Using Crowdfunding toEngage Students in

Philanthropy

Crowdfunding sounds trendy – but . . .

Phases of a Capital Campaign (and a Crowdfunding Campaign)

• The Quiet Phase

• The Campaign Kickoff

• The Public Phase

• The Campaign Closing Celebration

Rosso’s Concentric Circle Constituency Model

Motivations of Crowdfunding Donors

• Digital Natives vs. Digital Immigrants

• Want to believe their gifts matter

• Feedback Loops

• Reciprocal Relations

• Rewards/Perks

• Wash’s Completion Bias

Students, Young Alumni, and Crowdfunding

• 75% of active donors aged 20 to 35 prefer to make online donations

• 42% indicate that online gifts were motivated by impulsive reactions to social media appeals

• Baby Boomers donate to 7-10 charitable causes a year (on average)

• Millennials donate to 2-3 charitable causes a year (on average)

• Estimated to inherit close to $140 trillion between now and 2052

Students, Young Alumni, and Crowdfunding

• Passionate about causes, not necessarily about non-profit organizations

• 50% report they would share information about charities they support with their friends – through channels like Facebook

• 28% report that they follow their beneficiaries through social media

• 8% reported they made gifts through social media

• It’s likely that millennials make up at least half of your alumni base

Segmentation

• Prescriptive vs. Self-Selected Segmentation

• Lead-Generation and Data Capture Tool

• If used right, reduces donor fatigue

• Changes the “voice” of the Asker/Solicitor

• Subtle way of involving donors in a “second ask”

What’s the right goal?

•Donors

• First-time Donors

•Dollars

•Recurring Donations

•Participation

What’s the right goal?Goals should be:• Specific• Challenged• Attributed to an individual vs. a group

We recommend: • Scalable Goals• Conservative enough that one donor can

see their impact ($3,000 or less)

How does Crowdfundingapply to Higher Ed?

• Project-Based Annual Giving

• Giving Days/Challenges

• Peer-to-Peer Fundraising

• Student and Faculty Philanthropy

So where do the students fit in?

They are already fundraising through . . . .

Bake Sales and Restaurant Nights

They are already fundraising through . . . .

• Parents

• Family Members

• Friends

• Alumni

• Companies

They are already fundraising through . . . .

other (third-party) crowdfunding platforms

Why are 3rd Party Options a Problem?

• Loss of Brand-Identity

• Fuzziness on project and team member affiliation

• Potential loss of university gift revenue

• Alumni Participation

• From the project owner standpoint: Administrative fees are deducted from the total gift

Trinity College Giving Day

Florida State University: The Great Give

St. Mary’s College of Maryland

UMBC Crowdfunding: Where are we now?

• In 8 months – 304 total donors

• $30,092.40 (Average gift of $98.99)

• 8.7% of all first-time alumni donors to UMBC

• Still focused on student and athletics-based fundraising

• Introducing our first faculty project

• Continuing to build partnerships with Student Life and Athletics

• Refining the marketing and education plans

Determine a Call to Action . . .

Collaborate with OIA• Build fundraising marketing strategy

• Assistance in writing & editing

• Working with University System of Maryland Foundation

• Additional promotion

• Direct Mail

• Social Media

• Blog Posts/Story-telling

What’s a Good Fit?All funds raised should benefit the UMBC’s students or campus in a direct way.

In addition, the strongest candidates for the program have:• A great story• UMBC-recognized student organization• A strong leadership team• An active community of students, alumni, and parents• A minimum of 10-20 active members

We are unable to support:• Individuals• Raising funds for an outside organization

• National Chapters • Unaffiliated nonprofit organizations

• Groups that are not officially recognized as UMBC student organizations

What’s a Good Fit?To date, we’ve helped raise funds for:

• Travel expenses

• Food

• Production of a cd

• Scholarships

• Sports Equipment

• Registration Fees

• Car Rental

UMBC Crowdfunding: The Future

• Connecting with Events

• Incorporating in Direct Mail and Calling Efforts

• Personalized pages for high-end donors

• Team – or – Board/Chapter-based Giving

Taking the long-term approach . . .

• Provides a great “first” giving experience

• Highlights direct donor impact

• Broadens your fundraising constituency

• Identifies donor interests –contributing to marketing opportunities

• Turn students and young alumni into Philanthropists – instills a habit of giving

Thank You!Questions?

Dayna Carpenter – Director, Annual Giving @boyles_d

dayna@umbc.edu(410) 455 - 3377