Crowdfunding continues to grow as a means in which for-profit and nonprofit individuals, businesses and organizations acquire the necessary funding for projects and campaigns or individual needs. According to smallbizgenius, global crowdfunding grew to 84 billion dollars by 2018, projecting the market share to reach 114 billion by 2021.

Although seemingly daunting, crowdfunding can provide an expanse of individuals, groups and organizations the opportunity to build the financial resources to launch projects.

“Crowdfunding is an amazing tool for entrepreneurs and nonprofits alike,” explains crowdfunding coach, Khalida DuBose. “On the entrepreneurial side, crowdfunding is a tool that can and should be used for not only funding an endeavor but also for creating buzz and excitement around that endeavor, whether it is a new product, service, business or idea.”

But how does one do all that effectively? Simply creating and posting a crowdfunding campaign isn’t going to get you far. Khalida founded her crowdfunding coaching service, Crowdfund Savvy in 2019 but became a crowdfunding coach in 2017. She has supported more than 1,000 campaign and project creators in their quests to bring their dreams, passions and ideas to the world.

With so many organizations and individuals pushing hard right now on year-end fundraising campaigns, I sought out Khalida for advice and tips about raising essential funds and capital for entrepreneurs and nonprofits.

Khalida explains that crowdfunding can be a dynamic venture, offering chances to network and establish branding for a nonprofit initiative or for-profit business.

Crowdfunding can help entrepreneurs validate their ideas in a very tangible way by seeing if the crowd is willing to back the idea,” says Khalida. “When referring to reward-based crowdfunding, there are different types of strategies that entrepreneurial project creators use such as, Pre-sell campaigns, All-or-nothing campaigns and [flexible] funding. Each has distinct advantages and disadvantages. There are many more ways that crowdfunding is beneficial; these are a few examples.

Khalida outlines why nonprofits may choose to engage in recurring initiatives to build their reputations.

“For non-profits, in my opinion, the best use of crowdfunding by both established and newer nonprofit organizations is the use of crowdfunding to host very specific campaigns that are run by the organization on a regular basis,” she explains. “For example, they have an annual food drive campaign or semi-annual campaign that is overall aligned with their mission and brand.

“I think crowdfunding, in this case, helps to establish credibility, bring in new donors and fans, and help spread the word about the organization. Nonprofits should aim to use crowdfunding strategically and make sure campaigns are very aligned with their mission and vision and the overall brand. Keep in mind, that crowdfunding can be used in ways that can hinder an organization as well so it is best to be strategic when deciding to crowdfund.”

Crowdfunding can require a lot of strategy and eventual outreach to potential donors. In a previous Haute Hijab article, LaunchGood co-founder, Amany Killawi describes how daunting both can be for crowd funders.

“Crowdfunding is work. You have to reach out and ask people. I think the biggest thing is that people are afraid to reach out and ask.”

Asking for money is often a challenging task, and creating a fundraising platform can seem like too much work. Many may choose not to do either, leaving projects in the idea phase and organizations struggling to maintain sustainability. However, Khalida explains how assistance from a crowdfunding coach may help in attaining donations to get projects off the ground.

“The concept of crowdfunding is pretty simple, but planning and executing a campaign isn't easy,” Khalida says. “Crowdfunding coaches can be useful in everything from helping project creators understand foundational crowdfunding principles to strategizing and planning out the entire campaign with the project creators.

“In my practice, I do all of the above as well as help project creators in sometimes unexpected areas, like their mindset around asking, staying on track to execute a smooth campaign launch, helping with team dynamics, logistics after the campaign wraps up and more.”

Khalida points out that crowdfund creators should expect to do the heavy lifting of acquiring donations, and that coaches are supporters, not fundraisers.

“What most crowdfunding coaches don't do is raise the funds for the campaign creator or run the campaign. This is a very popular misconception.

“Authenticity is key in crowdfunding. Especially when considering [various] aspects of the campaign, like connecting with your target audience or really communicating the value of your idea, product or service. If the coach is running the campaign on behalf of the campaign creator, a lot of the intimacy and authenticity of that project is lost, and that usually translates to an unsuccessful campaign in terms of funding.

“Project creators still have to rally their networks for support. Exposure alone sometimes helps to raise funds, because the more eyes you have on your campaign the better. Sometimes just having a live campaign at a time when there is a lot of traffic on a crowdfunding site is helpful, but it is still very important for project creators to make sure they are heavily promoting their own campaigns.”

Any worthwhile project will require that those creating them work to get the funds needed to achieve their objectives. If they don’t believe in the venture enough to do some groundwork, no one else will. So, roll up those sleeves!

Khalida offered potential crowdfund creators some tips to launch a campaign, noting the importance of considering specific needs for one’s campaign.

“The first three things someone should do when crowdfunding can differ depending on what the campaign is; for but for the sake of simplicity, a general idea that could work for all of the above categories is the following:

1. Gather a team: “If anyone is crowdfunding for a creative/entrepreneurial pursuit or for an organizational reason, [they] should see if they can recruit a team member or two and talk about the distinct roles each will hold during their crowdfunding journey.

“The statistics speak for themselves in this area.” According to Fundera, team-driven crowdfunding campaigns raise 38 percent more than solo campaigns. “There is so much planning that goes into creating and executing a stellar campaign, [so] it is important to have at least one or two dedicated team members.”

2. Establish the Stakeholders: “The second thing [to consider] is who is the campaign for? Take some time to think about this question. If you are running a charity campaign, the answer shouldn't be, "This campaign is for the people who are ultimately benefiting from it.

“[Also ask yourself] who are the people [most] likely to be supporters of this campaign? That is your crowd. If it is a creative pursuit, [ask] who will use this product/service. Think specific, not general. You have to dig deep and then start testing your assumptions.”

3. Develop a plan: “Come up with a strategy for planning and executing your campaign. Be patient and disciplined in seeing that strategy through and all of the hard work will pay in dividends.

“In all honesty, all of these steps can be a little tricky to inexperienced crowdfunders. So, I recommend if you need help, seek it from experienced people. [Assistance can come from] a team member who has experience crowdfunding or you [may decide to] hire a coach," says Khalida. The important thing here is to make sure you are being strategic and not leaving anything to chance.”

If your mind is full of great ideas to help the ummah but your pockets are empty, consider a crowdfunding plan and structuring a team to bring them to fruition. It may seem intimidating, but with a strategy and work can help connect with donors looking to fund a humanitarian project or business.