Last week we convened a panel of crowdfunding experts to discuss this growing phenomenon. Stephen Cotterill, editor of Fundraising Magazine, reports on some of the highlights.

After a lively, informative two-hour debate at the Fundraising First Thing event last week, one thing became apparent: for every question answered on crowdfunding there are another three begging attention.

The panel discussion held at the NCVO offices in Kings Cross last Thursday put fundraisers and charity representatives together with four experts in the field. In the time available, the panel valiantly tackled a variety of posers from a highly engaged audience – all eager to unravel the mysteries of crowdfunding.

So what did we learn?

1) Small steps to reach big goals

If you want to raise half a million pounds for your cause, it might not be the best crowdfunding strategy to post a big flashing target. "Large amounts can be overwhelming for donors," suggested panel member Katherine Carter, annual giving manager, Office of Development and Alumni Relations at the University of Southampton. "Start with small targets – £300 to buy a piece of equipment or £150 for something else – so that people can see tangible results. Eventually, you will get the money, but take it step by step."

2) Engage your network

"It is vital to get all your contacts together – through Facebook, Twitter, YouTube, Instagram – and get them ready to support your campaign when it launches. It's all about mapping your primary, secondary and tertiary networks," said Eleanor Harrison, chief executive with charity crowdfunding platform GlobalGiving.

"Everyone wants to be part of something successful so you need to get people giving immediately, as soon as you launch, so that you generate momentum. It amazes me when an organisation launches a campaign and it remains stuck on zero. Was no single person in the organisation motivated or informed enough to give to their own campaign? How can you expect anyone else to give?"

3) Rewarding behaviour

Primarily we are in the donation business, but sometimes a small gift or reward for giving can be a great motivator for crowdfunding. "We gave small rewards such as branded mugs and stress balls, to donors during our campaign to raise funds to fact-check the General Election," said Poppy Damon, who launched a crowdfunding campaign at Full Fact, an independent fact-checking organisation that checks the claims of politicians and the media. "We raised £33,000 and I think the reward system was a big part of that. They shouldn't be expensive, just novel or useful."

4) Launch in a timely manner

Particularly if you are raising cash for emergency relief, timing is everything. "When DEC decided to launch a crowdfunding appeal for Nepal, we were able to get it up and running within 48 hours," recalled Mark Hodgson, chief commercial officer, JustGiving. "If you over-think a campaign like that, by the time you have things in place, you have missed the boat. Launch first and then you can go back and change things later."

5) Don't be afraid to fail

Not every campaign works, but you can learn from your mistakes. "Even with the most worthy of causes, your crowdfunding campaign might not get off the ground," said Harrison. "Some charities may think that it will damage their reputation, but it just simply might not have been the right time, or the right goal, but next time you will be more aware of how it works and will be more likely to succeed."

Despite the panel's best efforts, as the session came to a close, hands were still held aloft - so we are already thinking about planning another session on the topic in the not too distant future. Watch this space!

In the meantime, if you want to pick their brains further, the panellists can be contacted by email:

Mark Hodgson, JustGiving - [email protected]

Katherine Carter, Southampton University - [email protected]

Eleanor Harrison, GlobalGiving - [email protected]

Poppy Damon, Full Fact - [email protected]