International Day Of Education 2023: Know The A To Zee Of Crowdfunding (Part 2)
By: Sonali Sahu
Published On: January 23, 2023
Crowdfunding is gaining more and more popularity in the current times. From funding startups to making transplants possible to disaster relief to supporting one’s educational dreams, crowdfunding is receiving support from people all over the world. The multi-billion dollar global crowdfunding industry is growing at a huge pace annually. Yet the questions surrounding it are many! To understand and take full benefits from the idea of crowdfunding, one must understand what it is.
In this article, we delve into the intricacies of crowdfunding and answer some of the most commonly asked questions about crowdfunding.
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To educate yourself about what crowdfunding is and some of the most basic terms associated with it, read the article here:
Is Crowdfunding Free Money?
Though donation-based crowdfunding has a no-payback policy as there is no liability to pay back the money raised, it would be wrong to call it free money. Crowdfunding cannot be termed as free money due to the amount of respect that comes with it.
It is more than just raising money. Considering absolutely transparent and kind-hearted intentions, crowdfunding is more of an act of selflessness.
Is Crowdfunding Legal In India?
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Online donation-based crowdfunding for various causes is completely legal in India. The Securities and Exchange Board of India (SEBI) has made all forms of crowdfunding legal in India except for equity crowdfunding. Many crowdfunding platforms are registered under the Income Tax Act as charitable trusts. Contributions made on such platforms are eligible for income tax deductions under section 80G. Crowdfunding platforms like ImpactGuru help donors receive tax benefits on donations made to fundraisers eligible for tax benefits.
Read: Everything You Need To Know About Donation Tax Exemption
Is Online Crowdfunding Safe?
Safety is a matter of serious concern when it comes to online crowdfunding. Most crowdfunding platforms maintain end-to-end security pertaining to personal information and fund transfers. At ImpactGuru, we have put in place various safety measures and monitoring protocols to ensure the security and privacy of all the users on our platform.
If you wish to start a fundraiser on ImpactGuru and have questions regarding the same, here we try to answer some of them:
How Do I Start Crowdfunding?
Before starting a crowdfunding campaign, one needs to decide on a fundraiser host or a crowdfunding platform. It’s extremely crucial to choose the right crowdfunding platform as from here one will take their crowdfunding campaign ahead. If you want to lead an effective fundraising campaign, it’s important to have a crowdfunding platform that can keep up with your needs.
Read this article to know 9 Features Of The Best Crowdfunding Platform In India
How Long Does It Take To Start A Fundraiser?
Starting a fundraiser on India’s leading crowdfunding platform is simple and extremely user-friendly. When you visit ImpactGuru’s website, you will come across the ‘Start a fundraiser’ button. Simply click on it and fill in all the necessary relevant details. The entire process hardly takes a few minutes!
How Much Does It Cost To Raise Funds Through Crowdfunding?
One of the best features of raising money through crowdfunding is that there is no liability to pay back the money raised. Also, when it comes to the cost of raising funds, different crowdfunding websites have different pricing structures based on the services they offer. The best part here is that ImpactGuru even operates at a 0% platform fee so that the campaigners can receive all the funds raised for their chosen cause. You can know more about ImpactGuru’s pricing plans here: https://www.impactguru.com/pricing
In case you have more questions about starting a crowdfunding campaign for your chosen cause visit here:
While most of us are extremely generous at heart and wish to help someone in need, a lot of myths and lack of awareness cause hesitation especially while donating online towards a crowdfunding campaign. Here we answer some of the most common questions about donating to a crowdfunding campaign:
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How Do The Donations Reach The Person In Need?
To ensure that all the donations are rightfully used, most crowdfunding platforms follow strict due diligence and fund transfer processes. When a campaigner requests for a fund transfer, the money is transferred to the hospital’s account in case of medical causes and to verified organisational accounts in case of NGO causes. All donors receive an authentic receipt for their donations and even tax exemption certificates for the donations made on selected fundraisers.
What Can One Do Beyond Donating To A Fundraiser?
If you are unable to donate due to any circumstance or if you have already donated but want to help further - share! Share the campaigner’s fundraiser as much as you can and encourage others in your network to donate as well. This helps the campaigner increase the fundraiser’s reach and in turn, helps achieve the goal amount faster.
Is It Safe To Donate Money Online In Crowdfunding?
When you decide to support a cause, it is extremely important to stay aware and cautious while making online donations. However, don’t let the fear of making mistakes stop you from doing good for someone else especially when your donation has the power to save lives! ImpactGuru is driven to provide a safe and secure giving experience to every single donor on the platform.
ImpactGuru’s Co-founder and CEO, Piyush Jain talks about how to become a more diligent & informed philanthropist in the crowdfunding era in The Times Of India article.
To know more about making donations on crowdfunding platforms visit here:
This International Day Of Education, we hope we were able to contribute towards enhancing your knowledge and awareness about crowdfunding in India. Ohh, if you wish to know more about what ImpactGuru is? Or How legit is ImpactGuru? - read this article that will answer your questions about ImpactGuru and Crowdfunding.
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