Online Donations Through Crowdfunding And Fundraising

In recent years, crowdfunding services have exploded in popularity. In the wake of the global economic crisis, crowdsourcing has become an important source of fundraising.

Crowdfunding is a powerful tool for empowering people and organizations to make a difference in the lives of those in need. It aids in the bridging of barriers and allows humanity to progress. However, you must exercise extreme caution when making donations and raising finances. 

Before, if one had to donate money, it was prudent to check for credibility and the root cause/agenda. Today, donation-based online crowdfunding is one of India’s most popular fundraising methods.

Any abled individual connected to the cause is encouraged to help. If one has to donate money, the amount might range from a predetermined minimum to an unlimited maximum. Typically a donor is allowed to give as often, as much as they want.

The main goal of donating money through crowdfunding is to raise funds for a good cause. A few reasons can relate to the following.

• Funds required for a startup concept.
• Grants for corporations and businesses.
• Online fundraising for personal reasons, such as educational expenses, medical emergencies, social causes, non-profit organizations, art projects, and so on.

Crowdfunding has also become the talk of the town in many curriculums of numerous business schools/universities. A variety of social causes are gaining traction, both online and offline. If a promoter or supporter is short on cash, it is always feasible and preferable to use online crowdfunding options.

When compared to offline efforts, online crowdfunding is far more cost-effective. Physical steps involve intensive planning, strategizing, and designing and only target a small group rather than a large audience.

Crowdfunding using online platforms has no restrictions and can quickly popularize a concept to many people. Several environmental causes have been sponsored entirely over the internet. People can now aid worthy philanthropic endeavours and advancements without having to pay lump-sum quantities of money thanks to modern crowdfunding. They can quickly learn the cause’s purpose and meaning. Readily available content further raises awareness about the importance of sustaining such social initiatives.

Things have become convenient and improved for most people to offer with the emergence of significant platforms. Online-donation based crowdfunding has made fundraising more convenient and also eliminated middlemen.

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Disadvantages?

Although crowdfunding is the best way to donate money and is growing, there are some disadvantages mentioned below, which one should keep in mind.

The lack of trust and misaligned expectations is one of the most significant roadblocks to donating money through crowdfunding platforms. Donor expectations and experiences with their chosen platform are frequently inconsistent, resulting in campaign failure and a loss of reputation for platforms. It’s often unclear how the end-user uses the monies raised.

Data security and privacy concerns: While technology and secure payment channels form the backbone of crowdfunding platforms, there are still concerns about contributor data security and privacy. Despite several levels of security and guarantees that data would not be shared with third parties, these crowdfunding platforms are more often than not vulnerable to data breaches comparable to those seen on e-commerce websites. SEBI addressed public safety in its crowdfunding laws to mitigate such risks.

Time-consuming campaigns: As a campaign proceeds, it requires modifying social media pitches and launching regular updates, responding to queries and recommendations from contributors, maintaining social media activities, and trying to garner as much support as possible on time. The push is always to do more of everything until your campaign goal is within grasp. There have been instances where one wanted to donate money for some severe and rare diseases and illnesses that got delayed, and by the time the donate money process was completed, the patient had passed away.

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Using other online fundraising platforms to donate money

An online giving portal, also known as an online fundraising platform, is a website that allows you to donate to one or more charities from a list on the site. Tech giants like eBay, Amazon, Facebook, Lyft, and other companies have introduced philanthropic donating to their services. They’ve accomplished this by developing and making available to its members online fundraising channels.

Your money may not go directly to the charity you choose if you donate through an internet fundraising platform. Another company, such as the platform or another intermediary, may receive your funds first, keep a portion of it as a charge, and then distribute the remainder to the charity. It may also take some time for the charity to receive the funds.

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Where does your money go? 

You should be able to see who receives the donation and how it is distributed to the charity or beneficiary of your choice on online fundraising sites. Remember that even if a charity is listed on an online fundraising platform, you should research before understanding how the money will be utilized.

Fees: A donate money website should clarify if a platform or intermediary keeps a portion of your donation as a charge before sending the rest to the selected charity. Consider whether donating directly to the organization might result in a more significant donation.

Timing: The length of time it will take for the charity to receive your donation should be stated on online fundraising platforms.

Follow-through: If your money cannot be forwarded to the charity you choose, the website should explain what happens to it – and how often this occurs.

If an explanation isn’t apparent, consider donating your money somewhere else. You can always go to an organization’s website to support and donate directly.

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Conclusion 

Sharing is a form of caring. The act of giving or donating to those in need has been a cultural norm for the majority of Indians long before crowdfunding—where like-minded individuals get together to generate funds for a business endeavour or a humanitarian cause—became popular. Even during India’s independence movement, certain notable business families have given considerable contributions to promote social initiatives in the country. Many of them have still done so to this day. 

According to the HURUN India Philanthropy Report 2020, some of the most renowned philanthropic families today include Wipro’s Azim Premji, who donated 91.43 billion between 2018 and 2020, and HCL’s Shiv Nadar and family, who donated 23.91 billion within the same period. During 2018-2020, Mukesh Ambani and his family of Reliance Industries gave $12.97 billion.

According to the India Philanthropy Report, philanthropy is on the rise in India. Ketto is India’s most prominent and devoted crowdfunding platform to donate money. It motivates and helps individuals to contribute to causes such as medical emergencies, natural disasters, emergency requirements, animal care, social equality, and more.