Benefits of crowdfunding for NGOs

Benefits of crowdfunding for NGOs

Embarking on a business journey without financial support or backing is a daunting and impossible task. Hence, most budding entrepreneurs are forced to abandon their dreams and goals.

Fortunately, new developments in finance have enabled entrepreneurs to raise capital by leveraging relationships and engaging a crowd using the internet to co-fund their business or project.

Therefore, this process of raising funds through a collective effort by acquiring small contributions through a single platform over the internet from well-wishers and investors is called crowdfunding.

These crowdfunding platforms are advanced and easy to navigate. The end-to-end processes are automated, including the payment processing step, legal disclaimers, campaign updates, and bookkeeping. Therefore, this article will explore the facets of crowdfunding and its future for NGOs.

Types of crowdfunding campaigns

A crowdfunding campaign can be classified as either a rewards crowdfunding campaign, a donation crowdfunding campaign, a lending-based or debt crowdfunding campaign, or an equity crowdfunding campaign.

In the last five years alone, many crowdfunding platforms have emerged, each with different features. Some of the most popular crowdfunding platforms available today include Indiegogo, Patreon, and Kickstarter, and each of them caters to communities of campaigners and benefactors with specific tastes and goals.

What makes crowdfunding a viable solution?

Most individuals from across the globe choose to crowdfund purely to raise enough funds to kick-start a business idea. However, that isn’t the only factor that makes crowdfunding a viable solution, especially if you have no prior entrepreneurial experience.

Another reason why we believe crowdfunding can positively help you is that it can help you gain public visibility and attract investors and VCs. They can aid in developing your concept or idea. Crowdfunding is another excellent option for brand building, especially if you opt for a reward-based crowdfunding model. This model will help secure early consumers and potential brand ambassadors.

Crowdfunding and NGOs

Crowdfunding is not a novel phenomenon. It has existed since time immemorial. Historical documentation, too, has proven that nearly all sections of society at one point in time participated in the act of crowdfunding to raise money for various humanitarian causes.

In this modern age, people harness the power of the internet to raise funds to start businesses, take their projects forward, or aid people who cannot help themselves. It has quickly garnered popularity because of its timeliness and cost-effectiveness and now includes non-governmental organizations working in several fields from across the globe.

Fundraising campaigns for non-profit organizations depend heavily on various factors, with many variables to consider. Organized philanthropy is primarily perceived as legitimate, and cash can be transferred between donors and recipients transparently through online crowdfunding systems.

Moreover, individuals are more likely to donate to a cause they are familiar with. NGOs can utilize crowdfunding sites to increase their marketing reach through their marketing channels.

How does crowdfunding benefit NGOs?

Crowdfunding can help NGOs achieve their goals in the following number of ways:

  • It enables them to start campaigns within a matter of minutes. Furthermore, they also provide campaigners with detailed instructions on various methodologies to improve their campaigns and reach a wider audience.

NGO fundraising campaigns are spread through multiple channels once registered on a crowdfunding platform. A newsletter, social media posts, and advertisements are used to share the information.

  • It reaches not only your current audience but also new ones. Donations may be made, or information may be shared among peers by those who are empathetic to the cause. Several crowdfunding platforms have a large international audience. Other currencies are even accepted in the media.

NGOs share their stories through crowdfunding campaigns through text, pictures, video, or audio. It can include information about the organization’s work, impact, and plans.

Aside from this, NGOs can also link to their websites and social media pages. You can update donors on your current activities by following them on social media.

  • Donors can learn about your organization’s mission through crowdfunding. Donation pages must include a storyline that explains why the funds are needed. The potential donors react to this by commenting, sharing, and interacting directly with the organization.
  • In the past, NGOs had to organize various events, send letters and emails, and call people to raise funds. Usually, these activities cost money and eat at their budget. However, crowdfunding is a cost-effective method of raising funds.


Fundraising through a crowdfunding platform is an increasingly popular way to raise money for start-ups, innovative business ideas, and charitable projects regarded as worthwhile by the public. Crowdfunding campaigns have grown significant money so far, so looking into this option for your NGO might also prove beneficial.