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5 Reasons Why Crowdfunding Helps Non-Profits Achieve Their Goals

You’ve probably come across the word crowdfunding on the internet and wondered what that means. 

 

Crowdfunding is the use of small amounts of capital, donations or investments from a large group of people to finance your work. This ranges from seeking donations to pay a student’s college fee to gather investments for a new business. 

 

Even news reports suggest that crowdfunding has become a popular tool among Indian students to fund their education at premium institutes overseas.  

 

As this market grows and expands, Non-Profit Organisations (NGOs) also leveraged the power of crowdfunding. By taking advantage of the platform’s fundraising and social media tools, NGOs are bringing their mission to a larger audience which was otherwise impossible.

 

Earlier the methods used to spread awareness about an NGO included door-to-door campaigns, fundraising events, or other expensive campaigns. However, with the right platform, you can share your appeal, gather funds, and save money. 

 

Crowdfunding helps NGOs achieve their goals

 

1. A quick process

Crowdfunding platforms allow NGOs to start campaigns within a few minutes. They offer simple step-by-step instructions to collect information, prompts to enhance your campaigns, and share your story with a wide audience. 

 

While most organisation’s do not charge any fee to start a campaign, there are a few with paid options. In such cases, the platforms would offer additional options to improve your campaign. 

 

2. Reach large audience

Once an NGO has registered on a crowdfunding platform and started a fundraising campaign, the information is spread through multiple channels. It is shared through newsletters, social media posts, and advertisements on various platforms. 

 

It not only reaches your current audience but also new ones. Those who relate with the cause might donate money or share it among their peers and spread the word. A few crowdfunding platforms in India have a large viewer base in foreign countries. The platforms even accept payments in other currencies. 

 


3. Build confidence with donors 

Through crowdfunding campaigns, an NGO shares its story. This can be in the form of text, pictures, video or audio. This can include details about the work the organisation does, the impact it has created, and what it plans to do in the future. The videos can also be first-person interviews. 

 

Apart from this, NGOs can also share links to their website and social media pages. Donors can follow you to stay updated on current activities.  

 

With access to such information, donors will trust the NGO, and consider donating. 

 

4. Engaging with donors 

Crowdfunding allows donors to understand your organisation’s mission. The storyline appearing on the donation page must communicate why their help is needed. It must also emotionally appeal to them and pull their heartstrings. 

 

This prompts the potential donors to comment on it, share it on social media and directly engage with the organisation.

 

5. Cost effective 

Previously NGOs would spend a lot of money generating donations. They would conduct events, call people, send emails and letters. This cost adds up quickly and eats their budget. 

 

Crowdfunding allows NGOs to start campaigns within a few minutes and sometimes for free. Some platforms even offer photo and video editing tools for free. Further, crowdfunding campaigns allow NGOs to share their mission with a large number of people and increase their chances of getting funds.

Author

Roshini Muthukumar

Roshini Muthukumar, a native of Chennai, started her career as a content writer but made a switch to journalism to pursue her passion. She has experience writing about human interest stories, innovative technology, entrepreneurs, research blogs, and more. Previously, Roshini has done internships with The Hindu, Metroplus and worked as a correspondent with The Better India.