Determining your fundraising goal can be tricky. While you may want to raise as much money as possible, you don’t want to over-price your campaign, nor do you want to underestimate its potential. A fundraising goal that is too low may hit its target quickly, leaving you wondering if you could have set the bar higher. On the contrary, if the bar is set too high, you could scare off potential donors who would donate if the goal was more realistic.
Setting a fundraising goal is very campaign specific, but keep these points in mind as you consider it. With some exceptions, it’s typical to accept projects with goals between $1,000 and $25,000, and the average successful crowdfunding campaign raises $7,000 (Fundy, 2018).
This is a good starting point, but depending on the needs of your crowdfunding campaign, your campaign goal might need to be higher.
1. Do Your Research
Have you considered how much you will need to run your campaign, execute your project and maintain it? If your goal is high, consider breaking down why you need the donations, and what it will be going towards if your campaign is fully funded.
- Try working backwards on what you want to get out of the campaign to ensure that your current campaign wouldn’t be more effective if it were divided into multiple, smaller campaigns.
- First determined any fixed costs, whether those are travel, supplies, and so on.
- Next try to calculate how much money you will need to raise per day of your campaign. Use this number as a rough estimate. An average crowdfunding campaign lasts 2 months, but this timeframe can be adjusted depending on your needs
If you do not raise your daily donation target, do not worry too much. This is just to help you get a sense of your average daily donations to be successful. But aim to push and market campaigns over your daily average donations. Campaigns that can gain 30% of their goal within the first week are more likely to succeed.
2. Assess Your Network
Identify individuals in your network who you expect to fund your campaign. This may include friends, family, or even complete strangers. It is suggested that you secure at least 30% of your funding goal before the campaign is launched. This will help your campaign gain momentum right of the gate.
3. Charitable Donations
Keep in mind that contributions made to your campaign can qualify as a charitable donation. All contributors can receive an official tax receipt. This may entice people to donate a little bit more, or encourage those that were previously on the fence to make the leap.