Crowdfunding can be used to finance a variety of purposes, from the small-scale support needed for specific projects or initiatives to larger start-up capital for small and medium-sized enterprise. It can tap into your organization’s existing fan base and it can help you to access investors who are interested in your idea.
Crowdfunding is a 21st-century approach to community economic development. That brings together and connects a community’s assets to meet market demand in ways that build livelihoods that last, and how your organization can use crowdfunding to finance projects and initiatives. We will also explore equity crowdfunding at the local level and the implications these models have on Louisville’s social economy.
How is crowdfunding different from other types of fundraising?
Crowdfunding is fundamentally different from other methods of fundraising in that the campaigner has a direct requirement to create specific value for the contributors to the campaign. With a regular request for donation the value that is created may be intangible, whereas with crowdfunding there is a much more direct exchange of value. For example, most crowdfunding campaigns will create rewards that are either actual tangible products, offer specific recognition via social media, give access to a service or event, or even offer a unique experience. The important aspect is that rewards must offer value to the campaign contributors.