Crowdfunding is fast emerging as a key driver and catalyst for innovation, change, and societal progress. Even though crowdfunding platforms existed before, we have witnessed their remarkable impact and accelerated growth over the course of the global pandemic when people leveraged these platforms to get access to funds and resources. Crowdfunding has transformed the face of online fundraising in recent years.
Why is crowdfunding considered such a powerful tool for raising funds online? Keep reading to find out.
Why is Crowdfunding a Powerful Online Platform to Raise Funds?
Crowdfunding, in the simplest terms, is collective giving towards a common cause, usually via the internet. It is a method of online fundraising for a cause, business, project, or venture by collecting small contributions/ investments from a large number of people.
Typically aided by crowdfunding platforms, it leverages the power of technology and social media to bridge the digital divide and broaden the reach of the fundraiser. Crowdfunding connects people/entities in need with people/entities who have the willingness to give. Unlike traditional fundraising methods, the fundraisers are not confined to a limited pool of donors/ sponsors/ investors such as banks, venture capitalists, family and relatives, friends, colleagues, etc.
Democratizes Access to Funds
One of the key benefits of crowdfunding is that it democratizes access to funds and resources. Traditionally, fundraising is a long-drawn, complicated process wherein the fundraising entity would have to look for funding avenues/ donors/ sponsors and complete lengthy application & selection processes, with only a few being selected. And funding is completely dependent on the kindness of a limited few wealthy donors/ sponsors/ funders. In other words, there are several barriers to entry in the traditional methods of fundraising.
One of the key benefits of crowdfunding is that it democratizes access to funds and resources. Traditionally, fundraising is a long-drawn, complicated process wherein the fundraising entity would have to look for funding avenues/ donors/ sponsors and complete lengthy application & selection processes, with only a few being selected. And funding is completely dependent on the kindness of a limited few wealthy donors/ sponsors/ funders. In other words, there are several barriers to entry in the traditional methods of fundraising.
With online crowdfunding, anyone in need of funds can start a fundraising campaign provided they have a smartphone/ computer and internet access. The registration process with most platforms is simple and straightforward. The review, approval, and uploading of fundraising requests is quick in the best crowdfunding platforms like TALGiving.
As a result, anyone who needs funds for a medical emergency, non-profit initiative, social innovation, research, business, education, etc. can gain access to funds using these platforms.
Greater Visibility and Global Reach
Modern-day crowdfunding leverages the power of technology, the internet, and social media. So, the fundraisers are not limited to your known circles and traditional funding sources such as banks, VCs, sponsors, and wealthy donors. They have the potential to make their project/ initiative/ cause/ business visible to diverse backers from across the globe, thus reaching a global audience.
This improved visibility and reach is particularly useful for non-profit organizations. They can raise the resources and funds necessary for them to drive social, economic, and human development, usher in societal progress, and better the lives of the communities they work with.
Wide Range of Causes & Purposes
Crowdfunding platforms typically allow you to raise funds and resources for a wide range of causes and purposes, from medical expenses, education, and non-profit projects to art projects, sustainability projects, and businesses.
Some platforms may specialize in certain types of online fundraising such as art, startup, medical fundraising, etc. Depending on the causes and applications, the platform may adopt specific kinds of crowdfunding such as donation-based, equity, debt, rewards-based, etc.
TALGiving, for instance, adopts the donation-based crowdfunding model. It empowers users, individuals, non-profits, and other organizations, to start crowdfunding campaigns for a wide range of causes. They can not only raise funds for their worthy causes but also create requests for donations in kind, blood & plasma donations, scholarships, board members for non-profits, mentoring, career help, and much more.
Encourages Community Building
Crowdfunding, unlike traditional modes of fundraising, enables the user to build a global community around their cause/ brand/ product/ organization. The fundraising entity can find, mobilize, and connect with the right donors, mentors, and backers, who are aligned with their mission.
The best platforms for crowdfunding also offer an array of tools for gaining feedback and engaging audiences to help fundraisers find their tribe. There are also options to share fundraising requests with others and help improve its reach.
TALGiving is the only crowdfunding platform that also offers marketing tools such as Radio Rooms, email & social media marketing support, and much more to help donees boost engagement and promote community building.
Lower Costs
Unlike traditional fundraising, online crowdfunding has little to no overhead and administrative costs. Through the power of technology, online fundraising platforms offer a range of tools to make the process efficient and cost-effective. It is super easy to create, monitor, and track fundraising requests. It is equally simple to withdraw funds and use them while maintaining transparency and accountability.
While some platforms may charge a platform fee or commission for the funds collected, TALGiving don’t charge any platform fees or any commissions from the donations received and allow users to leverage the benefits of their platform for free.
Secure, Quick and Hassle-Free
The best crowdfunding platforms take security seriously and offer secure and simple ways to donate and raise funds. They offer tools to make it simple and hassle-free for the donors to find worthy causes, ensure that the donee is legitimate, and track how funds are being used. Crowdfunding providers also enable donees to build trust and credibility, thus improving their chances of raising the funds they need.
In conclusion, crowdfunding is an essential tool in modern-day fundraising. It is empowering individuals, non-profit organizations, businesses, innovators, artists, and others to experience the power of collective action in bringing their projects to life, funding their worthy causes, and driving their mission forward.
Looking to raise funds for a worthy cause? Look no further.
TALGiving is a trusted crowdfunding platform that bridges the digital divide with the power of technology. We connect you with a dedicated community of donors and help you raise the funds and resources you need.
