Grassroots Funding

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How To Raise Money For A Project

Every huge endeavor started with a little grassroots idea. But it's impossible to know how many life-changing ideas never got off the ground because of a lack of funds. It's a sad thing to have an incredible opportunity, but lack the funds to pursue it. If you knew of someone with an idea or a project that could have a huge impact on an untold number of people, wouldn't you want to be part of it? You do have the chance to be part of something bigger than yourself -- something that could change the world -- and it requires so little to make a big difference.

There are loans for projects, but they can be hard to get, and they need to be paid back. There are grants, but they are most often for organizations rather than individuals; the applications are complicated, the time frame drawn out, and the competition high. But there's another way.

Social funding, crowdfunding, and micro-funding are terms that refer to an online grassroots phenomenon in which individuals donate money to fund projects or needs. Sometimes they are donating to family or friends, but just as often they donate to absolute strangers. Donations are not always large, but many small contributions can add up to a substantial amount.

Whether for an artistic endeavor, a home repair project, medical needs, or a wedding, social funding brings fundraising down to a grassroots level where everyday people can empower each other to reach their goals. Call it charity, call it paying it forward...or just call it heartwarming.


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How Social Funding Works

Buy Poster at AllPosters.comNon-profit groups have online platforms available where they can set up fundraising campaigns for a monthly fee, but individuals need something simpler and cheaper. I've outlined here a sampling of social funding sites where you can set up your own fundraising project for free (although some charge a percentage of funds collected). Some of these sites focus on artistic or creative endeavors, but some can be used for anything at all -- as long as it's legal.

Generally, you will just create a project page with your funding goal and a time frame, then spread the word to friends and family. People who read your page and want to contribute can do so by clicking a button and paying by credit card or with an online payment service. Some sites require you to offer rewards for certain contribution levels, but some have no requirements at all.

Certain social funding sites operate on an "all-or-nothing" basis. That means you must reach your funding goal by the end of the time limit you set on your page or none of the pledges will be collected. Other sites allow you to "keep-it-all," transferring donations to you as they come in, whether your goal is reached or not.

Learn More About Crowdfunding

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Kickstarter

Buy Poster at AllPosters.comKickstarter is a platform for obtaining funds for ventures in music, film, art, and publishing, as well as other creative venues. To start, you'll submit a description of your project and the Kickstarter team will let you know if your proposal is accepted. They have a helpful "Kickstarter School" where you can learn best practices for fundraising, and have access to tips and tools for using the site.

  • Disbursal system: All-or-nothing
  • Disburses via: Amazon Payments
  • Rewards: required
  • Dollar limit: none
  • Time limit: 1 - 60 days
  • Fees: Free to set up project; Kickstarter keeps 5% if the project is fully funded/none if goal was not reached; Amazon Payments charges 3-5% credit card processing fee

RocketHub

Buy Poster at AllPosters.comThe RocketHub platform is mainly for creative endeavors, but any legal project is allowed. Their disbursal system is a bit different, in that you keep "All" that you raise even if your goal is not reached, but if you do reach your goal, you get "More" -- the chance to take part in a LaunchPad Opportunity for free.

  • Disbursal system: All & More
  • Disburses via:
  • Rewards: required
  • Dollar limit: Any whole dollar amount
  • Time limit: 15 - 90 days
  • Fees: free to set up; RocketHub keeps 4% if the project is fully funded/if goal was not reached, they keep 8% of total raised; they also charge a 4% transaction fee

GoFundMe

Buy Poster at AllPosters.comIf you're not an artist or creator, GoFundMe is an option to raise funds for "personal causes and life events." They make it easy to create a customized fundraising page. It's connected to Facebook and Twitter, so inviting your friends to donate is as simple as clicking a button. There is even a widget you can grab to put on your website or blog.

  • Disbursal system: Keep-it-all
  • Disburses via: PayPal or WePay
  • Rewards: not needed
  • Dollar limit: none
  • Time limit: none
  • Fees: free to set up; GoFundMe keeps 5% from each donation; PayPal and WePay charge a processing fee

Kapipal

Buy Poster at AllPosters.comKapipal was the first crowdfunding site to help make personal dreams come true, not just artistic or charitable endeavors. When you create your fundraising page, you can choose to keep it private -- meaning you will have to send the URL to your friends in order for them to see the page and donate -- or you can make it public -- meaning search engines can see and index the page, which adds the potential for more visitors and contributions.

  • Disbursal system: Keep-it-all
  • Disburses via: PayPal
  • Rewards: not needed
  • Dollar limit: $1million
  • Time limit: 1 year
  • Fees: Free to set up; Kapipal does not charge any fees; PayPal charges a processing fee

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Have you had any experience with social funding?

Never doubt that a small group of thoughtful, committed people can change the world. Indeed, it is the only thing that ever has. -- Margaret Mead



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