Crowdfunding is better than cold-calling for NGOS!
How many of us are guilty of rudely hanging up on an untimely and unsolicited phone call in the middle of a work day, when someone calls to ask if you have two minutes to discuss an annual donation scheme for an NGO that works for the blind? It’s time we question this age old method of fundraising for charity – does it really work? How many people that you cold call actually make a donation to your charity? Well maybe it has worked in the past, but is it still the best method to raise money in the presence of popular alternative fundraising in a crowdfunding India?
Let’s find out.
A research carried out by a nonprofit research consultancy, NfpSynergy discovered that over 51% people found the telephonic method of fundraising extremely annoying and irritating. In fact, it was also found that NGOs and nonprofits land up spending 70% of their collections from donations in the fundraising process itself, be it hiring people to make cold calls, or the operational aspect of actually having the cash/cheque delivered to the nonprofit. If nonprofits are left with only 30% of the funds for their actual project/ initiative, how is called calling still and effective method for raising money? Moreover, is it sustainable if people are getting irritated with phone calls that disrupt their day? The problem is that it instead of gaining sympathy of people (which is the key to persuasion and converting people to donors), you end up leaving them with a bad association of your nonprofit, and could in fact deter them from contributing towards your cause.
Now that we’ve discussed where the problem lies – it’s time we discuss practical and sustainable solutions for NGOs and nonprofits to raise money without ticking people off with cold calls.
In the past, bank loans, government grants, insurances, and cold calls might have worked well, but with time and technology moving so fast, these now redundant ideas have give birth to newer and more creative ways to raise money. The most popular ones include the likes of micro lending and crowdfunding. Since microlending is primarily used by businesses or aspiring entrepreneurs, we won’t discuss that one today. We’ll talk about crowdfunding, since it is one such technique that can be used to raise money for any and every cause under the sun. In crowdfunding, fundraisers are simply required to start a campaign (which takes 5 minutes) on crowdfunding India platforms like Impact Guru, and appeal to people to make a donation to their cause. Why is it better than cold calling?
- You save a lot of times resources and money that you’d otherwise spend on the fundraising process itself. Raising money on Impact Guru is a free and easy process.
- You end up with a much larger audience through online platforms, as opposed to making individual phone calls.
- You have the benefit of audio-visual persuasion to get people to donate, which is obviously not possible over the phone.
- The process of transferring a donation takes literally two minutes, and is completely safe.
- By putting your work out on the internet, you’re more accountable for your NGOs work, and hence people may feel safer donating to your cause.
- With crowdfunding, you don’t have to ask for large sums of money – just small contributions that will become part of a much larger pool. This way donors don’t feel the pinch of separating from their money, and will be more likely to donate again in the future.
If you run an NGO or a nonprofit, we urge you to adopt online fundraising rather than cold calling, and encourage a crowdfunding India for financial sustainability for your initiatives.