Crowdfunding for Non-Profits

Abstract

Crowdfunding has been applied to equity investments as well as in a preproduction consumer purchase model. Crowdfunding is projected to become a $US90-96 billion industry by 2025, and is being touted as a valuable tool for fundraising for charitable non-profits. For leading non-profits around the globe a critical question is whether charitable crowdfunding is a threat or an opportunity for them. This chapter demonstrates that charitable crowdfunding represents a powerful new fundraising tool for leading, start-ups and not for profit organisations. This discussion contributes to the financial knowledge, specifically in the online crowdfunding and non-profit organisations and concludes that non-profit organisations through crowdfunding has the potential to expand the donor base.

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