Source: Nonprofit Quarterly
Crowdfunding, which is defined as raising small amounts of money from a large number of people, generated more than $30 billion worldwide in donations, equity funding, and in-person lending in 2015.
GoFundMe raised more than $3 billion, and there are now more than 3,500 “giving platforms” around the world.
The rising popularity of crowdfunding is shifting the conversation on philanthropy by challenging how charitable work is funded, and “how that work gets done.”
Crowdfunding is most typically seen in projects that aim to help someone in need. However, givers “often respond in an emotional as opposed to rational way: You’re paying to alleviate someone’s suffering, not the broader societal problem it represents.”
Read full story at: Nonprofit Quarterly