Description of Challenge
Sometimes we need to finance a special or oneoff project. We are not talking about the overall
financing of the organisation, but a single project. If it is a nonprofit making project it is especially
challenging to find funding for the launch because often the existing institutions do not cover this
need. However, if we look at the resources we do have, one of them is our network of contacts.
How can your organisation engage your wide network in the project?
Never doubt that a small group of thoughtful, committed, citizens can change the world. Indeed,
it is the only thing that ever has.Margaret Mead
Solution
The crowdfunding model is fueled by three types of actors: the project initiator who proposes the
idea and/or project to be funded; individuals or groups who support the idea; and a moderating
organization (the “platform”) that brings the parties together to launch the idea.
These sites allow businesses to pool small investments from a number of investors instead of
forcing companies to look for a single investment.
It’s a good way to involve your network in your project. It goes beyond being consumers and is
more about creating a community who support the idea and aspiration. Each platform has its own
criteria for accepting projects to be funded and are more appropriate for certain types of projects.
There are also different types of crowdfunding: rewards, equity, peertopeer lending, etc.
References:
Websites:
http://en.wikipedia.org/wiki/Crowdfunding
http://en.wikipedia.org/wiki/Comparison_of_crowdfunding_services
http://www.crowdfundingnetwork.eu/
Video:
http://www.crowdfundinsider.com/2013/02/9543videocrowdfunding101/
Submitted by: Altekio
Developed in collaboration with
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