“Crowdfunding” for Nonprofits

 

There are a lot of people with good ideas for business startups and nonprofit organizations. Most would-be entrepreneurs quickly find that an idea is not enough: it is almost always necessary for a good idea to be coupled with an appropriate source of funding in order for it to work. 

During these difficult economic times, funding is hard to come by. This is especially true for newer, less experienced startups. Nevertheless, social networking via the Internet has led to “crowdfunding,” where large groups of small-time investors have the ability to fund large scale projects. 

There are many sites dedicated to “crowdfunding,” and they often focus on fine arts projects. Likewise, there are sites specifically dedicated to nonprofit and charitable ventures. Below are the links to two sites that might assist in raising some of the seed capital necessary to get a nonprofit organization off the ground. 

http://www.firstgiving.com/

http://www.createafund.com/index.php?route=home

 

Also, here is a link to a September 2010 article from The Economist that discusses some of the basics of crowdfunding. While the article focuses primarily on funding for fine arts projects, it also gives an overall idea of how the process works. 

http://www.economist.com/node/16909869