DONATION CROWDFUNDING 2023

DONATION BASED CROWDFUNDING DONATION CROWDFUNDING 2023 CHARITY PLATFORM SITE WITHOUT REWARD

DEFINITION OF DONATION BASED CROWDFUNDING

Donation crowdfunding or donation based crowdfunding in 2023 is by definition an option to obtain funding from a crowd of donators with the objective to finance a project which makes social sense or a cause in the context of charity without expecting the funds to be returned.

The donation crowdfunding consists of a crowdfunding by donation that makes it possible, via an online platform, to raise funds with or without counterparties, it generally applies to cultural, humanitarian or social projects.

The donation based crowdfunding is one of the four types of crowdfunding. Crowdfunding in general can take following forms: equity crowdfunding, debt crowdfunding, reward crowdfunding and donations based crowdfunding.

The donation crowdfunding in 2023 is accessible through a large number of fundraising plaforms in which people make donations with or without non-financial reward and in this case this be symbolic in the form of the sample or product of the financed project.

DONATION BASED CROWDFUNDING FOR WHOM?

Donation crowdfunding is dedicated for several types of fundraisers which mainly consist of entrepreneurs and organizations seeking funding for their projects:

Business entrepreneurs.
Social entrepreneurs.
Individuals who need funding for a social cause.
Organisations who are contribution to the social inclusion of populations suffering under financial precarity.

DONATION BASED CROWDFUNDING FOR TYPE OF PROJECT?

Normally, donation crowdfunding is dedicated to projects that need finance and were the fundraiser is not able to offer backers anything in return beyond the good feeling of having supported their project.

Charity and philanthropy linked projects.
Health and social work projects.
Education and microenterprise projects.
Community and social enterprise.
Real estate and housing.
Medical and health expenses.
Art, culture, music, movie.

Donations crowdfunding is the most simple way to crowdfund a cause or a project. One of the main benefits of crowdfunding is that it can help projects that would otherwise struggle to access funding Donations based crowdfunding runs on charity basis. The motivation to make a contribution is not financial profit. Instead, donators see their return and reward in form of happiness seeing that their funds are used for an honorable cause such as a social project.

ADVANTAGES OF DONATION BASED CROWDFUNDING

In comparison to the other forms of crowdfunding such as equity, debt, or reward crowdfunding where a return is expected, donation crowdfunding presents the following advantages:

No need to transfer ownership of an idea or cause.
Independence remains as to the initial vision of a project.
No limit is set in terms of amount; experience shows that for some projects funds have been raised far above objectives.
Last but not least, limited restrictions in terms of regulation.

DONATION CROWDFUNDING OPTIONS

It is important to distinguish between two crucial options when proceeding with fundraising online as it can have an impact on the success of crowdfunding campaigns:

the All-or-Nothing option where fundraisers keep the money they raise only if they reach or exceed funding objectives,
the Keep-it-All approach where fundraisers keep the money they raise regardless if they reach their funding objectives or not.

DONATION BASED CROWDFUNDING PLATFORMS

Donation Crowdfunding platforms are websites which allow to set up an online fundraising campaign and receive money directly from that digital place using the website’s own payment process. Many people who want raise funds for a good cause find out about crowdfunding platforms become too optimistic and make a mistake by thinking that these places are a fundraising paradise.

It is crucial for a fundraising campaign to compare all platforms in order to find the best one responding to a specific project or cause. A big attention for crowdfunding goes to mega platforms, however thousands of small places to meet campaign objectives are existing worldwide. Fundraisers need first to understand the fees structure and the specific advantages of each platform to go for the right choice.

TIPS FOR A SUCCESSFULL DONATION CROWDFUNDING CAMPAIGN

To achieve a successful fundraising campaign, a fundraiser needs to be proactive. It’s a mistake to think that a platform will work alone. It’s all in the promotion of the project. Additionally, a fundraiser needs to:

1. Have a realistic target amount.
2. Show transparency about the future funds utlisation with a detailed allocation breakdown.
3. Present a track record for involvement in other campaigns if any adding even a CV,.
4. Take an All-or-Nothing option: the fundraiser keeps the money and only if the objectives in terms of raised money are met. This option has proven being more successful than the Keep-it-All approach.
5. Involve natural emotion, passion personal commitment and reality when pitching a project.
6. Offer smallest possible donation.
7. Adopt an efficient communication strategy (social networks are very useful).
8. Share the campaign with influencers (blogs, forums).
9. First launch the campaign with the close environment (friends, family, colleagues) and later with the public.
10. Update the public on the progress made while raising funds.
11. Publish the names of donators will motivate potential donators to be published as well.