Fundraising, or the process of gathering voluntary contributions, has been around for a really long time. It has helped out countless charities, nongovernment organizations and even entrepreneurs with the financial support they need for their projects.
Nowadays, fundraising is as easy as launching a campaign in one of the many platforms online, and thanks to these platforms, many dreams have been reached and many problems have been resolved. Fundraising has come so far now, but it has not reached its limit yet, as there are still a few looming trends that can disrupt the sector.
It is relatively easy to start fundraising campaigns online, but that comes at the expense of tighter competition between nonprofits and other projects. These days, the primary concern of social entrepreneurs is standing out for a bigger slice of the audience, which is easier said than done.
One of the trends that will reshape fundraising is what experts call as the “technology trifecta,” which is essentially web, mobile and social media. These three outlets are the key platforms that would help campaigns starters in engaging with potential supporters. Each of these platforms will offer a purpose of their own.
The internet and the world wide web, in general, will serve as the main avenue for transparency and as donor-interaction tools. Mobile devices, on the other hand, will provide new ways to catch the attention of users worldwide as new marketing techniques are developed. As for social media, nonprofits and entrepreneurs will make use of this as a way to directly interact with potential backers.
Utilizing these three channels enable companies to maximize their chances of increasing their fundraising capabilities. However, that might not be enough in today’s competitive atmosphere. If there is one takeaway from the Jobs Act of 2012, it’s that people are more willing to back initiatives that would give something in return.
Ever since it was introduced in the Jobs Act, equity crowdfunding has helped a great deal in giving startup companies a boost in the funding stage. Investors were drawn more into the fact that they would get equity in return for their investment. This sort of structure is slowly making its way into the fundraising space as well.
Social entrepreneurs and nonprofits may not have the capabilities to offer equity in exchange for donations, but that doesn’t mean that they cannot offer anything in return. Through rewards and small gifts, nonprofits and other social causes will be able to catch the attention of more backers. In the process, they will be able to rack up a loyal following of supporters as well.
It’s a simple concept, but it is one that Exponential, Inc. (XPO2) has been taking advantage of. Founded by French-American entrepreneur Dom Einhorn, XPO2 is a cause-related tech marketing firm that provides an array of services to nonprofits, NGOs and other social impact organizations. Of all the services they offer, what XPO2 specializes in the most is fundraising.
XPO2 has already helped support various social projects from all over the globe. Some of the highly-vetted groups include the Blue Mountain Humane Society in the U.S., the Children of Saigon in Vietnam, and Affiniti in Europe.
XPO2 is responsible for creating white-label e-commerce platforms for organizations that will be used in generating funds. The company’s extensive list of partners and clients guarantees that its platforms are effective. What makes the said platforms such a hit among backers is that it offers them deals they can’t usually get from other outlets. They can shop for their needs at a discount from XPO2’s partner merchants, and a portion of their purchases goes directly to XPO2’s chosen charities.
Not later than June, XPO2 is set to improve upon the foundation it has created for a more effective method in fundraising. It will introduce a new rewards-based program that will initially house up to 20 organizations it personally vetted. In time, more organizations will be supported by the new rewards-based program.
In the new and upgraded platform, backers and donors can rack up exclusive rewards by funding XPO2-backed organizations.
Serving as the mastermind behind XPO2 and its endeavors, Einhorn has a clear understanding of what fundraising needs to further help out campaigns. He believes that the industry is ripe for disruption and that comes in the form of rewards that can help show appreciation to backers and supporters of a cause.
Fundraising has never been an easy task as not many are quick to click on the donate button for the campaigns they come across. With innovative companies like XPO2 revolutionizing the industry, fundraising can be made easier.
Written by Robert Olayvar