Collecting donations is a first option to finance energy solidarity activities. Donors (regardless of their scale) typically seek to support causes they believe will deliver real, meaningful change – and do not expect to acquire anything in return.
A key advantage for energy communities (ECs) is that donations are a type of free, unrestricted funding. This is particularly interesting for financing solidarity activities that do not typically generate a return on investments in the classic, monetary sense but rather aim to generate social impact in the long term.1
Different types of donations, from individual micro-donations of few pennies each to corporate donations worth thousands of euros, can be vital to financing energy solidarity mechanisms. EC members can also take the decision to directany profit on revenues to such measures. Having a diverse funding portfolio is vital and can help leverage contributions.
To execute a successful donations campaign, it is essential to strike a balance between the desired impacts, the actual costs to achieve them and the funding needed. ECs should not forget to include costs associated with creating a compelling communications campaign to attract potential donors.
Leverage diverse donation options
Placing a ‘Donate’ button and/or a QR code prominently on your website is a straightforward way to make it easy for people to contribute through an online form or using their smartphones. Typically, a variety of payment mechanisms exist ‘behind’ the button. ECs need to ensure that what they choose supports a secure transfer of funds for both the donor and the recipient. As most have fees, it is important to compare the costs and levels of services provided. ECs should give donors the choice to have their names shown or remain anonymous. To recognise large contributions, ECs may want to consider having a recognition (or ‘Thank you for the support’) page and attaching a status to different levels.
Also, while raising donations, it can be motivating to have a ‘tracker’ or to periodically report on the amount raised. This can build on momentum and encourage those who have not yet participated become part of the solidarity community by doing so. Over the longer term, a donate button can facilitate a steady flow of contributions that are not tied to a specific campaign. Critically, as mentioned above, ECs need to clearly state whether their legal status supports tax benefits.
Click through to learn more about ‘financing’:
- Choosing the best tools for collecting donations
- Making the most of Micro Donations
- Corporate Donations
- Community Energy Revenues
- Cooperative Loans and CrowdFunding
- Assessing the pros and cons of Grant Funding
- Finding the means to Support Energy Solidarity
- Donation-based CrowdFunding
1 https://single-market-economy.ec.europa.eu/access-finance/guidecrowdfunding/whatcrowdfunding/crowdfunding-explained_en#