What is crowdfunding?
Crowdfunding is simply raising money from lots of people online – even people you don't know!
There are many different types of crowdfunding, including donation, reward, and equity. At Fundsurfer we offer donation-based and reward-based crowfunding.
Donation crowdfunding is where people give money to a project but get nothing in return. People donate for altruistic reasons, or because they have a connection to the project or people behind it. JustGiving, Comic Relief and TV emergency appeals are examples of donation crowdfunding.
Reward crowdfunding is where people give money to a project, but get a reward in exchange. The lure of a reward makes people much more motivated to donate money. This can be a small token of thanks, like an email, a letter or acknowledgement online. It could be promotional, like a poster or tshirt. The best rewards are ones that are related to the project – a DVD for film projects, MP3 files or a CD for music projects, or even a widget or gadget if that's what you are making. Rewards can be experiences too – an invitiation to a premiere, VIP tickets for a gig, etc. You can't sell equity in your company or offer shares as a reward though – if you want to do that then have a look at equity crowdfunding.
Reward and donation crowdfunding is a mix of both – people can choose whether or not to take a reward – and that's what we offer at Fundsurfer!
Different funding models
Most crowdfunding platforms only offer all or nothing funding – if you don't reach your target then you don't get any money. That's great for projects where you have fixed costs, but doesn't help people and organisations who can make use of any amount of money pledged.
That's why we introduced take what you raise funding and open ended funding.
With take what you raise funding, you receive all the money pledged, even if you haven't reached your total. With open ended funding there is no deadline, and you will get a monthly payout.
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