Crowdfunding for Nonprofits Guide

Nonprofits are no stranger to fundraising. When your organization relies on the generosity of others for survival, coming up with new and compelling ways to encourage giving is a constant challenge. But for nonprofits looking to broaden the scope of their fundraising campaigns, consider turning to an online crowdfunding platform like YouCaring. YouCaring charges no fees to fundraise, meaning all the money donated goes toward your cause, plus you have access to a mobile-friendly, attractive and easy-to-create fundraising page.

Center of Attention

Not only is crowdfunding an effective tool to help your nonprofit raise money, but it also brings attention to your organization from people all over the world. As campaigns gain momentum, they create buzz and get people talking about your efforts to contribute to the greater good. Crowdfunding is the future of nonprofit fundraising because it provides a simpler and more efficient platform than campaigns directing their efforts to offline outreach alone.

  • 2,099: number of nonprofits (and counting!) that have relied on YouCaring to meet their fundraising needs
  • $2,051,722: amount raised by YouCaring's most successful nonprofit campaign, The Riley Sandler Memorial Foundation, Inc.
  • $66: average amount of an individual contribution to a nonprofit campaign across crowdfunding platforms

Six Great Advantages of Crowdfunding for Nonprofits

  1. 501(c)3 Benefits

    Your 501(c)3 status allows you to advertise to donors that their contribution will be tax deductible, the same way it would be from your homepage. If you set up the donations to go directly to your registered nonprofit account, your contributors will be eligible for tax breaks; however, you will need to provide a government-issued EIN in these cases, and your organization will be responsible for issuing a tax receipt to those who gave to your campaign.

  2. Online-Offline Leveraging

    Crowdfunding for nonprofits can complement traditional fundraising efforts. While in-person events and outreach are important, an online campaign allows you to access an increasing number of donors who prefer to scout out causes online and give conveniently through their computer or smartphone. Fundraising campaigns with mobile-responsive pages are 126% more lucrative than those on unresponsive sites. You donation page on YouCaring is mobile-friendly, so people can donate from their phone without frustration, and your crowdfunding page will be visually appealing, especially if you utilize plenty of nice images as well as a video or two. When it comes to a major fundraising campaign, the details make all the difference.

  3. Built-In Expertise

    You won't need to hire an expert to set up your campaign. Our site features vibrant page templates that make it quick and easy to tell your unique story. Our step-by-step process to start a campaign takes only a few minutes and guides you through to the final product. Instead of hiring people to make a fundraising page for you, you can take care of it through YouCaring for free!

  4. Capitalizing on Social Media

    The social media element of crowdfunding allows nonprofits to reach new donors, including people who have never even heard of their organization. Approximately 28% of new donors who contribute to a nonprofit through a crowdfunding campaign will give again, and heavy social media users are more likely to become new donors to a charity after encountering it on social media channels, according to MobileCause. Your organization's online connections and YouCaring’s community of givers can combine to reach more donors than through traditional channels alone, highlighting special projects in addition to the good work you do every day.

  5. Easy and Effective

    Online crowdfunding through platforms like YouCaring is effective. The average nonprofit crowdfunding campaign raises $9,238. For small or emerging organizations, this is a significant sum, and well-choreographed fundraisers make upward of hundreds of thousands of dollars, such as YouCaring's Riley Sandler Memorial Foundation, Inc. campaign, which raised more than $2 million for the establishment of a memorial children’s nonprofit. When 9-year-old Riley Sandler died unexpectedly at summer camp, her parents felt compelled to honor her life through an organization that contributed to a social good. They formed the Riley Sandler Memorial Foundation, dedicated to the creation of “inclusive, character-building programs that help children build self-esteem and confidence.”

  6. Accessibility to Funds

    You can access your donations at any point in the fundraising process, so as soon as money is given to your cause, you can use it for your project. YouCaring campaigns are compatible with a number of payment processors, but we recommend WePay because on average, fundraisers that use it earn 30 percent more money than with PayPal. WePay is optimized for crowdfunding, so your account won't run into donation limits and account restrictions when your fundraiser goes viral. They also seem to encounter fewer payment errors and failed transactions. WePay's payment submission form is also much simpler than PayPal's and it works on mobile devices.

Three YouCaring Nonprofit Success Stories

Aside from the Riley Sandler Memorial Foundation, Inc. campaign, numerous nonprofits have established successful fundraisers on YouCaring. Here is a small sampling.

  • Raise the Roof' for Food Justice for Soul Fire Farm in Petersburgh, N.Y., provides wholesome, organic food to people who wouldn't normally have access to it. Soul Fire raised more than $53,000 for a new barn and expanded programming space to help those living in food deserts create sustainable access to fresh produce.
  • Give $4 or More and Help Girls Get Dressed With Confidence for Enchanted Closet, Inc. provides young women who wouldn't normally be able to afford it prom dresses and formal apparel for special events in their lives. It also runs the Enchanted Closet's GIRL$ Service-Learning Program.
  • Help Expand the New Ethiopian Vegan School Lunch Program for International Fund for Africa benefits the International Fund for Africa in its effort to create community gardens and school bakeries that provide Ethiopian students with lunches that accommodate their religious beliefs. The goal is to prevent as many students as possible from going hungry.

Crowdfunding for the Greater Good

We share your values. As a company dedicated to enabling individuals and groups to do good, our “Compassionate Crowdfunding” mission aligns with your work. We are committed to fundraising in the service of others, and we believe all the money you raise should go toward your important cause. If you haven't already started a crowdfunding campaign with YouCaring, launch your free nonprofit fundraiser today