Why Crowdfunding is Easy Fundraising
August 18, 2013 Pros Corner
Crowdfunding is one of the newest ways to raise awareness and investment for your cause, whether you are a charitable organisation seeking to reach new markets or a business venture trying to get together enough capital to launch.
Rocketing in popularity due to the tightening in bank lending criteria, crowdfunding offers investors the chance to not only achieve a financial gain, but also the opportunity to join an exclusive community.
We take a look at why crowdfunding works and how it has revolutionised fundraising.
A modern approach
Fundraising is a vital task yet can also be difficult, fruitless and frustrating. Crowdfunding offers an innovative solution and backs this new approach up with a seamless integration with social media and other technology.
Approaching individuals and asking for large sums of cash is likely to be an uphill battle but asking for a small amount from lots of people is not only likely to be less daunting, but you stand a far greater chance of success. This is the basis upon which crowdfunding relies; many organisations believe crowdfunding is easy fundraising.
However, reaching out to the community for help with a new project, venture or campaign is just one aspect of the crowdfunding approach. Having access to a wide audience is absolutely imperative and those who participate in crowdfunding are encouraged to spread the word amongst their friends and acquaintances.
But crowdfunding doesn’t just rely on word of mouth, social media also plays an integral role. With a presence on both Twitter and Facebook, most crowdfunding platforms aim to use modern technology to stay connected with their contributors and to reach new members.
Extend your capabilities
The modern world is fast-paced, demanding and impatient and although many people may have the best intentions, if the solution isn’t immediately available and convenient, they may lose interest or never get round to doing what they planned.
This has never been more the case than with fundraising. If your potential contributors have to get in touch with their bank to make a transfer, that’s quite a lot of hassle and there’s a good chance they simply won’t follow through.
For this reason, it’s essential to make it easy for any investors to donate or contribute, both in terms of how and when they can make the arrangements.
Having an online facility which allows fundraising to reach the public at any time of the day or night, plus the ability to receive credit and debit card payments will make it easy for those who want to contribute but are short of time or organisation.
The feel-good factor
Whilst crowdfunding offers unquestionable benefits in terms of accessibility, there is so much more to the concept than just convenience.
The opportunity to belong to a community and to be able to see the tangible benefits that an investment can deliver is a very powerful incentive. Crowdfunding works by providing membership to a ready-made community, and the chance to become part of a bigger group with the same aims, aspirations and goal.
For many people, this feel-good factor is a huge draw and provides a new angle that isn’t available elsewhere.
Charitable donations in many spheres has become rather clinical and withdrawn and the public can sometimes find it difficult to really engage with a cause that they may believe passionately in but can’t feel connected to. Crowdfunding offers a very different experience; the opportunity to get involved even if time is limited. Once investors have contributed, they become a member, and can track and follow the project as well as explore social networking, blogs and even communicate with the rest of ‘their’ group.
Crowdfunding means that trying to fundraise in the streets is a thing of the past; the need to try and capture attention without any means of discerning who might be interested in your cause is no longer needed.
The online platform provides the opportunity to explain the aims, goals and targets of the initiative and also ask for the help that’s really needed. Whether that’s specific skills, time or most commonly, money, fundraising reaches those who are actively interested in making a contribution and becoming part of a campaign they really believe in.