Although organizations in all sectors have experienced unprecedented crowdfunding success, these events are still relatively new to larger nonprofits. Columbia University recently hosted its third event, Georgetown University its second, and both Communities Foundation of Texas and GiveMN boast six years of successful single-day crowdfunding/giving day events.
So far this year, these intense, one-day Kimbia-powered events have funded nearly 14,000 higher education institutions, small to medium-sized nonprofits, and individual chapters of large nonprofits (e.g. Salvation Army, United Way and Red Cross). On November 13th, Give to the Max Day (GiveMN) will fund at least 4,000 more.
As with any relatively new type of fundraising campaign, there are misperceptions to be addressed and questions to be answered to help development and advancement leaders evaluate the crowdfunding opportunity from a strategic, ROI, and promotional planning perspective. Here are just some of the questions we hear:
- What is the average donation amount?
- What is the average net worth of donors?
- Which donor segments participate in these campaigns?
- How many donations should we expect?
To address these questions and more, we will be publishing an eBook tackling crowdfunding facts and fiction. This eBook sneak peak discusses the average gift for these events, as well as the net worth and household income information of the average crowdfunding donor.vFor busy, bottom line readers:
- $2221 average gift
- 62%2 of donors have a net worth of $250,000 or higher
- 71%2 of donors have an annual household income of $50,000 or higher
All of the data cited in this article has been collected from the many independent crowdfunding events hosted on the Kimbia platform to date in 2014, including the nation’s largest giving Day: Give Local America (GLA) which attracted over 300,000 donations, funded more than 7,700 nonprofits, and raised over $53 million.
Because seven of the ten largest crowdfunding events have been run by Kimbia customers, we have unprecedented access to the rich data that proves the value of these events.
Crowdfunding events are proven to:
- Recruit and reactivate a high percentage (25-68%) of donors
- Re-inspire major donors (up to $2.5 million in a single donation)
- Raise your brand awareness
Need even more reasons to cash in on the crowdfunding craze? Keep reading to find even more facts you can use to justify implementing this highly productive and strategic fundraising method at your organization.
Fiction: $10-25 Average Donation Amount
When we talk to nonprofits about the benefits of crowdfunding, they understand that these events recruit many new donors. But, they believe that the average donation amount is small, and therefore it’s not worth their time to host this type of event.
Fact: $85-$1,149 Actual Average Donation
Calculated from the more than 550,000 donors who gave during crowdfunding events hosted on the Kimbia platform, the average donation is $222. The average donation per event type is:
- $785 for higher education institutions; individual events ranged from $179 to $1,149
- $211 for nonprofits participating in community foundation-led events; individual events ranged from $85 to $269
- $113 for Give Local America’s (GLA) first-year event (online gifts only)
During GLA, individual nonprofits in all segments achieved high average donation amounts, making these events applicable for all causes.
The average gift amount is not always indicative of the total amount a single donor gave. Some donors give multiple gifts. For example, during Omaha Gives over 18,000 donors gave around 34,000 gifts, or roughly 2 gifts per person. During Give Local America this year 19.4% of donors gave multiple gifts and one donor gave 111 individual gifts.
Online donors often have the highest lifetime value, and these events also inspire major donors to give big. During Give Local America the largest single online donation was $50,000 and one donor gave a total of $63,000 in five separate gifts. Columbia’s first giving day inspired one donor to give $2.5 million.
Fiction: Crowdfunding donors have low net worth/annual income
The underlying concern related to the average donation amount is based on the expectation that donors who respond to crowdfunding events have low net worth, making them unlikely prospective recurring, major, or bequest donors.
Fact: 62% of donors have a net worth of $250,000 or higher, and 71% have annual income of $50,000 or higher
Our online transaction data from GLA has been appended with demographic data from Epsilon. Below, you will find the aggregated data for net worth and annual household income for this event. Both data sets support the investment in recruiting and stewarding these donors.
Table 1: Net Worth
Table 1: Household Income
As you can see, crowdfunding/giving day events help activate ideal prospective donors as well as engage existing donors and major donors. They have high net worth, a high household income, and their initial gift is larger than average. Additionally, the fact that they gave online makes it highly likely that they will share your mission with their online network, enabling you to tap into the multiplying effect of the Internet.
For more information about crowdfunding events, please contact email@example.com.
Stay tuned for our eBook for even more data that helps separate crowdfunding fact from fiction!
1. 2014 Kimbia-powered crowdfunding/giving day event data
2. 2014 Give Local America data (online donations)