As with just about anything today, crowdfunding too, has a DIY version of itself. It essentially means crowdfunding without a crowdfunding platform. Perhaps this concept rooted from campaigners who were apprehensive of the fee structure of certain crowdfunding platforms, and the possibility of running the very same campaign without having to pay any fee at all. This article will explore and compare the benefits of crowdfunding through a platform, and crowdfunding without a platform.
Surely by running a DIY campaign one would get to keep all the funds raised, without having to pay a fee to the platform. But what’s important to gauge is the cost versus benefits of using a platform and a doing a campaign independently. Setting up an independent campaign would most likely take up a lot of time and other resources, while doing so through a recognized platform would take no longer than 5 minutes. Especially for emergency campaigns, launching through a platform might bring you quicker success. Besides, certain crowdfunding India platforms like Impact Guru charge a minimal platform and payment gateway fee of 3%.
Lack of due diligence
Crowdfunding platforms usually have an elaborate due diligence process that takes place to check the authenticity of a nonprofit or any other campaigner raising funds. This means that donors would feel safer donating through a platform where the campaigners background is being checked, and they are sure their money will be put to good use. Besides, crowdfunding platforms like Impact Guru encourage NGOs to register under the FCRA, which increases credibility of nonprofits, and increases the faith of donors.
No tax benefits for donors
By making donations through a crowdfunding platform, donors can actually avail tax benefits of upto 100%. This is a great incentive for donors, that’ll also potentially increase the number of donations and the sum of money that people contribute towards a cause.
Restricted access to donors
Having worked with 1000+ campaigners and organizations, crowdfunding India platforms like Impact Guru have a lot of experience in helping people raise money for various causes. This has also helped them build a database of donors. If one chooses to run a campaign independently, they would miss out on access to a lot of donors. This is crucial because donor access encourages and facilitates collaborations, and by doing so, you could effectively double the impact you’re making on a cause close to your heart.
Difficulty in fund transfers
One of the biggest benefits of running a campaign through a crowdfunding platform is the ease of payment. Running a campaign independently would require you to set up a safe and reliable payment gateway. The process of doing so would take up a fair bit of resources, time, and probably funds raised through the campaign itself.
It’s safe to say that crowdfunding platforms have a lot more to offer than just fundraising. If those benefits are expendable, then a DIY campaign might work for you. If you’re convinced that you should launch your fundraiser through a crowdfunding India platform to avail the added benefits, you can start a campaign with Impact Guru today.