In the last few years, crowdfunding websites have enjoyed a meteoric rise in popularity and growth, especially in the UK and USA. Giving has become easier than ever, but what exactly is crowdfunding and what are the current trends sharping this sector?
Crowdfunding, also called online fundraising, is a concept whereby individuals (the crowd) collectively pool their resources- usually via a platform – to support good causes, businesses, and social enterprises. It is basically a way of raising finance by asking donations from a large number of people to fund a wide range of activities such as startups, disaster relief, friend’s birthday party, for charity and more.
Crowdfunding for non-profits
Crowdfunding started as a peer-to-peer tool to raise funds for a business venture, personal projects or for medical expenses. Today we see the increase of nonprofits and charities exploring this option. This is because it is a low-risk option compared to traditional ways of fundraising. Online crowdfunding allows for more transparency and feasibility, where specific projects are funded. The crowdsourced windfalls come with fewer strings, which leaves campaign organizers with fewer checks-and-balances to make sure the money is spent as intended.
Charities and nonprofits can engage advocates and ambassadors to use crowdfunding and launch campaigns on their behalf. Donors, especially the millennial generation, are more likely to donate to someone they know, trust rather than a charity organisation.
Crowdfunding has given individuals and non-profits new ways to raise money online through integrated features that provide a more personalised experience to contributors. The platforms are designed to allow campaign organisers to customise their pages with photos, videos and links; track fundraising progress as well as provide updates on the project. In addition, the integration of these platforms with social media makes it easier to communicate with potential supporters and spread awareness.
Highly visual campaigns
The new trends in crowdfunding give people an opportunity to engage supporters in a more personalised way. Your supporters can give to your campaign and encourage their friends and family to do so as well. By setting up fundraising page with dynamic content and captivating images or videos, you can easily target your donors’ emotions and implore them to donate. An emotional success story can play a huge role in convincing your donors to give. If a campaign goes viral, you will reach more potential contributors but those givers often respond in an emotional as opposed to rational way.
Innovative commutes projects
Currently, high-quality assets are performing extremely well across all reward-based crowdfunding platforms. Innovative commutes like electric vehicles and accessories are gaining traction in a more significant way. Backers are more willing to contribute to campaigns that aim to introduce affordable electric transportation such as bikes, skateboards and scooters.
Smart home applications
There is a growing demand for home automation devices partly because of the popularity of Amazon Echo and Google Home. Campaigns that target smart home applications like smart lightings, automated curtains, and smart outlets are becoming more popular in terms of appeal and goal-reach on crowdfunding sites than never before. This emerging trend implies that crowdfunding audience is keen on new smart-home applications that can meet their tastes and personal style.
Leetchi.com is the leading European donation-based crowdfunding platform providing a fast, easy and secure way for people to raise money together for group gifts, charities and personal projects! Online money pots can be easily personalised with photos, videos and unique description. The are also easy to share on social media and contribute to, helping create highly visual campaigns!
Go on our crowdfunding website and create your money pot to bring your projects to life!