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Summary: Crowdfunding for Social Good – Financing Your Mark on the World

Written By Leah W. on March 9, 2018
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According to the author, crowdfunding for social good is about aiding someone to invest yourself as a social entrepreneur. It’s useful in fundraising, and it’s determined by your ability to access money from your network. It has proven to be successful in raising a startup without debt or equity crowdfunding.

The book states that there are four models useful today for crowdfunding;

  • Donations – offered only that you will carry out the stated purpose, i.e., feeding orphans.
  • Rewards – there are many ways in which one are offered rewards. I.e., Bands promise CDs to fans to get funded.
  • Debt – this is when money is raised with the exchange of repaying it back with interest.
  • Equity – though it’s still not regulated one is allowed to raise funds.

Devin states that most campaigns, however, raise much less money but equity crowdfunding raises much more money than rewards and donations. There has been fast growth and has become an important means of raising funds for nonprofit organizations and many social ventures.

The book profiles instances in which people or organizations have had success in their crowdfunding efforts.

In chapter 2 some events occurred to Jennifer that made her change her life mission. The diagnosis of her mom with lung cancer who was in Nebraska while she was in Phoenix was behind her creation of the SMAC (Sock Monkeys Against Cancer). Her passing increased her passion for campaign awareness on funding for lung cancer. Jennifer turned to crowdfunding site Start Some Good to launch her social enterprise.

For instance, eight-year-old Vivienne Harr chose to pursue to put to an end child slavery and made her life’s work. She has been successful in raising half a million dollars through crowdfunding to achieve her dream.

Another example is Martha Griffen who wanted to help her son who was born with a birthmark on his face. She wrote a book called Sam’s Birthmark to celebrate what makes him different from others and was able to get $35,000 to publish it through funds.

Thorpe lists some issues that affects the success of your campaign. The image you portray increases the cause’s appeal. The urgency of the more tragic and sudden the situation, the easier it is to raise funds for disaster relief. Campaigns work best when a project or an event is associated with them. It is easier to raise funds if you are already a part of a community who are connected with your cause. The more the people you have in at the center of your network the higher the chance of having a successful campaign.

For one’s team to be effective it is comprised of partners, champions, and boosters. Partners are officially involved in the project, i.e., startup partner. Champions are people outside the circle but help in the campaign. Boosters are fans and friends you can count on to help but not formally committed to the cause of the campaign.

This book distills the teachings learned from successful social entrepreneurs and not-for-profit organizations into actionable and applicable steps that anyone can follow to raise money for their purpose.

Leah W.
Leah is a freelance professional academic writer based in London, UK.

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