A Comprehensive Guide To What Is Crowdfunding

Introduction Of Crowdfunding In India

According to experts, crowdfunding is one of the next big things expected in fundraising. There are different ways through which people, organizations, or NGOs can raise funds. It can be through venture capital, bank loans, and corporate investments. But, from all these options, online fundraising is the trusted and influential source to raise funds from people who resonate with your cause. When effectively managed, online crowdfunding is an exceptional alternative to getting financial support for personal, social, or medical reasons and immediate funding assistance. 

The online crowdfunding concept was started in Western countries, and with the recent covid-19 outbreak, fundraising has gained immense popularity in India. Many people switched to crowdfunding to raise funds and get the financial support they need in such adverse circumstances. Still, many people are unaware of whether it is legal in India and the many important benefits of online crowdfunding. 

This article will cover everything about what is the meaning of crowdfunding- definition, types, legalities, how crowdfunding works, what is a crowdfunding platform, advantages and challenges of crowdfunding. Also, a detailed guide on fundraising definition, what is fundraising, what does fundraiser mean, how does the fundraiser work, and what is meant by raising of funds.

Traditional Vs. Online Fundraising

In the modern world, individuals, NGOs, and organizations have various choices to raise funds. There are two preferred options: traditional fundraising versus an online crowdfunding platform. Conventional or offline methods are still in demand, but online fundraising has opened new possibilities for fundraising that open up an entirely new world. An online crowdfunding platform is typically more affordable and convenient than traditional methods like hosting events, galas, or workshops. But, it is vital to discover which fundraising method works best for you by comparing its pros and cons.
For those unfamiliar with traditional and online crowdfunding methods, we have listed a few pros and cons along with the meaning of fundraising to help you decide the best yet most suitable option for fundraising.

Traditional Fundraising (Meaning Of Fundraising)

Previously, hosting a fundraiser event for people who attend and contribute physically through cash or cheque has been the best source of raising money for any cause. With the growing popularity of the internet, fundraising has become online, allowing more accountability and transparency to campaigners and donors. Even giving donations is made easier and quicker for donors.

Pros Of Traditional Fundraising Methods

• Traditional fundraising gives donors a more memorable live experience and builds an emotional connection. 
• Donations from traditional fundraising are comparably higher as compared to online fundraising. 

Cons Of Traditional Fundraising Methods

• Traditional fundraising involves high costs, meaning the maximum donation amount will be utilized to cover marketing and other expenses. 
• It requires a large number of volunteers to host an event, and also it is a time-consuming process. 

Online Fundraising (Meaning Of Fundraising)

Internet-based crowdfunding is a new way for individuals or organizations to raise funds online for their cause with small contributions from many donors worldwide. With the internet, it’s easy for potential donors to identify a fundraiser campaign for contributing online. Even social media platforms and electronic devices like smartphones and tablets have added new benefits that help you reach a large audience and raise funds quickly.

Pros Of Online Fundraising

• One of the significant benefits is that starting a fundraising campaign is free for top crowdfunding sites, which helps you retain the maximum funds raised for your particular cause. 
• Another benefit is that it helps you raise awareness among many new people, indirectly securing first-time contributions from new donors. 
• Expert assistance (what is a fundraiser, and how does fundraiser work) during the fundraiser journey can help a campaigner raise funds quickly, and donors feel safe contributing to a cause. 

Cons Of Online Fundraising

• The success of your fundraising campaign solely depends on the platform you choose. A poor crowdfunding platform can affect the user experience for campaigners and donors who will be contributing to a cause. 
• The donation amount received through crowdfunding is much smaller than traditional fundraising. But, in online crowdfunding, campaigners receive funds from a large group of people, helping them reach the goal amount.  

Now you know the costs and benefits of traditional fundraising and crowdfunding, so you can easily compare them and choose the right fundraising option. However, you don’t need to just focus on one strategy; you can use a multi-channel approach to raise funds effectively and quickly for your cause. Next, we will learn the meaning of fundraising in detail, which will help you clarify the primary differences between what is fundraising and what is a fundraiser and how does the fundraiser work.

What Is The Meaning Of Fundraising?

Fundraising is the medium through which individuals, NGOs, or organizations can raise money for any social, personal, creative, and medical cause via online donations from across the globe. Now, the meaning of fundraising may be pretty straightforward. Will it be easy when actually raising funds for a cause? Yes, like the meaning of fundraising looks, raising funds is also easy if you know how fundraising works and choose the right crowdfunding platform for your needs. 

Fundraising Definition

Fundraising is the process of raising money for a personal or social cause from people across the country with the help of the internet. Individuals or organizations can raise funds for their cause regardless of personal or social background. Many fundraising platforms have evolved in India that act as a medium for people to cover their fundraising needs.

What Is Fundraising?

After understanding fundraising definition, we will understand the meaning of fundraising. Fundraising can be called a campaign or an event whose primary goal is to help people, organizations, or NGOs raise money for their cause. One key difference between traditional and modern-day online fundraising is that in conventional fundraising, you select mediums like charity events and loans from banks, venture capitalists, etc. However, as its name suggests- online fundraising uses online mediums, i.e., the internet, to raise money for the cause. 

What Is Meant By Raising Of Funds?

Raising funds means when a person or organization uses donations from people to raise money for their personal or social cause. Usually, people use bank loans with high-interest rates, but with online fundraising, there is no pay-back policy when it comes to returning the funds. 

After you know what is meant by raising of funds, we will try to understand with an example- Mr X wants money for his son’s SMA treatments, including the world’s most expensive drug, Zolgensma cost in India, ₹ 16 crores. Here, he can take a medical loan with a high-interest rate or start a fundraiser on a trusted crowdfunding platform like ImpactGuru. So, when Mr X uses a crowdfunding platform, it means raising funds through donations from people across the internet. 

What Is The Meaning Of Fundraiser?

Here, we will try to understand- what is the meaning of a fundraiser and how does a fundraiser work in a simple manner.

What Is A Fundraiser?

When you start a fundraising campaign on a crowdfunding platform for a personal, medical, or social cause, the campaign you created is called a fundraiser. Fundraisers could be for any reason: social, creative, medical, or personal. Fundraisers can be run on any platform, whether a Facebook fundraiser or a donation-based crowdfunding platform like ImpactGuru. What is a crowdfunding campaign? The meaning of a fundraiser is quite similar to it. Don’t worry. Fundraiser is used interchangeably with a crowdfunding campaign in most cases. 

How Does Fundraiser Work?

Now after learning what is a fundraiser, we will understand how does the fundraiser work. Your fundraiser process will depend on the type of crowdfunding platform you choose for your needs. Generally, most fundraising platforms follow the three simple steps below:

• Start a fundraiser, where you must answer some basic details about yourself and the fundraiser.
• After verification, your fundraiser will be live, and you can share it on social media platforms for better reach.
• Now, you will start receiving funds for your cause, so it’s better to regularly update the fundraiser progress to your supporters, which will help you build trust and gauge more donations for your fundraising campaign. 

This is how a fundraiser work when you start a campaign for your personal or social needs on a crowdfunding platform in India. 

What Does Crowdfunding Mean?

Crowdfunding Definition

Crowdfunding is a medium through which anyone can raise money for a particular cause or creative project by asking a group of people to donate a small amount. Usually, it takes a short period, like a few weeks or months, to complete. It’s done online with the help of social media platforms to gather new supporters that can donate to a cause or project.

Crowdfunding Meaning

Around 60% of the world’s population is online, paving the way to a new financial alternative called crowdfunding which is becoming increasingly popular. Crowdfunding conducted online is less expensive, more convenient, and has a broader reach than traditional fundraising methods. Crowdfunding is usually done through a website that facilitates the fundraising process for the campaigner and donors who contribute a small amount to a cause they believe in. 

What Do You Mean By Crowdfunding In Simple Words?

Crowdfunding is a medium of raising funds from many people, usually online, through small donations or investments. It’s a way of gathering funds from the public to finance a project, business, or cause. Usually, people who donate receive rewards or perks in return for their support.

Example Of Crowdfunding

Suppose a person in your locality suffers from a rare disease like SMA and may use crowdfunding for expensive medical treatment. They may start a crowdfunding campaign on a crowdfunding platform to cover its high cost, stating why you need immediate donations to save a life. You can donate any small amount to the cause; in return, you can make a difference in someone’s life. In this way, both campaigners and donors mutually benefit from crowdfunding. After knowing what is fundraising and what is crowdfunding, we will learn more about the different types of crowdfunding.

Types Of Crowdfunding

1) Donation-Based Crowdfunding

What is meant by crowdfunding? It is a medium through which anyone can raise funds online for a specific project or cause by asking a large group of people to donate a small amount without expecting anything in return. Compared to other crowdfunding types, supporters do not receive a reward (product or service) and equity in an organization for their contribution nor receive back the amount contributed. Donors usually support a cause they resonate with. While you may find that donation-based crowdfunding is more focused on nonprofits, individuals, or charities, it can also be used by businesses to raise funds for startups. In India, it is generally used by people for crowdfunding for personal needs.

It is widely used to raise funds for personal, social, medical, and creative causes. In donation-based crowdfunding, you can share a fundraiser with your close friends, family members, and new people on social media to create more awareness and reach a broader audience to get more donations. Some examples are 

Medical Crowdfunding

The crowdfunding platform allows you to raise funds for any medical treatment, surgery, post-op care, hospital bills, and other healthcare-related expenditures. 

Medical fundraising covers all critical illnesses, be it 

• rare diseases like Spinal Muscular Atrophy (SMA), whose treatment costs crores 
• to conditions that require long-term care, like cancer. liver disease, and organ failure 
• to common afflictions such as heart diseases, and, last but not least, rushed medical emergencies like accidents and acid attacks.

Crowdfunding For NGO

More than 31 lakh NGOs in India are working to serve those deprived of their fundamental rights. NGOs act as a changemaker to impact the lives of those left out of society in our country. NGOs have transformed many people’s lives by keeping their mission focused on social, human rights, environmental, and health issues.

What Do You Mean By Crowdfunding For NGOs?

NGOs can receive people’s support through crowdfunding for their mission of making social change. Funds received through fundraising can help them strengthen their values and mission of making your local community a better place to live.  

Personal Fundraising

In personal fundraising, anyone can raise funds for any cause close to their heart, including a pet and animal fundraiser, memorial and accident fundraiser, crowdfunding for education, and medical fundraiser. These are just a few important personal causes you can raise funds for, but there are hundreds of different reasons you can choose for yourself or others in need to fundraise. 

Creative Fundraising

In simple words, creative crowdfunding is the medium through which individuals and NGOs can raise funds for creative causes like fundraising for an event, feature film, and initiatives like wall painting and innovative startup ideas. 

Types of creative causes you can raise funds for are:

• A community event 
• Publishing books
• Filmmaking
• College project
• Cultural event
• Handicraft exhibition
• Cooking classes
• Poetry and stand-up event

2) Reward-Based Crowdfunding

It’s a type of small business fundraising in which entrepreneurs raise funds online from individuals in exchange for a product or service. Entrepreneurs present their business idea or project with a fundraising goal on a crowdfunding platform. Businesses provide rewards to the donors in return. For instance, a fashion designer might reward everyone with trending clothes, or a jewelry designer could reward a handmade bracelet to people who donated. 

Now, you may wonder who is suitable for this type of crowdfunding. It is mainly preferred by startups that are not eligible for small business loans but have exciting projects that can impact society. Anyone can contribute to a reward-based crowdfunding campaign and share the campaign on social media that other business owners share in their close network. Mostly, they charge as low as 5% to 13% of the raised amount, but they might charge additional charges depending on the crowdfunding platform you choose to raise funds. 

3) Equity-Based Crowdfunding

It is a kind of crowdfunding where an unlisted company not a part of the stock market allows the investor to buy equity from its business. But, a company should have performed well, then only the investor gets profit. Investors lose their investment if a company faces bankruptcy and goes out of business. 

Equity-based crowdfunding differs from other types of crowdfunding because you are selling a percentage of your business share in return for their contributions. Like in reward-based crowdfunding, you don’t give equity but rather a reward. There are two major types of equity-based crowdfunding- Accredited crowdfunding and open-access regulated crowdfunding. 

• Accredited Crowdfunding– In this type, a company raises funds only from accredited investors having a high net worth. 
• Open-access regulated crowdfunding– Here, anyone interested can invest in exchange for equity shares of that particular company. 

Not just startups but other types of businesses can also be benefitted from equity crowdfunding. You can create an equity crowdfunding campaign for your product that requires funding. Many small business owners and companies have succeeded with equity-based crowdfunding outside India, as equity-based crowdfunding is illegal in India.

4) Debt-Based Crowdfunding

It is also called loan-based crowdfunding. In this model, the fundraising takes place through loans from lenders (investors), expecting to repay the principal with added interest over time. This whole process is conducted on a crowdfunding platform. It is different yet cost-effective than a bank loan as many intermediaries are eliminated in debt crowdfunding. It keeps the cost low for borrowers and simultaneously gives lenders a better rate of return. 

The different types of debt-based crowdfunding are stated below:

• P2P lending– It is also known as peer-to-peer lending. Here, potential investors are connected with borrowers who want to raise capital. A borrower receives funds from an individual or a group of investors based on the loan amount. Credit scores are taken into consideration when the interest amount is calculated. 
• Microlending- Similar to P2P lending, loans are issued directly to borrowers. One thing that differentiates P2P from microlending is that loans in microlending are primarily used to support underprivileged communities, and non-profit organizations, whereas, in P2P, individual borrowers reap the benefit. 

Is Crowdfunding Legal In India?

Many people in India have questioned whether online crowdfunding is safe and legal in India. And the answer is yes; crowdfunding is legal in India. Several top-notch crowdfunding platforms in India offer a simple, trustworthy, and secure medium for people, organizations, and NGOs to raise money online. 

SEBI’s consultation paper on crowdfunding, issued in 2014, identified four types of crowdfunding models- Donation-based, reward-based, equity-based, and debt-based. In these types, donation and reward-based crowdfunding are categorized under community crowdfunding, whereas equity and debt-based crowdfunding are part of financial return crowdfunding. 

Let’s study the legal implications for all these types of crowdfunding models separately. 

Type Of Crowdfunding	Its Work	Regulated By	Legal Status In India
Donation-based crowdfunding	Donations made without expecting anything in return	Information Technology Act (2000) and Income Tax Regulations	Legal
Reward-based crowdfunding	A contribution made with the intent of receiving tangible benefits	Absence of any legal regulation	Legal
Debt-based crowdfunding	Intermediary giving secured loans to the borrower to receive interest on the loan	Reserve Bank Of India	Legal
Equity-based crowdfunding	Companies offer equity in their business	Securities and Exchange Board of India (SEBI)	Illegal

In India, SEBI (Securities and Exchange Board of India) declared that digital equity crowdfunding is illegal, unauthorized, and unregulated. However, there is no restriction on donation/reward-based crowdfunding, and raising funds and donating on an online crowdfunding platform in India is legal. And debt-based crowdfunding is regulated by the RBI. 

Legal implication for crowdfunding in Section 66A of Information Technology Act,2000

As per the IT Act, any individual starting a fundraiser or people on the fundraising platform cannot upload or include any graphics or content that involves vulgar, offensive, obscene, or inciting hatred in any way. It also includes: • Charges for misrepresentation • Disclosure for a fraudulent reason • Breaching someone’s privacy and confidentiality

Tax Regulations For Crowdfunding In India

According to recent Income Tax regulations, all Non-profit organizations raising funds from crowdfunding websites are entirely exempted from taxation. However, individuals receiving contributions from a crowdfunding platform for any cause are liable for tax in India. 

All contributions made to the non-profit establishment or charitable institution can avail of tax deductions under section 80G of the Income Tax Act. Under the Finance Act 2017, all donations above ₹2000 in cash won’t be eligible for tax deductions in India. The reason is that people contributing more than ₹2000 will do it online, and India can move towards complete digitalization as the online process is hassle-free for everyone. 

Many top crowdfunding platforms have already become one of India’s popular alternatives for financial support after the covid19 pandemic. As donation-based crowdfunding is legal in India, most individuals and NGOs widely choose a crowdfunding platform to raise funds for personal and social causes. 

Therefore, we will try to cover more about donation-based crowdfunding in detail. 

Why Is Online Crowdfunding The Right Fit For Your Urgent Financial Needs?

One of the best things about fundraising is that anyone in need can start a fundraiser. All causes, whether big or small, are similar in crowdfunding. Crowdfunding allows individuals, NGOs, and organizations to raise funds for any reason. It can be started for a street animal in your locality, getting financial help to clear medical or personal debt, covering education fees for a poor kid, and many such causes that stand in the way of overcoming the financial crisis. 

If you don’t know the basic terms like what do you mean by crowdfunding, what is the meaning of fundraising, what is the meaning of fundraiser, or how does the fundraiser work? You can read it in detail in the previous sections above.

Not just individuals but businesses and entrepreneurs can also raise funds online to finance their new projects or innovative ideas. In the previous section, we learned what is crowdfunding and how does it work. Now, we will understand why people choose online crowdfunding as a financial alternative in times of crisis. We will look at some of the benefits of online crowdfunding to campaigners and donors.

Benefits To The Campaigner (Individuals, NGOs, and organizations)

• The best alternative to bank loans

Traditionally, we took bank loans to purchase a car or land, cover higher education fees, or have a health emergency. And we all know the loan process is time consuming and hectic, and at the same time, a high-interest rate with a long-term installment can be taxing. Looking at this drawback of traditional funding or getting bank loans, online crowdfunding could be one of the excellent alternatives for financial assistance.

• Quick funds transfer or disbursal

Immediate fund disbursal plays an important role during an emergency, whether for medical or personal reasons. Taking a loan can’t be the right choice as the whole process is tedious and takes too much time for funds to transfer. Whereas in online crowdfunding, any individual or organization can withdraw funds anytime during the fundraiser journey after following the simple approval process.  

• Minimum cost

A single campaign through traditional fundraising can cost thousands and even lakhs as it involves marketing and promotional costs. Whereas in online fundraising, the same price is reduced to the minimum with social media and email marketing. This marketing channel also has a broader reach compared to traditional methods. 

• Convenience

Firstly, I want to be clear that it’s more convenient and relatively simple. With the internet, anyone can start a fundraiser anytime and anywhere. Access to social media helps you reach a wider audience, which is impossible with traditional fundraising mediums where a person needs to connect personally with others to create awareness about the cause they need assistance. The Crowdfunding app makes it easier for people to manage their fundraising campaign on the go.

• Availability of different crowdfunding platforms

With the growing popularity and accessibility of the internet, many people have turned to crowdfunding platforms to get the financial support they need. Like when demand increases, supply also increases, so to match this demand, many new crowdfunding platforms specializing in different niches have been set up in India. 

Some other benefits are:

• Completely free and easy to start a fundraising campaign
• Customer support from crowdfunding experts

Benefits To The Donors

• Feeling of satisfaction

One of the best things about donating money to a crowdfunding platform is that you feel satisfied knowing that your funds will change someone’s life today. When a person performs a selfless act, the brain releases endorphins and dopamine that improve self-esteem, making you feel happier. 

• Tax benefits

Donating money to a charitable institution or a crowdfunding platform can help you maximize tax deductions. Section 80G of the IT Act 1961 allows you to claim tax exemption on a donation made to a charity. Any individual, firm, or taxpayer can claim a 50% or 100% deduction by donating money only to a prescribed charitable institution, as all contributions are not qualified for tax deduction under section 80G. 

A tax deduction can only be claimed if donations are made through cheque, cash, draft, or digitally. 

• Develop personal money management skills

Donating monthly to a charity helps you stay more attentive to your finances and ensure that everything is appropriately balanced, from saving to your expenses. With time, you will be skillful enough to manage your finances efficiently and effectively. 

• Promoting generosity in children and motivating friends and family to give

When children see you donating, they are more likely to adopt a giving mindset when they grow up. Also, they will understand that giving back to society could make a positive difference in someone’s life. 

Children and your family members and friends may also feel motivated to donate when they observe you regularly contributing money. 

• Better to give when you can’t donate your time or volunteer 

Donating money is the perfect solution when you are too busy giving your valuable time to someone or volunteering for a personal or social cause. You may think it is difficult to change someone’s life, but contributing money to a charitable institution is the easiest way to prove that you have a strong aspiration to help others in any circumstance. 

What Is Crowdfunding And How Does It Work?

After knowing some benefits of crowdfunding, you may wonder- how to raise money online on a crowdfunding platform. Yes, it can be difficult for someone new to a crowdfunding platform and wanting to raise funds for a cause. But, following this simple guide about how crowdfunding works, you can easily raise funds for any personal or social cause quickly and effectively.

1) Setting Up A Fundraiser Goal

The first step is determining the amount you want to raise for your cause. It will help your supporters know how much money you need for your particular cause, and the chances of people donating more are higher to a clearly defined cause. Your fundraiser goal should properly articulate the total cost breakdown of your fundraiser. 

For instance, if you are planning to start a fundraiser for your kidney transplant, try to add all the related expenses like medication, rehab, and lost income along with primary medical treatment, i.e., kidney transplant expense.  

2) Choosing The Right Crowdfunding Platform

Below are the five essential services you should look for in any top crowdfunding platform.

• 24*7 customer support

It is necessary to watch whether that particular fundraising platform provides a phone helpline, live chat, or email support to solve all your queries related to your fundraising campaign. All your family members and friends donating to your cause will also need help. The people behind the crowdfunding website must be responsible, transparent, honest, and available to provide the best customer satisfaction. 

• Ease of use

Before starting a fundraiser, you should navigate through the fundraising platform to check how effective its user interface and user experience are. One of the best traits of the right platform is ensuring you spend more time on their fundraiser and learn something that will benefit your fundraiser campaign. 

• Fundraising tools to create better awareness about your cause

Here, it would be best to look for different social networking tools they offer to you. Some of the best crowdfunding platforms provide tools to easily share your fundraiser on social media platforms and connect with more new people. Also, mobile apps need to be there as they allow campaigners and donors to access the function from wherever and whenever they want. 

• Brand value and trust

Knowing the crowdfunding website’s popularity and trust in the market is vital. If people have a good user experience with the service, they are more likely to use the same in the future and have confidence in the company. It also means that the company has significant characteristics like honesty and accountability. 

• Low platform fees

When a crowdfunding platform takes a small percentage of money a campaigner raises on their platform is called platform fees. Mainly, some top crowdfunding platforms charge 5% to 7% to maintain their platform, ensure safe and smooth transactions and provide employee salaries. 

3) Tell A Compelling Story Honestly

People are more likely to revert to compelling yet powerful fundraiser stories. An effective story helps you drive more donations to your cause, as honest stories build an emotional connection between you and the readers. Therefore, honesty is vital when conveying information about your present situation. It can be difficult yet scary to ask for help for the first time. So, to help you deal with this situation, ask yourself a few questions given below when writing a fundraiser story:

• Where will all the funds be used?
• How do the contributions help you or others?
• How vital is this donation to the campaigner?
• Suppose you are starting a fundraiser for someone else. Answer- How are you connected to this specific cause?

When it comes to crowdfunding, answers to questions like who, where, what, how, and why can increase the likelihood of getting more donations. But one question must be addressed: why it’s crucial to get donations from people on time? 

Try to add a captivating title to your fundraiser story

A strong title can help you summarize your entire store in one phrase. Titles can help your potential audience get a glimpse into what your fundraiser is all about and should reflect more clearly your fundraiser intent that people click to read the story and contribute.

4) Share Your Fundraiser With Many People

When your fundraiser is live, try to take feedback from your close friends and family members. You can inculcate suggestions to update your fundraising story, including fruitful pictures, videos, and text. After that, ask your inner circle to donate and share your fundraiser with others. Potential donors are more likely to donate if you have already raised some money for your cause. 

One of the effective ways to reach more people is to share your fundraiser on social media platforms. Social media gives you the medium to expand your reach and increase visibility so that your fundraiser cause gets noticed by potential donors. You are more likely to get more contributions based on your fundraiser visibility. All social media platforms have their own benefits and features, so learn about them to customize your story and boost your donations. 

You may wonder if only social media is the way to connect with potential donors or if there are different ways to share your fundraiser and get donations. Yes, there are some ways through which you can do fundraising without social media. In addition to using social media for your fundraising campaign, you can align traditional fundraising methods like hosting a fundraiser event to create more awareness about your fundraiser. Some of them you can try for any cause to build powerful connections with your potential supporters are:

• Host a walking or running event
• Car wash event
• Create and sell customized cups, bags, and t-shirts to promote your fundraiser
• Selling old books to people
• Hosting a charity sports event 
• Host an art exhibition event
• Charity banquet event
• Ballon raffle activity
• Partnering with local stores to keep your fundraiser QR on the cash counter for people to notice and donate
• Organize a talent show in your locality

What Is A Crowdfunding Platform?

Crowdfunding platforms are websites that allow individuals and organizations to raise money through the collective efforts of many people. These platforms enable people to connect with an extensive network of potential donors willing to contribute to a particular project or cause. Donors can donate via credit card, UPI, or other payment services. After understanding what is a crowdfunding platform, we will learn the challenges of online crowdfunding that may come when you run a fundraising campaign.

Challenges Of Online Crowdfunding/Fundraising

• Develop and implement a cost-efficient marketing strategy during the entire fundraiser campaign.
• Drafting a good yet right fundraiser story to boost people’s interest in your cause.
• Developing an exciting, informative, high-impact campaign video is expensive. 
• What to do when the fundraiser stops getting donations?
• How to find new donors for your fundraising campaign?
• How to ask for money without feeling embarrassed about it?

These were some of the cons of online fundraising in India. You may think about how to overcome these challenges so that you can quickly raise funds for any cause. One simple yet effective solution is choosing the right crowdfunding platform to raise funds for your personal, medical, or social cause. Now, you will be well-versed and know well what is a crowdfunding platform. One question that can hover is how to find the right crowdfunding platform. To make your fundraiser journey easy and hassle-free, you can use a trusted crowdfunding platform like ImpactGuru.

Conclusion

ImpactGuru Stood Up For Change

Since its inception in 2014, ImpactGuru has worked solely to help people raise funds for medical emergencies and different personal and social causes. ImpactGuru started with a mission to

“Make Healthcare Affordable To Save Lives Today While Securing Families For A Better Tomorrow”

ImpactGuru’s mission became a reality as more than 25,000 people raised funds for different personal, social, and medical causes. It was possible with the help of 30 lakh generous donors who stepped up as changemakers and positively impacted people’s lives. At ImpactGuru, cancer fundraising helped thousands of people raise funds for cancer treatment which seemed impossible for many before. 

Convert your fundraising challenges into wins.

Hopefully, with ImpactGuru by your side, you can overcome your fundraising challenges. ImpactGuru offers 24*7 customer support, a help center, and blog posts that will guide you to make the most of your efforts in completing the fundraiser effectively and quickly. If you haven’t already created one, start your fundraiser today at ImpactGuru.