Is crowdfunding right for your non-profit?
Crowdfunding is the practice where people put in small amounts of money to collect a large amount for a cause. It is typically done via the internet. It is also a form of alternate financing and crowdsourcing. Billions of dollars have been raised through crowdfunding. Though there are other ways too, crowdfunding is typically internet- based. Crowdfunding happens through three parties- the ones running the campaign, the ones providing a platform and arranging the whole thing and the donors- the people who will be putting in the money.
A very important role is played by the friends and family of the people who create the campaign. They share, micro manage and create support groups for the people who have created the campaign. They give the campaign the exposure it needs. So it is very important for people to keep their friends and family in the loop. They are the ones who keep the entire campaign going. It is them and the exposure that they give that ensures the success of the campaign. Even though crowdfunding gained popularity from the mainstream art and music, it has proven to be equally useful for other purposes.
Crowdfunding in India has a long history with several causes including, books, military purposes and others. All kinds of people have used crowdfunding to collect their funds. Crowdfunding has its roots in India too. Crowdfunding in India has been a thing for quite some time now. Fundraisers in India have existed for several decades now, but conducting one’s campaign through the internet increases the legitimacy of the campaign. Having raised billions of dollars for crowdfunding, Millennials and fundraisers in India rely on crowdfunding big time for their needs to be met. Crowdfunding has become an important aspect of life for a lot of people. These days there are several crowdfunding platforms in India. Crowdfunding in India has established itself successfully.
Online crowdfunding happens via websites (such as “Kickstarter” or “Indiegogo”) that allow sponsors to post descriptions, and even pictures of their projects, to attract donations. Via the internet crowdfunding can reach a much more diverse audience than a non-profit’s regular audience. A crowdfunded project online presence can be shared easily via Facebook, Twitter, or any other social media platform. Live crowdfunding, on the other hand, features live events where spokespeople for the non-profit pitch their cause to those gathered. Audience members pledge donations in an auction-like setting. These event are hosted by those raising funds or by third-party organizations that specialize in creating crowdfunding events.
Any non-profit can take advantage of the benefits of either live or online crowdfunding. Both models allow donors to ask questions and offer feedback, facilitating discussion and building relationships between donors and organizations. Additionally, both can attract and inspire new donors who might not have contributed to one’s cause otherwise. Crowdfunding is a great way to contribute to things you care for by contributing to various non-profit organisations.
There are important nuances in online platforms that non-profits should be aware of. Some platforms are tailored for creative projects, while others cater specifically to non-profits interested in using crowdfunding to fundraise. Additionally, different platforms charge different fees: some charge more if a project doesn’t reach its goal, while others don’t charge a fee at all, but also don’t allow the sponsoring non-profit to collect donations unless they reach the target amount. In that case, donations are never actually collected/debited from the donor’s credit card, so donors’ contributions are not made, and neither the crowdfunding platform nor the non-profit receive revenue. Here’s an important point to keep in mind: All crowdfunding platforms charge a baseline processing fee, and the fees can vary.