Crowdfunding is becoming a widely favored alternative to raising capital rather than seeking loans from banks. It is a way for businesses or other organizations to raise money in the form of either donations or investments from multiple individuals.
In the US, the lending-based crowdfunding model is the most popular and has a considerable market share in the industry. With regard to the increasing attention from small and medium-sized businesses, it is estimated that the coming year’s crowdfunding platforms have potential to grow exponentially.
Crowdfunding has exploded as a new way to raise funds for startups, inventions, nonprofits and even real estate investments. However, the model is not limited to aiding profit-focused businesses. Charitable causes have been largely fueled through crowdfunding and have brought up an array of platforms looking to embrace creativity and aid improvements in the society and environment. Let’s look at some crowdfunding platforms focusing attention on charitable causes.
Kiss Kiss Bank Bank is a crowdfunding platform dedicated to worldwide creativity and innovation. The main interest of the platform is to create an alternative space dedicated to creativity, innovation, solidarity and entrepreneurship. Kiss Kiss Bank Bank is dedicated to artists, inventors, explorers, filmmakers, journalists, designers, athletes and environmentalists.
JustGiving is “the world’s social platform for giving.” The platform is on a mission to ensure no great cause goes unfunded and has already helped people in 164 countries to raise over $3.3 billion for good causes since it was founded in 2001. The tech-focused company charges a fee, all of which it claims to re-invest into building innovative new tools to make giving better for everyone.
Reelcause is a program dedicated to a smarter way of crowdfunding to generate revenue and donations. Beyond social networking for fundraising, Reelcause provides members with revenue opportunities, while providing a platform that offers tangible rewards to an endless number of networks. The platform provides tools to connect with people through social media and build an online community around support for a particular cause. Reelcause claims to be the only revenue originator that allows rewarding social networks for supporting the cause.
mycause is Australia’s number one online fundraising and crowdfunding platform for causes. The platform allows to crowdfund for a person, project or charity and charges 5% commission plus bank fees of 2.9% for personal cause crowdfunding. It is free to start a campaign and there are no ongoing monthly fees. mycause has more than 1500 charity partners and offers 24/7 email and phone support.
MotherlandFund is an international online crowdfunding website where individuals, groups and organizations can come together for a common goal of raising money for various causes and projects like film production, arts, music, businesses, fashion, medical bills, charities, religion, etc. MotherlandFund takes charges from all donations, a flat processing fee of 8.5%. In the case of campaign failures, the originators don’t have to pay the company anything.
GoFundMe is a personal online fundraising platform that makes it easy to raise money online for the things that matter. Users can personalize their fundraising campaign and share it with the people in less than a minute. Over $2 billion has been raised by GoFundMe users. The platform does not have deadlines or goal requirements. GoFundMe provides an opportunity to raise funds for a range of charity organizations like American Cancer Society, American Heart Association, etc.
Funded Justice is a crowdfunding platform that is a straightforward, easy way to quickly raise money specifically targeted for people who need to raise money for legal fees. Funded Justice employs a user based platform that allows for any type of legal action. From family issues to criminal issues; community needs to medical malpractice – all of these legal issues can be addressed in a crowdfunding platform on Funded Justice. The founders of Funded Justice believe that proper legal representation should be available for everyone.
EdukLab is a crowdfunding platform dedicated to the financing of studies and student projects. Since the launch in 2013, the company has treated 1359 applications for projects and involved a community of 3997 people to fund the projects for a total amount of €137,494.
Crowdster helps nonprofits raise money more efficiently and effectively through its low-cost online and mobile fundraising platform. The platform’s capabilities enable nonprofits to maximize the fundraising power of peer-to-peer relationships. These capabilities include easily customizable campaign pages, event promotion and management, and integrated email and social media marketing. Among the clients of the company are Cystic Fibrosis Foundation, Autism Speaks, The Bone Marrow Foundation, the Tiger Woods Foundation, and Save the Children.
PPL is an online platform that gathers networks that share the same interest to support a specific project. The company’s objective is to allow the huge potential of ideas elaborated by a community to become a reality by helping project owners in their hard fundraising process. PPL promotes projects of talented and motivated people from areas such as social events, arts, culture and sports.
Indiegogo is the place for entrepreneurial projects to move quickly from concept to market, amplified by a community of backers who believe the world benefits when every idea gets an equal shot at success. Indiegogo empowers people around the world to fund what matters to them. At its core, Indiegogo is the equal opportunity platform dedicated to democratizing the way people raise funds for any project – creative, entrepreneurial or cause-related.
FirstGiving is dedicated to empowering passionate nonprofit supporters to raise money for the causes they care about. The company partners with nonprofit organizations to help them to plan, execute, and measure successful online fundraising campaigns. For individual fundraisers, FirstGiving aims to make the process simple, effective and fun. FirstGiving’s wants nonprofit and fundraisers alike to meet and exceed their goals of raising money for important causes, building awareness, and expanding the world of giving.
The list is certainly not exhaustive, as the industry is rapidly growing and technological developments make it easier to fund great ideas and noble causes easily and from anywhere.