What You Should Know About Crowdfunding as Facebook Readies the Feature


2015-11-18-image-16Facebook soon will launch its own personal crowdfunding platform, which, like GoFundMe and other websites, will let individuals publicly ask for financial help, for their own benefit or someone else’s.

The social media giant’s foray into personal fundraising could make it a big player in a crowded field that attracts billions of dollars annually. A 2015 survey by the Pew Research Center found that one in five Americans has donated to a crowdfunding campaign, with about half giving from $11 to $50.

A big reason this kind of crowdfunding has become so popular is that it makes it easy to directly assist individuals facing difficult—or joyous—life events, or trying to put money together for a good cause.

For instance, on GoFundMe, the largest personal fundraising site, a Florida woman was recently seeking $50,000 for stem cell therapy for her young son, who she said had suffered a brain injury. A community in Washington state used crowdfunding to drum up more than $100,000 to save their beloved independently owned movie theater. Others have used crowdfunding to raise money for their weddings or to help pay their student debt.

Clearly, crowdfunding can make a huge difference in people’s lives. But is this kind of giving an effective way to spend your charitable dollars? Is it safe? How do you know you’re not funding a fraud? Before you give money to a crowdfunding campaign, it pays to understand the possible drawbacks and know how to avoid them.

 

Source: What You Should Know About Crowdfunding as Facebook Readies the Feature

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Author: Stephen G. Barr, Group Publisher

Author, Syndicated Columnist, Editor In-Chief and Group Publisher at SGB Media Group, a social media marketing firm specializing in digital media content production, publishing, affiliate marketing, public relations and advertising. Over 25 years experience in retailing, advertising, website & online forum development, niche social networking, affiliate marketing, search optimization, branding and identity, site location, non-profit fund raising. Event planning, promotion, production and MC/Host at public events. Author, Editor & Publisher of 35 syndicated, digital publications utilizing multiple digital distribution channels in conjunction with launching and administrating national advertising campaigns for major Fortune 500 advertisers in partnership with Google, Ning, Facebook, Myspace, Yahoo, DoubleClick, LinkShare, PepperJam and other industry leading third party affiliate networks. Product development team member from conception to launch on many websites, tangible goods and organizational structure for start ups. Specialties: Public relations, retailing, advertising, website & online forum development, niche social networking, blogging, email campaigns, affiliate/performance marketing, search optimization, branding and identity, site location, event production & promotion, non-profit fund raising and tasteful, responsible adult content publishing. An internationally recognized and read social media columnist & pundit on The Examiner, Associate Content, Vator.tv, X-Biz.net and Technorati and his own affiliated sites.

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