Donations from lots of people who support what your organisation is doing, given in exchange for ‘rewards’ which can range from a thank you on your website, to merchandise such as branded bags and t-shirts, to the actual product you are raising money to develop.
When might I use it?
To raise small amounts (£2,000 - £50,000) to launch a new product or service.
Where can I get it from?
General crowdfunding platforms or crowdfunding platforms that specialise in working with charities and social enterprises.
Pros
- You don’t have to pay the money back
- It’s a good way of attracting customers and finding out whether people like your product enough to pay for it
Cons
- It takes lots of time and effort, particularly if you don’t already have a large group of supporters
- Creating rewards can be costly if your organisation does not have physical products to offer
More information
- UKCFA - What is crowdfunding?
- School for Social Entrepreneurs - Crowdfunding for charities and social enterprises