Building Donor Trust in Crowdfunding

Posted On: 2022-11-30 11:15:58

Crowdfunding is a practice carried out to raise funds for a cause. It can be personal, corporate or social, any cause that requires funds can be supported by crowdfunding. In India, crowdfunding recently gained momentum and is widely used for medical emergencies. A few Indian crowdfunding platforms set new records for fundraising for charity during the COVID- 19 lockdown. For instance, the India COVID Response Fund, a non-profit people's collective, run by the crowdfunding platform GiveIndia, helped 56 lakh Indians with donations totalling Rs 220 crore from individuals and organisations (ICRF).

 

To raise such huge amounts, a lot of effort, dedication and consistency are required. The fundraiser needs to be shared with the people the fundraiser knows and also promote on social media. Because that's an effective way it reaches more people or we can say, potential donors. 

Well, donors play significant roles in the fundraising process. These donors, with their generous support, are a primary reason for the success of a fundraiser. Hence, having loyal donors or donors who would want to donate to crowdfunding platforms and multiple fundraisers is essential for successful crowdfunding. 

 

There are specific things a crowdfunding platform and campaigners must do to bind their donors in order to build a loyal donor base. If the donors trust the crowdfunding platform, only then will they keep contributing to future fundraisers. Let us see what are the things necessary for building donor trust in crowdfunding.

 

 

 

1. Be Honest and provide absolute transparency

For donors to choose a fundraising platform again, they need to have all the genuine details of the cause to which they are contributing every time. When they are fully informed about a patient, more donors will be eager to make a donation. Donors who have already made a donation to cover the patient's medical costs need to see the patient's current health status. Similarly, potential donors must receive all of this information in order to establish transparency. Make your objectives and goals clear. React honestly to questions, concerns, and comments from donors. Admit your errors, and tell others what you've learned and what you'll change going forward.

 

2. Appreciate their contributions

Appreciating donors brings about a big difference in the process of successful crowdfunding. Thank them promptly and personally. Donor needs assurance that their initial contribution didn't disappear into thin air when they made it. Instant gratification is rooted in human nature. And while it has always been true, it is now even more true in this day and age of digital change. Additionally, they must be assured that it will be used for the desired cause. No general receipts thanking people for "money," please; instead, thank them personally.  Assure the donor that you'll take good care of the resources they've given you. Satisfaction is a major trust-builder and paves the way for long-term relationships.

 

3. Provide two-way communication

Fundraising tasks cannot be completed just through email, websites, or social media. Agents or members are required to respond to the issues of potential contributors. This not only helps in simplifying the procedure but also builds donor confidence. This is so that their conversations with contributors can affect how much they provide. Therefore, courteous dialogue with quick responses will help in raising the necessary funds. Showcase the ways in which your donor's contribution was put to use. 

Not just once, but several times to confirm that they have made the right choice.

 

4. Report an impact

Showcase the precise ways in which your donor's generosity was put to use. Not just once, but several times to reaffirm to the donor that s/he made the right choice. To maintain support, it's essential to constantly gratify donors. Use e-news or blogs. Add articles to your website. Send social media videos and photographs of the progress or success of the cause. The donors will appreciate receiving regular emails explaining how and where their money is being used. Once trust has been established, it becomes easier to keep these donors on board.

 

 

 

5. Make donating an easy process for them

With the advancement of technology, it is necessary to have a flexible form of payment in order to generate money quickly and comfortably for donors. Donors who lack access to certain payment methods might not want to use alternative methods because they might take too long. Providing various payment gateways can also make donors trust crowdfunding more as various payment methods provide convenience to contribute. 

 

The Bottom Line...

As they say, all relationships are built on the foundation of trust and a crowdfunding platform's relationship with donors is no exception to this. Having a loyal donor base is a must for any crowdfunding platform.

Therefore, in order to foster trust, there needs to be strong communication and transparency along with other things between an organisation and potential donors.

 

Author: Anjali Patel