How It Works

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What is Crowdfunding?

Crowdfunding is an online fundraising toolkit. Raise the funds you need to validate a new idea and build community around your new project or venture.

It should really be called peer funding though, because there is no “crowd”. Crowdfunding is not a “build it and they will come” kind of a thing. It’s a build-it-and-hustle-like-crazy kind of thing.

As the project leader, you will need to rallying your own networks and developing an outreach strategy to gain support, and raise funds for your project.

How Crowdfunding Works On StartSomeGood

At StartSomeGood our fundraising model is called “all-or-nothing”. This means donor pledges will not be processed unless you hit your first fundraising target, what we call your tipping point.

“All-or-nothing” crowdfunding may sound risky, but it is the model used by the most respected platforms in the industry, including KickStarter.

The reason why we believe in “all-or-nothing” is that is creates less risk for your donors, reassuring them that they won't be charged unless your project gets the minimum needed to launch.Statistics show you are 400% more likely to hit your goal with “all-or-nothing” crowdfunding than with “keep what you raise”

At StartSomeGood we also allow you to set a second fundraising target, called your stretch goal. All funds raised above your tipping point, up to and even beyond your stretch goal is yours to keep. Your stretch goal can be up to 4 times your tipping point.

Getting Paid

At StartSomeGood we work with leading payment processor, Stripe. You’ll need to set up a Stripe account and connect it with your campaign on StartSomeGood in order to launch your campaign. Once your successful campaign ends, we process your payments within 24hours.

Given you are using our platform to fundraise directly from your community, the funds go directly from each donor's bank account to your nominated Stripe account. Stripe will then transfer the funds to your nominated bank account within 5 days, minus fees.

Fees

StartSomeGood, charges an industry standard platform fee of 5% and Stripe charges 2.9% Take this in to account when setting your fundraising targets.

Once payments are processed you can access all the transactions, fees and payouts from your Stripe account.

Tax Receipts

Given the donations go directly to you from your donors, if you are a registered charity you can offer receipts to your donors, minus the fees and reward costs. It is up to individual projects to decide whether they can and will offer this to their donors.


How to create a great crowdfunding campaign!


Start With A Great Story! When writing your campaign share your story with the donors, tell us:

* What you are doing - Be as specific and clear as possible

* Why you are doing it - For inspiration on the power of “why” see Simon Sinek’s TED talk here

* Who you are - Introduce your team and establish your credibility and capacity to run this project

* How much money you need (and what you plan to do with it)

* Call to action - Tell them exactly what you want them to do and how they can help.

Campaign Video - Video is not essential to launch a campaign on StartSomeGood, but we know campaigns with videos work best. Use video to tell your story in 1-2minutes. The goal of video is to help your audience get to know you, like you and trust you.

Exciting Rewards - Show your donors how grateful you are for their support with rewards. We recommend you use a combination or tangible as well as experiential rewards that relate to your project. You might like to browse other campaigns to get inspiration.

An Outreach Strategy - Like we said, crowdfunding is not a “build it and they will come” kind of a thing. It’s a build-it-and-hustle-like-crazy kind of thing. Get really clear on who your ideal donor’s/ communities are. Hint: these people are likely already in your networks. Your job is to “convene” people who are passionate about your cause/project’s mission rather than convert people who don’t care. Leverage your networks to increase your campaign’s reach.

More tips and video tutorials on how to create an awesome campaign, coming soon!


What To Expect From The Support Team At StartSomeGood:

We don't use bots at StartSomeGood. We offer personal, thoughtful support to make every campaign – large or small –the best it can be. You'll have your own point person, not just a link to an FAQ page (although here's the link to our FAQ page if you're looking for it.)


Getting Started:

You’ve got a great idea and you're excited to get started? Great! Us too! Here's what to do from here:

  • Start drafting your project - we will keep an eye on it and we're here to answer any questions you have, just email us at [email protected]
  • Study up on how crowdfunding works – if you're not confident with your plans, you might want to check out our 5 Cs of Crowdfunding Video, sign up to our Crowdfunding for Changemakers Masterclass, sign up to our free Crowdfunding 101 Email Course or browse the Crowdfunding Academy here.
  • Submit your project – when you've got it all set up, submit your project for final review. Please give us 24 hours so we can give you great personal feedback on how to make it better (if you haven't got this time however no worries, we'll move fast, just let us know).
  • Once approved your page goes live and the hustle begins!


If you have any questions about How it Works, please feel free to reach out to one of our crowdfunding coaches at [email protected]