In the age of the Internet and social media, almost anything is possible online. With the click of a button, people can pay for their purchases, pay bills, and make charitable donations. All it takes is a credit card or services such as PayPal and Visa Debit.
It should come as no surprise, then, that a new form of fundraising has emerged. In addition to making tax-deductible charitable donations, Internet users can donate to any person or cause they care about no matter the size. And this money is all received through crowdfunding.
Crowdfunding makes fundraising faster and more efficient than ever, especially for personal projects.
Crowdfunding websites such as Kickstarter and Indiegogo allow fundraisers to set a target goal and time limit for the amount of money they want to raise. While originally based in the U.S., many of these websites allow donors to pledge and pay in Canadian dollars.
Crowdfunding made headlines in Hollywood last year. Veronica Mars, a film that is the sequel to the TV series of the same name that ran from 2004-2007, broke Kickstarter’s record of the fastest time to raise U.S. $2 million – in less than 24 hours – and the project raised more than U.S. $5 million overall. .
Crowdfunding has its drawbacks, though. Sometimes a project is limited to participants from certain countries. One also has to investigate and trust the fundraiser to see if they will actually use the money they raise for what they plan to do. The Ontario Securities Commission held consultations on the subject in 2012, but as of last November no legislation has been enacted. A CBC article reported that OSC rules would only monitor Canadian companies, with funders only being able to pledge $2,500 a time and a maximum of $10,000 a year.
But crowdfunding isn’t just for large projects and Hollywood films. A woman in Peterborough is using Indiegogo to pay for her daughter’s medication that OHIP won’t cover. Blacksumac, a startup based in Ottawa, raised more than $300,000, three times its target goal.
Crowdfunding projects happen right here in Centretown. Pink Triangle Services used Indiegogo for its PTS Holiday Fundraising Campaign, but because they chose to use "flexible funding" they got to keep all their money even when the campaign ended January 31. And the Great Canadian Theatre Company raised more than $25,000 last spring after moving to its new location on Wellington Street.
As the Canadian economy continues to recover from a recession, crowdfunding is helping people achieve their personal, artistic and business goals, one dollar at a time. Dreams can come true – and crowdfunding is making that happen for many.