Info From the Vine- How Crowdfunding Works.

Crowdfunding, as it exists today, is an online process. Companies host specialized websites and typically provide a web page where campaign project information is displayed- pictures, descriptions, videos and other information is uploaded to encourage donations. Contributors access this web page, review the information, and make a donation using a credit card. 

On many crowdfunding sites, contributors can leave comments as well as upload their profile information. Donation campaign performance data is generally displayed to motivate potential donors to “join the crowd” and to help hit the goal.

What most crowdfunding efforts do not provide is "magic money". A crowdfunding campaign is most effective when a grassroots effort directs donors to the website for donations. Unless the cause, or the donation campaign, has made it to the mainstream media, or has been promoted heavily in social media, hard work on the ground is still required to hit the goals of the campaign.

At the end of the campaign, collected funds are forwarded to the cause, with a percentage withheld to pay the crowdfunding site as per the terms of service. Always read the Terms of Service (TOS) detail associated with a crowdfunding site as many variations exist. Also make sure you identify the level of support your organization or cause requires. Not all crowdfunding sites are alike in this regard. 


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