Charidy is helping philanthropic funders create a community of donors that heightens impact, sustainability and leverage for the causes they care most about.
Among the many highlights of the 2016 Philanthropy Australia Conference was the opportunity to see the funder community rally to support a 24-hour campaign in the exhibition hall by nonprofit Good360.
Within the space of 24 hours, more than $100,000 had been raised with the help of Charidy, a new fundraising program with clear benefits for both funders and fund seekers.
Charidy Director, Shuie Gestetner says the model is bringing major and modest donors together in a way that creates a sense of interdependence and shared responsibility, ultimately delivering greater financial sustainability to the nonprofits they support.
How is Charidy changing the fundraising landscape for Australian funders and nonprofits?
Charidy is broadening the horizons for nonprofits. A fundraising goal that was once thought of as ridiculous, is now being seen as attainable and organisations now view the prospect of raising $100,000 plus in under 24 hours as achievable. This, in turn, allows them to focus their time and resources on the work that matters to them.
From a funder’s perspective, they now have the mechanism and tool through which they can get more bang for their charitable buck and inspire an entire community of modest donors to the charities that they care about.
No longer are charities solely dependent upon them. Charidy helps create a sense of interdependency meaning that they can now share the responsibility of ensuring the organisation’s success, with more funders and donors.
Impact, sustainability and leverage are key concerns for philanthropists—how does Charidy help funders achieve those objectives?
At the heart of every Charidy campaign is the famous Pareto Principle also known as the 80/20 rule. Eighty per cent of your funds will come from 20 per cent of your donors.
If an organisation were to run a $400,000 Charidy campaign, three tranches of $100,000 would be pre-pledged by three funders or groups of funders, who will then match donations from the crowd or community of supporters during a specific 24-hour period up until the fundraising goal would be hit.
So, if someone were to donate $100, their donation would be matched 3:1 by the funders.
By donating through the Charidy model, a funder can be assured that their gift will have tremendous financial impact as it will be be leveraged and used as a catalyst to inspire further funding, from other funders and a crowd of support. In the above example, $100,000 will effectively bring on $300,000 of further funding.
After fundraising within the Charidy framework, the organisation now no longer relies on one donor or a limited donor pool. They have now activated many large and modest donors, ensuring long-term financial sustainability.
What are the key ingredients for a successful matched funding campaign? Can you share a little about some of the most successful campaigns Charidy has hosted?
One of the key ingredients is a pool of donors and potential donors who all feel responsible for the organisation’s success.
For example, we recently worked with a Melbourne-based youth organisation that was looking to purchase a campsite for their regular holiday camps. Funders and philanthropists were willing to back the purchase provided that the community would support it. $1.13 million and 1167 donors later, (60 per cent of which were affiliated with the movement but had never donated before) it was apparent that the community felt it was necessary. This provided the funders with the knowledge and comfort that their money was put to use in a project that had the communities support.
What feedback have you received from ‘Matchers’ about their involvement and experience of Charidy campaigns?
Feedback to date has been incredibly positive. I’ll never forget the expression of a funder who saw their donation inspire a whole community of supporters—new, lapsed, and even donors who always give, but give even more.
I’ve had one funder comment that this is how he would like to give his charitable donations from now on.
Recently we received this feedback from Belinda Bardass, a Trustee at the Victor Smorgon Charitable Fund:
“Donating through the Charidy framework not only provides us with an exciting opportunity to leverage our gift, it also ensures that our funds are directed towards organisations that have robust support from their respective communities. Sharing the responsibility of funding an organisation with hundreds of other donors enables us to set up the organisation for long-term sustainability and success.”
Is there potential for corporates to get involved?
Absolutely. Corporates can leverage their brand in a similar vein to trusts, foundations and philanthropists. For example, 3M, Moose Toys, Goodman Group are just some of the corporates that have got involved.
This is a great way to ensure CSR has the greatest impact possible.
What do you hope Charidy will achieve in both the short and long-term?
At Charidy we aim to educate the market, and allow nonprofits to realise that breaking fundraising targets and reaching new heights is possible and well within their means. There is nothing more exciting than seeing a nonprofit reap the rewards of its hard work leading up to, during and after a campaign.
Ultimately, at Charidy we want to empower and inspire the donors of the world—from $10 to $10,000 to $1,000,000 donors—to reclaim the joy of giving.
This year we want to give back the fun and joy of giving to Australians.