How Businesses Can Use Crowdfunding to Support Charitable Causes

Crowdfunding has become the best way to bring people together for a common cause, and businesses are increasingly using it to support charitable initiatives. Instead of relying solely on traditional donations, crowdfunding allows companies to connect with their employees, customers, and communities to make a bigger impact. 

For businesses, crowdfunding offers a unique opportunity to align their brand with social good while involving their audience in something impactful. 

In this blog, you’ll find practical ways businesses can use crowdfunding to support charitable causes effectively. 

Choose the Right Crowdfunding Platform

The first step in launching a successful crowdfunding campaign is choosing the right platform. Each platform has its strengths, so find one that fits the business’s goals and the type of cause being supported. 

Dan Close, Founder and CEO of BuyingHomes.com, advises, “The right crowdfunding platform can make or break a campaign. It’s important to choose one that aligns with your audience and funding goals to maximize success.”

For example, GoFundMe is well-known for personal and charitable campaigns, while platforms like Indiegogo and Kickstarter focus more on creative projects. If the campaign involves community engagement or social causes, GoFundMe might be the best choice.

Businesses also need to think about fees and features. Some platforms take a percentage of the funds raised, while others charge flat fees. Look for tools like built-in social sharing or analytics that can help promote and track the campaign’s success. 

Choosing the right platform not only simplifies the process but also ensures the campaign reaches the right audience, giving it a stronger chance to succeed.

Align the Campaign with Your Company’s Values

Choose a cause that shows their values and mission. 

When the campaign aligns with what the business stands for, it feels more genuine and meaningful to employees, customers, and supporters. For example, if the company is focused on sustainability, supporting environmental causes like reforestation or clean water projects would resonate well with their audience.

Once the cause is chosen, explain why it matters. Share stories about how the company connects to the cause or why it’s personally meaningful to the team. Authenticity matters. 

People want to feel that the business genuinely cares about the cause, not that it’s just a marketing tactic. A campaign that’s built around shared values creates trust and encourages more people to get involved, says Eran Mizrahi, CEO of Source86.

Create a Strong and Engaging Campaign

Every successful crowdfunding campaign starts with a story that grabs people’s attention. Businesses need to explain the purpose of the campaign in clear, simple language. 

• Why is the cause important? 
• How will the funds make a difference? 

People are more likely to contribute when they can clearly understand the impact their support will have.

Adding visuals makes the campaign even stronger. James Forsyth, Founder of Quality Contracts, shares, “High-quality photos and videos can show the work being done or highlight stories of people who will benefit from the donations. Videos, especially, help create an emotional connection with the audience.” 

It’s also crucial to set realistic goals and a clear timeline. Let people know exactly how their donations will be used and what milestones the campaign hopes to achieve. This transparency helps build trust and encourages more people to contribute and share the campaign with others.

Involve Employees and Customers

A successful crowdfunding campaign becomes even stronger when employees and customers feel like they’re part of the effort. Businesses should actively involve their team by encouraging them to share the campaign within their personal networks. 

This amplifies the campaign’s reach and creates ownership and pride among employees. When the team is genuinely invested, their enthusiasm often inspires others to contribute.

Martin Seeley, mentions, “Just like a good night's sleep restores energy, an engaged team strengthens a campaign. When employees and customers feel connected, their support becomes the driving force behind success.”

Similarly, businesses should make their customers feel like they’re an important part of the mission. This can be done by offering incentives for donations, like discounts, exclusive products, or even shoutouts on social media. 

“As with building a strong foundation in any business, engagement and support are key. Just like a quality gym floor provides stability for athletes, a solid support system of employees and customers strengthens a crowdfunding campaign,” says Richard McKay, CEO & Managing Director of Sprung Gym Flooring. 

Use Social Media to Amplify the Campaign

Social media is best for promoting a crowdfunding campaign. Instagram, Facebook, LinkedIn, and Twitter allow businesses to reach a wide audience quickly and effectively. Businesses should start by creating engaging content that shows the story behind the campaign.

Short, impactful videos, personal stories, and regular updates keep people interested and motivated to share.

It’s also helpful to create a dedicated hashtag for the campaign to make it easier for people to find and follow updates. 

Partnering with influencers or community leaders can expand the campaign’s reach, as their endorsements can bring in new supporters.  

Add a Matching Donation Incentive

Offering a matching donation is a great way to encourage more contributions. Businesses can pledge to match every dollar raised up to a certain amount, effectively doubling the impact of each donation. This motivates people to give and shows the company’s commitment to the cause.

“A strong incentive, like matching donations, gives people that extra push to take action. When they see their contribution being doubled, they feel like their impact is even greater,” explains Jake Smith, Founder of Absolute Reg. 

For example, a business might promise to match the first $10,000 raised or match donations made during a specific timeframe, like the first week of the campaign. Matching campaigns create urgency and inspire people to donate sooner. This approach shows the business’s active participation in the campaign and its dedication to making a real difference.

Collaborate with Nonprofit Organizations

Partnering with a reputable nonprofit adds credibility and expertise to a crowdfunding campaign. Nonprofits often have experience in running campaigns and understand how to maximize impact. A collaboration can also help businesses connect with a broader audience, as nonprofits typically have an established base of supporters who are already passionate about the cause, says Raviraj Hegde, SVP of Growth at Donorbox.

When working with a nonprofit, businesses should clearly define roles and expectations. For example, the nonprofit might handle on-the-ground work, while the business focuses on fundraising and promotion. 

Sharing stories from the nonprofit’s work — like real-life examples of how donations are used — can make the campaign feel more tangible and relatable. Partnerships like these show that the business is serious about making a difference, which builds trust with donors and supporters.

Offer Personalized Thank-Yous to Donors

A small gesture of appreciation can go a long way in strengthening donor relationships and encouraging continued support. Businesses should take the time to personally thank contributors through customized messages, emails, or even video shoutouts.

Steve Morris, Founder & CEO of NEWMEDIA, shares, "A simple thank-you can turn a one-time donor into a lifelong supporter. People appreciate feeling acknowledged, and a personal touch makes all the difference."

For larger contributions, businesses could send handwritten notes, branded gifts, or exclusive updates on how the funds are being used. These gestures make donors feel valued and connected to the cause, increasing the likelihood of future engagement.

Final Thoughts

Crowdfunding is a great way for businesses to support important causes and involve their community. By picking the right platform, choosing a cause that fits their values, and sharing a clear and honest campaign, businesses can create a real impact. 

It’s all about showing genuine care and making people feel like they’re part of something meaningful. With the right approach, businesses can use crowdfunding to help those in need and leave a positive impact.