5 Reasons why Crowdfunding is the Perfect Launch Platform for your Social Enterprise

The concept of crowdfunding is a fast growing one. It is slowly and steadily overtaking the more traditional ways of funding for social enterprises. While money is the most important aspect of this concept, it is not the be-all and end-all of it. There are manifold advantages to using an online platform to launch your social enterprise. With technology at our fingertips, acquiring targeted reach, visibility, and collaborations is now easier than ever.

So here are 5 reasons why crowdfunding might just be the perfect way for you to launch your social enterprise:

 

1) More efficient than traditional ways of raising capital

As opposed to the traditional method of personally making pitches to donors, crowdfunding for social enterprises on an online portal is far more efficient in getting your message out to lots of people, and to the right audience. Besides that, the cost of launching a crowdfunding campaign is little to nothing.

 

2) Great platform for a powerful story

It is a great platform to showcase the authenticity of your initiative. Through a powerful campaign, you can gain the confidence of donors, and show them how much of a difference their contribution can make to your efforts in creating an innovative solution for the society.

 

3) An efficient marketing tool

It is a great way to analyze and gauge the reactions of people towards your cause, through which you can partially determine the success of your campaign. All you need is the perfect online portal for the project you would like to raise funds for. Even with a few supporters in the beginning, you will find it remarkably easy to create a strong database of like-minded individuals. That said, effective marketing will even facilitate collaborations.

 

4) Generates new ideas and feedback

When you run your campaign on various social media platforms, you tap into many different audiences. Each type of audience will have a different take on the concept you are putting out. As long as you can engage people and start conversations, ideas from different people will keep flowing in. Aside from that, it is a great way to get feedback and improvise on the shortcomings of your campaign.

 

5) Polishes your business and management skills

Running a full-fledged campaign involves analyzing, strategizing, marketing and PR, having impactful communications, and employing quick decision-making abilities. Not only that, you will find yourself juggling several tasks at the same time, which will polish your time management skills as well.

 

Every great idea requires a secure source of funding. To put it simply, crowdfunding can bring out the creative potential in every initiative. So, if you are raising funds for your venture, these benefits are worth considering.

Interested in participating in the Social Enterprise Challenge, 2017 and taking your venture to the next level through crowdfunding? SEC 2017 has an array of attractions and cash grants for social entrepreneurs.

Start a fundraiser to power up your social enterprise and maximize impact now!

 

What the Budget of 2017 means for crowdfunding in India

The budget 2017 has brought both challenges and opportunities to the nonprofit sector in India. The two main announcements that impact the development sector are expected to completely change the landscape of how people do charity and how nonprofits accept it. The first is the cut down on the limit of cash donations one can make, second is the alterations in the tax exemption clause.

 

The recent demonetization move in India revealed what digital India will look like in the years to come. That said, social problems won’t be going away anytime soon, so the need to fundraise is indispensable.

Let’s discuss what the Union budget announcements of 2017 will mean, and how they will impact the world of crowdfunding.

 

Reduction in amount of cash donation

 

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The amount of cash that one can donate anonymously to an organization has been reduced from Rs 10,000 to Rs 2,000. This is a major crackdown on political funding. It is a bold step towards curbing illegal activities and money laundering that nonprofits may be involved in. In any case, it will always be more beneficial for a genuine donor to give donations with proper documentation and through registered banks because it will add credibility and accountability to the organization’s utilization of the funds.

 

So what does this mean for crowdfunding in India? It means that nonprofits need to start embracing technology and digital tools to raise money for their cause. No longer can they sustain themselves in this competitive ambiance, by using traditional methods of fundraising. They will have to invest their efforts in online fundraising platforms such as Impact Guru.

 

Removal of clause 35AC

 

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Clause 80G allowed a tax rebate of almost 50% and 35AC of almost 100%. The union budget 2017 announced the removal of clause 35AC, which has been a cause of worry for the development sector. It allowed 100% tax exemption to individuals and companies that donated to certain specific charities that are required to be verified by the central government. Experts believe that removal of this provision will also remove the most valuable incentive that motivates people and organizations to donate.
With regards to crowdfunding, it means that nonprofits will have to use newer and more creative techniques that incentivise people to donate. Online crowdfunding platforms use digital and social media tools, as opportunities to draw in funds. 

Therefore the time has come for more people to shift to such platforms and create new processes to sustain that conducive environment for giving in such times of unpredictable dynamism. 

More and more charities have begun to see the need for digitization in achieving their social mission, and the announcements in the Union Budget of India 2017 seem to be a positive catalyst for it. It remains to be seen how nonprofit organizations react to the changes that are coming their way.

For any queries regarding online donations, you may visit Impact Guru and speak to our fundraising consultants for more clarity on recent developments.

5 Reasons why your nonprofit should collaborate with a Startup

Startups and for-profit organizations have recognized for long the value of collaboration and teamwork. Strategic alliances have benefits that go way beyond their monetary value. These include strategic communications, larger audiences, credibility, and brand image. That is just one aspect. Startups and young entrepreneurs today are driven by their age and their knowledge of the millennial generation, i.e the influencers. Their enthusiasm and awareness can greatly benefit any nonprofit initiative, and further a good cause.

So here are 5 reasons why collaboration with a startup might just give your nonprofit that extra edge in doing things better.

  1. Entrepreneurs are potential donors

 

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Startups are a solid partnership for a nonprofit because of the funds available to them. There is a whole market of people out there who can dedicate time and energy in analyzing startup strategies, and invest heavy amounts in them if the idea sounds brilliant. That said, entrepreneurs make for great potential donors for your NPO. There are funds available for branding activities such as advertising, public relations, social media, and other platforms for communication. Such resources can be shared by teaming up with them. Thus Non-profit collaboration with start-ups is a win -win deal for both of them.

2. New innovative ideas

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Startups bring fresh ideas to the table. Since a majority of the startups in our country are youth based, the ideas that are generated come from the influences of the larger population. Besides that, entrepreneurs are people who embrace risks fearlessly and such an approach can always prove beneficial in inspiring your team to become go-getters without limits. So if you’re a non-profit, desiring that ground-breaking impact, then collaboration with a start-up is a must!!

 

 3. Loyal user/customer base

 

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It is well known that most startups have an initial network of friends and family that constitute a really loyal support base to bank upon. A nonprofit, therefore,  can always collaborate with a start-up, to leverage that network and convert it into a stable donor base, using effective and targeted communication. Most startups today take advantage of a community that is narrowing down every day due to social media. This means that entrepreneurs embrace collaborations with other startups, in order to maximize profits, as well as increase customers. For instance, there are large Facebook groups dedicated to communicating the innovations of startups. So collaboration with a startup gives a non-profit, exclusive access to a community that is driving path breaking change, across economy and society.

 

4. A chance to grow with them

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While a startup may be small in the beginning, everyone aims to expand their business. They usually chalk out detailed growth plans that can take their organization from a regional, to national, to international standards. When you are in the shadow of a company with aggressive expansion plans, you have a great opportunity to grow with them! This is why non-profit collaboration with start-ups could be the way to fast-forwarding social change and progress.

 

5.  Credibility

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Collaboration between nonprofits and start-ups is a symbiotic relationship that benefits both. While start-ups enhance their overall goodwill by firmly implanting their CSR imprint on firmer shores, nonprofits gain a lot by embracing their overall dynamism and leveraging their fast-expanding social and geographical reach. By attaching itself with a credible start-up, a non-profit can always gain that extra boost of corporate legitimacy- thus becoming more attractive to large donors.

For a non-profit collaboration with a start-up may seem as a risky proposition in the beginning, as they do not have an established name in the market. However, one cannot ignore the fact that these young startups with fresh ideas are the most driven, and have a better understanding of the youth’s relationship with philanthropy.

 

So don’t be afraid to step out of your comfort zone! Strike a partnership today.