Crowdfunding and online donations

What is crowdfunding and online donation?

Crowdfunding is a type of fundraising:

• Through the internet now, where people donate to a cause.

• For a project, activity, or enterprise

• Any individual or organisation can ask for donations.

Types of crowdfunding

• Equity crowdfunding - gives contributors partial ownership or shares of a business in exchange for the money they provide.

• Donation - Donors do not get any financial rewards, so it’s most often used for charitable purposes or by nonprofits such as social enterprises. You do not have to pay back donors.

• Rewards - Offering rewards (but no shares) can encourage someone to give money. There can be different reward levels depending on how much money is given to the business.

The money is raised from many people who each contribute money towards a target amount.

There are many online fundraising platforms, so do your research as most of the information on the internet about platforms is about promoting a particular funder.

Sometimes crowd funder companies partner with local or national organisations – Examples are Sport Wales Crowdfunder match and Crowdfund Swansea.


Getting ready for crowdfunding and online donations

• Be clear about what you need funding for & your target amount.

• Choosing the crowdfunding platform – checklist:

  • Make sure the platform is easy to use – for you & for donors.
  • Most sites charge fees – find out which is best for you and also easy to use – have a look at Charity Digital’s information here.
  • How many days your appeal can last.
  • What happens after deadline of appeal – do you get all the money you have raised so far, even if you have not reached your target? Are there additional fees to pay?
  • How are you kept up to date on progress?
  • Most people give at the beginning and end of an appeal – there can a loss of interest in the middle, so it is good to remind people.

• Pitch with passion – you are competing with lots of other projects!

• Use all your social media/ communication methods to let people know about your appeal – many donors might not have donated through crowdfunding before.

• Thank donors know and say how you spent the money.

• Watch or listen the videos on crowdfunding websites for inspiration or learning.

• This blog by Charity Digital is about online fundraising sites or charities


Examples of crowdfunding and online donation platforms

Includes tips on how to run a campaign.

For community groups, businesses, charities and social enterprises – examples of stories , tips for social media, knowledge hub

Donate is a registered charity. They sell or rent small card transaction devices which are hand held or fixed to a surface.

Possible donors who have internet bank accounts can easily donate directly into your business account by using a QR code. The QR code can also be displayed on items including donation boxes, websites, t-shirts, collection buckets, shop windows, goods you sell.

For individuals, community groups, businesses, charities, and social enterprises. Money raised is sent to your account.

Connects new enterprises with investors & offer support to startups to develop.

Includes training to develop social enterprises and an online community.

• Rounds open in Spring and Autumn.

• Match funding of up to 50% - maximum £5,000

Please note- you must achieve your target to get the match funding

• Aim to make it easy for people to improve their local area.

• Also partners with other funders

Support plus maximum of £15,000 funding depending on the progress of the Crowdfunder Campaign

You Tube video: How to be successful with crowdfunding


Please contact us if you need more information or advice


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