Event Fundraising vs. Crowd Fundraising
While there are many fundraising methods, two of the most popular are event fundraising and crowd fundraising. Both approaches have their unique advantages, but which one is best suited for your cause? In this blog, we will explore the differences between event fundraising and crowd fundraising, as well as key points to consider for making them successful endeavors.
Comparing Event Fundraising and Crowd Fundraising
Event fundraising involves organizing a special event to gather people together in a central location and encourage them to contribute financially to your organization or project.
Crowd fundraising, also known as crowdfunding, is an online method of raising funds by reaching out to a large number of individuals, usually by using a nonprofit crowdfunding platform to create a campaign, set a fundraising goal, and encourage people to contribute.
While both event fundraising and crowd fundraising are effective ways to raise funds for your cause, there are some key differences to consider when deciding which method is right for you:
Scope and Scale: Event fundraising is typically focused on a smaller, local audience, while crowd fundraising can reach a wider audience, allowing for a potentially larger pool of donors.
Engagement and Personal Touch: Event fundraising usually means smaller audiences, however it does allow for face-to-face interaction with donors—creating a more personal connection. Crowd fundraising reaches a larger audience, however it relies on online communication to engage supporters, which means you’ll need a digital way to gain people’s attention.
Time and Effort: Event fundraising does require deliberate planning, coordination, and execution. While crowd fundraising can be initiated and managed with less effort and fewer resources, you’ll need to invest in developing a compelling message for your campaign.
Costs: Organizing an event can be expensive with costs such as venue rental, catering, and marketing materials. Crowd fundraising usually has lower upfront costs, with most expenses being platform fees and payment processing fees. But, as we mentioned above, you’ll want to invest in elements like videos and graphics that can help drive your story online.
Duration: Event fundraising generally creates a sense of urgency that drives donations towards one event. Crowd fundraising campaigns, on the other hand, can run for weeks or even months, providing an extended period to gather donations.
Risk and Flexibility: Event fundraising can be affected by external factors such as weather, logistics, or unforeseen circumstances, while crowd fundraising can be more adaptable and is not reliant on a single event's success.
Planning for Success
Once you’ve decided which fundraising approach is best for your situation, you’ll want to consider some key elements to increase your success. (If you’re still not sure which is best for you, then see below.)
Event Fundraising Tips
Here are some important tips for successful event fundraising you’ll want to know:
Clear Objectives: To ensure a successful event, it is crucial to have clear objectives and a well-defined purpose for your fundraiser. This will help you plan and execute the event more effectively, and it will also make it easier for attendees to understand why they are supporting the cause.
Thorough Planning: Planning is the backbone of any event fundraiser and why you’ll want to utilize proven event management software for nonprofits like Attendance. This software can be an invaluable help as you set a realistic budget, create a timeline, assign responsibilities to your team, and register attendees. Communicate with your team to consider every detail from the venue to the entertainment as you plan a memorable and impactful event.
Effective Marketing: Promoting your event is essential to ensure a good turnout. Utilize various channels such as social media, email marketing, and press releases to spread the word. Collaborate with local influencers or community leaders to reach a wider audience and build credibility.
Engaging Activities: To keep attendees interested and motivated to donate, plan engaging activities and entertainment. This could include auctions, raffles, or games, as well as compelling speeches from individuals who have benefited from your cause.
Sponsorships: Partner with businesses that share your values and mission to help cover the costs of the event. In return, provide them with marketing exposure, such as placing their logo on promotional materials or offering speaking opportunities.
Crowd Fundraising
Similarly, here are some crucial elements you’ll want to utilize for a successful crowd fundraising campaign:
Compelling Story: The key to a successful crowdfunding campaign is a compelling story that resonates with potential donors. Clearly articulate your cause and explain how their contributions will make a difference.
Engaging Experience: You’ll want to use a dedicated web page to focus potential donors on your crowdfunding campaign. No need to feel overwhelmed with that task either; you can use fundraising crowdfunding platforms like Crowdfunding to easily set up an effective landing page for your campaign. Remember to use high-quality images, graphics, and videos to grab the attention of potential donors and showcase the impact of your cause. Visual storytelling can be a powerful tool to evoke emotions and encourage people to contribute.
Realistic Goals and Deadlines: Set achievable fundraising goals and deadlines to create a sense of urgency among potential donors. Employing urgency phrases will encourage them to donate sooner rather than later.
Regular Updates: Keep your supporters informed about the progress of your campaign and the impact of their donations. Use email and social media to share stories, photos, and videos to maintain their interest and build trust.
Social Media Promotion: Utilize social media platforms to not just keep followers updated, but to reach a wider audience and encourage people to share your campaign. Engage with your supporters by responding to comments, answering questions, and thanking them for their contributions.
Hybrid Fundraising
If you’ve read this far and are still on the fence about which type of fundraising approach is best for your nonprofit, then here’s good news: Grandma was wrong—sometimes you can have your cake and eat it too by doing a hybrid fundraising event.
Ultimately, the most successful fundraising campaigns combine elements of both event fundraising and crowd fundraising. This hybrid approach can involve hosting an event—both in-person and virtually online—as the grand finale of a crowdfunding campaign, or it can use a crowdfunding platform to gather additional donations after a successful event.
By utilizing technologies like Attendance and Crowdfunding in conjunction with each other you can easily plan and customize the key points of each method and tailor your approach to maximize your fundraising efforts and achieve your goals.
If you'd like to learn more about our Peer-to-peer, Attendance, or Crowdfunding products, please reach out! We'd love to chat.
Also, if you haven't joined already, we have an exclusive Facebook Group just for our customers! If you are a current FundEasy Customer and would like to join, go here to learn more and request to be added!
Madison Hull
This article was inspired by our customers and written to encourage your fundraising efforts. Although we work with nonprofits and events daily, our team members are not Event Consultants. We encourage you to consult with your event consultant, executive team, and/or affiliate organization before making any major changes to your events.
