Crowdfunding & online donations

What is Crowdfunding and Online Donation?

Crowdfunding is a type of fundraising carried out online where people donate money towards a cause, project, activity or enterprise.

Any individual or organisation can ask for donations.

Equity Crowdfunding — contributors receive shares or part ownership in a business.
Donation — donors give money without financial rewards. Commonly used by charities and social enterprises.
Rewards — supporters receive rewards instead of shares depending on how much they contribute.

Funding is usually raised from many people contributing smaller amounts towards a larger target.

There are many online fundraising platforms available, so it is important to research which one best suits your needs.

Some crowdfunding platforms work in partnership with local or national organisations such as:

Be clear about what you need funding for and your target amount.
Choose a platform that is easy for both you and donors to use.
Check platform fees and compare different options carefully.
Check how long your appeal can remain active.
Understand what happens if you do not reach your target amount.
Check how the platform updates you on progress and donations.
Remember that interest can slow during the middle of campaigns, so regular updates help.
Promote your campaign passionately across social media and communication channels.
Thank donors and show how their money was used.
Watch campaign videos and guides for inspiration and learning.

Read Charity Digital’s guide to online fundraising platforms here .

Examples of Crowdfunding & Donation Platforms