How fundraising is changing for the better through technology
How Fundraising is Changing for the Better through Technology
Fundraising is a gift to charities, NGOs, nonprofits and even entrepreneurs. The process is vital in the growth and sustainability of an organization, but it’s not that easy to gain ground through fundraising. However, thanks to technological advancements and groundbreaking ideas, getting the support of the public through crowdfunding has become a lot easier.
Entrepreneur says that using technology is the key to making one’s fundraising dream into a reality. Locus Co-Founder and CEO Nishith Rastogi says that “technology has helped us in offering a very personalized high quality wealth advisory experience, at scale. Our investors also believed that technology will help in democratizing access to financial products for the retail investors.”
The power of technology can be harnessed effectively and used to woo investors. Furthermore, technology can help promote the growth of a certain entity. This technology-driven growth will be crucial in maximizing the potential of organizations, and it will be essential in solidifying future plans.
New trends are slowly making their way into the fundraising industry, and a crucial change to take note of is crowdfunding. In total, crowdfunding campaigns raised over $34 billion in global donations in 2015. The funds garnered continue to increase each year, and so crowdfunding is expected to be the next disruptor in the fundraising industry.
Part of what makes the fundraising process more difficult is the number of entities that launch and rely on the process. The growing number of campaigns and projects online have made investors smarter. Investors will now put in time and thought before making any major investments. While there is nothing absolutely wrong with investors becoming more discerning, the organizations with limited sources for marketing are left with a major problem when it comes to standing out.
Crowdfunding platforms have made fundraising a lot easier for organizations of all sizes. Not only are these organizations made more accessible, they now have the opportunity to appeal to investors and contributors through this means.
There is an array of technologies and platforms that organizations can use to gain a substantial boost in their funding process. However, only seasoned French-American entrepreneur Dom Einhorn’s recently launched non-governmental organization (NGO) crowdfunding and impact investing platform Exponential, Inc. (XPO2) possesses the potential to upend the industry.
The platform that launched this July has already raised over $13,000 of its $500,000 goal. The funds are directed to small- to medium-sized NGOs that were personally visited and picked by Einhorn. Some of the NGOs under the care of the platform include the Bully Rehab Awareness Program, Big Cat Rescue, and Save Vietnam’s Wildlife. People are bound to find causes they can root for through the extensive selection of XPO2.
As a seasoned veteran in the field of social causes and charities, Einhorn understands that smaller NGOs are facing difficulties with the fundraising process. That’s why the entrepreneur provides its platform to its partner NGOs free of charge, shouldering the marketing costs for them.
To make the venture more successful, XPO2 tackles the fundraising process in two ways. One of which is through cashless contribution. Users can install a special XPO2 browser extension through which they can choose an NGO they want to support. Upon choosing a cause, contributors can shop through XPO2’s participating merchants that include Kohl’s, HSN and Walgreens. A portion of their purchase will be directed to the NGO of their choice. The NGOs will have immediate access to the funds and are free to make use of it whichever way necessary for their cause.
The participating merchants also get a reward out of the deal. By partnering with XPO2, these brands are able to cut marketing costs by 5% — 40%. At the same time, they will be able to gain better branding and recognition as they are able to help out social issues in their own ways.
XPO2 also offers direct contributions to the NGOs through its crowdfunding platform. At times, contributors may earn exclusive material tokens from the NGOs on the platform. Moreover, XPO2 hopes to draw the attention of potential supporters through non-materialistic rewards or through “net social impact.”
In essence, the net social impact is the amount of good a dollar can do. Contributors should feel accomplished by supporting XPO2’s various NGOs, and XPO2 is banking on this self-rewarding feeling.
The fundraising process is crucial but arduous. With the help of technology and other innovative solutions, many organizations, entrepreneurs and NGOs of all sizes are able to level the playing field and gain a substantial portion of the contributions the general public can provide. With today’s technology providers paving the way, we are hoping to see more disruptors in the sector.