A gaming industry article featured Lesley Manford, the CEO of Razoo this week. Razoo is an online fundraiser that’s had success out of giving contests.
The biggest misconception that most small charitable organizations have, says Mansford, is that online fundraising is difficult and costly. Razoo does take a fee, but at 2.9% of each transaction, it’s lower than competitors such as Crowdrise which charges 5% or FirstGiving which takes a 7.5% cut.
Some people will argue that the philanthropy pool in Australia is a finite size and that increased donations in one area or for a new programs or models like Social Impact Bonds will reduce the flow of donations to other areas. I’m don’t know if this assumption has ever been tested, but perhaps online fundraising or crowdfunding reaches out to a different donor in a different way, creating a new ‘market’?
Is there anything we can learn from co-ops and mutuals about rewarding crowdfunders with some form of equity?