If you’re looking for a new way to raise funds for your non-profit organization, try crowdfunding. You see it all the time in your news feed and inbox. Crowdfunding is the newest trend in charitable giving. It’s a method of asking for and receiving donations primarily via the Internet. The idea behind crowdfunding is that every donation counts. Over time, small donations from people all over the world stack up to eventually meet the goal amount.
In 2015, crowdfunding had raised $34.5 billion for more than 100,000 active fundraisers. People use crowdsourcing for various projects and purposes animal rescue, child welfare, health care organization, etc. With the help of online platforms, thousands of campaigns raise money for personal purposes such as medical procedures, tuition assistance, memorials and funerals. Crowdfunding can also be used for capital projects. Entrepreneurs can raise funds for everything – art, music, films, innovations, and startup businesses.
Keep reading to learn the many pros and cons to using crowdfunding for your charity.
1. Crowdfunding is very simple to use. You won’t need to set up a website, payment processor, and other technical details. Simply put in your fundraiser’s purpose, input your bank details, create a strong online presence, and spread the word.
2. It offers little to no risk.
3. You can easily customize your campaign to suit your needs.
4. With the help of the Internet, you’ll be able to reach more people with your message compared to traditional methods. One click, and your friends, family, staff and peers can share the word to thousands of people across various social media platforms.
5. You’ll be able to connect with people who believe in your agenda. It gives your charity the exposure it needs to attract not just potential donors, but also supporters and volunteers.
6. Because crowdfunding has a very low minimum donation, everyone can contribute. Everyone gets to experience the joy of giving, and it will help your nonprofit organization reach your goal little by little.
1. All crowdfunding platforms are paid. They charge a small fee in order to keep their site going, and the rate and conditions varies. Some platforms charge more when you don’t reach your target amount after a set date. Others charge your donors a small percentage depending on their donated amount. For example, they may choose to donate $25. If the platform’s rate is 10%, the total charge will amount to $27.5.
2. Regulations regarding non-profit organizations are somewhat strict. The laws vary from state to state, and from country to country. You’ll need to settle the legalities first before you proceed.
3. There are also restrictions enforced by the online platform that prevent you from accessing the funds until you have reached the goal or set date.
4. Most platforms are limited and are only accessible to the US.
It’s up to you to decide whether the benefits outweigh the costs. This article is to help you decide whether or not crowdfunding is right for your charity. It offers an easy way to receive donations, but the downsides may cause you to try out other kinds of fundraisers.