Pulitzer and the Pedestal – Or Why Crowdfunding Needs Influencer Marketing | Beth’s Blog

Pulitzer and the Pedestal – Or Why Crowdfunding Needs Influencer Marketing

Crowdsourcing, Guest Post

Flickr Photo by PeterJBellis

Guest post by Jesse Noyes

The outlook for the Statue of Liberty was bleak in 1885.

Construction of the statue had been completed the year before in France, but efforts to construct a pedestal in New York ground to a halt. The committee in charge of fundraising was short on cash. Efforts to appropriate money in state and national legislatures were defeated. And the press scorned the fundraising effort.

Except for Joseph Pulitzer. The publisher of the New York newspaper the World, Pulitzer used all his influence to launch an aggressive fundraising campaign that bypassed the rich and instead solicited donations from average residents. He promised to print the name of every donor in his paper. In only six months, more than 120,000 donors – from children to recovering alcoholics – sent in donations of typically less than a $1. The resulting total reached $102,000.

A little over a year later, President Grover Cleveland presided over the dedication ceremony. Ironically, he had vetoed a bill that would have provided $50,000 for the pedestal as governor of New York.

We Call it Crowdfunding

This kind of mico-funding approach remains alive and well today. We see examples in the ongoing success of Kickstarter, in the record number of small donations President Barack Obama collected during his 2008 campaign and, humorously, in the manner Stephen Colbert has solicited funds for his satiric Super Pac.

It’s taken on more techie monikers like crowdfunding or micro-funding as advances in social media and tools like PayPal have made collecting small donations from a wider base of supporters more accessible than ever. Despite these advances, many nonprofits are reluctant to jump on board, perhaps because so many are entrenched in the traditional means of fundraising.

According to Blackbaud’s annual State of the Nonprofit Industry Survey, the three fundraising sources cited as the most effective are gifts from major donors, special events and direct mail. New models like social networking and text messaging rank near the bottom.

But I would argue that the crowdfunding model is as old as the pedestal the Statue of Liberty stands upon, and that most nonprofits are missing the critical step that makes a crowdfunding campaign successful.

Pairing Fundraising with Influencers

Crowfunding has existed long before the term was coined. But to pull it off organizations need to think beyond platforms. They need to build relationships with influencers who will trumpet their cause and campaigns.

Take the example of the Pulitzer and the pedestal. Pulitzer took a personal shining to Lady Liberty. He had a platform and an audience. And he bypassed the traditional fundraising models that were failing the cause (think government grants and giant corporate gifts for our context), promising New York City residents to print their names in his paper regardless of the size of their gift.

Today Stephen Colbert is virtually replicating this crowdfunded experiment with his Super Pac. Using TV as his platform, he scrolls the name of every donor during his show. Both efforts are successful because they are paired with influential people who can use their sway and platforms to raise large sums of money in small portions from a wider base of people.

For anyone who claims this is an extreme example, consider Geoff Livingston’s “Punish Geoff Fundraiser.” Geoff’s blog is influential, but hardly on the scale of “The Colbert Report” or Pulitzer’s newspaper. The point is that crowdfunding is not all that radical or difficult if the cause teams with influencers who are willing to use their online influence to drum up support.

Influencer marketing might be a new term for many nonprofits, but the concept isn’t. It’s about finding those within your networked community that will act as passionate advocate for your cause. Fortunately, sites like Klout, PeerIndex and Edelman BlogLevel are making it easier to identify and build a relationship with these champions.

Very little has changed since Pulitzer was around. Influence can still make or break a charitable campaign. But technology has made those influencers more accessible, even to nonprofits large and small.

 

Jesse Noyes

Jesse Noyes

Jesse Noyes is the corporate reporter at Eloqua and his writing is featured on It’s All About Revenue. He was previously a reporter for the Boston Herald and the Boston Business Journal, and has written frequently on issues impacting the nonprofit industry.

5 Responses

  1. Jesse,
    This is a great article. I love the Pulitzer example to show the power of allowing people to raise money from the public for great causes/businesses/projects.

    Eric

  2. Jesse Noyes says:

    Thanks, Eric. It’s comforting to know that there are models for how this can work successfully for causes – long before we had the term crowdfunding.

    Jesse

  3. Brian Kardon says:

    I’ll never look at Lady Liberty the same way. Thanks for sharing, Jesse.

    Brian

  4. Israel Kloss says:

    Jesse,

    Great article. We at TunkRank are in the process of building out the service to more than measure Influence. We’re rolling out a module to mine and then rank non-profit expertise. Very exciting.

    Thanks for this,

    Israel Kloss
    Co-Founder, TunkRank (and NetSquared Non-Profit Technology Finalist)

  5. [...] published November 7, 2011: http://www.bethkanter.org/crowd-funding/ Share this: Filed Under: Featured1 Tagged With: Crowdfunding, Influencer Marketing, Jesse Noyes, [...]