Gofundme and Indiegogo maybe two of the largest crowdfunding entity. But you should know already 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 health and education, food, and housing, have timeless appeal.
What is Crowdfunding?
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, 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 work?
The website is like a middleman that raises money on your behalf but charges a commission too. Whether you call it processing fees, either the donor or the recipient or both would have to pay maybe 3% or 5%, which is fantastic after all though they may claim it is all for free.
- Crowdrise represents the website for the easiest task of raising charity funding. Inspirational social work would certainly fund a crutch here.
- Kickstarter for creative projects like art and music would get you a chance for a powerful beginning.
- Indiegogo is not very particular and personal finance also is a possibility like a budget for a holiday besides the creative.
- Quirky is aimed at inventors who are developing a product and community support may bring it to the reality of life.
Funds for startups
Raising funds for startups is another exciting possibility, and many would be interested in that. After all, there is no shortage of ideas, but how many will succeed is the big question. In severe 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 significant 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 would have a massive future if you considered localized approaches within particular towns and group work on specific niches. Besides small businesses, inventors and creative people are certainly getting a big push if the crowd can identify the right people for funding.