As crowdfunding grows and grows, we have tried to stay on top of what rights to which donors and nonprofits are entitled. Last year, with your help, we compiled a list of the “Crowdfunder Bill of Rights.” This year, we are flipping it around to talk about the rights from the nonprofits’ point of view. After another successful SXSW interactive session, we’ve come up with our proposed rights and responsibilities that nonprofits should have when placing their event on crowdfunding platforms, and when interacting with the general public of funders.
Now we need your help—we’d love your comments for the next 30 days before we publish the final version!
This initial list comes from David J. Neff and Miriam Kagan workshopping them with nonprofits at SXSW and the Nonprofit Technology Conference in March of 2015:
1) Transparency is the responsibility of all three parties. Nonprofits, platforms providers (if the nonprofit is using a third party platform) and the general public. This includes the fundraising costs (when appropriate), risks associated with the project (if applicable), timelines and all parties involved in the project.
2) Nonprofits are required to have full campaign transparency as funding progresses and fulfill perks (if offered) in a timely manner , in alignment with the platform providers’ (if using third party) perk fulfillment guidelines.
3) Nonprofits should clarify upfront, or develop a process for post-campaign communication fund allocation (or refund), should the project goal not be met or project objectives change or realign.
4) The data privacy, tracking and marketing rules should reflect the general organization policy on data tracking and privacy, or otherwise be clearly disclosed.
5) Third-party platforms are responsible to let nonprofits know who’s using the platform for their benefit, and are required to let nonprofits
fix issues (wrong logo, mission statement, etc.). There should be a process for the nonprofit to request a funder be removed if he/she is not in alignment with the nonprofit’s mission, and/or is infringing on the mission/brand, etc.
6) Individual nonprofits are required to list out how these crowdfunding-designated funds will be used if funding is raised above and beyond the stated goal. It is the nonprofit’s, not the platform’s, responsibility to ensure designated crowdfunding campaigns set up by nonprofits comply with designated funding regulations and reporting requirements.
7) Platforms should offer nonprofits clear, timely and accessible campaign analysis and reporting during and post campaign
8) The platform should allow nonprofits to reach campaign and donors directly with post-campaign follow-up messages, etc
Comment below or use the hashtag #fundethics on twitter to add your feedback!