Fundraising is one of the primary ways charitable organizations meet their operating costs and fund their missions. Fundraising has come a long way since the days of direct mailers, cold calls and door-to-door solicitations.
According to the charitable giving resource Fundable, crowdfunding is a method of raising capital through the collective efforts of different individuals, be it family, customers, friends, or private investors. This method of fundraising taps into a large pool of people, and funds often come in several small donations rather than a handful of large contributions.
Crowdfunding and social media now go hand-in-hand. Individuals tasked with crowdfunding can use social media platforms to quickly and easily increase their exposure. The ability to streamline fundraising efforts is something many people find appealing about crowdfunding. Each of the steps involved in advertising and collecting funds are housed within one online platform. Many people turn to crowdfunding to raise money for medical bills, nonprofits and disaster relief charities. But the opportunities are endless.
While crowdfunding sites are a key way to raise capital, users should recognize some of these services cost money. Many involve plans where the site collects fees or a percentage of the money raised. According to the crowdfunding resource Crowd Crux, platform fees are the main way that crowdfunding sites make money. Typically anywhere between 5 and 10 percent is collected based on the type of campaign. Free platforms are available; individuals just need to do their research and recognize that, while free platforms may not charge fees, they may be gathering email addresses or other personal information.
As crowdfunding becomes more mainstream, people should realize that newer options continue to pop up. GoFundMe has long been one of the largest and most well-known crowdfunding platforms, but many others are gaining a foothold. Whether the goal is interface customization, low fees, customer service, or producing coordinating merchandise, these other options can be worth investigating. Some lesser known crowdfunding platforms include:
- Booster
- Fundly
- FundRazr
- GiveForward
- Indiegogo
- Plumfund
- Pursu.it
- StartSomeGood
- YouCaring
Crowdfunding is becoming more popular among individuals and businesses and nonprofits.
