Crowdfunding in sport - why sports clubs in particular should use this form of financing for themselves and benefit sustainably from it | Crowdfunding in sport - how it works

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Crowdfunding in sport - why sports clubs in particular should use this form of financing for themselves and benefit sustainably from it

We at spized believe in the power of sport and want to bring out the full power of sport with our product. Every athlete, team and club, regardless of sport or level, should have fair and equal opportunities to follow their passion without facing financial obstacles. Crowdfunding is a self-determined and effective way to achieve this goal.

spized / FAIRPLAID | Club management

September 14, 2023 |

Children standing in a circle on a soccer field

Whats’ on this page

1. What is crowdfunding?

2. What are the principles of crowdfunding?

3. How does crowdfunding work in sport?

3.1 Which project purposes are suitable?

4. Our tip: Crowdfunding with FAIRPLAID

4.1 What are the advantages of a crowdfunding campaign with FAIRPLAID?

4.2 Profit from the effects of your crowdfunding campaign in the long term

4.3 Give something back to your supporters

4.4 What does a crowdfunding campaign with FAIRPLAID cost?

5. Crowdfunding in sport "in a nutshell"

What is crowdfunding?

Crowdfunding is a democratic and unbureaucratic tool for financing projects and for increasing the reach and membership of the initiating organisations Crowdfunding is translated as "swarm financing" and means that a project is financed (funding) with a large number of people (crowd).

What are the principles of crowdfunding?

By means of a self-designed project page on a crowdfunding platform, fans, friends, acquaintances and companies are activated and motivated to support the idea financially. A specific sum and a term are set in advance in order to achieve the goal set in advance. Support can be given in the form of a free donation or the purchase of offered rewards. All this offers a lot of potential to make a crowdfunding campaign effective and sustainable for you, your team and your club. There are 4 basic principles of crowdfunding that show you why crowdfunding should be on your radar as a funding option:

The "campaign principle": Your project is not just a fundraising campaign, but a (marketing) campaign for and with your association.
The "Crowd Principle" means that a large group of different people supports and finances your project. The financing becomes increasingly democratic and you make yourself less dependent on individual major sponsors. You give everyone the opportunity to contribute to your project in any amount and become part of the mission.
The "premium principle":
"The all-or-nothing principle": Supporters are highly motivated by a defined term and a fixed target amount. You know it yourself: You always need a deadline to become really active. In addition, you and the supporters have a certainty of implementation. This means that the project can only be realised if the money is raised. If the project is not successful, no fees will be charged. Each individual supporter receives the money paid back, the premiums do not have to be bought and processed and you as an association do not have to justify what you do with the money collected that is not enough to realise the project.

How does crowdfunding work in sport?

Sports clubs also often have to deal with financial hurdles. The two fundamental funding pillars "sponsorship" and "(official) grants" are often associated with great goodwill on the part of individuals or a lot of bureaucratic effort. These top-down decisions are frustrating and often paralyse progress immensely.

But (sports) clubs in particular have an extremely strong community and network due to the close ties between athletes, fans and sponsors. This is a great prerequisite for launching a crowdfunding campaign.

Through match days and other club events, sport also offers repeated opportunities to report on the campaign and you can ideally link your (sporting) everyday life with the campaign. Because visibility and the marketing potential that comes with crowdfunding can have a huge impact. A well-designed crowdfunding campaign can be mentioned in social media, local news or even national media. This helps to promote your athletes and the club to a wider audience and increase awareness.

One aspect that makes crowdfunding in sport so attractive is the direct feedback and engagement of supporters. As a project starter, you can interact with your supporters, receive feedback and respond directly to their needs. This creates a close bond and shows supporters that their contributions and opinions are valued.

Besides financial support, crowdfunding also offers an emotional and motivational component. A successful campaign shows you that there are people who believe in you and your goals. This gives you and your association an additional incentive and self-confidence.

Which project purposes are suitable?

There are no limits to the variety of projects: whether it is financing jerseys or other competition clothing, training camps, sports facilities or anniversary celebrations. Projects for the education and training of coaches and trainers can also be financed and realised through crowdfunding. Projects that contribute to the further development of the club are particularly interesting, as the increased attention in the course of the campaign makes potential partners, sponsors and members aware of the club and the new offers and positive developments are directly perceived. The association is perceived as a "doer".

Our tip: Crowdfunding with FAIRPLAID

FAIRPLAID SPORTS is Germany's largest crowdfunding platform for sport. Since 2013, they have been supporting athletes, teams and clubs in the further development of sporting environments and the creation of optimal framework conditions. Their mission is to sustainably strengthen civil society by improving the ability of committed people to act. This is achieved through a funding technology developed for this purpose and an individual coaching process. Each project is assigned a personal project coach with whom the project is planned and implemented. The FAIRPLAID Lab analyses campaigns and projects for a continuous further development of the data-supported project implementation, so that your campaign is as successful as possible.

What are the advantages of a crowdfunding campaign with FAIRPLAID?

The FAIRPLAID funding initiatives bring people and committed companies together to sustainably support projects related to sport, social issues and culture. On the Toyota Crowd, for example, projects from the areas of Olympic, Paralympic and Special Olympics sports are supported. The DOSB, for example, supports projects to introduce inclusive teams in clubs or to set up barrier-free access.

Funding pots work very simply. Either there is start-up funding, which is received with the first support on the project account, or the mechanism is triggered per support.You want to learn more about funding pots? You can find all the information here.

Profit from the effects of your crowdfunding campaign in the long term

A crowdfunding campaign has many advantages for a sports club. In addition to financing the project, it also helps the club to become better known and build a larger network. By interacting with supporters and spreading the campaign on social networks, the club can gain new members and build long-term partnerships.

The supporters of a crowdfunding campaign are often very committed and have a strong interest in the success of the project. This creates a close bond between the association and the supporters that remains even after the campaign has ended. The association can thus build long-term relationships with sponsors and also rely on them for future projects.

"Companies have joined that were not previously included in our partner network. We hope that we can now also work with the new partners in the longer term. In addition, crowdfunding has highlighted areas of development for us in the association."

Marcel Gohlke, Project Starter, SV UNION Halle-Neustadt e.V.

Give something back to your supporters

With FAIRPLAID SPORTS, you benefit from reward-based crowdfunding. Here, the supporters of the project are offered the prospect of certain rewards or rewards. These can vary depending on the amount of support and range from small gifts to exclusive experiences or limited edition products. The idea behind this is to give supporters an incentive to support the project and identify with it.

If you want to give something back to your supporters, one option for reward-based crowdfunding with spized is microsponsoring. For example, you can place the names of all supporters who donate more than €20 on your new jersey. This is what the handball department of Fortuna Cologne did - and the result is impressive. Looking for more inspiration for reward-based crowdfunding with spized? Find out more here.

What does a crowdfunding campaign with FAIRPLAID cost?

You start a crowdfunding project with FAIRPLAID without any financial risk. Because FAIRPLAID is only successful if you are successful. Only if the project is successful do you incur service fees of 7% of the sum reached for funding technology, funding partners and the personal advice of your project coaches. In addition, there is a fee of 4% for the complete processing of payments. The success of your project is FAIRPLAID's top priority. The service fee enables FAIRPLAID to constantly develop its services and thus help even more projects to succeed. FAIRPLAID SPORTS develops your ideas with you and wants to become part of the solution.

Crowdfunding in sport "in a nutshell"

Crowdfunding in sport is an effective way to finance projects and build long-term relationships with supporters and sponsors. By interacting with supporters and spreading the campaign on social networks and offline, a club can gain new members and present itself as an attractive partner for sponsors. The effects of a crowdfunding campaign therefore go far beyond the mere financing of the project and can contribute to the long-term strengthening and further development of the association. Are you interested in learning more about this topic? Our partner FAIRPLAID offers non-binding online seminars that you can attend free of charge (Wednesdays | 17:00).