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The 101 Guide to Crowdfunding Campaigns! How do I make it work?


Are you struggling to find funds for your cause? Have you tried many alternatives but found it challenging to make it work? Crowdfunding is your Solution!

When an organization, business, or an individual requires funding for their venture or project; Crowdfunding is been one of the modes of collecting money from a crowd of people rather than collecting funds from a particular individual person or agency. Crowdfunding campaigns are about raising money for a cause either with the intention to pay it back or accept it as a donation.

There are two types of Crowdfunding; Non-Profit organizations and For-Profit organizations. Non-profit organizations ask for donations for a cause to help someone without expecting anything in return. For-Profit organizations focus on collecting funds in the form of debt or equity to pay it back after a stipulated time. 

Typically, Crowdfunding campaigns are often conducted on Internet platforms where the cause is explained and the monetary goal is set to power such campaigns. 

Below is the list of causes that people usually run crowdfunding campaigns:

Top Popular causes to run crowdfunding campaigns:

  • Cancer Treatment & Awareness
  • Animal Causes
  • Entrepreneurial Projects
  • Clubs and Organizations
  • Fraternities and Sororities
  • Memorial and Funerals
  • Military and Veterans
  • Medical Expenses
  • Non Profit causes
  • Wedding and Honeymoons
  • Political campaigns
  • Trips and Adventures
  • Religious causes
  • Sports Teams
  • Individual Fundraising needs
  • Schools and education

Crowdfunding campaigns serve different purposes but in the end, they all have the same goal of raising funds from interested investors or donors. 

Let’s learn what are the types of crowdfunding campaigns and the common factors that influence a successful crowdfunding campaign.

Fundraisers who search for crowdfunding platforms are looking for funds from a group of people instead of focusing on one or two major investors. To raise such funds, generally, there are four types of Crowdfunding campaigns, i.e., Donation, Equity, Debt, and Rewards.


The amount raised through crowdfunding equity is considered an investment because participants receive shares based on the amount contributed. An equity-based crowdfunding campaign that is generally run by a small establishment offers a small portion of their company in exchange for money. 


Donation crowdfunding aims to collect money without giving anything in return in terms of money. Non-Profit organizations raise funds for a cause, mainly with the aim to help somebody in need. Many individuals donate money with a good conscience to help others. 


You can also raise money from crowdfunding campaigns but in the form of a loan where you have to promise to pay contributors back in a stipulated time. Such campaigns raise funds to pay back the money via debt crowdfunding campaigns with interest after a stipulated time.


Donors who donate funds for the campaign receive a token of appreciation. The rewards may vary depending on the money donated or, it may be a common gift for everyone. Rewards are considered as an act of gratitude to the donors for their donations. In some cases, Rewards are ROI for Equity Crowdfunding.

Ground rules for Crowdfunding:

Crowdfunding campaigns do have a set of rules that prohibit any unlawful and illegal practices. For example, Equity crowdfunding campaigns have a list of items prohibited in the project, such as drugs, weapons, etc. So before choosing a crowdfunding platform, make sure to read the terms and conditions. Jump-starting a campaign without reading the rules will result in repercussions, i.e, heavy fines, court hearings, chances of getting arrested, etc. 

How do I create a solid plan for a successful crowdfunding campaign?

Prepare well in advance:

To successfully launch your campaign, you should first plan and spread the word to your colleagues and friends. By doing this, you are already creating a group of donors or supporters to spread awareness about your campaign. It increases your chances of getting more donors by providing them all the relevant information firsthand. 

Prepare your campaign a week in advance by keeping the videos and images ready before the launch. Be active on social media by regularly updating your campaign updates and share information via email to spread awareness. Keeping yourself prepared well in advance will help you reach your crowdfunding goal. 

Create Engaging Marketing materials:

The only way to gain donor engagement to your campaign is to create a great set of marketing materials to make your campaign stand out from the others.

Convincing donors to donate to your campaign requires an emotional connection. People usually donate because they believe that they are making a difference. Your job is to convince donors to believe in your campaign and how you do that depends on many parts of your success that can be attributed to marketing materials.

Add images, videos, and a brief summary about your cause to explain why you are raising money, how it will work, and explain the purpose of the campaign. Making your campaign informative will win donors’ trust to fund your cause and gain recognition. Creatively design your campaign to grab donor’s attention. 

Turn your crowdfunding website to be more capable with extension & tools:

If you already have a website for crowdfunding but wish to add more features so that your donors can get more information and value out of it then you should look out for extensions & tools that can help you achieve your goal. Crowdfunding tools provide a smooth experience to the supporters as well as fundraisers. 

Below I have mentioned some of the benefits of having a crowdfunding tool:

  1. You can add a media gallery such as images or videos to your campaigns for creating a better impact on donors.
  2. Get suggestions on using SEO meta keywords and descriptions for better visibility of your campaign.
  3. Create user engagement by adding like/dislike and comments.
  4. Get a detailed report on the campaign performance to check the amount raised, fees incurred, commissions & more.
  5. Add multiple payment gateways for an easy check-out process.

Apart from the features mentioned above, there are many benefits that you can get from a crowdfunding tool. JGive is one of the best crowdfunding tools that you can check out for your Joomla website. It is a power-packed tool that comes with all the capabilities to run a successful campaign. Experience an all-in-one solution that ensures that your crowdfunding campaigns get the Right attention. 

Maintain the relationship with your Donors:

Even after your donor has donated money to your campaign, you have to make sure to keep them in the loop. Maintaining a relationship with your donor often results in a successful crowdfunding campaign in the long run. When you regularly update your donors about the progress of your campaign, you create a sense of belonging. 

Common obstacles faced by Crowdfunding campaigns:

Crowdfunding is not easy! It is definitely not a free way to make quick money. To create a campaign you need a lot of time and effort to make your donation page look more appealing. Even though you have successfully launched a campaign after weeks of planning, you still may not find the results you had expected. There is no guarantee that you will achieve the desired goal.

According to the Fundera survey, there were 6.5 lac worldwide crowdfunding campaigns in 2020 alone. As crowdfunding campaigns are gaining popularity, donors are shrewder than before. It means that the donation campaign should look authentic, and the cause of your campaign should be strong enough to get donors' support. 

Factors that influence the crowdfunding campaigns are as follows:

  1. Implement a cost-effective marketing strategy to run a crowdfunding campaign.
  2. Curate a Strong and appealing message for the donors to get hold of their attention and earn their trust.
  3. Develop a compelling video to explain the motive behind your campaign.
  4. Decide on a perfect rewards program for the donors to increase the ROI.
  5. Choose the right crowdfunding platform for your crowdfunding campaign to attract the right investors or donors.
  6. Avoid thieves stealing your Idea by implementing copyright laws and NDA agreements.
  7. Maintain relationships with your donors and deliver rewards as promised.

Process of Running a Crowdfunding Campaign:

  • Choose a Platform to run your campaign
  • Set up your campaign with Images, Videos, and Brief Description
  • Promote your fundraising campaign on social media and email
  • Track your campaign performance
  • Thank your donors and update them about your campaign reaching the desired goal. 

Final Note:

You can withdraw the total money raised when the campaign has successfully reached the desired goal. A processing fee is deducted from the total amount raised by some websites. On the other hand, if your campaign does not reach the targeted goal, the funds are returned to the backers of the crowdfunding platform. But there are some platforms that give an exception by allowing you to collect the fund by charging a nominal amount even though it has failed to meet the target. 

Click here if you want to start your own crowdfunding marketplace or campaign.

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