As the old saying goes “Give a man a fish, and you feed him for a day. But teach him how to fish, and you feed him for a lifetime.” The same can be said about the enduring nature of the pledges made to crowd funding projects, and the manner in which such pledges can have a residual effect, from which the project creator (and others) may continue to benefit again and again, over many years.
A classic example of this is a company who came to iPledg recently to discuss a crowd funding solution to a problem that they shared with their client base. This company provides sustainable, price saving and green solutions for the provision of power, heating and lighting. What we came up with delivered results that are potentially nothing short of outstanding.
Their dilemma was that their customers, many of them community groups and charities, could not afford the green power solutions that would deliver continued cost savings over future years, as well as a solution with a greater green footprint, and one that would reduce their carbon foot print.
The solution is crowd funding.
Their charity and community group clients are now offered the solution, along with the funding to achieve implementation. The provider informs their clients that they can save thousands each year on their power bills (and we all know that a saving for a charity means greater deliver of aid or services). And the cost of implementation of the solution is zero! They simply create a project on iPledg and fund the cost of lighting, solar panels, or whatever through the cooperation of the crowd. If it is one thing that most charities and community groups have is a fan base, followers who can be called to action to support sensible initiatives.
The provider now gets the client to crowd fund the cost of installation. So as to take full advantage of the “all or nothing” crowd funding model, they start with a low target (say $5,000) to change over their lighting to an option that will reduce their monthly power bill. This sets the bar low, and any funds raised above this can go to higher targets for more costly projects that will deliver an even greater saving to the charity over time. This is all written into the project description – for example the funding target for the campaign may be $5,000, but the project description might add that if they exceed their target and get to $15,000 they can get another cost saving solution, delivering even greater savings, and so on right up to very large amounts. During the campaign, the crowd is then encouraged to keep going to the next milestone each time, eventually delivering a greater result than initially planned.
So not only does the charity get the benefit of a fully funded campaign, but they get the enduring benefit of cost savings that their project delivers. Imagine the difference to the beneficiaries of the charity, with the charity now having potentially tens of thousands of dollars more in their account to deliver service and aid to their community. So the charity benefits, the community benefits, and the effect of the green solutions delivered by such projects benefits mother earth. And that’s good news for each and every one of us!