{"id":728,"date":"2018-05-23T13:42:26","date_gmt":"2018-05-23T13:42:26","guid":{"rendered":"https:\/\/idronline.org\/2020\/12\/23\/crowdfunding-raising-money-through-online-channels-how-to-get-it-right\/"},"modified":"2026-01-15T14:53:02","modified_gmt":"2026-01-15T09:23:02","slug":"crowdfunding-raising-money-through-online-channels-how-to-get-it-right","status":"publish","type":"post","link":"https:\/\/idronline.org\/kn-in\/crowdfunding-raising-money-through-online-channels-how-to-get-it-right\/","title":{"rendered":"Raising money through online channels \u2013 How to get it right"},"content":{"rendered":"

There is a growing realisation in the Indian social sector of the importance of small individual givers, as other sources of funding experience either low growth or a decline in donations.<\/p>

Foreign funding–-as indicated by FCRA donations–has fallen 65 percent<\/a> in 2016-17 with respect to the previous year. As per the 80G deductions claimed by individuals and corporates in their income tax returns, corporate donations have grown by only 15 percent in the last four years. On the other hand, individual donations have grown by almost 40 percent and also make up approximately 40 percent of all donations. In reality, this share might be higher since many Indians may not be claiming the tax benefit.<\/p>

In addition, there are those who donate more than 10 percent of their gross income and cannot benefit from the 80G deduction. All this could mean that individual donations already make up more than 50 percent of all donations.<\/p>

\"What<\/a><\/div>

Individual donations already make up more than 50 percent of all donations.<\/p><\/blockquote>

Despite the fact that nonprofits have started raising more money from small donors through both, crowdfunding platforms and their own websites, there is still limited understanding of each of these channels and their usage.<\/p>

People continue to think of these channels as ‘either-or’ options, little realising that they aren’t mutually exclusive; there is a role and use for each of them and together they can work wonders for the nonprofit.<\/p>

Understanding crowdfunding<\/h3>

The term crowdfunding can be misleading, especially for nonprofits that are not internet savvy. The impression they have is that they will create a campaign online and a ‘crowd’—i.e. a random group of people—will come forward and fund it.<\/p>

That, in itself, is a wrong assumption. Raising money from complete strangers rarely works–the exceptions being emergency cases such as medical or disaster fundraisers–where media has created enough external awareness for the issue.<\/p>

Infact, in most cases, it doesn’t work if there isn’t enough media attention. I remember, very distinctly, when at one point there were simultaneously floods in Jammu and Kashmir and in Assam–-Jammu and Kashmir got widely reported in the press while Assam did not. Fundraising followed a very similar pattern.<\/p>

\"donate<\/a><\/div>

It’s therefore only in such specific cases that crowdfunding in its absolute literal meaning, works. However, as a nonprofit considering crowdfunding as the primary online channel, there are a few things to keep in mind:<\/p>