Questions to Ask Before You Give to Crowdfunding
First of all, what is Crowdfunding?
Crowdfunding is a way of raising money through the collective effort of friends, family, customers, and individual investors. An individual or business can use one of the over 40 crowdfunding sites that allow them to ask for and receive funds to aid them in their cause. An added benefit is that friends and family can share a link to the crowdfunding site via social media, making it easier to spread the word in hopes of increasing contributions to the cause.
Crowdfunding has significantly increased over the past few years, and it seems to be everywhere you turn. It’s so easy for folks to ask for money from sites like Kickstarter and GoFundMe, but how do you know that you are really giving to a worthy cause?
Questions to ask before you give:
- How is the campaign organizer related to the intended recipient of the donations?
- What is the purpose of the campaign and how will the funds be used?
- Are direct family and friends making donations and leaving supportive comments?
- Is the intended recipient in control of the withdrawals? If not, is there a clear path for the funds to reach them?
There are many heart-wrenching stories out there that implore us to give. Giving back is great! Just make sure you get the facts before you open up your wallet.