Crowd Funding is the process of collecting funds for a wide variety of purposes through a collective approach of numerous participants. It is usually in the form of mass level collection of funds through buyers and sellers both. The funds that are collected are used to support the efforts of the ones who started the process. Today, this funding is done for a number of purposes, charity being one of the most notable ones. A mere example of crowd funding could be selling of t-shirts signed by a popular singer in order to collect charity for the blind pupils in schools. In this example, the sellers and buyers both are pooling in for charity. The seller has either paid the cost of making the t-shirts or has bought them from the wholesale market. The buyer pays for the t-shirt and buys it. Even if not completely, the seller can deduct his cost and donate the overall profit to the cause.
The phenomenon of CF is becoming enormously popular these days, thanks to the internet. Previously used methods of fund raising are now becoming obsolete. The reason why crowd funding is gaining mass attention is the level of ease and the smaller amount of contribution involved by each individual. Also, because it is a collection approach on mass level, the cost of advertisement and marketing reduces automatically. As said before, the internet can play a major role in making a crowd funding campaign successful. Social media websites such as Twitter and Facebook are of great help in order to promote the campaign.
Today, this approach is being used by people all around the globe. Not only for donations, it is also used for funding various activities pertaining to businesses, educational sector, etc. Another great example of crowd funding is travel writing. Many travel writers these days finance their trips by selling their photos and writing stories about their adventures. These photos and write-ups are sold to magazines and websites or are sold as stock content. Thus, it is also widely known as an informal way of collecting funds through utilizing services and products that are of the least value to an individual or the company.
One Major Example of Crowd Funding:
City Budge Watchdog is the prime example of a crowd funding project. It is run by the Public Press and the major goal is to fund independent journalists to produce reports and news items through the eye of a citizen.