Grassroots Funding
Ranked #363 in Nonprofits, #99,147 overall
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.
Poster available at AllPosters.com
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.
Poster available at AllPosters.com
Contents at a Glance
How Social Funding Works
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
Kickstarter
Kickstarter 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
The 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
If 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
Kapipal 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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shermanmorrison
Feb 4, 2012 @ 6:09 pm | delete
- I'm considering crowdsourced funding for a theatrical production I'd like to put together for MLK Jr. Day 2013, so I was happy to come across this excellent lens that mentions some sites I hadn't heard of before. THANKS!
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SofiaMann
Sep 30, 2010 @ 9:26 pm | delete
- It's great to see the solidarity between people. We remember the best of ourselves. Thanks.
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Chi-TownChica
May 8, 2010 @ 9:32 pm | delete
- Great resource
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skiesgreen
May 1, 2010 @ 6:34 pm | delete
- Blessed and featured on Sprinkled with Stardust and also on Lenses that Shine.
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MysticTurtle
May 1, 2010 @ 6:44 pm | delete
- Yippee! Thank you! Every little boost helps these projects get more exposure.
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seegreen
Apr 9, 2010 @ 1:37 am | delete
- Wonderful ideas and information here. I hadn't known about much of this.
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CrypticFragments
Mar 28, 2010 @ 7:43 pm | delete
- so nice to find that you are supporting these fabulous and worthy projects!
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LoKackl
Mar 24, 2010 @ 8:34 am | delete
- Stopped by to cut and past your url into my advertising widget on voodoo-haiti-quake-victims
I went to the Kickstart webpage. That is one wonderful and amazing program.
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LoKackl
Mar 22, 2010 @ 9:18 am | delete
- Thank you, indeed, for this lens! I have missed the boat when it came to finding out about grassroots funding through Kickstarter!
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lasertek
Mar 21, 2010 @ 7:47 pm | delete
- Nice! What you have done is very noble. I do hope a lot of people will be benefited. 5* for this lens and for this idea.
Congratulations on LOTD.
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awelldressedbullet
Mar 16, 2010 @ 8:28 pm | delete
- Congratulations on your LOTD! - Kathy
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skiesgreen
Mar 16, 2010 @ 1:11 pm | delete
- Congrats on LOTD. Well done project
Norma
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prosperity66
Mar 16, 2010 @ 1:04 pm | delete
- Congratulations on your LOTD!
Blessed by a SquidAngel by the way :)
Dom.
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MysticTurtle
Mar 18, 2010 @ 6:30 am | delete
- Thank you for the blessing! And thanks to all for stopping by to visit.
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ie2216
Mar 16, 2010 @ 12:43 pm | delete
- What a great lens! The world need more good people like you. Thanks for sharing and congrats on LOTD!
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Income4life
Mar 16, 2010 @ 11:55 am | delete
- Congratulations on LOTD
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HorseAndPony
Mar 16, 2010 @ 11:35 am | delete
- Congratulations on LOTD! I think creative funding ideas are great. I loved reading this. Thanks for all the info.
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Joan4
Mar 16, 2010 @ 11:34 am | delete
- Congratulations on Lens of the Day! This is great information for all of us!
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3sonsstudio
Mar 16, 2010 @ 11:34 am | delete
- great lens!
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OhMe
Mar 16, 2010 @ 11:19 am | delete
- This is great information. I am very involved in coming up with creative funding ideas and presently am working on our Friends of the Park fundraising campaign for the Ball Fields at our Veterans Park in Pendleton SC. The name of our campaign is "Step Up To The Plate". Lensrolling this lens to our Friends of the Park. Thanks
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About MysticTurtle
by MysticTurtle
MysticTurtle
I had a normal childhood, but somewhere along the way I took off on my own path. I backpacked the 2,100-mile Appalachian Trail in 2001 and the 700-mile... more »
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