It is a fundraising method usually used by nonprofit organizations, and people who are unable to afford medical treatment, education etc. Crowdfunding in India is mostly done in the donations based method.
Crowdfunding is a method of collecting small (or large) amounts of money from many people though an online crowdfunding platform/ website. Simply put, is a way to raise money for any purpose from a crowd of people.
This crowd can include your friends, family, neighbours, strangers, investors, and just about anyone who is willing to donate or lend some money to you through a simple online payment.
You may have noticed that we’ve used two seperate words for the contribution of money - ‘donate’ or ‘lend’.
This is because there are different types of crowdfunding that one can opt to raise money through. Here’s a quick definition on each type to give you the gist.