Crowdfunding: A Lesson from World War II

May 18, 2020      Roger Craver

 

As a kid growing up in rural Pennsylvania I got my news via the BBC on a short wave radio tucked under my bed. Gettysburg’s local radio station, WGET, was heavy on corn and hog prices,  light on national and world news.

To this day I listen to the BBC with their news and features delivered—minus the squeals, squawks, and static of short wave– on my iPhone or desktop a their 24/7 World Service.

Over the weekend they ran an episode from a series titled Spitfire: The People’s Plane  that chronicles what has to be the most powerful Crowdfunding campaign in the history of fundraising.  “Most powerfult” because it illustrates the massive value of crowdfunding to mobilize global public sentiment and involvement in a time of dire threat.  Think today’s pandemic in terms of threat,  disruption and the need to mobilize public support.  But turn back the clock to 80 years ago.

In June of 1940, following the fall of France, Britain found itself alone and ill- prepared to stand against the certain advance of Nazi Germany’s military might.  An essential element for the preparation of the existential Battle of Britain was the need to build massive numbers of fighter aircraft capable of intercepting the growing fleet of Luftwaffe bombers.

Enter the single-seat, short-range, high-performance interceptor called the Spitfire.  But, Britain faced an early and major problem with the Spitfire.

Problem #1:  Where to get the money to pay for the thousands of Spitfires that would be required.

Solution #1:  Crowdfunding.

Yes, Crowdfunding.  And this BBC episode tells the story brilliantly.  I’ve summarized it in a nutshell below the graphic, but if you can spare 18 minutes treat yourself to a great history and fundraising lesson.

Crowdfunding: Click Here to Listen to BBC Episode

 

In a nutshell, the idea to crowdfund construction came from a Max Aiken, a Canadian press baron transplanted  to Britain and given the title Lord Beaverbrook.  Described by one pilot as an ‘”unpleasant bastard” Lord Beaverbrook was named head of the Air Ministry by Winston Churchill and set about to disrupt conventional thinking and the bureaucracy in his single-minded drive to build and deliver enough Spitfires to defend Britain.

But first he had to figure out a way to pay for the fighter planes. The idea came when a fellow Canadian millionaire asked Beaverbrook what a Spitfire cost.  When told the cost was £8,000 (that’s about £450,000 or about $545,000 today) the Canadian friend wrote out a check.  Beaverbrook immediately saw the opportunity:  Why not ask the British public –and the rest of the world for that matter–to contribute.

And so The Spitfire Fund was born and every member of the public was encouraged to do their part for the war effort.  The ‘giving opportunity’ wasn’t limited to paying  £8,000  for an entire Spitfire. Beaverbrook got right down to fundraising basics.   Donors could give a Merlin engine for £2,000…a fuel tank for £40 and so on  down the gift table including a set of screws for 5 shillings.

The public  rallied– throughout the UK and throughout the Empire — in a massive way.  School children collected for the Spitfire Fund…villages ran bake sales…bars, hotels and restaurants collected…and a hit song was created to spur contributions and competition among cities and regions.

At a time when so many felt so helpless here  was an action they could take to advance the war effort. Even more motivating was the fact that  donors in Britain  could see the object of their giving defending their island home right up there in the sky guns blazing as they attacked the Luftwaffe.

Overall The Spitfire Fund collected £13 million (£650 million or about $780 million today).

While The Spitfire Fund didn’t come close to meeting the cost of producing the planes needed it accomplished something far more valuable.  It helped win the battle for the hearts and minds of the folks on the home front by providing a symbol that united the British people, boosted their resolve to resist the Nazis,  and provided a way to do their part in helping bring the war to an end.

After listening to this BBC episode I thought to myself,  “The world today sure could use the power of a Spitfire Fund.”

Roger

 

3 responses to “Crowdfunding: A Lesson from World War II”

  1. Jay Love says:

    Loved the episode Roger!
    With special events all moving to virtual, at least those willing to give that option a try, crowdfunding is playing a big part in many cases.
    Ironically, the “net” (revenue less expenses) in a large number of these virtual events was higher than the previous year’s “net”.
    I am betting virtual may continue in future years even if it is not the only option.
    Perhaps the Brits were decades ahead of their time on this fundraising option…

  2. Laurence Pagnoni says:

    I needed this history lesson badly. We’re about to start a new large crowdfunding project concerning free legal assistance to immigrants who cannot afford an attorney both in and out of immigrant detention. We will draw from this lesson. Thanks, Roger.

  3. Richard Turner says:

    I listened to the same episode when it came out. I love the sound of the Spitfire and occasionally I hear (and see) one over our house following an air display.

    The story is even better. I stumbled across how the Spitfire nearly didn’t happen if it wasn’t for a major donor. She was known as the “mother of the Spitfire”. She donated her major gift in 1932. At the time even Churchill wasn’t convinced about this new sort of fighter plane which had to move to hit its target – preferring the concept of a fighter plane with a turret. Fortunately Lady Lucy Houston had a passion for aviation and gave a major gift of £100,000 (about £4 million in today’s money) when the government pulled funding (sound familiar?!) to develop the early version of what became the Spitfire. So you also have a major donor element to this story. Now we need to get it made into a blockbuster! See this article https://www.dailymail.co.uk/news/article-3703219/How-Suffragette-s-donation-led-creation-Spitfire.html