Why is Crowdfunding a Better Option During a Financial Crisis?

Why is Crowdfunding a Better Option During a Financial Crisis?

Whenever a financial need arises, be it for medical emergencies, education fees or buying a property, finance management proves to be difficult. Loans that require lots of time and tidy procedures are hectic; withdrawing funds by discontinuing your fixed deposits or recurring deposits is also a big NO! If we talk about stock market trading then you must first be aware of the uncertainties that are involved in stock trading. Amidst all the struggle to make these arrangements, the clock is ticking and you might just miss a great deal in order to gather the funds needed. 

 

For medical emergencies as well, many a time it occurs that a patient suffering from a life-threatening disease has to wait for the treatment or the surgery to begin because of a lack of funds. Then what are we to do to arrange the funds needed? Well, there is one way to gather funds that have recently surfaced in the game of financial management. 'Crowdfunding' Although, crowdfunding has recently gained popularity in India, it has been widely used on global and individual levels around the world since a long time now. 

 

What is Crowdfunding?

 

Crowdfunding Filaantro

 

To answer this in simple terms, just imagine crowdfunding as a group assignment. Where a group of people work towards one goal (raising funds in this case) and every member plays an individual role. 

Earlier, traditional ways of crowdfunding like galas, events and auctions and rallies. Individuals and organizations participate in these events, where the funds raised or donated by people is used for the cause of the crowdfunding campaign. 

 

As time passed, the digital world changed the face of crowdfunding. From traditional ways of fundraising, it transformed into online crowdfunding. 

 

The Team Involved in Crowdfunding

 

 How Crowdfunding works

 

This will clear our doubts about 'what is crowdfunding?'

 

Crowdfunding can support any legal and genuine cause. Be it for charity, a personal cause, funds for launching your music album, publishing your book, buying property, or a medical emergency, fundraising can be beneficial for all of these and many other causes. 

 

Crowdfunding starts with the 'Campaigner' This individual is the one who initiates a fundraising campaign for a cause. This fundraising campaign is displayed on a crowdfunding platform. Now, what is this crowdfunding platform? 

 

A crowdfunding platform is a website where any individual or organization can start a fundraising campaign. Most of the website charges minimal platform fees from the campaigner for it. On this platform, the written story, pictures and videos related to the cause are uploaded for people to learn about the need for funds. 

 

The team of this crowdfunding platform writes an appealing story based on the details given by the campaigner and attaches good quality pictures and videos to support the story and uploads this on the website. 

 

Followed by this the fundraiser needs to be shared, first the campaigner must share the link of the campaign in one's close circle. Then comes the role of social media. The fundraising campaign is shared on various social media platforms like Facebook, Instagram, Twitter, YouTube and others in the form of posts and videos. This way, it reaches more people around the world. 

 

Once people find the cause, they relate to it and donate funds for the cause. Several online payment methods have made it easier for everyone to donate funds and even better for the beneficiary to collect them from the bank. All the details of the beneficiary's bank are mentioned in the fundraising campaign. For authenticity, beneficiary contact numbers and other details are given too. 

 

Why Crowdfunding? 

 

Crowdfunding Filaantro

 

After all that information shared about what is crowdfunding, we know the benefits of online crowdfunding, that it requires minimal charges, is less time consuming than traditional ways and can be done at any time, from any corner of the world for any cause. 

 

Other reasons to answer the 'WHY CROWDFUNDING?' is quite simple. Unlike long procedures and documentation for loans, crowdfunding requires minimal to no paperwork. When compared to loans, you do not have to repay the amount raised to crowdfunding, nor does the interest need to be paid. 

 

For gathering funds, crowdfunding can be your best option as it does not have uncertainties as high as stock trading, no brokerage, no quick fluctuations and no loss. If enough effort is put in, your fundraising campaign can succeed within time. 

 

With a fundraising campaign going on for your cause, you will not lose any of your savings; crowdfunding ensures that the savings are meant for a secured future. 

 

The Bottom Line...

With enough effort put in, crowdfunding is one of the best options to choose from during the time of financial crisis. Filaantro is one such online crowdfunding platform that supports genuine causes. Our major fundraising campaigns focus majorly to enhance the education of underprivileged children, food relief programs and medical emergencies. Filaantro has an easy-to-use interface that anyone who wishes to start a fundraising campaign can operate. 

 

 Filaantro Crowdfunding Platform

 

 

Filaantro also offers the promotion of the campaigns on its social media so it reaches numerous people who can donate. Multiple payment options, website services and minimal charges are the perks that you get! 

Visit filaantro.org to know more 

 

Author: Anjali Patel

 




Ready to Start a Fundraiser ?