The socio-economic environment of this generation demands a lot more than traditional philanthropy. There are an increasing number of social issue that crop up each day, and with them more and more nonprofits organizations are being setup, such that the competition for philanthropists donating to your cause gets cut-throat. Some get funded, but others don’t. That doesn’t mean the cause that didn’t get funded isn’t as important. It just means that the philanthropist probably didn’t connect with it as much as with the one he/she donated to. Such a competitive environment in the social space could actually inhibit or slow down progress. For that reason, nonprofits need to seek other way for funding their initiative, and philanthropist must evolve and grow with it, as long as the ultimate goal is to do good for society. In this article we’d like to discuss how and why nonprofits and philanthropist might benefit from joining the growing crowdfunding India for online fundraising.
Philanthropists have always struggled with high risk cases when deciding whether or not a project should be given financial aid. By making the switch to online fundraising, you entirely re-risk your donation system.
Develops longevity of the philanthropic relationship
Something that nonprofits have always struggled with is maintaining and nurturing long term relationships with donors. They may donate to your project 3 years in a row, but there’s no promise for the 4th and 5th, and so on.
Greater in-hand fund utilization
It’s important to point out the practical difference between traditional philanthropy and modern philanthropy in a crowdfunding India. A research showed that nonprofits end up spending 70% of their funds from donations in the process of appealing to donors and acquiring funds from them. Crowdfunding entirely eliminates these processes, and relies and quick and simple online transfers. As a result nonprofits will actually get to utilize all, if not majority of the funds tey raise from their crowdfunding campaigns.
Builds credibility of a cause
Philanthropists are often well-known individuals of high net worth, with valuable resources at their disposal. Their attachment to cause can add great credibility, and build assurance among other potential donors. Nonprofits have a lot to gain by using the valuable influence of popular philanthropists in their crowdfunding campaigns.
More and more charities have begun to see the need for traditional philanthropy to evolve with the crowdfunding India, in achieving their social mission. It remains to be seen how nonprofits and philanthropists alike, react to the changes in the social and developmental landscape.