Crowdfunding for nonprofits: Is it right for your organization?

Crowdfunding can be a powerful way to fundraise for your cause. In fact, over a third of donors contribute to nonprofit crowdfunding campaigns.

If you're unsure about the basics of crowdfunding for nonprofits, you’re not alone. Many organizations struggle to understand exactly what crowdfunding is, when it makes sense to use it (and when it doesn’t), and how to create a campaign from scratch. 

The good news is that we’re here to help.

In this blog, we’ll walk you through the fundamentals, including the pros and cons to consider. And if crowdfunding is the right fit for your nonprofit, we’ll show you how to run your own campaign from pre-launch to close, so the entire process stays simple and smooth as butter. 

Key takeaways 

• Weigh the pros and cons ⚖️ Crowdfunding can be a powerful way to rally your community, but it’s not ideal for covering operating costs or for organizations without an established donor base.
  
• Start with pre-launch planning 🗓️ About 2–4 weeks before your campaign, define your goals, choose a fundraising platform, and set up your campaign page.
  
• Launch strategically 📣 Spread the word about your campaign across all your outreach channels, including text, email, social media, and direct mail.
• Build momentum 🔥 Target unresponsive donors, send campaign updates and impact stories, and give thanks as donations come in.
• Close it with urgency ⏰ Remind donors of your approaching deadline and make one last donation appeal to help you reach your goal.
  
• Launch a crowdfunding campaign for free with Givebutter 🧈 With tools to build a custom crowdfunding page and a powerful CRM to track donor information and gifts, Givebutter helps you raise more funds without added costs.

What is crowdfunding & how does it work?

Crowdfunding is the process of raising small amounts of money from a large number of people to help fund your mission. 

While crowdfunding can support new businesses or for-profit organizations, donation-based crowdfunding for nonprofits (which we’ll focus on in this guide) involves rallying individual supporters to give, rather than soliciting large private donations or running high-budget marketing campaigns.

Crowdfunding typically involves: 

• A specific goal 🎯 Nonprofits set a clear fundraising target with a compelling “why” behind it (“We’re aiming to raise $6K by December 15 so we can build a new warehouse”).
  
• Clear timeline 🗓️ Campaigns usually run 30–45 days, creating a sense of urgency without dragging on so long that supporters lose interest.
  
• Many small gifts 💸 Unlike other kinds of fundraising campaigns, crowdfunding success comes from mobilizing a large number of people to give what they can, creating collective action.

Back to basics

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Crowdfunding pros & cons to know 

Crowdfunding can be a compelling way to raise funds and connect with your community. However, it can also come with a few drawbacks that nonprofits should understand before diving in. 

Here are the key pros and cons to help you decide whether a crowdfunding campaign is the best fit for your mission, goals, audience, and resources. 

Benefits of crowdfunding

• Low barrier to entry ✅ With the right tools, you can launch a campaign quickly and without a large upfront investment.
  
• Expands your donor base ✅ Crowdfunding reaches people far beyond your usual circles. Many small gifts and social shares can create a major ripple effect.
  
• Creates urgency ✅ Unlike a general donation page, crowdfunding is typically time-bound, which acts as a natural motivator for people to give.
  
• Provides flexibility ✅ Crowdfunding can work for many different types of initiatives, from holiday appeals to urgent needs.

Drawbacks of crowdfunding

• Not a sustainable revenue model ❌ Crowdfunding is most effective for specific projects, not ongoing operating costs. Many nonprofits use it alongside grants, sponsorships, and recurring donor programs.
  
• You’ll need an audience first ❌ Organizations with an engaged community of supporters tend to have the most successful campaigns.
  
• Requires a lot of promotion ❌ Crowdfunding relies heavily on marketing to spread the word, which can be time-consuming and costly.
  
• You need the right platform ❌ With so many crowdfunding tools to choose from, selecting the wrong one can hurt the donor experience, add unnecessary fees, or even cause compliance issues.

More to explore

Learn how to start a fundraiser from scratch →

How to get started with nonprofit crowdfunding

Not all crowdfunding campaigns are created equal. Some go viral and raise money with ease, while others struggle to attract attention. Don’t panic—we’ve got the exact steps to help you stand out, make an impact, and reach the right people. 

Whether you’re new to crowdfunding for nonprofits or want to see better results from your next campaign, here is everything you need to do, from pre-launch to close. 

Prep ahead of time (2–4 weeks before)

All successful campaigns (crowdfunding or not) require planning. A strong pre-launch helps you set the foundation for your campaign, align your stakeholders, and gain confidence leading up to launch day. 

At this stage, nonprofits should:

• Set a goal 🎯 Create a SMART goal that’s specific, measurable, attainable, relevant, and time-bound. A clear fundraising target keeps you focused and reduces the risk of getting distracted by decisions that steer you away from your objective.‍
• Understand your target audience 😊 Identify your audience, including age, location, and donation history. Then, dig deeper to learn what motivates them to give, what they care about most, and which social media platforms they use.‍
• Find the right fundraising platform 🖥️ Once you know your goals and your audience, choose a fundraising platform that supports them both. Look for a solution that brings together events, auctions, donor management, and marketing in one place—so your team can spend less time switching tools and more time engaging supporters.‍
• Set up your campaign page 💸 Create a page with custom branding, embedded donate buttons, and multiple donation options (Venmo, Apple Pay, Cash App, etc.). You’ll also want to share who you are, what you do, and why your fundraiser is a mission worth supporting. 

See how we stack up

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Launch strong (days 1–3) 

Now it’s time to spread the word about your campaign far and wide. The most effective approach is a multichannel campaign, announcing your fundraiser through:

• Email 📩 Send an email series that clearly explains when your fundraiser begins, when it ends, and how much you're trying to raise (with a direct link to your campaign page).
  
• Social media 📱 Post across all channels where your nonprofit has a presence, tailoring the format to each platform (e.g., videos for TikTok, text posts for LinkedIn).
  
• Direct mail 💌 If your audience skews older, direct mail is a great option to catch their attention and encourage giving. Include a QR code that links to your campaign page or instructions for sending a check.
  
• Phone calls ☎️ Task a few team members with calling your most well-connected supporters and asking them to donate and share your campaign with their networks.
  
• Text 🤳 If you have a younger donor base or just want to stand out, send a short, compelling text that alerts supporters about your campaign and makes giving easy.

Dive deeper

Create a marketing plan for your most important channels →

Keep the momentum going (days 4–closing week)

This phase is all about keeping in touch with your audience. Research shows that crowdfunding campaigns that provide consistent updates receive 126% more donations.

To keep supporters engaged and giving, nonprofits should:

• Share progress updates 📣 Engage with supporters across all your channels as you progress toward your goal. Regular updates generate excitement and urgency to give.
  
• Tell impact stories 💛 Showcase interviews with beneficiaries, behind-the-scenes work, and real examples of how donations make a difference.‍
• Target unresponsive supporters 👋 Review campaign data to identify supporters who haven’t engaged with your campaign yet. Segment these groups and try reaching them with fresh messaging.‍
• Show appreciation in real time 🙏 As donations roll in, publicly thank donors and highlight their impact on all your platforms.
  

💡 Pro tip: If you surpass your goal before your deadline (congrats!), consider increasing your target strategically so you don’t alienate early donors. Frame the new goal around expanded impact while reassuring donors that there’s no pressure to give again.

Get inspired

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Close with urgency & gratitude (final 48–72 hours)

The end of the campaign is just as important as the beginning. As you close out your project, offer supporters one last chance to give and show as much gratitude as possible.

• Lead with urgency 🚨 As you approach the deadline, emphasize urgency with reminders like, "Only 2 days left" or "We're 85% there. Help us close the gap.”‍
• Make personal appeals 👥 Ask your staff to personally reach out to supporters who haven’t donated yet and invite them to help you reach your goal.‍
• Give thanks 🫂 Once you’ve hit your goal, or the campaign has ended, promptly thank supporters and share what happens next. If you exceed your goal, explain how you’ll use the additional funds so no one is left guessing.

More to explore

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3 successful crowdfunding campaign examples 

These real-world crowdfunding examples show what’s possible when you combine clear goals, strong storytelling, and the right tools. 

1. International Foundation for Contemporary Music 🎶

A nonprofit dedicated to the creation, performance, and education of contemporary music worldwide, the International Foundation of Contemporary Music used a crowdfunding campaign to help offset the costs of performances. 

⭐ Standout feature: An embedded video on their fundraising page announces their campaign and explains why it matters. This highly effective strategy can help nonprofits raise 150% more.

💛 What donors love: The campaign centers around a specific goal with a clearly defined deadline (“We are crowdfunding with the goal of raising $5K between September 1st and September 14th, 2025”), making it easy for donors to understand the urgency and importance of their support.

2. Houston Design Collaborative 🎨

Houston Design Collaborative, which focuses on creating a vibrant and engaged design community in Houston, launched a crowdfunding campaign titled “WE ARE HERE”, aiming to raise $25K by February 2026.

⭐ Standout feature: A fundraising thermometer that clearly shows how close the campaign is to meeting its goal

💛 What donors love: HDC outlines exactly what the campaign is about and what donations will help them achieve (build a collaborative network, foster community engagement, and support educational initiatives). 

3. The Rett Syndrome Research Trust 🏥

The Rett Syndrome Research Trust, which works to cure Rett Syndrome, launched a crowdfunding campaign to raise $40M to bring three genetic medicines into clinical trials by 2028.

⭐ Standout feature: Simple social sharing tools for donors to spread the word within their networks

💛 What donors love: The campaign page features a supporter feed for updates and public thanks, making everyone feel like part of the community.

Dive deeper

Learn the ins & outs of peer-to-peer fundraising →

Start crowdfunding for free with Givebutter

Crowdfunding is a powerful way to raise critical funds for your mission while creating a community around your cause. By approaching the crowdfunding process in four dedicated phases, your nonprofit can set its next fundraiser up for success. 

And with Givebutter, you can launch a campaign in minutes, for free! Get all the tools you need to create a compelling crowdfunding page—a built-in Canva integration, the ability to add videos, progress bars, and more—plus a powerful CRM to track donor information and gifts. Givebutter helps you raise more for less.

Sign up for a free Givebutter account and get all the tools you need to start crowdfunding like a pro. 

FAQs about crowdfunding for nonprofits 

What is donation-based crowdfunding?

Donation-based crowdfunding is a fundraising model where supporters give to a cause or mission without expecting a product or service in return (unlike reward-based crowdfunding). 

What is a crowdfunding campaign?

A crowdfunding campaign is a time-bound fundraising effort with a specific goal, deadline, and compelling story. These campaigns are typically best suited for funding individual projects or needs rather than general organizational support.

Who are crowdfunding backers?

Crowdfunding project backers often include your existing supporters, along with their friends and family, and new donors who discover your campaign through social sharing. 

Can nonprofits use crowdfunding for operating expenses?

Technically, yes, but crowdfunding is rarely sustainable or strategic for long-term operating costs like salaries or rent. That’s because "keeping the lights on" campaigns usually lack urgency, specificity, and emotional resonance, resulting in lower performance.

How can nonprofits get crowdfunding help?

To support your crowdfunding efforts, tap your board members, volunteers, or fundraising committee to help promote and manage the campaign. Consider working with a consultant if this is your first major campaign.