PROJECTS FOR GOOD
Which fundraising model is right for me?
by Maimoona from Projects for Good
Published on March 14, 2019

Projects for Good offers a few options for how you raise funds

Before you start your project we recommend that you outline your story, gather images, and consider what type of fundraising model suits your project best.

We truly believe that we are building a community of individuals who want to make a huge difference in their local or global community. This is why we’re excited to have these three models of fundraisers so that we can offer our project owners the best option for their success. Read on to learn more about our Defined Goal, Flexible Goal, and Multi-Stage project fundraising models to see which is right for you!

 

Defined Goal: You define the fundraiser amount based on the funds you will require to complete your project. Your fundraiser must reach 80% of the goal for you to receive the funds raised. You will receive the funds once the project ends or if you reach 100% of your goal, whichever comes first. Projects that are time sensitive or that require the purchase of specialized equipment to complete are good examples of projects that should have a defined goal. If you can’t complete the project without the funds, this is the best model to mobilize your community and be successful in your determined time frame.

Pros: This all or nothing model with a finite timeline can mobilize a community and gain momentum based on a sense of urgency. Psychologically there is a desire to keep pushing a project towards a tipping point, knowing that if funds aren't raised the project fails. Another benefit for potential donors is that they know that their donation will be returned and not misused if a project doesn’t raise the money it needs to be successful.

Cons: If your project is close to being a success but doesn’t hit 80%, funds are returned to the donors. While this creates a trusting relationship, there is a chance you might miss these people when/if you relaunch your project.

Flexible Goal: This is our simplest type of fundraiser and works best for projects that benefit from any amount of money. You get to keep what you raise regardless of whether you meet your goal and money will be deposited in your account weekly. Projects to buy supplies for homeless shelters, disaster relief projects, or scholarship fundraisers are good examples of projects that benefit from a flexible goal. 

Pros: If any little bit helps, this model ensures that you don’t miss out on help others. You’ll be able to use the funds as they are needed and make an impact over time.

Cons: Without a sense of urgency, people might be less likely to donate. Without the promise of a tangible outcome, people might wonder where their funds really go and if it really made an impact. While not required, we encourage our project owners with flexible goals to make updates on their project page so that donors can see results.

Multi-Stage: This fundraiser breaks down a project into multiple stages, each with a clear outcome. Each stage will have defined amount, and unless you reach 80% of that amount your project will not move to the next stage. This model is perfect for projects that need a clearly outlined set of steps to be successful. A project to build a community garden is a good example of a multi-stage project. You will first need to purchase or obtain rights to use the land, then clean the land, then build the structures and purchase plants. Without the land, there is no need to raise funds for cleaning or the purchase of items.

Pros: A multi-stage project is a built-in project management tool! You’ll be able to clearly communicate your project's process and keep on track with milestones. You can also add milestones as time goes on, and capitalize on momentum if your project does better than anticipated! If you need services or products, the service provider will be able to clearly see a timeline of when their services will be needed.

Cons: Multi-stage projects require more planning. We recommend this type of project for our more experienced project owners. However, you can launch a project as a multi-stage project but add in the stages later. So if you’re a new project owner but like this model then please don’t hesitate to use it!

You'll choose your fundraiser model under the "Fundraising Details" section when you create your project. We are always here to help with your project set up, please reach out at any time by email, via Facebook, or @projectsforgood on Instagram.

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