What is Crowdfunding & Why Do We Need It?
If you’re new to the world of crowdfunding, you’re probably feeling a little overwhelmed. With so many different causes and platforms fighting for attention, it’s hard to know who deserves your donation and who will spend it most effectively.
We’re here to give you a brief introduction to crowdfunding, so you can make informed decisions when it comes to the causes and campaigns you support.
Let’s start with the basics…
What is crowdfunding?
Crowdfunding is when a person or group raises money online by asking the public to donate small amounts to their project or venture.
There are lots of different types of crowdfunding, but this blog is going to focus on one: donation-based crowdfunding, which is when people invest in a cause because they believe in it, or feel some kind of connection to it.
The most popular charities in the world rely on crowdfunding as a way of collecting donations, because it puts them in front of a larger audience, and one that they wouldn’t usually have access to.
For donors, crowdfunding is a fast and convenient way to make a positive difference on both a local and global scale.
For campaign creators, it’s a great way to shine a spotlight on important causes and to collect funds safely and effectively.
Where does crowdfunding money go?
Once a campaign ends, the money raised goes straight to the cause. It’s a simple and secure transfer of funds, which gives campaign creators the freedom to invest that money in the best way possible.
Platforms often charge a small fee per donation so they can cover their admin costs and continue to support important causes.
At FundAmal, we’re extremely diligent about your donation being used in the right way. Before we partner with any project, we do thorough checks to ensure the validity of the campaign.
We work closely with all our campaign creators, and we offer them financial and operational support to help them make the most of your donation.
You can find out who, and how, your donation is helping by opting in for updates when you make your contribution.
How can crowdfunding help the community?
Individual donations to crowdfunding campaigns are usually small (even as small as £1), but when you add all the donations together, it comes up to a significant amount.
That money is then used by campaign creators to build or develop their cause, so they can make a real impact on the Muslim community.
They might be raising funds to provide support in an emergency situation; to raise money for a burial; to build a school; to serve the homeless, to cover someone’s medical costs; or even to sponsor an orphan. The potential to do good is endless.
When people come together and work towards a common goal, the community will always benefit. Some of the most successful crowdfunding campaigns in the world include 12,000 donors raising nearly half a million dollars for a paralysed cancer survivor, and 8,000 donors raising $270,000 to repair a small business owner’s cake shop when it was destroyed by rioters.
What are the best crowdfunding sites?
It’s hard to know how many crowdfunding platforms there are, but estimates suggest there might be over 600 running today.
Each of them serve different purposes and different people, so before we can say which platform is best for you, we’d need to know exactly what type of platform you’re looking for.
We can tell you that if you want to support a Muslim cause, FundAmal is your best option.
We connect you to grassroots causes that are dedicated to furthering Islam and Muslims in the UK.
As a crowdfunding platform, we go above and beyond our duty of collecting funds. We also provide each of our campaigns with tailored support, so they have every chance of making a positive, effective and long-lasting impact on the Ummah.