Crowdfunding

Crowdfunding is raising funds for a specific project or cause online from many donors donating small amounts in a specific time period. This can be done by reaching donors directly through one central campaign or through enlisting individuals to create personal fundraisers that feed donations back to an organization’s cause. CSOs generally manage crowdfunding campaigns through an online platform that receives and processes the donations.

Crowdfunding can be used for a wide range of purposes, from helping individuals to projects focused on an entire community. Campaigns can be hosted by community groups or CSOs, regardless of for-profit or nonprofit status, although rules can vary from platform to platform and country to country. A best practice of crowdfunding campaigns is to provide regular updates to donors for up to six to 12 months after the campaign about how the funds are being used.

Source: Candid Learning [Internet]. Knowledge Base: What is crowdfunding? 2023 [cited 2023 Jan 18]. Available from: https://learning.candid.org/resources/knowledge-base/what-is-crowdfunding/.

This model is especially good for

A CSO with a strong social media presence.

Key factors to consider

Supportive policy and regulatory environment: Crowdfunding platforms are legal in the country

Sufficient infrastructure and capacity

• The capacity to accept funds from international funders if using an international crowdfunding platform

• Ability and capacity to design specific projects for funding and launch fundraising campaigns

The right team: A team with experience and background in social media

Strong social capital: A larger reach on social media (e.g., many followers or very active followers)

Where to begin

• What crowdfunding platforms is a CSO able to use and receive funds from?

• Does the CSO have a compelling story that will convince individuals to donate?

Example in practice

Indiegogo is an online crowdfunding platform where an individual or group can launch a campaign. Examples of HIV-related crowdfunding projects on Indiegogo can be found here: https://www.shorturl.at/v0245.

Additional resources

• Crowdfunding Toolkit ‒ an interactive toolkit developed for CSOs on the advantages of and how to use crowdfunding. https://crowdfunding.knowledgesouk.org/

• Strengthening Citizen Action: Communication for Civil Society Organizations, Guidebook ‒ provides information on the fundamentals of creating effective communication programs along with ideas and examples on how to create useful and relevant communication materials for the web and social media. https://www.civicus.org/index.php/media-resources/resources/toolkits/3633- strengthening-citizen-action-communication-for-civil-society-organisations

• A Guide to Strengthening Civil Society through Social Media – describes how CSOs can integrate and use social media to promote human rights and governance and strengthen mutual accountability among CSOs, government institutions, and citizens by creating real-time and direct interaction and organizing. https://2012-2017.usaid.gov/sites/default/files/documents/1866/SMGuide4CSO.pdf