Crowd funding is usually done by setting up a campaign on one of the crowd funding websites and waiting for donations from people via the Internet. The campaigns were originally a popular way to fund businesses and projects. Crowd funding has since expanded to charities and personal needs of individuals. Many people are uploading their personal campaigns on these crowd-funding platforms. The causes typically include medical treatment, higher education, travel, home renovations, and wish list items.
People of all backgrounds and causes are finding it easier to fund their dreams with the help of these websites. Their campaigns typically include a detailed description of what the money will be used for, the goal amount to be raised, the deadline for raising the goal amount, and pictures or other media files. Donators are usually given some type of recognition upon contributing to the fund pool. Occasionally, donors are even granted small rewards.
Although people have been conducting their affairs over the Internet for over a decade, the earliest record of crowd funding is traced to the year 2006. In the years since then, roughly 500 or more crowd funding platforms have appeared on the scene and more continue to be created. Crowd funding is a growing trend among Internet users and it remains a viable option for businesses, charities, and individuals. The most common uses for crowd funding are:
Revised September 24th, 2015
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- Charity fund raising
- Medical treatment
- Business development
- Home renovation
- Wish list items
Before the Internet, fund raising was limited to targeting local communities. Wider communities could only be reached by public campaigning through television, lobbying, and mail petitions. The funds produced from these efforts were limited to deliveries made locally and donations that could be obtained by mail. With the advent of the Internet, however, came a new avenue for people to fundraise that is commonly referred to as crowd funding. With the option of crowd funding available, people are able to reach wider communities for free and with less time and energy spent.