and above all stir excitement within your new and existing audience. I suggest focus on building your nonprofit’s community, avoid the word ‘crowd’ and focus on that community which will bring the donor audience to your mission. The focus may all too often be just on the donation when perhaps the organic method to first nurture the interest and understanding allowing you to build your audience, your community or your crowd who can then become your donors.

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Miratel Solutions is a Toronto call centre, eBusiness, and letter shop mail house specializing in professional fundraising services including telephone fundraising, online fundraising, lottery services, donation caging, donation processing and other donor management services. We are committed to our CSR business values in all contact centre services