In the last few years, crowdfunding platforms have demonstrated the power of normal people and the kind of change they can fuel if they wanted to. It is typically defined as a platform where a lot of individuals come together and donate small sums of money in order to fuel a common goal or cause.
In the past, crowdfunding platforms have helped set up a great business idea (making initial donors’ shareholders). Everywhere you look in the world at the moment, crowdfunding platforms have become incredibly popular. They are leading changes, creating values and putting in place pillars of activism- in the area of environment, humanity or anything else.
Non-profits and charitable organizations have also become important components of crowdfunding platforms. In this article, we are going to help professionals at Give2Children.
Give2Children is a Singapore crowdfunding website that helps in raising funds for non-profits and charities.
Table of Contents
The Three Main Elements of a Crowdfunding Platform
According to experts, a crowdfunding platform has three major components that non-profits must be aware of-
1. The campaign, project, or cause-
Non-profits and charitable organizations should not make the mistake of asking for funds for their organization. Rather, they should focus on creating campaigns that are directed towards being individual projects. For example, asking for help to build a school in a remote location is a project that has a quantifiable goal.
2. A defined monetary amount that will help fulfill the goal-
Every campaign needs to have with it, the money that is required to help in the completion of the project or goal. For example, the same school that needs to be built requires a sum of $10000. This helps the donors understand that there is a goal involved and allows them to contribute accordingly. Once the goal is accomplished, the campaign ends.
3. A set timeframe within which the funds need to be raised-
Fundraising campaigns on crowdfunding platforms cannot go on indefinitely. They have a specified timeframe within which they run and should be achieved. If they fail to do so within the time period set, then they get dissolved automatically, and all the money gets refunded to individuals that had contributed towards the same.
Non-profits need to understand that when it comes to raising funds, these three factors or parameters need to be remembered.
Benefits of using Crowdfunding Platforms for Non-Profits and Charities
In this section, we are going to look at some of the major benefits that non-profits and charities can enjoy from raising funds on crowdfunding platforms-
- Non-profits and charities can expect to attract a larger pool of donors that are already active and engaged on the website of the crowdfunding platform.
- Crowdfunding platforms help give campaigns more exposure by sharing it with their emailing lists, and on social media pages.
- Crowdfunding platforms help the cause of non-profits become credible, authentic, and trustworthy. Projects are vetted before they are displayed as campaigns.
- As Crowdfunding platforms take a commission, the onus on completion of the raising of funds lies with them. This makes them adopt strategies that popularize the cause.
- Being on such platforms helps non-profits with collaborations. Someone might come across their cause and would want to contribute in some other way.
- Documentation of the donations and the donors also becomes convenient as the crowdfunding platform does the same for every campaign.
- Crowdfunding campaigns list down causes according to interest areas leading donors to easily find them. This helps in getting your cause in front of target audiences.
The Bottom Line
For non-profits planning campaigns that evoke emotions and rouse sentiments is very important. Crowdfunding platforms help in campaign planning, copywriting, and overall presentation for the same. Experts that have done well in raising funds on crowdfunding platforms emphasize the strength of video to showcase the authenticity of the project or cause. Crowdfunding platforms continue to become machines that are driving real change in society.
