Crowdfunding refers to a fundraising process that involves calling a group of people for donations within a short time period. The aim is to collect a large amount by asking for small contributions from every individual. They best thing about crowdfunding is that it answers the problems of charities about how to raise funds with limited resources. It is a modern way of funds generation and can be done within a few minutes. Since it is an online method, charities need to have huge social networks, consisting of people who are ready to donate a certain amount of money whenever needed.
But, there are some charities that do not agree with crowdfunding and end up making a mistake to use traditional fundraising methods. Even, it is the answer of donors’ question regarding how to donate money with ease and convenience. Below is a brief explanation of why a charity should use crowdfunding:
Internet Users are Increasing
With every passing year, the proportion of internet users is rising every year, meaning that charities can approach as many users online as they want. They just have to find an appropriate platform to execute their fundraising plans.
Younger Age Groups are Easy to Approach
It has been observed that most of the donors belong to a senior age group i.e. above 50 or 60. Although the numbers are quite high, charities consider it as a threat because this age shows uncertainity of their lives, meaning that once their life is completed, charities would lose their significant donors. So, working on this issue, crowdfunding has turned out to be an ideal way to approach young generation who can donate money for a longer time period.
Donors are Getting Generous Online
According to a recent report, the average online donations have been increased by 13% and now, charities can rely upon crowdfunding to collect their targeted amount.
Let Donors Know About Causes/Initiatives
Obviously, no charity could individually approach donors and explain about their causes. Even while search for the answer of how to donate, people need all information in the shortest form so that they can easily make a decision of when and where to send their money. Charities can use social media platforms to create campaigns or ads to explain everything regarding their initiatives without struggling to approach their target audience.
All in all, crowdfunding is the fundraising method of the modern world that lets donors to find their favorite charity and send their money of good.