Many small businesses and Not-For-Profit organisations are fully or partly dependent on obtaining government or other funding in order to establish and operate. There are not-for-profit companies, partly-government-funded entities, clubs and associations which need to raise funds as part of their basic operating model. Here technology can come to the rescue in the form of crowdfunding.
Crowdfunding is an excellent online facility enabling small organisations and small businesses to obtain financial support for projects. The model works by offering tangible rewards to your audience (membership, fan base, customers) in return for funding. Typically the rewards are associated with the project which is being funded, such as free Compact Discs of your music in return for a donation to the project of recording and producing the recording.
There are number of different crowdfunding platforms available, including Kickstarter, Pozible, Indigogo and Pledge Music.
Case Study: Arts Sector – Helen Perris: singer, song writer and tutor
As Helen Perris points out in this video: "Crowdfunding has been a really integral part of my business strategy. I've used crowdfunding for both of my EPs, and I found that not only did it help me to make the EPs even happen, it helped to build my fan base as well". Helen adds: "A lot of people think that when you do a crowdfunding campaign, you set it up and you can just sit there and watch it grow. That is so not the case. When you are crowdfunding, you need to be constantly promoting it."