Crowdfunding has changed the way fundraising works. It is a fantastic way to raise funds for your project. There are other known methods of fundraising as well, but crowdfunding, specifically donation-based crowdfunding is quite popular around the world.
What Is Crowdfunding?
Crowdfunding is a practice of raising funds from people to support your project. Many startups and individuals have used crowdfunding to gain capital for their projects. It breaks the barriers and allows expanding and reaching out to more people than the regular traditional investors. Crowdfunding has changed the whole game of fundraising.
Coming to the types of crowdfunding, we have,
- Donation-based crowdfunding
Donation-based Crowdfunding 101
Donation-based crowdfunding is the most preferred mode of fundraising, especially in India. A person first creates the campaign and spreads awareness about his cause using social media and other forms of marketing. The person who is supporting this cause is called as a donor. Any donor who relates to the cause is welcome to donate towards the campaign. There is no minimum or maximum amount for donation. A donor is free to contribute as much as he/she likes.
Applications Of Donation-based Crowdfunding
- Funding startup ideas
- Funding business
- Crowdfunding personal causes such as education expenses, medical expenses, emergencies, etc.,
- Funding social causes
Charity crowdfunding is gaining its shape. Most non-profits aren't taking full advantage of this. You can make use of crowdfunding sites like Milaap and successfully raise funds for your cause. The donors will sometimes receive a "Thank You" letter or get mentioned elsewhere. This is of course, quite different from reward-based crowdfunding wherein a person contributes in return for an incentive.
Many social causes can be supported by this kind of funding. There are individuals who aren't as fortunate as us. As they say, "we rise by lifting others"; some people are struggling to make their medical bills and others who look for quality education. You can contribute towards noble causes like this, and help uplift the unfortunate.
Donation-based crowdfunding has turned the scenario in the field of education. Crowdfunding has helped clear the debt of many students. Crowdfunding is a topic which is also being added to the curriculum of many business schools.
Various social causes gain traction both offline and online. It is better to use online methods of crowdfunding if the champion is running short of funds. Online crowdfunding is quite economical compared to offline efforts as traditional means involve a lot of planning, banner designing and it reaches a limited crowd. Crowdfunding through online platforms knows no boundaries, and has the potential to go viral.
Several environmental causes have been fully funded online. Modern day crowdfunding has allowed people to support bigger philanthropic projects without the need of donating lump sum amounts of money. They can know about the importance of the cause, and it increases awareness about the need to support such causes.
List of Crowdfunding Platforms In India
There are various Indian crowdfunding platforms. It is free to start a campaign for your cause on Milaap and start sharing with your circle. We charge 5% platform fee on the total funds raised on our basic plan, and you are always welcome to request for assistance. Milaap has raised more than 26 Million USD and has an excellent history of successful campaigns in the past. For a list of other platforms and comparison, click here.
Are you ready to create your donation-based crowdfunding campaign? Start a fundraiser now!