The Crowdfunding Challenge 2012

The Results!

Sponsored by In partnership with

Introduction to Crowdfunding & Buzzbnk

Theresa Burton,CEO & Co-founder28 November 2012

Crowd-Funding Basics

• A set target amount for a specific outcome

• “all or nothing” within a specified time limit

• Benefits in return – engaging benefits, goods or products, events, tributes, etc.

• In some cases, ability to raise loans or equity

What Crowd-funding is not!

• “If you build it they will come”

• Kickstarter, the most successful platform in the US for cultural projects has a success rate of ~43%

• Only those projects which actively fundraise succeed.

• If you don’t ask, you don’t get

Introducing Buzzbnk:

Buzzbnk is an online marketplace that brings together

and people who are keen to support social good

social ventureslooking for funding

with small amounts of money as either a donation or loan in

return for a range of benefits

… to strengthen the relationship with between the backer and the venture.

They share the journey and they share the benefits.

Its about more complex relationships with long term value: building engagement and reciprocity.

Buzzbnk is all about co-venturing and reciprocity

“I truly believe that crowd-funding is going to change the way good causes are supported and I am very proud that my book is among the first of the projects to be promoted by Buzzbnk.”

Martin Simon, CEO, Timebanking UK

“It’s such an exciting way to raise money. We wanted to create an active community of backers who would not only feel invested in our work, but also be rewarded for their contribution.”

Eugenie Teasley, Founder, Spark+Mettle

Features of the site include:

• Offering something in return

• Multiple levels and types of participation

• Embedded video & social media sharing

• Gift certificates to share with friends and family

• A clear outcome for what the funds will be used for with milestones along the way

Building engagement in fundraising

Appealing to ‘all parts of the brain’Rich mix of appeal:

• Pants To Poverty – animated video

• Connection to the farmers creating non-gm organic cotton and fairtrade labour.

• Connection to creating a fun and cool brand

• Progress to target shown

• Metrics shared on what the problem is and why it is important

Maximise Social Information

Social Media

• Social Media marking on each project page

• Social Media feeds for the project

• Number of supporters for each amount indicated

• Pictures of donors/lenders

• Prompt to share after supporting a project

“Giving as an Investment”

Buzzbnk enables social ventures to offer 3 types of loans and in combination with other engaging benefits:*

- Revenue Participation

Share a set % of future revenues of the project

-Interest Bearing LoansThe venture can offer a fixed interest rate on a loan, e.g. 5%

-Principle OnlyThe venture can offer to return the principle after a fix term

* We have reviewed our business model in detail with the FSA under the guidance of our lawyers, Bates Wells & Braithwaite, and the conclusion is that there are no activities which currently need to be regulated, including our service to introduce potential lenders (Backers) to borrowers (Ventures) for unsecured loans.

Since launch, 50 projects have been successful in meeting their targets, raising over £450,000.We’ve helped publish a book on the new economy of sharing, pioneer innovative distribution of vital aid in Africa or getting people out of poverty in India, help disadvantage youths launch a career path …and the story goes on.

How are we different?• We focus on projects who seek to bring positive social

change.

• We help a wide range of organisations beyond the traditional “registered charity”, including CICs, IPS, and other types of social enterprises;

• We offer a range of ways to raise funds, from a mix of donation (including Gift Aid where applicable), pre-sales of goods or services and loans;

• We encourage the ventures to go beyond traditional fundraising and offer a range of benefits which will engage their crowd of supporters to help them succeed;

• The venture must make at least its 1st milestone target within the time period set, otherwise the funds are returned to the supporters.

Buzzbnk’s Social Mission

• To support social ventures seeking to raise funds, with an emphasis on seed and early stage funding.

• To build a community of people who are aware of social ventures and become supporters or social “angel” lenders.

• To enable social ventures to become better and more effective by engaging with a crowd of supporters rather than simply working alone.

• To give back to the social venture community – over 50% of profits are either reinvest to server the sector better, held for charitable purpose and/or donated to charitable projects to promote social investment and social enterprise.

“At Buzzbnk we believe it is as important to raise the crowd as to raise the money to create a sustainable and

successful future.”

Burning the Clockscreated by

community arts charity Same Sky

A unique event that brings the people of Brighton together for a seasonal celebration for all faiths. This spectacular free lantern parade and fire show turns the spotlight away from the more commercial side of Christmas and lights up the darkest of winter nights

Activities

• New marketing materials: bookmarks, flyers, posters

• Websites: links on websites, ads

• Email campaigns• PR: press releases & radio

interviews• Social media: Twitter,

FB: reward info, FB group, Christmas presents, soft asks, retweet day, images, etc.

• Offline: Raffles, bucket collecting at other events

• Personal emails to contacts and suppliers

• Asking individuals & groups to spread the word: MPs, CVSF, etc.

• Internal comms: Brainstorms, thermometer, specific asks, positive feedback

Now it’s over…

Results•Raised £4,000 target!•Major donors •Raised profile of ourselves as a charity•Increase in followers on social media & new supporter details•Local companies got in touch to offer support•Internal shift: New approach for staff

Lessons•Personal approach best•Planning time•Make time every day•Include time to be responsive•Utilise what you’re doing already•Internal comms proportion•Ask… then ask again!•The “Creative Soul”•Right for this? For now?

Turning an empty house into a home

LATCH is aiming to raise the funds to refurbish an empty house, with unemployed volunteers, creating a home for a homeless family in Leeds.

By doing this we will:•Provide opportunities for long term unemployed people to gain skills, confidence and work experience. •Provide a secure good quality home for a homeless family.•Contribute towards improving the neighbourhood and reducing the problems caused by empty homes.

All the money raised will be spent directly on the house.

Activities

• Devised a range of relevant awards for our supporters

• Designed leaflets, posters and display• Contacted MC members, families, friends, local

organisations and other contacts to ask them to donate and spread the word

• Social media • Media coverage - local radio and newspaper• AGM• Raffle

Results and lessons learned

• Media coverage, more followers and raised profile…but we didn’t reach our milestone

• Setting up Localgiving page • Took much more time than anticipated!• Plan ahead and do groundwork before campaign starts• Allocate time and resources for duration of campaign,

for planned activities and unexpected opportunities• It takes time to get people on board • Allow time to organise offline fundraising activities to

get the word out and support the challenge.

60 opportunities every weekOver 100 regular volunteers

90-100 children and vulnerable adults with disabilities each year

9 horses...

Nancy and Edward retire to the hills of Buckinghamshire after nearly 20 years’ work

~£5,500

Our Crowdfunding Challenge

ASK

PR

EVENTS

ONLINE

SupportersVolunteersParentsTrusteesContacts

Press releasesPersonal stories

Bake saleTalk to local group

FacebookTweetingSam’s Blog

Successes:Successes:

• £980 towards a new horse£980 towards a new horse• Lots of articles in local papersLots of articles in local papers• Links with community websitesLinks with community websites

Lessons:Lessons:

• The Crowdfunding approach isn’t right for every projectThe Crowdfunding approach isn’t right for every project• Take 6 months to plan and chose the right time to launchTake 6 months to plan and chose the right time to launch• Do the leg-work before you startDo the leg-work before you start• You can’t do it on you ownYou can’t do it on you own• Be prepared to spend 2-3 hours, every day of the campaignBe prepared to spend 2-3 hours, every day of the campaign

Our ProjectOur Project

Raising the CrowdRaising the Crowd

1.1. Mailing ListMailing List2.2. Targeted Mailing to Specific Interest Groups eg BanksTargeted Mailing to Specific Interest Groups eg Banks3.3. Bag PacksBag Packs4.4. Book SalesBook Sales5.5. Jumble SaleJumble Sale6.6. Raffle TicketsRaffle Tickets7.7. Lobbying Local Grant ProvidersLobbying Local Grant Providers8.8. Involving Local Councillors and MP’sInvolving Local Councillors and MP’s

ReWorked – A craft business to boost skills, grow confidence and inspire women in East Lancashire

“I was always interested in arts and crafts, but never had the time or confidence to keep it up – now I’ve redeveloped my talents and have been thinking about starting a business, but didn’t have a clue where to start.

“It’s almost as though they’ve picked my brain to find exactly what I needed and when. If I can get to the stage where I can start my own business, I would be over the moon!”

•Sharing - Newsletter, Face Book, Twitter, LinkedIn, Emails

•Talking - Community Radio, Local Newspapers, Community

Groups, Networks, People

•Eating- Cake Sale, Tombola, Coffee Morning, Coffee and Cake

Next time….

•Get the team on board BEFORE you launch

•Let your team know exactly what they need to do

•Map out your contacts…who else can help you reach your goal?

How Did We Do?

Gig Buddies

Results and lessons

We hit our target

Make time

Ask for help

Build a supportive crowd

Be specific

Share ideas

Love your crowd

Food works

Be creative

Social Media

www.buzzbnk.org/gigbuddies

paul@stayuplate.org@heavy_loadwww.stayuplate.org

Newlyn Art Gallery

The BIGsleepover

The BIGsleepover is an exciting new respite care project for families with challenging home-lives in east London. It will:• Support Parents who have few breaks from their hardworking lives, and little time or space to call their own•Provide exciting overnight play opportunities for local children•Offer support to those families who are most vulnerable.

We will•Run a series of sleepovers in our community centre in Manor Park•Provide a fun trip outside of the centre for each sleepover•Fill the Froud Centre with exciting games, and activities (inflatables, story-telling, arts and crafts)•Provide healthy delicious snacks and meals whilst the children are in our care•Provide pyjamas and sleeping bags for those families who do not have them available

All this will be FREE to the families ensuring that it is open to as many children as possible. Each sleepover will accommodate at least 50 local children and will be supervised at all times by our team of highly qualified play-workers.

Do you remember having sleepovers with your friends? Have you ever had a sleepover with 50 of your friends?!

The BIGsleepover is going to make that happen for local children in Newham!

What did we do?

• Promotional Materials•Mapping contacts and supporters•Letters and emails•Poster / Leaflets in Mail-out•Events (Family Fun Day)•Personal asks (work colleagues, partner organisations etc.)•Board of Trustees•Local Media•Social Media

We’re continuing to work on lots of this, and think of new ways of promoting the project. We have some more events in the pipeline and hopefully will get the chance to make a video for the project in the next couple of weeks.

What we learnt?

The Good Stuff• We actually have lots of people who want to

support us• We can make good use of online and offline

donors• Offline fundraising proved more successful• Face –to-face contact is the best way of

getting people to commit money.• Getting the right person to make the ask is

crucial• Asking donors to ask others to give is useful• Giving donors ownership of the project can be

helpful in spreading the word

The not-so-Good Stuff• Online fundraising is really hard when you’re

working with vulnerable people• If individuals donate offline they get no

acknowledgement on the website• It’s a lot more work keeping track of offline

donations• Whilst we’ve found a higher number of offline

donations, they are more time-consuming to come by

• Everything takes time and energy• You need to be a planning machine!• You need a few high level donors.

We successfully reached our first milestone of £3,000!

Mind the Gap

Arr Pirate App

Activities

Lessons Learned

Get your core team involved ASAP!

Plan your campaign

Be positive and make it fun!

Altogether now…

• The benefit of peer support• The kick-up-the-bum of a

challenge• Going on a journey, together

We’ve been impressed…

• Time commitment• Ability to keep on going• Range of ideas• Amount of money raised!!

We’ve learnt…

• Lead time for strategy and planning

• Clear timetable vs being responsive

• Ability to draw in experts• Time commitment!

We’ll be gradually uploading resources and learning to…www.ncvo-vol.org.uk/crowdfunding2012

And the winner is…

• The organisation who went on the longest learning journey

• The organisation who acted upon their learning, developing as they went

• Who shared and interacted with us and with participants

• Who kept up momentum, even when things were tough

…we’ll tell you later