If charities have already raised some money for a project before the public phase of fundraising begins then research (by List and Lucking-Reiley) has shown that they will generate much higher contributions.
In the research the target was to raise $3,000 for a new computer and 3,000 people were asked to donate.
When the charity said it had already raised just $300 towards its $3,000 target then 17 people donated and gave a total of $202. When it said it had already raised $2,000 then 42 people donated a total of $1,485.
So, when a charity can say that it has already raised a significant amount of money, the level of donations increases by more than seven times!
Having the initial start gives donors more confidence in the quality of the charity and their ability to deliver the project.
I believe this is applicable to business projects generally. If you have already made progress with a small team before a bigger group is expected to buy-in to a project then you will have a much greater chance of success.
Today’s takeaway: People like to see progress and a good chance of success before they get on board with a project.