Your Charity is Broke. Crowdfunding Can Help. Here's Why.

Before the internet, raising money for charities and nonprofits largely relied on peer-to-peer interactions.

Cold calling and door-to-door knocking brought in a significant portion of revenue, as well as the solicitation of donations from wealthy individuals and trusts known to assist charities.

Today, however, we have the internet - and with it a whole new era of fundraising. So if you are asking 'how can crowdfunding help charities?' then we are here to 'say in several key ways!

The following is a quick look at what charities should know about crowdfunding and how it can help foundations, especially ones finding themselves "broke," garner additional funding.


The Basics of Crowdfunding

Crowdfunding, as its name suggests, is any effort undertaken to raise money by requesting small amounts from a large group of people.

While this type of fundraising can be done at in-person, high-energy community events, most generally crowdfunding is associated via online fundraising done over websites tailored for nonprofits, such as dreamOway.

An online crowdfunding website allows charities and nonprofits to create campaigns to raise money. Special tools allow easy campaign sharing across their social media sites and other marketing avenues.

Not sure how crowdfunding can help your charity or nonprofit? Consider the following benefits of crowdfunding:


3 Key Benefits of Crowdfunding and How It Can Help  Your Charity


1) Low investment, High Rewards

Setting up a crowdfunding campaign on a website like dreamOway requires no upfront marketing and advertising costs. If you and your charity are internet-savvy and have existing social media accounts, you can create and share notices about your campaign at no cost at all from any location. While such online promotions do require time and labor, if your charity is broke, there's simply no cheaper way to get started in raising awareness and funds for your organization. 


2) The Bandwagon Effect

Crowdfunding is an effective tool as it can trend and garner increased attention on its own accord thanks to what we like to call the bandwagon effect. The bandwagon effect is a psychological and proven phenomenon in which people will do something largely because other people are. Instead of asking themselves whether they personally like a project, visitors to a campaign page may use crowd psychology to ask themselves whether a campaign is a winner and whether joining with the crowd in funding that campaign makes them look like a winner. Once your campaign has garnered a certain amount of attention, generally once it has received 40% funding, it will enjoy bandwagon status in which new visitors will donate largely because of the success it has already shown. 


3) Raise Awareness by Engaging the Crowd

With crowdfunding on a website like dreamOway, you control the message. Your charity creates the content and can establish parameters in which to engage with your donors. Answer questions directly, create videos highlighting what your charity does, make infographics showing where donations go and how they help your cause. In other words, with crowdfunding, you not only have a chance at raising money, but you have a reason and platform on which to raise awareness about the whole of your charity in order to garner both short-term and potential long-term donors and volunteers.


Learn More at

We hope this answers your question of how can crowdfunding help charities? For more information about getting started with a crowdfunding campaign for your charity or nonprofit organization and tips on ensuring that it has an outstanding launch and promising run, contact our team today or visit our blog at


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