CROWDFUNDING BASICS
The First Responder Community uses Crowdfunding as a way to get funding for specific emergency equipment projects. It takes energy and creativity from Volunteers, companies, and organisations, but it can bring in much-needed funding and attract a whole new audience of supporters.
WHAT IS CROWDFUNDING?
Crowdfunding is an online fundraising campaign for a specific project. It differs from traditional fundraising in a number of ways, but the most significant is the importance of selecting a project and setting a target: the project manager/fundraiser sets a target, people donate an amount –and the amount donated is remitted towards that emergency equipment project.
HOW DOES IT WORK?
Crowdfunding offers individuals, groups and organisations a way to raise funds via an online crowdfunding platform with the aim of receiving emergency equipment for their community.
Each project has a funding goal and a time limit set by, the project creator. During this time the project creator spreads the word about their emergency equipment project to your fans, friends, family, and any strangers and sponsors you can wow with your pitch. Supporters simply register and help fund the project.
WHAT IS A PROJECT DEADLINE?
The project creator sets a specific funding goal for the project based on its purchase price and other incidentals such as delivery, and transaction fees along with a time limit for meeting this goal. Depending on the amount and the type of equipment sought the time-frame can be as short as one day, and up to 6 months or more. The project deadline is the date until which supporters can contribute funds toward your target. Once the amount is achieved the project is closed.
CAN PROJECTS RAISE MORE MONEY THAN THEIR GOAL?
Yes, absolutely. However, it is the policy of the First Responder community that additional funds must be attributed to other items of emergency equipment designated by the project creator. For their locality or elsewhere.
FULL DISCLOSURE AND TRANSPARENCY
We operate on full disclosure and transparency which means that all funds, less transaction fees, go towards emergency equipment for communities. This discourages ‘slush funds’ that may be used for non-equipment transactions. Project Creators should have secondary equipment needs lined up should they exceed the project awards. Donors are also to notified that the additional funds are being usefully directed to other items of equipment for the community.
WHAT HAPPENS IF A PROJECT FAILS TO REACH ITS TARGET?
Project Creators should have secondary equipment needs lined up should they not achieve the targeted funding for the project. This allows the Project Creator to get some equipment that is within the donated funds budget. Donors are also to notified of the change of equipment for which the funds are being directed. If the target could be achieved with an extension of timeline then you should notify donors that you a slightly short of your goal and would they like to top up the project with a further donation.
DO CROWDFUNDING TRANSACTIONS HAVE FEES?
Yes, they do. No crowdfunding service is fee-free, this is due to the online financial institutions having a range of banking fees for managing the transactions. In our case we use PayPal and Bendigo Bank which have a small fee of 3%.