Posted On: 1656412233
India is a developing country. Numerous things like technology, infrastructure, education, economic welfare, trading, healthcare facilities, and standard of living are changing for the good. Similarly, financial management and fund management are also taking a different shape.
Earlier, financial burdens had a couple of solutions: Bank loans or keeping valuables on a mortgage. Gradually, this scenario changed and charity came into the picture. Traditional ways of raising funds emerged and recently crowdfunding has gained momentum in India.
Crowdfunding is one of the secure ways to gather funds, online or offline from a large number of individuals and organizations. Here a campaigner initiates a fundraising campaign for an idea or a cause. People who believe in this idea donate for the same.
During the earlier days, there were events, galas and auctions held for fundraising. This was the traditional way of crowdfunding, where people or potential donors met at events and donated to the cause.
With the ever-growing magic of the internet and social media, crowdfunding started to take place online. An engaging story is put up on an online crowdfunding platform with the necessary details, and pictures are attached to the story. This becomes a fundraising campaign which is led by a campaigner. Once this is shared on social media it reaches a number of people and those who find it genuine donate or invest in the fundraiser.
There are different types of crowdfunding:
1. Equity-based crowdfunding
2. Debt-based crowdfunding
3. Rewards-based crowdfunding
4. Donation-based crowdfunding
In India, most of the fundraisers are for medical support and business start-ups. And out of the four types of crowdfunding mentioned above, donation-based crowdfunding is commonly seen and widely used.
What Is Donation-Based Crowdfunding?
It is one of the common ways of fundraising in India. Here, the visitors on the crowdfunding platform find the cause and campaign appealing enough and donates to that cause in exchange for no returns.
No maximum amount to be donated is mentioned on the platform. However, certain rules can vary depending from platform to platform.
How Does It work?
Donation-based crowdfunding is a widely used crowdfunding in India. Here, an idea or a cause is supported by a large group of people. A story is prepared that consists of all the necessary details of the cause, like:
This story is then uploaded on a crowdfunding website. Usually, these crowdfunding platforms do not take hefty charges but work with minimal platform fees. Once the story is uploaded, it is supposed to be promoted on social media. Twitter, Instagram, Facebook, and YouTube are widely used by almost everyone today.
Various links can be created to share it with your immediate circle and on other social media sites. Reading the story, if the donors find it appealing, they donate accordingly.
Donation-Based Crowdfunding is commonly used for...
Advantages of Donation-Based Crowdfunding
1. There are often minimum costs for initiating a fundraising campaign on platforms.
2. Since there is no start-up debt, there is little financial risk.
3. Campaigns can go viral and funds may be raised quickly.
4. Social media platforms, websites, and other online venues can lead to rapid and extensive exposure.
5. The crowdfunding campaign can be used to evaluate public opinion, spark interest, and gather feedback.
6. You can create community support for your project and build on these important relationships and customer loyalty.
7. Crowdfunding makes risk management more efficient because smaller enterprises frequently face lower risks.
The Bottom Line...
Donation-based crowdfunding is widely used not only in India but all around the world. There have been massive projects that were supported financially through crowdfunding. Guess what? They were a success!
Crowdfunding is gaining traction rapidly in India. Medical bills, personal causes, and charity causes are being supported by crowdfunding platforms and non-profit organisations are benefiting from it too.
Filaantro is an online crowdfunding platform that raises funds for all and every cause that one believes in and is legal in nature. With the user-friendly interface, easy withdrawals, social media promotions and tax benefits, Filaantro makes the fundraising experience an easy and transparent journey.
Visit us at filaantro.org to know more
Author: Anjali Patel
Ready to Start a Fundraiser ?