If you’ve got any kind of regular interaction with social media, you’ve no doubt heard of ‘Crowdfunding’.
One of the fastest growing fundraising avenues, Crowdfunding is an innovative, dynamic tool that individuals and organizations can employ to find financial support for their exciting and worthy causes or projects.
How it works –
Crowdfunding is driven by what’s called ‘collaborative funding’. It does what the internet does best: connects people with similar interests or passions around the ideas that excite them.
This works in two different ways: donation and investment based crowdfunding. Donation based models seek contributions from individual donors in exchange for certain kinds of recognition or bonuses, while investment models encourage supporters to become stakeholders through investing capital or incurring debt.
So it is time to forget fundraising chocolates and cake sales – and raise money for your god cause with crowdfunding. There are several major international Crowdfunding platforms of both varieties, each with different advantages dependent on what it is you’re hoping to raise money to support. With such an array of options, it’s worth taking the time to look into which crowdfunding platform best serves your project?
Kickstarter is a donation-based platform, and probably the most well established. It has a broad scope in terms of the different kinds of creative projects to which it caters. Some of the most successful types of projects it has supported are music, art and film initiatives.
More open as far as what kinds of projects it serves, Indiegogo is somewhat more laidback in its organization than Kickstater, approving donation-based fundraising campaigns for just about anything. They will allow personal fundraising drives, as well as creative projects and business initiatives. Like Kickstarter, Indiegogo has been around a while and is well respected.
This is an investment-driven platform, which gives prospective supporters the opportunity to put their resources towards an innovative new business or product and actually profit from its success. Because of this framework, crowdfunder.com is best utilized for ideas and projects with commercial prospects.
RocketHub got on the map and has become one of the quickest growing crowdfunding websites on account of its dynamic marketing platforms, FuelPad and LaunchPad, which allow users to connect in versitle and meaningful ways with the people most likely to support their initiatives.
This platform has a specialized focus in Causes and Charity, and is fuelled by a desire to connect people hoping to make a difference with the organizations best positioned to affect change. Its unique donation-based model includes a scoring system that measures the impact projects and individuals are making.
The major attraction of running a Crowdfunding campaign, for most prospective fundraisers, is the relative ease with which users are able to get their idea out to the people most likely to support it. By maximizing exposure of projects in this way, these platforms enable a greater return on their users’ time and energy than more conventional forms of fundraising, where the burden of promotion and the cost of processing revenue rests with the support-seeking individual or company alone.