Crowdfunding: The future of fundraising technology?
April 30, 2013
Methods of fundraising have expanded greatly over the past few decades. Years ago, the most effective way to raise money for a specific cause was to go door-to-door and ask acquaintances to give whatever they could. This then expanded to stationing nonprofit representatives outside supermarkets, featuring calls to action on billboards and then commercials. Now, however, crowdfunding seems to be the latest trend in the sector.
Third Sector reported that many industry experts think that this is the direction in which fundraising efforts are heading. The term crowdfunding simply means garnering smaller donations from many different sources to amass a sizeable volume of funds. It can be a good way of generating the public's interest without asking too much of them.
The news source said that this has been particularly lucrative lately, as many people haven't been able to donate large sums due to the worldwide economic landscape. Crowdfunding has provided a good alternative for generous individuals, leading to websites like Kickstarter and Indiegogo rising in popularity.
According to a recent Massolution report, this is one of the biggest factors in the financial, marketing and nonprofit realms now. In 2012 alone, the study revealed that campaigns using this technology raised $2.7 billion, a figure that is predicted to double in 2013.
Organizations that are looking to raise funds through grant opportunities or local campaigns can use nonprofit financial management solutions to improve their chances of success. The software can help program leaders identify potential donors and send out applications with accurate accounting information.