Crowdfunding Simplified | Raise Money Online
Crowdfunding industry is growing. With around more than 50 platforms raising billions for social projects, medical aid, startups, and even personal causes like education. With a rapid revolution, crowdfunding as a financing method is still new to many. Fundraisers in the start always wonder about the apt steps to reach the goal, which crowdfunding platform to pick and how to promote the fundraising campaign. Not to forget, the same old question, “can I raise money for anything?” The answer to it is, “If you can find supporters, Yes!”Crowdfunding is a fundraising method with the help of which one can raise money online through small contributions from people i.e. the crowd. You can ask people to donate a small amount that will add up to the desired amount. The expected amount depends on the cause of the fundraiser.
Though Crowdfunding is a new term its practice is quite old! The practice of crowdfunding is vital for various, personal and non-profit causes. It has definitely helped millions to get another chance at life. Crowdfunding has been helpful in paying off ridiculous medical bills, in cases of financial emergencies.
Crowdfunding has also abetted Non-Profit Organizations to fulfill their initiatives allied to women’s welfare, children’s education, and more. It has helped people in their personal projects as well that includes traveling abroad, paying college fees, etc.
Types of crowdfunding
Donation-based crowdfunding involves the fundraiser, where he doesn’t have to pay back the funds to the donors. It is used for cases including non-profits, medical, charity, disaster relief, etc.
Another one is Reward-based crowdfunding, which entails people serving you in your business ventures, where they get rewards in return. Typically, Reward-based crowdfunding includes people who use the service or product offered by your company. It is very much similar to donation-based crowdfunding as there is no equity involved.
Equity based crowdfunding involves a contributor that can become a fellow owner of the company. They hold a privilege of receiving a financial return for his investment in the company. Also, they get a share of the company’s profits that it makes.
Debt-based crowdfunding also coined as peer-to-peer crowdfunding which involves investors lending money to the entrepreneurs for a certain period of time at a specific rate of interest. It provides a better return on investment contrary to the traditional banking options.
There is some phenomenal donate money online & crowdfunding platforms that offer hundreds of features to start a fundraising campaign. Selecting a crowdfunding platform is as crucial as starting the fundraiser. You can a quick comparison of all the crowdfunding platforms to make an informed choice.
Choose crowdfunding platform, depending on the cause it is most reputed for. Also, go with the one that hosts various categories of fundraising campaigns, including social, personal and creative causes. Options like DonateWealth.com is one of the most reputed choices of people as it offers a plethora of features, to create a campaign, and share it among your friends and family members connected on social networking sites.