If you’re not crowdfunding, your PTA, PTO, or booster club could be missing out on big-time fundraising opportunities. Online fundraising is revolutionizing how non-profits raise money for parent-teacher groups. But even the best crowdfunding ideas aren’t a replacement for traditional fundraising campaign efforts. However, it can be an excellent addition to your fundraising toolkit. This piece digs into the pros and cons of crowdfunding campaigns and how they might fit into your future fundraising plans.
So, does your PTA, PTO, or booster club fundraising need a shot of energy and inspiration? If yes, then crowdfunding platforms could be the missing link. First, let’s begin by defining online crowdfunding and how it differs from your traditional fundraisers.
How Does Crowdfunding Differ From Traditional Fundraisers?
Unlike car washes, bake sales, walk-a-thons, and other event-based fundraising, crowdfunding is 100% online, using the powerful reach of the internet to find donors from your local community and beyond! Think of it as your digital platform to present a heartfelt cause or introduce your next exciting project, and how the donated funds will make a difference. In every case, your goal is to inspire people, near and far, to contribute financially to your group’s mission. And that last point is the biggest challenge of all.
Getting folks to loosen their purse strings is no easy feat and even harder as the cost of living across the US continues to climb. In this environment, a simple request for donations is unlikely to cut it. Like most things in life, you will get out of crowdfunding what you put into it.
Your campaign needs to check six must-have boxes to motivate people to contribute.
- Must have a captivating narrative
- Must have engaging visuals
- Must have clear and attainable goals
- Must have effective promotion
- Must have strong donor engagement
- Must have a sense of urgency
It sounds simple, right? But creating successful crowdfunding campaigns takes no small amount of skill, patience, and experimentation to find out what will work best for your group’s needs. So if you have parent volunteers with fundraising skills or social media savvy, that’s a considerable bonus to your potential success.
Crowdfunding Facts of Inspiration
Here are some fascinating crowdfunding facts and statistics you should know.
- North America generates $17.2 billion annually through crowdfunding [1]
- Regular updates increase campaign fundraising totals by 126% [2]
- Over 50% of email shares for crowdfunding drives convert into donations [3] [4]
- 41% Donate to crowdfunding campaigns that benefit individuals [5]
Now let’s look at some of the most popular crowdfunding platforms and their associated fees.
Types of Crowdfunding Platforms
There are hundreds of crowdfunding platforms, but don’t let the volume overwhelm you. Many online fundraising programs are designed for specific types of groups and purposes, including non-profits. There are also various types of crowdfunding. The two you should focus on are reward-based programs and donation-based programs, with the latter being the simpler of the two to manage. A donations-based platform simply accepts direct donations, while in a rewards-based program, donors receive some kind of reward (often differentiated by tiers) based on how much they donate.
Some of the popular platforms for non-profits include DonorsChoose, Mightycause, GlobalGiving, GoFundMe, Crowdrise (by GoFundMe), and Indiegogo. Some cater to non-profits specifically, while others also allow for-profit campaigns. There are many others, so do your research to find the best platform for your needs before you start a new campaign.
The Cost of Using Crowdfunding Platforms
This table shows fee structures for the top crowdfunding platforms at the time of writing. However, they may be subject to change with extra costs or additional fees for specific services.
| Platform | Platform Fee(%) | Payment/Processing(%) |
| Kickstarter | 5% | 3-5% |
| Indiegogo | 5% (fixed funding); 9% (flexible funding if goal not met) | 2.9-3.5% |
| GoFundMe | 0% (personal), 5% (certified charity) | 2.9-3.5% |
| DonorsChoose | 0% (personal campaigns) | ~3% |
| GlobalGiving | 5% | 3% |
| Mightycause | Varies based on your plan | 2.2-2.6% |
Best Candidates for Your Crowdfunding Campaigns
You can learn a lot by examining other successful campaigns. However, you will save time if you already have people with the necessary skills in your volunteer pool.
The best candidates for creating effective crowdfunding campaigns have these skills:
- Expertise in marketing, communication, or public relations
- Creatives, e.g., writers, artists, graphic designers
- Experience in non-profit fundraising
- Strong technical skills to navigate campaign setups
- Social media management
- Goal setting and planning
That said, it’s far from impossible to create successful campaigns without expert input, but be prepared for some growing pains as your group learns the platform and process. Thus, soliciting volunteers with the above skills is certainly helpful.
But the big question remains. What are the advantages and disadvantages of crowdfunding? And is it a feasible option for your particular parent-teacher organization?
What Are the Pros of Crowdfunding? What Makes It Easy, Simple, and Successful?
Crowdfunding has great potential as an online fundraising platform. You know the elements that make for a successful campaign and the skills that can help you achieve your goals. But, like all new non-profit fundraising ideas and incentives, there are pros and cons, and crowdfunding is no different.
Let’s kick off with the pros for parent-teacher crowdfunding campaigns.
Accessibility: Crowdfunding is easily accessible for anyone with an internet-connected device. It allows widespread participation and contributions from a broad audience.
Simplicity: Online platforms offer convenient, user-friendly tools and templates to create and manage your campaigns.
Cost-Effective: There are no traditional expenses like printing materials, booking venues, or scheduling food and entertainment. That means fewer costs, maximizing the amount of raised funds that can go towards your initiative.
Broad Reach: Unlike traditional PTA, PTO, and booster club fundraising events, geographical distance doesn’t limit your fundraising abilities. Crowdfunding has the potential to quickly reach a wide target audience across your city, state, even worldwide!
Donor Relationships, Community Engagement: Crowdfunding platforms allow direct contact between donors and parent-teacher groups, thus strengthening relationships. And, many platforms include a social aspect with messaging and reactions like a social media platform.
Amplified Impact: Successful crowdfunding campaigns offer the potential to raise a significant amount of money quickly. That could make it easier for your parent-teacher group to raise funds in a short amount of time to meet a specific deadline.
Increased Awareness: Crowdfunding initiatives are perfect for boosting awareness of your school, group, and funding to a wider audience. Thus, effective campaigns can lead to much greater support and ongoing participation after your fundraiser is complete.
Booster Club Embezzlement Protection for Crowdfunded Money
Embezzlement protection safeguards your bank accounts and petty cash, so it’s always there for its intended purpose. AIM’s comprehensive embezzlement coverage gives you peace of mind–knowing you have protection against individuals who may compromise your funds. PTAs, PTOs, and booster clubs around the country trust in AIM’s embezzlement insurance, and so can you.
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What Are the Cons of Crowdfunding? What Makes It Difficult, Complex, or Unsuccessful?
The pros of crowdfunding for parent-teacher groups sound like a no-brainer, but are they? While there are often more potential gains than setbacks, the latter does need consideration.
Here are the most notable downsides of crowdfunding campaigns for parent-teacher groups.
Execution Challenges: Crowdfunding needs careful planning, effective marketing, ongoing monitoring, and engagement. Hence, some campaigns are time-consuming and demanding and can become an administrative burden for groups.
Intense Competition: Standing out in a crowded virtual market is challenging. While online fundraising can reach new potential donors across the world, it also does the same for your competition. It can be difficult to compete with other organizations for the same target audience of donors.
Limited Control: Each crowdfunding platform has its own rules and restrictions. Some may limit the control your parent-teacher group has over campaigns and donor data. It’s essential you do research and read up on others’ experiences with crowdfunding platforms.
Understanding the pros and cons of parent-teacher e-fundraising helps you make informed decisions. There’s also the issue of crowdfunding legality and how to protect your group and members. This area needs special attention, so we’ve given it a separate section.
Non-Profits and Legality
Non-profit crowdfunding, like online PTA, PTO, and booster club fundraisers, must adhere to the law. Ensure your club and its volunteers are familiar with tax deductibility, donor identity, charity registration, and the regulations that protect your club and its officers while participating in fundraising activities.
Here are eight preventable pitfalls that can help your group avoid potential legal problems:
1. Terms and Conditions
Start by drafting clear terms and conditions for your crowdfunding campaign. Your terms should outline donor rights, fund usage, and any disclaimers. Terms and conditions also help manage expectations and mitigate potential disputes, legal and otherwise.
2. Privacy & Data Protection
You must protect donor information by reviewing and following applicable data protection laws. To do this, clearly communicate your privacy policy and request consent when collecting users’ personal data.
3. Legal Compliance
Ensure full compliance with all the relevant laws and regulations regarding fundraising, financial transactions, and requesting donations. Familiarize yourself with local, state, and federal laws governing your online crowdfunding activities.
4. Non-Profit Status
If your parent-teacher group functions as a non-profit organization with 501(c)(3) status, always file the proper legal documentation. If you’re unsure, consult with a legal expert to help navigate the intricacies of non-profit protocols.
5. Transparency Matters
Be 100% honest and transparent in your crowdfunding message. Even unintentionally misleading donors may have legal ramifications that can harm your group’s reputation. So ensure you keep contributors informed about the specifics of how you use their funds.
6. Intellectual Property
Protecting your intellectual property is vital to safeguard your club’s logos, trademarks, and copyrighted materials used in campaigns. We recommend you consult a legal professional to ensure proper registration and prevent potential infringement of your own IP and others.
7. Insurance Coverage
Secure suitable liability insurance for your parent-teacher fundraising. Insurance safeguards your parent-teacher group from various unforeseen situations and legal claims that may arise during crowdfunding campaigns.
AIM’s Event Coverage and Social Media Liability Supplement
Enjoy peace of mind with AIM’s Event Coverage protecting your booster club’s fundraising activities. We offer tailored events coverage and a social media liability supplement to protect your group’s communications online. Our affordable coverage starts at only $65 per year. Now there’s no excuse to leave your organization exposed and unprepared.
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8. Collaboration with Legal Professionals
For help, seek guidance from legal experts specializing in non-profit law and crowdfunding. Professional advice will ensure you meet all legal requirements and follow best practices.
Note: The information here is only a general overview. Your organization should seek advice from legal experts if you’re unsure about the legalities of crowdfunding. Experts may also suggest tailoring your club’s needs to meet specific situations and jurisdictions.
In Closing
Consider crowdfunding as a worthwhile addition to your organization’s fundraising efforts. It’s cost-effective, reaches a wide audience, and engages potential donors. However, it comes with challenges like execution, tough competition, and limited control. And remember to consider the legality of your crowdfunding as well. That typically includes terms, privacy, compliance, non-profit status, transparency, intellectual property, and insurance coverage.
Get it right, and crowdfunding offers the potential to boost your parent-teacher group funds and amplify the awareness of your group and school’s activities and initiatives. And, it can be a lot of fun, too!