How to Raise Funds Using Social Media and/or Internet Tools
- One great way of raising funds online is through sites like, piryx.com, give2gether.com, fundly.com, rally.org, givezooks.com, etc.
- By using Piryx's online fundraising platform, you can raise money online for your charity, non-profit, politic, school, church, group, club, corporate giving program, team, or any cause, much easier than ever before! Every year millions of people worldwide donate money to a number of causes, which total in the many billions of dollars. Today, there are thousands of causes that rely on Piryx's online fundraising platform to raise money more effectively.
- When technology meets a great cause- good things happen. We at give2gether realized that we could leverage the latest web capabilities for doing good - for community building and cost-effective fundraising powered by Social Media.
- Fundly has rapidly become the largest online social fundraising platform in the United States. Individuals and organizations raising funds for non-profits, charities, politics, schools, clubs, teams, groups, and others, have raised over $230 million using Fundly's social fundraising platform.
- Social networking applications like Causes, which is linked via Facebook can be used to raise money online.
- According to economist.com, these sites and platforms let users connect with charities and each other, plan events, donate directly or create projects to fund-raise among friends. On Causes, for example, participants can use a birthday to rally friends to give to a particular charity.
- There are many other various of using social media and internet tools to raise money.
- Compukol.com lists several different ways of raising money through social media channels.
Legal Problems Arising From Websites for Crowd-funding
According to practicalecommerce.com, equity crowd-funding is illegal in the United States. In "Need Funding for Your Company? Look Online," [the author] mentioned that the U.S. Securities and Exchange Commission considers crowdfunding to be a sale of securities, which would require that the crowdfunding website owners be registered as brokers. One site, MicroVentures, is a registered broker. Two others sites, GrowVC and SeedUps, have headquarters outside the United States, making them exempt from U.S. law. Other sites are in a gray area, saying that they only provide a meeting place for entrepreneurs and equity funders.
One prominent crowdfunder, California-based ProFounder, was recently forced to cease operations by state authorities. "They were acting as a broker without being licensed as a broker dealer," stated Preston DuFauchard, the commissioner for the California Department of Corporations. In August, the state agency issued a formal consent order to ProFounder to "desist and refrain" from engaging in securities transactions without registering as a broker dealer. Other states may not be as diligent as California, but all crowdfunding sites with an equity model are subject to SEC enforcement. ProFounder is now actively lobbying for changes to the securities law.
New Crowd-funding Legislation
Many observers believe that equity crowdfunding is a good way to help entrepreneurs and small businesses start and grow. But crowdfunding sites maintain that high costs and burdensome compliance requirements are deterrents to becoming licensed brokers. For example, the sites must not only register with the Securities and Exchange Commission through the Financial Industry Regulatory Authority, but also in every state where they plan to do business.
Downside to Equity Crowd-funding
While crowd-funding would provide another source of equity funding for small businesses, there are several potential drawbacks for entrepreneurs. Unlike contributions to one-off projects in which donors have no say in implementation, equity investors want, and are entitled to, some influence in the direction a business takes. Having hundreds of equity investors means you will be answering to hundreds of bosses. That's time-consuming and costly to administer.
According to cashtostart.com, here is a list of the top 10 crowdfunding websites:
- Profounder.com
- A professional crowdfunding website for equity and revenue share.
- StartupAddict.com
- Crowdfunding for startup addicts.
- BelieversFund.com
- Crowdfunding website for new mobile applications.
- Rockethub.com
- A leading crowdfunding website for creative projects.
- Quirky.com
- A crowdfunding website for inventors.
- NewJelly.com
- A crowdfunding website for artists.
- CoFolio.com
- A crowdfunding website to help fund local small businesses.
- KickStarter.com
- A crowdfunding website for creative projects.
- StartSomeGood.com
- A crowdfunding website for social entrepreneurs.
- Peerbackers.com
- A crowdfunding website for entrepreneurs and their dreams.
- Eppela.com
- A crowdfunding website for social projects, art and entertainment, as well as lifestyle and technology businesses.
- IndieGoGo.com
- The world's largest and earliest crowdfunding website, which has helped raise million of dollars over 30,000 campaigns, across 194 countries.
According to socialbrite.org, here at their top 5 social fundraising tools:
Depending on the cause, in a week, I think I can raise a minimum of $200, and probably a maximum of $500. In a month, I think I can raise around $1000 to $1500.
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