Fundraising is a tale as old as time, and community fundraising has always been a part of helping those less fortunate. Whether it’s the collection plate at church, or a community secretly organizing funds for a member fallen on hard times. As we move further into the digital age, fundraising itself has changed, and technology has made it easier for the global community to help their fellow “neighbors.” There is still plenty of work to be done to improve the conditions of those who are most vulnerable, but crowdfunding, a form of community fundraising can help not only individuals who are struggling but help to close funding gaps for non-profit organizations, who then can help more people.
So how does crowdfunding work, and why is it a better way forward? Well, the answer is that it’s a pretty unique system for raising funds, and it fixes a lot of the issues with traditional fundraising. Here are three ways that crowdfunding outpaces traditional fundraising.
- Crowdfunding is significantly more time(and cost)-effective than traditional fundraising: With traditional fundraising, there are a lot of steps to raising money, and often minimal reward. Be it targeting prospective donors, or sending out email after email to find the right point of contact, or even cold calling to raise funds. And with offline fundraising, there are often significant marketing costs involved in design and promotion. Crowdfunding can often be a much more bootstrapped project and can leverage already existing networks, as well as family and friends to help with the cause. And with crowdfunding, even people that aren’t currently in the orbit of the non-profit, or start-up, or individual can contribute, at minimal cost to the entity who has put out the campaign.
- Crowdfunding is a much more accessible way to raise money than traditional fundraising: Though crowdfunding is made easier if there is an existing network to draw on, money can be raised even if the organization (or individual) is just starting out. For example, if a non-profit wanted to raise money for a project, but they had little name recognition because they had just started out. What could this non-profit do to up their chances of raising funds? They could write up a very compelling description of their project, and impact that those funds would have for the community (or purpose) they were working to serve. The non-profit could then create or utilize existing social media accounts and promote their campaign. This effort, especially with a team working on it, can be relatively low cost, and can actually increase the visibility of the non-profit’s work overall.
- Crowdfunding is significantly less restricted in the use of funds than traditional fundraising: While a lot of conventional fundraising can come with a lot of strings, with promises made to donors or sponsors, crowdfunding has an advantage for people looking to raise funds. If a non-profit is looking to raise general usage funds for their organization, or a person in a tough situation is looking to raise funds to assist in that problem, crowdfunding can be very helpful also, because crowdfunding is a relatively less regulated industry.
So if you’re a non-profit, small business or individual looking to raise money with less hassle, consider setting up a crowdfunding campaign to raise funds. While there are many crowdfunding platforms, there is only one that allows for campaigns to keep 100% of the funds raised. Youhelp.com is a crowdfunding platform created to help individuals, small businesses and non-profits raise money so that they can continue to do great work in their communities and better the lives of the people around them. Our team at Youhelp.com is always available to help with any questions about crowdfunding, or social media promotion of crowdfunding campaigns.
About the Author: The author is a staff writer for YouHelp.com