The world of crowdfunding is getting better and better. From Kickstarter to GoFundMe, they are truly changing the landscape for entrepreneurs. You probably have seen them around. If not, don’t worry- you will.
The best example of crowdfunding, and probably the most popular is GoFundMe. They’re an organization that allows anyone to legitimately raise funds for an organization or person. Without going into too much detail on the process of creating a fundraiser on their site by using the already successful existing template, their organization has been widely successful raising over $750 million. No problem there, right?!
I believe there are two major problems. Since I believe crowdfunding will catch a lot of nonprofits off guard if they don’t pay attention to the new trends. With the GoFundMe catching steam as an effective tool, which has literally raised millions and millions of dollars, I foresee a shift in how nonprofits will fundraise. I believe the shift is good. However, not everyone will agree.
Here’s one of the main problems for nonprofits. I foresee our younger generations looking toward these crowdfunding websites for “good deed” outlets, rather than nonprofits within their communities that are dedicated to their causes. The majority of nonprofits don’t do a great job of inviting the Generation X’ers, Gen Y’ers and Millennials to their charity.
If nonprofits ignore the technological and social movement, they will be struggling to keep up with their counterparts within the next 10 years. You will see a different philanthropic community. This brings to the second problem, technology doesn’t discriminate. It can be rather harsh to someone or group that doesn’t give its proper respect.
As for some groups within the nonprofit community, this could be disastrous if they don’t see the trend. Even though nonprofits fill a huge void, none of them are too big to fail. I don’t believe there will be any federal bailouts. Therefore, I hope no nonprofit goes extinct due to their stubbornness of technology and social media.
I write this because my business is personal. My struggles are for your gain. No strings attached.
Nathan A. Webster, MBA