On my train to work, I routinely am requested to donate money multiple times (and not just by the homeless guy outside the station). One comes in the form of a new project with a homemade advertisement up in the train station – and in the corner is a ‘find us on Kickstarter!’ logo. I’m then asked by my regular podcast to support them through Maximum Fun through either a subscription or one-time support. The author of the article I’m reading asks for support through Patreon. By the time I get to work, where I could potentially pull out my banking information and support any of these initiatives, I’m thinking less about actually doing so and more about the new phenomenon of crowdfunding, wondering how effective this new phenomenon is. Not to mention, there’s no way I can support all the wonderful creators that solicited me during my commute. Plus, I realize I’m beginning to tune out the requests.
Don’t get me wrong – there’s a time and a place for crowdfunding. It can support a new business during its most vulnerable time and can provide small injections of funding when all you need is to test an idea. But it does best for people actually producing something and for ‘sexy’ topics of the day. Yet, indiscriminately choosing crowdfunding (or any other sort of funding) without consideration of which funding strategy is best can really hurt your cause, causing groups to shift their mission. So let’s think about the science of fundraising and how crowdfunding fits into a larger fundraising landscape. How is it changing the relationship between those who need support and the typical people who fund them?
Read More “Pondering the disruption of crowdfunding: It’s not a panacea.” »