Increasingly people are using crowdfunding as a way of obtaining financial support and reaching new audiences.
Here are details about New Zealand crowdfunding platforms which support the cultural sector.
Crowd funding platforms
A not for profit operation, where 100% of the proceeds are used to benefit the arts, Boosted was purpose built by the Arts Foundation of New Zealand who were established by Creative New Zealand to increase private donations to the arts. Boosted has extended the foundation’s focus from supporting individual artists to a wider range of arts projects.
PledgeMe provides a collaborative way to fund creative projects. It's for anyone who has an idea they want to see happen, and just as importantly, give support to those who wish to contribute to the success of a project. In April 2014, new crowd funding regulations were introduced enabling platforms such as PledgeMe to support businesses to find investment from their crowds. This allows businesses to raise up to $2 million a year through licensed crowd funding websites by issuing shares or other incentives to the public.
Kickstarter is now fully open to New Zealand-based creators. Kickstarter is a home for everything from films, games, and music to art, design, and technology.
Givealittle is another online fundraising tool for New Zealanders. It’s fast, safe and easy to create a campaign, share with your networks and receive instant donations. From September 2016, Givealittle will charge a flat 5% fee ( inclusive of GST) on the amount raised by fundraisers on the site.
Spark Foundation is the charitable organisation for Spark New Zealand, supporting causes that New Zealanders and Spark people feel passionate about by tapping into the power of crowdfunding, providing direct financial support and through employee volunteering.
Other ways of supporting the cultural sector
The Include a Charity campaign involves a range of New Zealand charities including the Ballet Foundation of New Zealand and the New Zealand Symphony Orchestra Foundation. Include A Charity is designed to raise awareness of the ease and effectiveness of leaving a gift in your will. Gifts in wills form the foundation of many New Zealand charities and without them, many charities simply would not exist.
Launching a crowdfunding campaign is straightforward but it does careful planning and effort in securing support. Creators need to be super active, replying to comments and posting frequently in their patron activity feed.
A communications audit of charitable giving reveals the value of key messages so that potential donors understand the context. We often tell donors what we need the money for, but we don’t tell them why we need it, or why it’s important. The ‘why’ can be explained in the case for support - a document which not only sets out the facts but appeals to the heartstrings of potential donors.
People who have undertaken crowd funding projects mention having a game plan such as joining twitter and blogging on a more regular basis. As with any social media, everything hinges on establishing networks for support. If your funding project offers rewards, you need to ensure the extra costs are factored into budgets.
From there it is a matter of acknowledging thanks to everyone who has donated as soon as possible, updating project pages, approaching the media for coverage and getting the word out to everyone that you need help.
As a general rule about 80% of the people who give money will be your friends or family. It's the failure to extend beyond this circle that sees more than half of crowdfunding attempts fail to reach their goal.
Clever ways to market your crowdfunding project are outlined in the following PledgeMe blog.
Indiegogo is an overseas worldwide crowdfunding website based in the USA. They can make international payments to New Zealand artists via paypal.
Patreon is an international crowdfunding platform which allows artists to obtain funding from their fans or patrons on a recurring basis, or per artwork.
New Zealand’s Sportfunder announces partnership with Pozible, Australia’s largest and most successful crowdfunding platform. Kiwi-based crowdfunding platform Sportfunder is now partnering with one of Australia’s largest crowdfunding sites, Pozible, to extend its exposure in the Asia-Pacific region.
Updated on 7th October 2019