CASE STUDY #4
MAGIC LAND
A mongolian successful model of crowdfunding
Misheel O.
CHALLENGE
The living conditions in apartment communities and ger areas in Ulaanbaatar are drastically different. While one part of the city lives comfortably with central heating, the other fires coal stoves for heating, painting two different pictures of lifestyle, infrastructure and access to social services. For instance, most services for children’s education and other needs are centralized in the more urbanized areas of UB and services like public library are absence and others are very scarce in the ger areas. Although it is the government’s duty to provide social services to all citizens regardless of their residential status, ger areas are often overlooked from most government funded projects. However, there are those who are seeking solutions to complex and largely costly issues through crowdfunding, and Magic Land is an exemplary case of such projects. There is a rise in online fundraising campaigns not just in Mongolia but globally as well, and we are showcasing a Mongolian crowdfunding example that combines both online and more traditional methods, with extra focus on the Mongolian diaspora.
SOLUTION
Originally started as a human rights initiative, Lantuun Dohio NGO expanded its activities to child protection in ger areas in 2016, where it is a more pressing issue than in the city center. It was not long before Lantuun Dohio to realize that child abuse issues in the ger areas have to be tackled from proximity to the issue and not from an office downtown. This important realization led Lantuun Dohio to take upon an initiative that started with nothing more than a dream to build a child protection center in the middle of the ger areas. Their dream was to build a center that provides services such as protection, child development, and mental health counseling for children. The construction work was completed in six months since its
beginning in April 2017 and due to its location in Bayankhoshuu, an area with the most severe air pollution in Ulaanbaatar, the Magic Land utilized electric heating so as not to add to the pollution.
The fundraising began with selling merchandise – a key chain worth MNT 1,000 (USD 0.35) and fundraising concerts organized by the members of the NGO. Eventually, it went beyond their circle: kindergarteners donated cash from “selling” their drawings to their parents and many individuals and organizations provided in-kind contributions – architectural drawing, construction materials, landscaping, other skills and expertise. At the end of the project, 51 percent of the total cost was cash donations with the rest being in-kind contributions.
The NGO opened their first center towards the end of 2017 and began the construction for their second Magic Land in another ger area the following year. One of the first contributions was MNT 740 million (USD 260,000) from Energy Resources LLC, a major mining company in Mongolia. The project team was not only encouraged, but also assumed the immense responsibility of delivering the second project successfully. The construction for the Magic Land 2 started in mid-2019 and opened by the end of the year. Unlike the first project that raised all funds locally, the team went on a trip to pitch their project to Mongolians residing in South Korea, Canada and the USA in order to raise funds.
The project team used Facebook as their main tool for raising awareness as it is the most popular online platform in Mongolia: around 70% of the population actively use it on a daily basis. They set a precedent for public fundraising in Mongolia as they united the whole country in their initiative by emphasizing the power of individual participation and donation, however big or small, which provided children with resources and opportunities they are otherwise excluded from. The project team never failed to express their appreciation to every single donor via their Facebook page, inspiring new supporters to join the campaign. The Facebook wave also played a big role in inviting and involving Mongolians living abroad. A noteworthy mention is a Mongolian student in the US, who started a fundraising campaign for his birthday using Facebook, in which over 40 people joined and raised 33,000 USD as a donation to Magic Land. The Community Voices of Facebook highlighted his story, showcasing the local community-based initiative that aims to solve social problems to an international audience.
Funding the operation of these two centers is no less of a challenge than the construction. The NGO is collaborating with major banks, food and beverage manufacturers on innovative fundraising mechanisms, with banks proposing a regular stream of daily direct debit donations of MNT 100 (USD 0.03) to their customers, and food and beverage manufacturers promising donation-with-purchase.
The key to successful fundraising is storytelling. Every step of the way, the Magic Land team told the narrative that children will be the recipient of the donations, especially those who are less fortunate. Throughout the campaign, the team emphasized people’s participation, rather than the donation amount. Misheel O., a Board Member at Lantuun Dohio, associates their success with their tireless efforts to communicate to their donors and supporters the opportunities the donations are bringing to the children, and sharing their appreciation and gratitude publicly has created constant public support, funding the construction of two projects and even their ongoing operations.
“We probably spent more time on communication than our other parts of operations, thanking each donor and supporter, telling stories about how their donations inspire us and most importantly, how they are changing children’s lives,” says Misheel O. describing their “recipe” to this successful crowdfunding model in Mongolia.
