The Clear and Simple Answer
Crowdfunding harnesses the power of social networks and the internet to give people the means to raise funds, help others overcome hardship, and meet aspirational goals. The core principle behind the crowdfunding definition is that you can help a friend or help an entire community. You can do everything from pay for your own surgery to fulfill a student’s dream of attending college—and so much more.
If you’ve ever found yourself wondering, “What is crowdfunding?” “What does crowdfunding mean?” or, “What are the benefits of crowdfunding?” then keep reading. We’ll answer your questions about crowdfunding and give you top tips on how to bring in donations.
What are the advantages of crowdfunding?
When funding from the government and nonprofits falls short, many people turn to crowdfunding, meaning that they will rely on the kindness of their community. Online fundraising removes the traditional barriers that typically exist when asking for support, making it simple to overcome financial obstacles quickly or raise money for a worthy cause. For those looking for crowdfunding basics, here are some of the main advantages of crowdfunding:
- There is no application process.
- There are no long wait periods to receive your funds.
- Crowdfunding takes the fear out of asking for financial help. It’s simple to share your fundraiser with your network of friends and family members on social media.
- Crowdfunding makes it easy to reach people outside of your network.
How it works
Our industry-leading fundraising tools help individuals, groups, and organizations share their stories far and wide. Even small donations can eventually grow into something extraordinary.
1. Create your fundraiser
Get Funding helps you quickly create a fundraiser and tell your story. You can raise money as an individual or invite others to join your fundraising team. Learn more about team fundraising.
2. Share your fundraiser
Our sharing tools help you spread the word about your story via social media, emails, and even text messages. We make it easy to keep your network informed so you can raise more money quickly.
3. Easily accept donations
Get Funding allows you to send donations directly to your or your beneficiary’s bank account, so you can get help right away.
Crowdfunding best practices
Tell a compelling story
From your title to your story and photos, your fundraiser story should be based on your needs and it should inspire people to donate. Before getting started, learn how to make your fundraiser successful with our fundraiser story tips. And don’t forget to upload several high-quality photos or a video to exponentially increase donations to your fundraiser. For more tips, see these helpful blog posts:
- Great Ideas for Naming Your Online Fundraiser
- How Images Can Lead to Fundraising Success
- Videos Are Powerful Fundraiser Tools
Share and update
Every time you share your fundraiser, you’ll bring in an average of $10 in donations—so share your fundraiser often on Twitter, Facebook, and other social platforms to encourage others to do the same. If you get enough momentum going, your fundraiser could go viral. Well-written updates with any news you can share will also keep supporters and potential donors engaged and in the loop. For more tips, see these blog posts:
- How to Write a Fundraising Update
- Viral Fundraising: Make the Most of Your Fundraiser’s Potential
Thank your donors
Everyone loves being thanked after doing a good deed, and it’s no different with your donors. In lieu of gifts or rewards, sending thank-you messages is a way to make each donor feel appreciated. And as an added bonus, expressing gratitude can encourage additional donations and increase donor retention.
Our blog post How to Write a Donation Thank-You Letter That Gets You to Your Goal will walk you through the process of crafting the best thank-you possible. Be sure to also check out our list of 20 Affordable Ways to Say Thank You to Donors if you’d like to show your thanks beyond an email.