Crowdfunding is an increasingly popular method of online fundraising for individuals, businesses, not-for-profits and charities.
Generally it involves an individual or an organisation setting a fundraising target online and then asking the crowd of the internet for donations to reach that target.
Crowdfunding provides fundraisers with an opportunity to communicate with, and potentially receive funds from, a wider audience than they would ordinarily have access to. Similarly, it also provides donors with a way to donate directly to a wider range of causes from all over the world.
With many crowdfunding websites available, it is easier than ever for people to raise funds online.
Although crowdfunding has the potential to provide great benefits for charities and donors, there are some aspects of the practice that people need to consider before embarking on a campaign or donating to a cause.
The Australian Charities and Not-for-Profit Commission has released a useful resource on crowdfunding for charities.