Our latest research, “Crowdmatch Challenge: Insights into matched crowdfunding for small community groups in deprived areas” is based on a study of the Crowdmatch Challenge, an initiative which supported small community groups to fundraise through crowdfunding and offered match-funding on all donations pledged. Crowdfunding is a means of raising money online directly from supporters to fund the launch of projects, products and services.
The majority of groups that launched a Crowdmatch project felt that match funding was vital, with the campaign supporters also citing that match funding was a significant reason for them donating to their chosen project.
However, the report found that crowdfunding is not always an easy route to funding, with the key barrier to success being the need for projects to carry out continuous promotion of their campaigns. This was often time-consuming, particularly for these small volunteer-led groups.
Alison Seabrooke, Chief Executive of the Community Development Foundation said:
“Today’s report shows how community groups are able to mobilise quickly and take up new types of funding opportunities, and the incentive created by matching the donations is a key reason for the success of these campaigns.
“However, I would caution against assumptions that crowdfunding is a quick and easy solution for small community groups that are in need of funding. It should complement, not replace, the essential small grants that community groups need to thrive.”
One of the groups that participated in the Challenge was The Friends of Rockingham Road Pleasure Park in Kettering, which raised £4,105 to install an imaginative play area in their park.
A spokesperson for The Friends of Rockingham Road Pleasure Park said:
“The thing that we found frustrating with other funding applications that we’d made prior was that it’s a single decision often by people who have no connection with it, whereas with crowdfunding…they have similar aspirations or an understanding of what you’re trying to achieve”.
Another group that took part was Escape Nuneaton community arts and craft group, which exceeded their target to raise £1,000 to make bunting and banners to welcome a six metre high Lady Godiva puppet into their town.
A spokesperson for Escape Nuneaton said:
“I think it’s a good idea in principle…but it’s just tough out there. Personally it took a lot of my time and I committed time to do it because I was determined to make it work.”
During the Crowdmatch Challenge, 146 community groups from across the country expressed an interest in using crowdfunding to raise their match funding. They worked in a range of interest areas, although the majority (61%) described themselves as either a ‘General Community Group’ or ‘Local Organisation’. These groups tended to be run by between 8 and 25 volunteers, had an average annual income of £11,000 and, in general, had relatively limited experience of crowdfunding.
All projects involved in the Crowdmatch Challenge had previously been involved in the Community First Neighbourhood Matched Fund. This four-year initiative sees local volunteer panels awarding small grants to local community projects, which then have to raise a similar amount to “match” the value of the grant in cash, in-kind support or volunteer time.
The Crowdmatch Challenge was an expansion of this initiative, where panels rewarded community groups that met their first crowdfunding milestone by matching the amount raised with a small grant.