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Crowdfunding isn't a quick fix for charity fundraisers

document Crowdfunding
Summary
Crowdfunding has seen huge growth in America over the last few years, particularly since it was used to fund Barack Obama's presidential campaign in 2008.Websites such as Kiva and Kickstarter have enjoyed phenomenal success,raising millions for a vast array of projects,from the charitable to the creative.And recently there has been a swell in the growth of similar sites in the UK,set up to raise money for projects with a social purpose.The sites allow organisations or people to raise money for a project online through multiple donations or loans made by a number of donors over a short space of time.
Description
Steve Bridger, a digital consultant for charities who was on the Innovation in Giving Fund panel, says a few charities are "dabbling" in crowdfunding. He gives the example of Cancer Research UK, which has raised more than £1m through its My Projects platform – a site that allows donors to choose which particular research project they want to give to.

"Crowdfunding appeals to an emergent and growing group of donors who are giving to more specific areas of work," he says. "It gives them the more emotional, collaborative engagement and connection they want."

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  • Buzzbnk Buzzbnk Apr 02, 2012 06:55 pm GMT

    Dear Sophie,

    Thank you for your coverage. I would just like to clarify that the £250,000 raised is all for successful projects (26) who have met their 1st milestone target. Like Kickstarter, we have on average a 50% success rate and we work hard to set expectations with all of our crowdfunding projects as well as sharing tips on fundraising.

    The 23 projects who have been unsuccessful have, as you mentioned, only collectively raised very litte (less than £3,000 at latest count since the article has been published). By "badly" we mean the total amount raised as opposed to the social purpose or worthiness of the project! :-) - we call projects who dont' meet their target "misunderstood". In fact, we had one project which failed the first time around and decided to give it another go - making it the second time! Persistance and determination paid off.

    We think it is a good sign that "only" £1,800 (or the new figure of £3,000) has had to be returned, it means most donors and lenders are making a difference with the other £250,000!

    Theresa Burton
    CEO & Co-founder Buzzbnk
    Buzzbnk helps charities and social enterprises crowd-fund both donations and loans. Buzzbnk is a social enterprise owned by leading foundations and charities in the UK with a remit to develop the social investment sector.

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