What is crowdfunding and how does it work?

In recent years crowdfunding has become one of the world’s favourite ways to fund projects, ventures and charitable causes by raising money from large numbers of people. Crowdfunding is an online fundraising tool, making it easier to reach a large audience and raise funds fast. But like many people, you may still be wondering “what exactly is crowdfunding and what makes it so great?” That’s why we’ve put together this handy guide just for you. So read on!

Crowdfunding 101

Crowdfunding campaigns reach their goals by getting a  large number of people to donate money online. Because the reach of a crowdfunding campaign is so wide, even very small amounts help and every little donation adds up quickly. It’s all about making a difference. Crowdfunding is an effective form of crowdsourcing and alternative finance that anyone with an internet connection can access. 

**DID YOU KNOW** Crowdfunding is older than you think! Although these days crowdfunding is an online fundraising method, back in 1875 the Statue of Liberty was crowdfunded by the American and French. If it worked for them, it can work for you too!

What makes crowdfunding different?

Crowdfunding gives anyone with a passion or a goal the means to raise funds online; whether you’re an individual or an organisation, you can use crowdfunding to access your social networks and local (or national or global) community and give them an easy and accessible way to lend their support. Crowdfunding is based on the principle that “every little helps” – our online platform makes it possible for people to donate even just a small amount, which can add up to something special. Family, friends and community play a big role in your crowdfunding efforts, and the best campaigns get off the blocks with a bang - campaigns that reach 30% of their goal within the first week are the most likely to succeed. 

Unlike some traditional fundraising methods, you don’t need experience in event planning or marketing to launch a successful crowdfunding campaign. And importantly, you don’t need any funds to start it up. Crowdfunding is fast, free and available to everyone with a cause to support. 

Who can crowdfund?

Everyone! In recent years, crowdfunding has become a more and more popular way to raise money, both for individuals and organisations. 

Individuals have seen amazing results from online crowdfunding campaigns for causes ranging from medical expenses, holidays, weddings, start-ups and much, much more. Through crowdfunding, individuals can reach a much wider audience than ever before and receive donations from around the world.

Organisations and charities have harnessed the power of crowdfunding to break through the fatigue of traditional fundraising efforts. Organisations can now offer their supporters an easy way to donate online and reach new supporters through the incredible reach of crowdfunding campaigns – it’s not unusual to see compelling campaigns go viral and be shared across social media networks worldwide.

Why choose to crowdfund?

Crowdfunding has many advantages over traditional fundraising methods:

• It’s quick and easy – traditional fundraising can take weeks or months to set up, whereas a crowdfunding campaign can be set up in minutes.
• It’s online, giving you unlimited reach to supporters on a global scale.
• It’s compelling – you have the option to use words, videos and images to share your story.
• It’s shareable – your supporters can easily forward your campaign or share it on social media.
• There are no upfront costs.
• It’s instant – you can watch your donations as they arrive through your online portal.
• It’s for everyone – there’s no application process or limits.

Should I set up a crowdfunding campaign?

If you’ve got a financial goal or a passion you want to fund, then the answer is YES! Crowdfunding campaigns are all unique and there’s no goal too big or too small to be tackled. Whether you need to raise $50 for your school books or $1 million for bush fire relief, we can help you achieve it through crowdfunding. 

Are you feeling nervous about crowdfunding for yourself? You’re not alone. This is one of the most common barriers to fundraising, but it doesn’t need to be. Crowdfunding allows you to target your campaign to as many or as few people as you’re comfortable with – you can share your campaign with only close friends or family, or make it public to be shared far and wide, it’s completely up to you. 

Next steps

We’re here to help you every step of the way. If you’re unsure about making the leap and starting a campaign, give us a call and our passionate team will help you decide if crowdfunding is right for you. Or if you’re ready to set up a campaign, simply click Start Fundraising. And don’t forget, it’s fast and free, so give it a try!

Start your crowdfunding campaign today with icause and make that dream a reality!