Understanding the Impact of Crowdfunding September 26 2011 September 26 2011 1
Humboldt Park Help Us to Survive a Wisconsin Winter 2
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December 1 2011 December 1 2011 Confirmation 5
Share Two Days Later 6
April 29, 2012 7
The Envelope The Notes 8
3/27/2014 9
3/27/2014 10
500+ 11
5.6 million Donors 5.6 million Donors PLEDGED OVER $977 million 56,157 Projects SUCCESSFUL 12
56,157 Projects SUCCESSFUL 56 Projects $1 million+ 44% Success Rate 13
WARNING: WARNING: THIS IS NOT A FAD 14
WARNING: THIS IS NOT A FAD 2013: WARNING: THIS IS NOT A FAD 2013: $1.4 billion The Challenge 15
The Challenge Millennial Donors Millennial Donors Give Online 16
Millennial Donors Give Online Compelling Causes Millennial Donors Give Online Compelling Causes Personal Asks Millennial Donors Give Online Compelling Causes Personal Asks Direct Impact 17
EXPLORE 18
EXPLORE ADAPT EXPLORE ADAPT EXPERIMENT 19
Cornell Crowdfunding Pilot: August 2013 December 2013 7 campaigns $114,584 raised 1,302 donors $88 = Average Gift BOOST PARTICIPATION RATE 20
Participation Funding Culture of Philanthropy 21
Engagement Strategy Volunteer Opportunity Volunteer Opportunity TIME TALENT TREASURE 22
3/27/2014 Volunteer Opportunity NETWORKS Pipeline Pipeline REMAIN RELEVANT 23
Pipeline REMAIN RELEVANT REMOVE GUESSWORK Are you currently conducting experiments with crowdfunding? 24
The Donors Primary questions Who would give to these projects? Would it work to bring in new donors? Would it work to engage young alumni? Would we end up with lots of $5 gifts? Will this help or hurt the Annual Fund? The Who by constituent type 433 35% 89 7% 87 7% 554 45% alumni corporation/foundation faculty/staff friend parent student 64 5% 9 1% 25
The Who by giving behavior All donors Alumni only 68% 22% 10% Past donor Lapsed Non-donor 34% 20% 46% Past donor Lapsed Non-donor The Who by class year 160 140 120 100 80 60 40 20 0 1950s 1960s 1970s 1980s 1990s 2000s 2010s Breakdown by gift size 350 $25 300 250 $100 200 $50 150 $10 100 $20 $5 50 $150 $300 $500 $200 $250 $1,000 0 $5 $25 $40 $75 $215 $400 $750 26
Will this help or hurt the Annual Fund? Non-donors Past donors 12% 15% 88% 85% AF Upsell Project only AF Upsell Project only Building a Home Latina/o Studies Program Sponsored by Marti Dense and Juliette Ramírez Corazón, College of Arts & Sciences and Cornell University, Alumni Affairs & Development $10,000 goal 148% of goal $14,811 raised 187 supporters total supporters 0 20 40 60 80 100 120 Alumni Alumni, non-degreed Corporation Faculty Friend Non-alum, spouse of alumni Parent Pers., family foundation friend Staff Student 65% alumni supporters 43% first-time supporters % of total funded 140 120 100 80 60 40 20 0 Week 1 Week 2 Week 3 Week 4 Thirst Quencher AguaClara Sponsored by Monroe Weber-Shirk, Senior Lecturer, Civil & Environmental Engineering and Cornell University, Alumni Affairs & Development $30,000 goal 108% of goal $32,365 raised 310 supporters total supporters 0 20 40 60 80 100 120 140 Alumni Alumni, non-degreed Corporation Faculty Friend Non-alum, spouse of alumni Parent Pers., family foundation friend Staff Student 31% alumni supporters 75% first-time supporters 100 % of total funded 80 60 40 20 0 Week 1 Week 2 Week 3 Week 4 27
What next? What happens later this year? What happens next year? Communications 28
It has to be personal. If it s not personal, it s not philanthropy, it s a transaction. --Martin Shell, VP for Development Stanford University Great Fundraising Communication Authentic Targeted Timely Concrete Sticky 29
The Communicators Sponsor (campus) Champion (alumnus) Team lead (student) Team members (students) Their networks Authentic Targeted Timely Concrete Sticky 30
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They composed a story together By the way Some tempting fears... 33
Fears... Message/brand control Donor experience Quality control Conflicting priorities Scalability Fears... Message/brand control = Organic proliferation Donor experience = Deeply meaningful Quality control = Manageable with training Detract from priorities = Complement and learn Scalability 34
Gains Solid gold content Organic positive buzz Audience empowerment New audiences, ambassadors, donors Fresh research Safe place to innovate Scalability Thank You Andrew Gossen: aag226@cornell.edu Jen Kwiatkowski: jlh87@cornell.edu Jennifer Campbell: jc557@cornell.edu 35