Info From the Vine- Why It's Called "Crowdfunding".

Crowdfunding or Crowdsourcing is the process of raising funds online for a project, person, or cause. The term "crowdsourcing" pertains to the source of funding- the contributors, the “Crowd”.  The “Crowd” are those who care about the project, person or cause and and are the ones who actually contribute.

Crowdfunding is linked to social media and social media’s communication methods such as Facebook and Twitter. Updates, requests for support, and thank you messages can be broadcast quickly to a large group of supporters. 

One of the earliest and most meaningful crowdfunding efforts in the USA, actually occurred in 1884 when Joseph Pulitzer helped raise over $100,000 in only 6 months from 125,000 backers to complete the Statue of Liberty’s pedestal. That “crowd” rallied to support the patriotic cause without the Internet but it did have the help of social media- the newspaper The New York World. 

The power of crowdfunding is found in the multiplier effect of the "crowd", even a small contribution from a broad audience can make a campaign successful.


- Mike Prongue
  Campaign Director for the Non Profit SignVine
  michael@signvine.org
  www.signvine.org