Part 1: The Basics

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CROWDFUNDING 101 Part 1: The Basics – A Bit About Crowdfunding… 

So, what is crowdfunding?

It’s raising a sum of money for a specific project or idea through contributions from a crowd of people who ’back’ that idea.

There is a set time frame in which to raise the money and all the people who give money receive a reward in return for their support.

If the fundraising target isn’t achieved within the given time frame then any money already raised is returned to the backers. That way, backers know for sure where their money is going, and that they are making a real difference.

The benefits of crowdfunding:

  • Building a crowd: Crowdfunding can be an excellent way of increasing and engaging your base of supporters which can have all sorts of benefits for your project and organisation.
  • Time and expertise: Crowdfunding is about much more than just money – it’s about your crowd helping you, your idea or project, and organisation to grow. Do you need help with something? Ideas for a marketing campaign? A web expert? Reach out to your crowd!
  • Future fundraising: Crowdfunding means a pool of people all give a varied amount of money via purchasing your project related rewards to make your project a reality. All of these people therefore become contributors to your project – and it is likely for people who have given once to give again (as long as they’ve been properly acknowledged for their contribution and receive their reward!). This crowd may prove to be a valuable resource (both financially and socially) for your future projects and organisation.

How crowdfunding is different to ‘traditional’ fundraising:

Whilst many elements of ‘traditional’ fundraising still apply, crowdfunding is a bit different…

  • Trade not Aid: A basic principle of crowdfunding is that backers get a reward in return for their contribution as they are not giving something for nothing.
  • Small not large sums: Crowdfunding asks people to give a little to make a big difference.
  • Online not offline: Crowdfunding happens online. People give online and the Internet is an incredible place to spread information easily and quickly. Of course, there are still elements of a crowdfunding campaign that happen offline (such as talking to key supporters and exposure at events) but, you need to make sure you’re clued up with Web 2.0 to give your crowdfunding campaign the best chance of success.
  • More than just money: Ideally, the crowd of backers that give to your project will give more than just money. They should feel part of a unique crowd of like-minded people that will champion your project by inspiring others to support and/or help your project out through volunteering their time or skills.

21 thoughts on “Part 1: The Basics

  1. Lebogang says:

    I find this very interesting and believe it can benefit our beneficiaries. I have a registered nonprofit organisation called Reatlegile youth development forum offering skills development training to the youth of Ga-Rankuwa and surrounding areas. We also have an after school program where we teach kids bible lessons,life skills and computer literacy

  2. Ursuls Nocawe Sekhurwane says:

    Rand Hills College
    We wish to reach out to all well wishers who can support the project in empowering learners through educatiin and training, to help us in raising funds to make this project’s a

    We offer education and traing to all learnera of all background and we believe that every learner has the potential to perform better if given a chance

  3. Verna Oliphant says:

    Good- morning, we’d like to start a varsity bursary fund for matric learners at Claremont High school. Would the Thundafund platform be an ideal platform to start? Any advice?

  4. Deirdre Schroeder says:

    Hi there
    I am totally new to this concept.
    I run a judo club and we have a large amount of children who are either severely disadvantaged or residents at various children’s homes. I am hoping to find surrogate beneficiaries for each child. the beneficiary would be responsible to pay an amount for each child to attend a monthly skills development tournament and their meal after the tournament. Would I be able to use crowd funding in this way?
    Thank you

  5. wildafricaoceans says:

    Dear Thundafund.
    I am developing a international, course training website linking all suppliers in the dive tourism industry globally, focusing on conservation efforts training and assigning ambassadors to represent their love and care for our Oceans. I have a story to be told and a maket to approach future developments and would love for your assistance in the matter, and to discuss further future start up developments.

  6. Cecilia Arendse says:

    Good day
    I have a business idea that I’m busy working on. I know what I want to do, but I need guidance on how to go about mapping it out, pitching it and getting started. Would you be able to assist?

  7. Ayanda Sende says:

    Yes ,I agree that the backers will have a benefit from my funded project ,but my question since I want to record my gospel album and printing and publishing of my poetry book can they be operated under my sole proprietor business called Treasures Fashion boutique which has a South African bank or do I need to register a new company for music and books? Please advise me ,and for a meeting do I need to come over in Capetown to meet with backers?,When in March? Thanks,Ayanda Pretoria.

    • Thundafund says:

      Good day we have emailed you some information to look at. Crowdfunding isn’t where we provide backers, we are a platform that facilitate trust between you and whoever your backers may be. We also provide mentorship regarding your campaign. To successfully crowdfund you require a network of some form, a network of people that would be interested in your project.

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