Another update offered by kukumiku.com is the flexibility and variety of project types that can be created on the platform.
As we have already mentioned before, most charity crowdfunding websites have so far focused on replicating the traditional crowdfunding model, where a specific financial goal and a deadline to reach it are set.
“To achieve great things, two things are needed; a plan, and not quite enough time.” (Leonard Bernstein)
This model is very successful and offers countless advantages. Leonard Bernstein said, and rightly so, that “to achieve great things, two things are needed; a plan, and not quite enough time.” That is how great achievements and breakthroughs have been made, and part of the success of crowdfunding campaigns lies in that principle. However, at times this formula is not ideal for the nature of certain solidarity projects looking to participate in charity or donation crowdfunding.
That’s why at Kukumiku we adapt to the needs of solidarity projects and offer the option to create 4 different project types regarding the goal. This is an important decision that can be crucial when it comes to reaching your goal.
4 project types
Below, we explain each of them along with their pros and cons to help you choose the one that best fits your needs.
Clarification of concepts before getting started:
When we talk about project types, we are only referring to the financial goal and deadline variables. Naturally, all projects participating on the platform must be of a charitable or social nature. And they must all have a goal, whether to help an individual or a group, and obviously need to raise funds to make it happen.
When we say “with a specific financial goal” or “without a specific financial goal,” we mean strictly in terms of the crowdfunding campaign whether a specific monetary amount needs to be raised or not.
When we say with a deadline or without a deadline, we mean strictly in terms of the crowdfunding campaign whether a specific date, day, and time will be set to stop fundraising.
1. With a specific financial goal and a specific deadline
A specific amount to raise and a deadline to achieve it are set. This is the traditional crowdfunding model. It is ideal when a specific amount is required without which the project cannot be carried out, and when there is also a deadline to reach it.
Examples: €50,000 is needed for urgent medical treatment with 3 months to raise it; I need €5,000 to build a water well and must get it within 3 months… etc.
Keep in mind that another one of the updates on Kukumiku is that when people make donations to projects with a specific financial goal and a specific deadline, they have the option to choose whether they want to give the money even if the project does not reach its goal (the charge is made immediately) or, on the contrary, they only want to give the money if the project reaches its goal (the charge is made once the goal is reached, or otherwise, no charge is made). There will be people who want to donate anyway even if the goal is not reached, to at least help achieve it in another way, but there will also be those who, if the goal is not reached, choose not to give the money because they might think it makes no sense or distrust how it will be used.
Advantages:
It is the best-known model. As Bernstein said, the time factor is a very important incentive to motivate people to collaborate. Especially when there is little time left before the deadline. In these cases, it has been shown to mobilize more people since we tend to be more in favor of making one last effort. The typical now or never.
On the other hand, setting a specific goal also encourages participation since there is a clear target to reach, and in terms of transparency, it generates trust among donors. They know that having a goal means there is an established budget, they know exactly what the funds raised will be spent on, and they have the option to get their money back if not enough money is raised to carry it out.
As for the project organizer, this option allows them to ensure that if they do not reach the goal, they have no obligation to carry it out, avoiding being in over their head.
Disadvantages:
When it comes to solidarity projects, it is evident that any help, no matter how small, is welcome. Therefore, if we set a very large goal and do not manage to reach it within a specific time limit, there is a possibility that we will not receive part of the funds raised. It will all depend on how many people decided not to donate in the event that the goal is not reached.
2. With a specific financial goal, but no specific deadline
A specific amount to raise is set, but with no deadline to achieve it. In other words, the crowdfunding campaign ends when the set financial goal is reached. This type is ideal when you need a specific amount and cannot carry out your project without it, but you are not in a major rush or hurry to get it and can wait until you reach the funds raised.
Examples: €50,000 is needed for medical treatment, and once it is reached, it will be carried out. I need €5,000 to build a water well, and once I reach it, I will build it… etc.
Advantages:
The main advantage of this type is that you offer the security and transparency that comes with having a specific financial goal. You need a specific amount and justify directly why and what you will spend it on.
Moreover, by not setting a deadline to achieve it, you have more time and do not risk failing due to a lack of time or falling just short.
And just like in the previous one: if you do not obtain the funds raised, you do not have the commitment and obligation to carry it out.
Disadvantages:
On the other hand, without a deadline, the urgency factor that mobilizes people loses strength. You still have a specific target that encourages reaching it, but it does not incentivize as much as having a deadline would.
Just like in the previous type, having a specific goal means people will have the option to choose not to donate if the goal is not reached, and therefore they will not be charged anything until the goal is met. In this case, since there is no end date, if it drags on over time, there is a risk that more people might choose this option. Or maybe not. It is all very relative.
3. No specific financial goal, but with a specific deadline
The aim is to raise as much as possible during a specific period. That is, the campaign ends on a specific date, and the more that is raised during that time, the better. This is the ideal type when you want to raise money—and the more you raise, the better—but you have a deadline by which you want or need to use the funds raised, and what you will use the money for does not require a specific amount. Raising money to build a well, where you need a specific amount or you cannot build it, is not the same as bringing medicine, where whatever amount you raise, you can still bring it.
Examples: Medicine is being brought to a hospital in Africa in 2 months, and the more money that is raised, the more medicine will be brought. We are going to a refugee camp in 3 months, and the more I raise, the more I can help. A bride and groom want to raise money for their wedding, and everything they raise will be given to an NGO the day after their wedding… etc.
Advantages:
The main advantage of this type is that you are not required to reach a specific amount for your campaign to be successful. Obviously, the more you raise, the better. But if, for example, you intend to bring medicine somewhere, if you raise €1,000, you will bring €1,000 worth of medicine, and if you get €5,000, you will bring €5,000 worth of medicine.
Additionally, you have limited time, and that generates the urgency drive that Bernstein talks about, requiring people who want to collaborate to do so within a set period or they will not be able to.
Disadvantages:
On the other hand, although we do have a deadline, we do not have a specific figure or a clear financial goal, and some of the psychological appeal that creates can be lost.
Furthermore, in this case, by not having a specific goal, you also don’t have a safety net if you fail to reach a minimum amount of funds raised; for instance, if we plan to travel somewhere to deliver medicines and our funds raised are quite low, we will still be committed to taking whatever little we have raised.
And conversely, you might raise too much and find yourself overwhelmed trying to carry it out. For example, if you are collecting medicines, delivering €1,000 worth of medicine is not the same as delivering €50,000 worth. This shouldn’t necessarily be a problem, but it’s worth keeping in mind and having a plan for every possible scenario—both for modest funds raised and for a situation where you might feel overwhelmed. In these cases, it’s best to explain what you’re going to do and how you’re going to do it on the project page depending on the funds raised you achieve.
4. No specific financial goal or specific deadline
The goal is to raise as much as possible without a specific deadline. That is, you need to raise money for a project or solidarity cause on an ongoing basis or without knowing how long it will be needed. It is ideal for associations, foundations, or NGOs that are dedicated to one or several causes and need to raise funds over time, or that start another project as soon as one finishes, etc.
Examples: A refugee support association needs money, but doesn’t know how much or for how long because the cause they are raising money for does not depend on them alone. One day 100 people might arrive needing assistance, and the next week 1,000 might show up. That is why the need for funds is continuous and variable, and access to them cannot wait for a specific deadline, since they need more or less depending on the circumstances. Or, for instance, an animal shelter needs funds to care for its facilities and its animals, but this is an ongoing effort, etc.
Advantages:
The main advantage of this type is that you can receive funds continuously and access them flexibly, without the rigidity that comes from having a specific goal or a specific deadline.
This is another of the updates offered by Kukumiku: for the first time, associations have a platform at their disposal to raise funds permanently, and together with the option for donors to become members, it facilitates a steady and sustained flow of funds raised over time.
This type of project is ideal for associations and ideal for tapping into donations from Kukumiku members, because if they know you will be there permanently, they will be more inclined to collaborate with your project if they’re interested. They may already be members of your association, or perhaps of another one, and having the option to distribute their funds among several causes on a single platform, they may choose to share and give to yours as well.
Disadvantages:
Along the same lines, one obvious disadvantage is that it lacks the mobilizing power that comes from having a specific financial goal or a deadline to achieve it.
Moreover, in this case, having neither a goal nor a deadline doesn’t mean you shouldn’t show what the money is being used for. Donors must receive information and updates so they can have trust and confidence that their donations are being used for what was requested.
Therefore, to protect donor transparency and trust, this type of project can only be carried out by associations, foundations, or NGOs that are duly registered, have recognized work, and whose accounts are transparent and accessible.
CONCLUSION
If you still have doubts about which type of project best fits your situation, don’t worry. It is all very relative. The advantages and disadvantages mentioned are only guidelines based on logic, trends, and the general way crowdfunding works, but that doesn’t mean they will always hold true.
Choosing the type of project, while important, is not decisive. What truly matters will always be how capable you are of raising awareness about what you are going to do, the trust and transparency you offer, and above all, the outreach and reach you achieve.
You may choose to launch with a specific goal and deadline to take advantage of the psychological factor that encourages people to participate, but in the end, if the project doesn’t inspire them, your information doesn’t build trust, or you don’t even manage to get them to know about it, it won’t help much.
Also, keep in mind that on Kukumiku you can run charity raffles, which are an excellent tool to boost both outreach and funds raised. And even if you don’t have a deadline, you can create a raffle that has a deadline or a participant limit, helping you encourage and mobilize donors to take the step.
In any case, don’t worry: this information is for guidance, and when you decide to create a project, you’ll have the support of the kukumiku.com team, who will help and advise you so you can make the best decision.