Intro to CrowdfundingFor NonProfits

Jessica Sun, CEO RCTVManolis Sfinarolakis, Founder RCTV

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Purpose

● Gain a better understanding of what crowdfunding is

● Introduce you to the 9 stages of crowdfunding

● Understand the difference between Rewards, equity, and debt based crowdfunding

● Motivate you to use crowdfunding to achieve your organizations goals

● Understand how nonprofits use crowdfunding to their advantage

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Ground Rules

● Participate

● One conversation at a time

● Cell phones off during class

● No laptops

● Ask questions

● Respect others’ opinions

● Respect confidentiality

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Introduction to Jessica Sun

● CoFounder & CEO, Reality Crowd TV Media Corp.● Brand Management, Marketing, and Brokerage Operations

experience in multiple industries● Educated/consulted multiple crowdfunding campaigns on what

crowdfunding is and the process around it● Attended multiple crowdfunding events to get the mission of our

company out there and further educate people on Crowdfunding● Education experience with the NYC Department of Education.

Created curriculums for both Math and Science Classes● Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S-1

documentation for broker/dealer that raised 1.2 billion during IPO.● BA in Math, Finance, and Economics from Binghamton University

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Introduction to Manolis Sfinarolakis● Founder, Reality Crowd TV Media Corp.● Member of Crowdfunding Professional Association (CfPA), Crowdfund

Intermediary Regulatory Advocates (CFIRA), and National Crowdfunding Association (NLCFA)

● Multiple speeches given on the topic of Crowdfunding in states across the U.S., including Connecticut, New York, Georgia, Denver, Seattle, Texas, Washington D.C., and Florida

● Insurance Industry experience with The Hartford Insurance Group within the Internal Audit Department.

● Big 4 Accounting Firm experience with Deloitte & Touche. Auditing S-1 documentation for broker/dealer that raised 1.2 billion during IPO.

● BS in Business Administration, Concentration in Accounting from University of Connecticut

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What is Crowdfunding?

“Crowdfunding is converting social capital into actual capital through the internet.”

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Crowdfunding is growing rapidly

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The 9 Stages of Crowdfunding

● Successful campaigns take at least 3 months of pre-launch activities before they launch their project (to go into detail later in the presentation):

• Business Planning• Intellectual Property• Social Media• Public Relations• Campaign Strategy• Networking & Team Building• Website Development• Profile & Video• Fulfillment

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Donation-Based Crowdfunding

● Used mainly by charities, medical emergencies, or natural disasters.● Top websites used for donation based crowdfunding:

• YouCaring.com• DonorsChoose.org

● No rewards offered, straight donation.● Must have a compelling story that inspires action.● Highly dependent on social capital and relationships.● Amplified by PR and Social Media execution ahead of time.● If 501(c)3, tax benefit to the donors.

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Rewards-Based Crowdfunding

● Contribution in exchange for a reward. Used by many different non-profits, businesses, artists, film makers, and entrepreneurs. The crowdfunding of choice for Startup companies. Capital raised without giving up equity / taking on debt!

● Top websites used for rewards based crowdfunding:• Kickstarter.com• IndieGoGo.com

● Highly dependent on social capital and relationships.● PR is most important, followed by social media.● Video must be top notch to tell a compelling reason why they should

invest in the person’s project, especially if it is a for profit enterprise.● Must reach 30% of funding within the first week of the campaign (90%

success).

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Equity-Based Crowdfunding

● Investment in exchange for equity. Title II, Title III, and Title IV of the 2012 JOBS act.

● Title II allows for the general solicitation of Accredited Investors for investment in small businesses via the internet or crowdfunding websites.

● Title III will allow for the general solicitation of Un-Accredited investors for investment in small businesses via the internet / crowdfunding websites.

● Title IV allows for general solicitation of both Accredited and Un-Accredited investors, however, it is state by state crowdfunding and takes months to close.

● Top websites used for equity based crowdfunding:• Angellist.com• Realtymogul.com

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Debt-Based Crowdfunding● Investment in exchange for bond. Title II, Title III, and Title IV of the

2012 JOBS act.● Title II allows for the general solicitation of Accredited Investors for

investment in small businesses via the internet/ crowdfunding websites.● Title III will allow for the general solicitation of Un-Accredited investors

for investment in small businesses via the internet/ crowdfunding websites.

● Title IV allows for general solicitation of both Accredited and Un-Accredited investors, however, it is state by state crowdfunding and takes months to close.

● Top websites used for debt based crowdfunding:• Patchofland.com• LendingClub.com• CircleUp.com

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Successful Crowdfunding Examples

● Case Study: The Pebble Watchhttps://www.kickstarter.com/projects/597507018/pebble-e-paper-watch-for-iphone-and-android

● Case Study: Rotunda Ballhttps://www.indiegogo.com/projects/rotunda-ballRaised more than $22,000 to restore the historic UVA Rotunda

● Case Study: Parkinson's. We're In This Togetherhttps://www.indiegogo.com/projects/parkinson-s-we-re-in-this- together#homeDonor and prominent Venture Capitalist Bill Draper made his annual contribution publicly via a crowdfunding campaign, where he pledged to match every donation up to $100,000

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5 ways Nonprofits can use Crowdfunding

● Generate buzz, get media coverage, promote your brand• Crowdfunding is new. You will be the forefront in media coverage on

crowdfunding news• People will begin to see your organization's values and learn what

your brand is all about● Engage your supporters

• Utilize rewards tiers to get your supporters interested. • Choose rewards that will have your supporters directly involved

● Grow your network• Getting yourself out there helps grow your network. As people look

for organizations to donate to, your campaign will be at the forefront for people to see.

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5 ways Nonprofits can use Crowdfunding

● Attract Corporate Attention• Corporate sponsors love seeing numbers from fundraising efforts. • The more you engage the more sponsors will be interested in your

cause

● Gauge public interest• Test the market. Is your project something that resonates with the

public?• Get feedback from the public. What can you change to make it more

appealing for people to donate or for sponsors to want to get involved?

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Top 10 Nonprofit Crowdfunding Platforms

1. Razoo:  “a movement of people who want to make generosity a part of everyday life.” Over 14,000 nonprofits have used this platform to raise around 100 million.

2. Causes: For people who want to change the world. Categories vary from disaster relief efforts to human rights. Causes has raised more than 30 million for nonprofits.

3. Buzzbnk: A UK platform that supports social entrepreneurs and innovators. “Positive People Backing Bright Ideas.”

4. StartSomeGood: StartSomeGood empowers “social innovators,” and forwards the trend of social entrepreneurship. It is a relatively new social site.

5. Crowdrise: Named the “Top 25 Best Global Philanthropist.” Since 2009, Crowdrise has helped bring together volunteers and philanthropists to spread the call of service.

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Top 10 Nonprofit Crowdfunding Platforms

6. CauseVox: Is a NYC startup social site that focuses on helping small to medium sized nonprofits raise funds and have a social impact.7. Kickstarter: A project crowdfunding website that any organization or individual can use to finance their event or project.8. Indiegogo: An international crowdfunding site for creative types that can also be used to raise money for charity and non-profit organizations.9. Rockethub.com: A crowdfunding platform used by all types of organizations and individuals ranging from scientists to philanthropists.10. Pozible.com: An Australia-based website that encourages creative projects and ideas. This website can also be used for charity purposes.

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Workshop Activity

● Get into groups of 4

A. Discuss ways you can utilize crowdfunding to get your cause to reach your target audienceB. Discuss project ideas. What types of campaign can you use crowdfunding for within your organization?C. What are some obstacles your organization is facing now? Can crowdfunding help?D. What are some things your organization uses currently to get funding? Come up with ideas how you can utilize crowdfunding to enhance these activities.

We will then come together and discuss as a group.

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Questions?

● Our contact information:

Email: Info@realitycrowdtv.com

Website: www.realitycrowdtv.com

Phone: 203-232-2462

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NPower’s HandsOn Tech Workshops:

• Symantec Cybersecurity for Nonprofits (PRO BONO WEEK)Thursday October 23rd, 11:30 am to 12:30pm

• Intro to Google for Nonprofits (PRO BONO WEEK)Thursday Oct. 23rd, 1 to 2:30 pm

• Google Analytics for NonprofitsWednesday October 29th, 10:00 to 11:30 am

• YouTube, One Today & Consumer Surveys for NonprofitsWednesday November 19th, 10:00 to 11:30 am

Register for these workshops and more at: http://bit.ly/HandsOnTechNYC

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NPower’s Resources

• Register for The Community Corps: Register your nonprofit today with NPower’s network of 4,300+ skilled tech volunteers. It takes about 3 minutes. http://bit.ly/TCCorp

• Post a project: When you post a project on The Community Corps you will receive free tech support! Need more help with social media? We have a project. Need an internal tech assessment? We have that too. Check out our complete project listing here: http://bit.ly/1A8K53t

• Ask for support: Not sure where to begin? Need some help getting started? Reach out and talk to someone: Esteban.Cruz@NPower.org or call 212-444-7282

Thank you for attending the workshop!

For more information on NPower and The Community Corps visit

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