Homework update: being realistic and fundraising platforms

“Haste makes waste, but a stitch in time saves nine.” So in looking at the criteria for last week’s objectives, there is way too much on that objective list to fit into one update, in addition to needing more time and attention to efficiently address each of the criteria I set. Hit the jump to see more, as well as my conclusion from my research on project funding platorms, Kickstarter and IndieGoGo.

Although it’s not impossible to get all the objectives I set out to do in last week’s self-assigned homework for this project, I refuse to sacrifice quality research, especially when I’m not in an extremely urgent situation. There is enough urgency for me to raise funds and collect information, but it’s not worth sacrificing study time for my classes right now. So for this week, finding out about the structure of the 501(c)3 nonprofit business organization type and on the funding platforms of IndieGoGo and Kickstarter are appropriate.

Basically, what every article I’ve pulled up has universally listed IndieGoGo as the superior platform for “crowdfunding“. The basic reasons are as follows:

1) Kickstarter is all or nothing: either you raise the full amount that you have set as your goal and get charged 5% off of what you’ve been raised before you take your money, or you get nothing. IndieGoGo, on the other hand, will charge you 4% interest if you raise the amount you have set as your goal, and if you fall short of your goal, you still get the money you raised, but they will charge you 9% interest. Either way, you get money.

2) Kickstarter requires a U.S. bank account and residence and is focused on projects in the U.S., whereas IndieGoGo is for all around the world. You can receive funds from all around the world for both, however, but my plan is to go overseas and I have people from all around the world who would have a vested interest, namely my friends and other Third Culture Kids not based in the U.S.

3) Both platforms allow for tax deductions if it is a 501(c)3 operation. However, only IndieGoGo allows artists to apply for fiscal sponsorship through their site.

4) IndieGoGo allows for more diversity of projects rather than the strict community guidelines of Kickstarter.

So given that I have a deadline, I have an incentive to get people to help me meet my goal, but if I fall short, I get nothing and I worked for nothing, so that’s one reason I won’t do Kickstarter. Furthermore, I wouldn’t be able to since the project is not based in the U.S, as I’ll be heading overseas most of the time.

Considering this project will encompass both the artistic, entertainment section, and the humanitarian, non-profit field, what I have learned from this is that I have one venue to explore for fundraising.

New objectives: define the goal, make a short piece to demonstrate some talent since people respond to visuals and actual work rather than to ideas and descriptions, then begin the crowdfunding phase of raising money for the project while exploring other options.

My next goal is to look up PayPal and grant writing for other options to get funding. Self-assigned grade: satisfactory.

Resources used for this research:

http://www.alchemistintraining.com/2010/09/indiegogo-kickstarter-winner/

http://www.blog.filmarmy.org/2011/02/crowdfunding-your-film-kickstarter-vs-indiegogo/

http://www.idealware.org/blog/nothing-nothing-kickstarter-vs-indiegogo

http://www.chicagonow.com/blogs/journal-vitriolic-observations/2010/03/crowdfunding-kickstarter-vs-indiegogo.html

http://theleadincense.blogspot.com/2010/07/crowdfunding-kickstarter-vs-indiegogo.html

http://www.theabundantartist.com/crowdfunding-for-artists-part-1/

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2 responses to “Homework update: being realistic and fundraising platforms

  1. Hey Johnny! Thanks for the link to The Abundant Artist. I’m happy that the article was helpful.

    One thing to think about is that Kickstarter receives a LOT more traffic than IndieGoGo. Almost 4x as much. They have a much larger brand recognition.

    I think IndieGoGo is a great tool, but the most important element of crowdfunding is distribution of your message. If you don’t have a large following of your own, then you have to leverage the audience of other people.

    Best of luck to you and I wish you success on your project! Let me know how it goes!

    • Thank you Cory! I appreciate your research and I am enjoying your insights! That’s definitely a good point to consider, so we’ll see how it goes. I’ll be happy to update you on what I eventually put out with this project, unless you are already following the blog for the next year! 🙂 Thanks again!

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