Raising Money for Good
By Melissa Mansfield | November 26, 2010 at 1:51 am
One of the things that is so amazing about the growth of the web and social media is how it can empower people in ways you least expect. More and more each day, almost anyone can access information from all over the world, have their voice heard, and spread their own ideas.
Now artists, entrepreneurs and activists are finding a new way to transform their visions into realities with crowdsourced financing.
The concept is pretty simple. You have an idea. But you need money to make it happen. You can always go the traditional route – ask family and friends for donations, bring in investors or apply for grants.
But if those options don’t work – or simply aren’t enough – now you can find online support to get the funding you need.
Websites like Kickstarter and IndieGoGo offer platforms where projects get funded through online communities.
Kickstarter helps fund “creative ideas and ambitious endeavors”. They have project guidelines that keep fundraising focused on projects in music, film, technology, art, design, food, publishing, and other creative fields.
Kickstarter projects are based on an all-or-nothing model. You set a financing goal for your project,and then have 90 days to get pledges to your campaign. If you get enough pledges to reach your goal, then you get all of the money (minus a minimal admin fee). If you don’t get enough pledges, you don’t get any money.
IndieGoGo works on a similar concept of “democratizing fundraising”. They don’t have an application process – they’ll help fund “anyone with a great idea – creative, cause-related, or entrepreneurial”. They’ll allow you to collect any money that’s pledged – but you will get hit with a slightly higher admin fee if you don’t reach your financing goals.
Both sites create online spaces where people with great ideas can promote their projects and build a following of loyal supporters.
Each project can showcase photos, videos and text descriptions to get people interested in donating. They can also post updates about the fundraising campaign and the project, plus offer perks for different levels of donations.
For instance, an urban farm directory project on Kickstarter is offering seed packets, raw honey and an urban farming consultation for different pledge levels.
Of course, not all projects get funded. Sites like Kickstarter and IndieGoGo aren’t ATMs. If you have a creative idea, you still have to work. You have to explain it well, set up appealing reasons for people to donate, and pull in your own network of friends, family, colleagues and online contacts. But it can work – just check out the “Hall of Fame” of funded projects on Kickstarter. So inspiring!
And for funders, it’s an exciting way to feel like you’re a part of something bigger – and that you’re quite possibly making someone’s dream come true.
Whether it’s a sustainable fashion project, a documentary about saving honeybee populations, or a grassroots effort to reduce poverty in Ghana – it’s exciting and gratifying to throw your support behind a unique, interesting project that makes a difference.
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