Gofundme and Indiegogo may be two of the largest, but you should know already of the hottest thing on the web! Raising charity funding is the easiest thing whether online or offline. Genuine philanthropic causes like helping the disadvantaged in terms of health and education, food and housing, have timeless appeal.
Crowdfunding or raising donations online is a reality and maybe 500 such websites or more are doing the rounds night and day. Unlike the shops in the town, the websites need not close nightly which is a mighty advantage in terms of costs and accessibility from around the globe. Crowdfunding may be worth more than $5 billion during the current financial year with a million and more individual campaigns!
How exactly does crowdfunding works?
The website is like a middleman that raises money on your behalf but charges commission too. Whether you call it processing fees or whatever, either the donor’s or the recipient or both would have to pay maybe 3% or 5% which is cool after all though they may claim it is all for free.
Raising funds for startups is another interesting possibility and many would be interested in that. After all, there is no dearth of ideas but how many will succeed is the big question. In serious cases, shares are sold in return for investments, unlike the donation system which is more like a business deal. A lot of planned small businesses are stuck in the absence of funds. Loans attract high-interest rates and require guarantees. Crowdfunding would become a big boost to developing your own small business with some luck. Put forward your proposal and give it a try. Nothing to lose anyway, but you need to reach the amount you proposed or attract a penalty.
Crowdfunding has a huge future if you considered localized approaches within particular towns and group work on particular niches. Inventors and creative people besides small businesses are certainly getting a big push hopefully if the right people can be identified by the crowd for funding.