Posted On: 2022-03-30 23:55:37
Many of us who are on social media platforms must have heard about crowdfunding or fundraising. At least one ad pops up regarding raising funds for a cause while surfing the internet. For those who might not know, crowdfunding is a method of gathering funds online or offline for a project or any cause with relatively modest contributions from a large group of individuals or organizations. Crowdfunding has recently gained popularity in India. People used to rely on bank loans, borrowings, or sell their valuables to get money when they needed it.
Offline and online are two ways to raise funds through crowdfunding. In offline crowdfunding, various events are organized to attract a crowd and let them know about the fundraiser. It could be done through a charity event of selling certain items or an auction. This could lead to another new plan and spending to add on.
Hence, more and more people are moving to online crowdfunding when it comes to fundraising.
The online crowdfunding method uses a web-based platform to solicit funds for the fundraiser by showcasing the story to the audience. The journey of online fundraising starts with identifying a genuine cause. The need to raise funds is where it starts from. Then, a good amount of research is required to choose a trustworthy crowdfunding platform on which the cause and it's story will be showcased. Choosing a good user-friendly platform is necessary as it helps drive the campaign smoothly. A good, genuine storyline and good quality pictures and videos on the fundraising platform will attract more donors for the campaign. The use of social media to spread the word about the fundraising campaign is critical to its success, further. This helps the cause reach more people and groups. Once the goal is achieved the beneficiary receives the funds raised. Thanking donors is the final step to completing the online fundraising journey. They have been a crucial support, and credits should be paid where due.
Online crowdfunding has made many things easier and smoother for people who choose to fundraise for their causes.
1. No more struggling with bank loans: Traditional ways of gathering money for a medical emergency, purchasing property or car, or even pursuing a higher degree would need taking loans. Everybody knows how hectic the process of loans is. The long-term installments, interest rate, looking for guarantors and the like is burdensome. If you know and have been through all these struggles of getting bank loans or traditional funding, then you would definitely choose online crowdfunding as an alternative.
2. Minimal Costs: In comparison to traditional funding, online funding has a greater reach. In fact, traditional direct mail or in-person solicitation pales in comparison to the strength of internet donations. Aside from the massive reach, online fundraising also provides a virtual, real-time flow of funds. Furthermore, if properly executed and administered, internet funding is very simple for donors to grasp. Online fundraising also offers a virtual, instantaneous flow of cash.
3. Increase in the rate of donations: When compared to mail solicitation, statistics show that online contributors are more inclined to donate. It has been discovered that internet ad campaigns provide a greater return on investment than traditional techniques. Due to 'busy donors,' this is feasible. Busy donors are individuals who use the internet to run their businesses more efficiently. Extremely busy donors are likewise more likely to give. Internet users are more likely than non-internet donors to look for a charity to support a good cause.
However, several concepts that apply to traditional fundraising also apply to internet fundraising. In traditional fundraising, for example, people are more willing to give more if they receive something in return. The same may be said of online fundraising. This is called reward-based crowdfunding.
4.Transparency and Trust Building: An online crowdfunding platform can show contributors how their cash is being used through online fundraising. This is achievable because every penny donated is enumerated. As a result, donors' faith in the relevant organization or charity grows dramatically. Donors are more likely to donate money through online fundraising when there is more transparency.
5. Early market reaction: This one is for those raising funds for start-ups. The start-up founder gets a digital market that offers an audience and critics both together that shows whether the product will be accepted in the market on its launch or not. Hence, online crowdfunding is a good way to gauge how the general public feels about your product/idea; if people are eager to invest, it's a good sign that your concept will succeed in the market.
6. Easy disbursal of funds: During a medical emergency or any personal reason, when an individual takes a loan, the process is lengthy and funds take a lot of time to reach the ultimate beneficiary. Online crowdfunding makes it easy for the campaigner to withdraw funds with a few easy steps and give them to the final beneficiary. In India, online fundraising is majorly used for medical bill payments or treatments and surgeries. Easy disbursal of funds helps the most in these cases.
Traditional crowdfunding still works the best and attracts numerous donors. But with the world functioning digitally now, crowdfunding is also shifting to online ways of fundraising. It has its own perks and is a widely chosen method. Filaantro is one such trustworthy online crowdfunding platform that raises funds and supports causes that one truly believes in. It has a user-friendly interface. The process of running the online fundraiser takes place with a few simple steps of registrations and filling in details.
Author: Anjali Patel
Ready to Start a Fundraiser ?