Funding a community—online

Posted 8/21/12

REGION — A national trend that has gained popularity has come to the area: online crowdfunding. Using websites like Indie GoGo and Kickstarter, non-profit organizations, businesses and individuals …

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Funding a community—online

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REGION — A national trend that has gained popularity has come to the area: online crowdfunding. Using websites like Indie GoGo and Kickstarter, non-profit organizations, businesses and individuals can raise money to fund projects. The campaigns can cover a range of topics, interests and ideas—anything from theatre to science, from technology to music. Local organizations have been successful in this new form of online fundraising, such as NACL Theatre, BÀ & ME and North School Studio, and some are in the process right now, like the Delaware Highlands Conservancy’s campaign to create a river access in Long Eddy, NY.

How do these websites work? Although the projects are different, the fundraising webpage is similar. There is detailed information about the project—what it is, who’s behind it, why they need the money, and what they are going to do with the money. Often there will be a video at the top of the page. There is a set amount of money that needs to be raised and a definitive time frame; if the money is not raised in that time then they do not get the money. The site tracks how much money is being raised every time a contribution is made, and tells you how much more is left to go and how many backers there are. Then, there are set amounts of how much a backer can contribute, usually starting at around $10 and reaching toward $1,000 or $5,000. Each amount of pledge money has a “reward” attached to it, and the reward gets bigger and better as the amount goes up. For example, BÀ & ME, a Vietnamese restaurant in Callicoon, NY, created an Indie GoGo campaign to expand to a larger location. Their “perk” for a $20 contribution is “You’re awesome. You deserve a wink, a hug and a pat on the back. Thanks a bunch!” and for $250 you get two free meals, a 10% VIP card and your name on the BÀ & ME notable donors page.

There are a few reasons this type of fundraising works. One is that people feel like they are being a part of something. NACL Theatre created a campaign for its original play “STRUCK.” The campaign was immensely successful; their goal was $12,000 and they ended up with $22,290. Tannis Kowalchuk, the co-artistic director of NACL, said a part of that success can be attributed to the donors who “felt a part of making it all happen—part of the creation—that is an amazing way to give and receive.” Isaac Green Diebboll, founder of the North School Studio in Callicoon, who made a Kickstarter campaign to make design additions to the Weigh Station venue, said, “People want to support each other. And there is a science to this fundraising approach that involves incentives, gifts, consistent communication and video updates. It creates a culture that ‘users’ want to be part of.”

Another reason it works on the local small-community level is that what you give you get back, just in a different form. Nhi Mundy, the owner of BÀ & ME, wrote on its Facebook page, “We’re not asking for a handout. We’re offering our community a way to participate by paying it forward. Fund us so that we can feed you. Help us grow, so that we can help grow our community.”

One other thing essential to an online crowdfunding campaign is you need, well, a “crowd.” Green Diebboll spoke about the importance of a social network. “In order for the machine to work, you need to have built a fairly stable social network of people who already support you. It’s reliant on social capital and how well you articulate your project through the website—you have to tell a story, or do something weird enough that will intrigue people to become part of it.” How many people you reach is vital.

Some national campaigns have gotten a lot of media attention. There was the campaign to make potato salad that raised $55,492. The campaign description reads, “Basically I’m just making potato salad. I haven’t decided what kind yet.” The campaign demonstrated a key ingredient of success: it’s not what you are offering but how you present the offer. The humor of raising money to make potato salad worked. Then there was actor Zac Braff, who made a Kickstarter campaign to raise funds for his new movie “Wish I Was Here,” a follow-up to “Garden State,” an indie movie with a huge following. Many critics were angry that a rich movie star would ask for money. But it was successful and raised over $3 million, proving that fans want to support artists they believe in.

There is a current Indie GoGo campaign to improve the Long Eddy River Access, sponsored by the Delaware Highlands Conservancy. The description on the website says, “We’re all so lucky to call the Upper Delaware River region home, whether we live here year-round or look forward to our visits. And part of what makes us all so lucky is being able to access the river safely and easily.” The goal is $5,000, and as of press time the campaign had raised $1,130. The campaign will close on December 3. To view the campaign and make a contribution, go to www.indiegogo.com/projects/improve-the-long-eddy-river-access.

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