By working at a grassroots level, NGOs and Non Profits improve many lives. However, their largest difficulty is locating funding for their work. They often rely on word-of-mouth publicity to obtain donations for NGO Funding.
The introduction of “Crowdfunding” has relieved them of this concern. Crowdfunding is when a large group of people contributes to any given cause. Crowdfunding gives these NGOs and Non-Profits a chance to reach a vast audience and reduces the time, cost, and effort of NGO Funding.
Despite being a new financial innovation, it has taken everyone by a storm; here’s why:
Low fundraising cost
Fundraising using crowdsourcing platforms has a cheap cost. Unlike other traditional promotions and fundraising methods, crowdfunding websites charge only a small part of the amount raised as a fee. The best part about using a crowdfunding portal is that it is free, and there are no additional charges to launch a campaign. There are no pre-investments to be made. You need a credible story and a creative promotion strategy to attract donors/ investors.
Corporate CSR partners
Social Crowdfunding helps Corporates empower NGOs/ Non-profits financially. Every corporate entity is now required by law to practice corporate social responsibility. Moreover, crowdfunding websites are known for their transparency and service quality, making all the transactions safe and efficient for the Corporates. The NGO also benefits from a significant donation made by a well-known business body at the same time.
Increase volunteer base
NGOs can access the established customer base of the crowd NGO Funding website. Following suit, it can be said that a larger audience would attract more volunteers to the campaigners because that will help them branch out and make more impact in the long run.
The campaigning NGOs may provide incentives to donors who make. Tax Exemptions are a form of reward the government offers to benefit such NGOs. Personalized certificates of contribution or mementos can be handed out as a reward to the donors. Other physical rewards can also be used to encourage more donors to donate.
This shows that Crowdfunding has proven its mettle and is here to stay.