Many people with genius business ideas often turn to banks, financial institutes, and other creditors to make their dream of bringing a business idea to life, a reality. All these ways, including peer-lending, have now become the traditional methods of gathering funds. Another way of raising money for business ventures is crowdfunding, which is quickly gaining recognition in India.
So what is crowdfunding? It is one of the most innovative and revolutionary methods of gathering necessary funds to set up your business idea. Crowdfunding allows you to raise funds by inviting people online to contribute to your business idea with whatever amount you require.
But what’s in it for the contributors? Why would they contribute any amount to begin with? The answer is simple, and to understand it better, you need to learn more about fundraisers for India.
When talking about crowdfunding and fundraisers for India, there are two crucial types of fundraising campaigns:
- Donation-Based: Donation-based crowdfunding invites people to donate and financially aid those who need funds. Anyone who needs money to start or support a social cause can raise funds by starting a fundraiser on crowdfunding platforms. For instance: an individual or group of people trying to save and feed stray animals; or an NGO wanting to build a nursing home for the elderly can start a fundraiser on their chosen platform and share it on social media to receive maximum funds.
People can also create fundraisers on crowdfunding platforms in India to get the required medical treatment that they cannot otherwise afford. High costs of life-saving treatment for critical illnesses such as Cancer, Heart Failure, rare diseases among others can be expensive and unaffordable, especially during an emergency. Thus, with the help of donation-based crowdfunding, people get an opportunity to voice their financial crisis and make it reach thousands of people at once.
The donor can decide the amount they want to contribute and thus save and touch many lives by helping gather the required funds for a treatment, post-operative care or cure.
- Equity-Based: If you have a revolutionary start-up idea and are unable to raise funds for your business idea, you must consider visiting crowdfunding platforms that support the equity-based fundraising model. Once someone decides to contribute to your cause/idea, they become part-owners of your venture, and the dividend is divided amongst them in proportions of their contributions.
Donation-based crowdfunding has emerged as one of the most significant ways to gather large amounts of money. The concept gained importance during the late 2000s and proved truly beneficial when the world was fighting against the deadly second wave of the Covid-19 pandemic.
Many families were able to save their loved ones and several people who lost their jobs to the pandemic were able to earn a living for themselves and generate employment for many more with the help of several fundraisers for India. One such fundraiser platform is ImpactGuru, one of the fastest fundraising platforms in India that has helped millions of people in India gather funds during tough times with fees as low as 0% on the amount collected.
What to Expect from Your Fundraising Campaign?
The most common mistake that people make in donation-based crowdfunding is that they rely on the campaign and the crowdfunding platform completely for the required funds. In order to make sure your campaign reaches as many potential donors as possible, it is important to add relevant pictures and details to your fundraiser. Regular updates around your progress or the urgency with which you need funds also helps build trust with your readers. Furthermore, to boost your campaign with expert fundraising support, you can also take help from relationship managers on platforms like ImpactGuru.
So, start your own fundraising campaign today, share your story and connect with people around the world!