Aside from joining CSR activities in Singapore, individuals can make a significant impact and difference in the community they belong to by donating funds to support a cause initiated by an organisation or people. Crowdfunding or crowd financing is a collective effort from Internet users to showcase their support for an effort or cause in community-wide activities, such as housing or disaster support for the poor, community kitchen, and even political campaigns.
Many local fund-raising efforts aim to provide humanitarian assistance and relief to a group of people in need of special care and attention. It includes those who are living in poverty, children and the elderly. One can always join a crowdfunding platform in Singapore to initiate crowdfunding for a cause. Here are different types of crowdfunding you need to know:
Donation-based crowdfunding is as straightforward as it gets. Donation-based involves asking people to donate something to show their belief and support for a cause. Whether it’s about a political-driven or running children’s charity in Singapore, whatever it may be, the returns that a donor can receive can be tangible or intangible. In most cases, donors are driven by a motivation to put their money into a particular cause and can expect nothing in return.
Some people or organisations may join a crowdsourcing platform to invite donors or investors in exchange for a monetary benefit. Again, it can either be a humanitarian or political cause. But in most cases, the donation is aimed at propelling a business or specific project in need of financial support. Debt-based crowdsourcing is also known as peer-to-peer lending.
Equity-based crowdfunding involves a corporate entity where money is shared in exchange for equity or issuing shares to a crowd. The number of potential investors in a company entity can reach up to hundreds to raise money beyond a threshold of shareholders. If the venture becomes successful, the value increases, and vice versa. Hence, investors may risk losing all the money they put in should the value crashes.
If you are looking for a crowdsourcing platform or a tax relief donation in Singapore, visit Singapore Children’s Society.