Whether you want to create a digital app, begin a political campaign, or save a public park, the crowdfunding platform allows fundraises to engage directly with communities.
“Crowdfunding is basically taking an idea and sharing the cost among a broad group of people whether they are strangers, local people, businessses, government, councils or big brands,” says Andrew Teacher, Communications and Policy Director at Spacehive.
Crowdfunding platforms are “bringing it online, making it more visible, making it more transparent, making it more accountable,” Theresa Burton, CEO of Buzzbnk told The Information Daily.
“And for the lending and equity side of it,” she added, crowdfunding is “making a more democratic access to capital to enable those communities to participate.”
Buzzbnk and Spacehive are crowd-funding websites where a group of people can donate funding to a specific project within a defined time frame.
We work with social enterprises and charities to “raise small amounts of money from a large number of people for a specific project or outcome that they would like to achieve,” explains Burton.
Buzzbnk's co-founder Michael Norton, who has been in the sector for over forty years, found charitable fundraising had become very “staid” and “one-way.”
“We were losing touch with building a relationship with the donor and we wanted to create a sense of co-venturing,” she said.
"We also saw this emerging market of social enterprises [and] organisations that were trying to achieve good through sustainable income.”
Over 70 percent of Buzzbnk’s profits go back into the social enterprise and charity sector either as match funding or the development of community projects.
But what if not enough money is raised within the time period?
“The onus is really on the project managers that are running the campaign to do all they can to hammer the drum locally and to get people involved,” explains Teacher from Spacehive.
“But if a project doesn’t reach its funding target it doesn’t go ahead. The plus side of that is nobody gets charged.”
“The biggest challenge for us is education and awareness about what crowdfunding is,” Burton added. “We have a large learning curve to go until the understanding of crowdfunding is really firmly embedded and where it fits in the funding landscape.”
Posted From; http://www.theinformationdaily.com/2013/03/20/what-is-crowdfunding