Have you ever come across the term “crowdfunding” online and wondered what it means? Essentially, crowdfunding is when a large group of people donate small amounts of money, capital, or investments to help finance a project or cause. This can range from gathering funds to pay for a student’s college tuition to raising money for a new business venture.
Even news reports have shown that crowdfunding has become a popular tool for Indian students to finance their education at prestigious institutions overseas.
As this market continues to grow, non-profit organizations (NGOs) are also taking advantage of the power of crowdfunding. By utilizing fundraising and social media tools available on these platforms, NGOs can reach a larger audience and promote their mission more effectively than ever before.
In the past, raising awareness for NGOs involved costly campaigns such as door-to-door campaigns and fundraising events. However, with the right platform, NGOs can now share their appeal, gather funds, and save money all at once.
Crowdfunding helps NGOs achieve their goals
- A Quick Process: Crowdfunding platforms make it easy for NGOs to launch campaigns quickly. They provide user-friendly instructions to gather information, tips to boost your efforts, and ways to share your story with a large audience. Although some platforms offer paid options, most do not charge a fee to start a campaign. In the event of paid options, additional opportunities are provided to enhance your campaign.
- Reach large audience: After an NGO register on a crowdfunding platform and begins a fundraising campaign, the information is spread through various channels such as newsletters, social media posts, and advertisements on different platforms. This helps to reach both their existing audience and potential new ones who may be interested in supporting the cause. In India, some crowdfunding platforms have a large viewership abroad, and they even accept payments in other currencies.
- Build confidence with donors: An NGO can share its story through crowdfunding campaigns using various formats such as text, pictures, video, or audio. They can provide details about their work, its impact, and future plans, including first-person interviews. Additionally, they can share links to their website and social media pages. Donors can follow these links to stay updated on current activities, which builds trust and encourages donations.
- Engaging with donors: When seeking donations through crowdfunding, it’s important to clearly communicate your organization’s mission. The storyline on your donation page should explain why the help is needed and emotionally appeal to potential donors. This will encourage them to engage with your organization by commenting on the story, sharing it on social media, and potentially making a donation.
- Cost effective: NGOs used to spend a significant amount of money on generating donations through events, phone calls, emails, and letters, which quickly depleted their budget. However, with crowdfunding, NGOs can now start fundraising campaigns quickly and often for free. Some platforms even provide free photo and video editing tools. Crowdfunding campaigns allow NGOs to share their mission with a larger audience, increasing their chances of receiving funds.
