In his marketing book, Crossing the Chasm, Geoffrey Moore maintains that there is a chasm between early adopters of technology (visionaries) and the early majority (the pragmatists) with both groups having very different expectations. Leveraging the multiplying effect of the Internet and the ever-growing impact of social media, crowdfunding is a newly adopted idea executed using innovative technology. With the success of Give Local America – a May 2014 event that raised over $53 million in a single day – crowdfunding has crossed the chasm and is now being adopted by the “early majority.”
No longer brand new and not going away anytime soon, some nonprofit organizations are in their fourth year of hosting crowdfunding events and are still seeing significant growth. According to Forbes magazine, in 2013 donors gave approximately $5 billion to crowdfunding projects (of which $1.5 billion went to social causes).estimates that this will be a $15 billion per year industry in 2015.
Proven to recruit and reactivate new high-value donors and generate new dollars, crowdfunding is as much about extending your organization’s brand as it is fundraising.