We have grown up believing that quality education and hard work can unlock the door to a stable life. However, life has never been certain, has it? In today’s dynamic market, businesses might shut down or experience heavy losses due to unpredictable external events such as natural calamities or even a pandemic. Circumstances can flip your life upside down when you least expect them to, and during such times, a lot of people face financial, emotional, and sometimes even physical challenges.
This is where crowdfunding comes into action. But what exactly is crowdfunding?
If you are hearing the word crowdfunding for the first time and are eager to know what exactly it means and how it works, then you have come to the right place. In this article, we have compiled all the essential information you must know about a crowdfunding platform in India.
The process of crowdfunding is conducted completely online. It involves starting a fundraiser and sharing it with people on social media to raise your required amount. You can start a fundraiser for anything under the sun, whether it is a medical treatment, to support your NGO, to back a business idea or even for your child’s education. Crowdfunding can be a reliable way to generate funds quickly for medical expenses, new projects, charitable causes and more.
Types of Crowdfunding
There are three major types of crowdfunding models. In this section, we will be discussing these models with their respective returns on contributions.
Equity-Based crowdfunding – This crowdfunding model is the most suitable for generating significant funds to start a business or expand an existing one. In this type of crowdfunding, the contributors become part-owners of the company and receive profits in proportion to their contribution.
Reward-Based crowdfunding – Reward-based crowdfunding is where individuals contribute money to a business/individual in exchange for some reward. The expected rewards can be products, freebies, services, or other items.
Donation-based crowdfunding – In this type, people donate money to support causes such as natural calamities, charities, etc. Usually, this type of crowdfunding does not provide any return to the lenders. It only gives them the satisfaction that they have contributed to a worthy cause that might bring a change in someone’s life.
The Significance of Donation Crowdfunding Platforms in India
Donation based crowdfunding can help you make your dreams a reality, change, and save lives. Let’s say you need funds to pay hefty medical bills or support a project that matters to you; in that case, crowdfunding platforms can be your support system.
How, you ask? To help you get a better idea, here are a few advantages of crowdfunding that can give you clarity.
Setting up a fundraising campaign through your chosen crowdfunding platform is simple and hassle-free. The first step for creating a campaign is to decide the fundraising goal. Then you can add engaging photos and write a captivating description of your project/cause to get the message across. You can find a crowdfunding platform in India that offers 24*7 expert support and free mobile app to track your donations in real-time.
Share Your Story
A crowdfunding platform makes it easier to share your story on a mass level through social media. In addition, it lends you a way to communicate with your potential supporters and persuade them to make contributions to your worthy cause, such as saving a loved one’s life from a fatal disease, helping someone you know build their home again after a calamity, or encouraging creative or business ideas.
With a crowdfunding platform, you can get an extensive reach. In other words, a crowdfunding platform enables you to connect with people outside of your immediate reach, who are equally passionate about your cause, and wish to help, no matter where they are. So, for example, if you want to raise funds for helping underprivileged children, crowdfunding platforms can help you connect with people who are equally passionate about this cause and are waiting to support you..
If you are looking for a reliable platform to build a strong fundraiser campaign to support your cause or idea, check out the Impact Guru crowdfunding website. They are one of the leading donation based crowdfunding platforms in India today and can help you generate the funds you need to fuel your idea or treat a critical disease. So, share your story, and reach out to potential supporters with the help of their team of fundraising experts!