In a twist on the current technique of crowdfunding, a new platform aims to add a charitable angle to crowdsourcing fundraising efforts by enabling both the entrepreneurs using the site, as well as their backers, to pledge a portion of that money to charity.
With the conventional and rapidly growing crowdfunding model, which (if you’ve been hiding under a rock the last few years) is a method of raising money from many smaller donors in order to launch a product or service, the funds from the backers go directly into the project itself, which is great for the project teams. But for those entrepreneurs who want to give back, by adding philanthropy to their business model, current crowdfunding methods aren’t set up to include a charitable aspect to fundraising.
For those entrepreneurs interested in having a positive social impact to their business ventures, a new crowdfunding platform that combines philanthropy with capitalism could be the perfect match. WeGiveWeGrow.com has even coined a new term for this type of initiative:
“It’s crowdfunding with a sustainable charitable twist. We like to call it charitablism.” – Todd Schubert, WeGiveWeGrow co-founder
At the core, the new platform has a lot of similarities with other crowdfunding sites, in that project campaigns can be launched on the site, with any amount of money as their fundraising goals, and backers can choose which projects to support. WeGiveWeGrow uses an “all or nothing” funding model, so that projects have to meet their own campaign goals before they receive the money. But the thing that really sets this new platform apart from other crowdfunding options is that it not only asks entrepreneurs that list their projects to pledge a portion of their profits to a specific charity, and it also asks backers to make a small annual pledge, which will either go to the projects of their choice, or directly to charity if no projects are chosen.
“The dual platform of WeGiveWeGrow.com allows those who join the site to be a ‘giver’, described as one who specifically donates to an entrepreneurial-based project, or to be a ‘grower’, a person or entity who has a project to be funded. What makes us unique is the fact that our project-growers all give a small percentage back to to the crowd via charitable donations.
It’s sustainable, social good. Everyone wins.” – Schubert
According to the site, the characteristics of this model of “charitablism” are:
- Companies raise money through crowd funding, removing the burden of making large debt payments or equity distributions.
- They use that flexibility to build viable companies, create jobs and build wealth through capitalistic ventures
- Recognize the employee as the most important asset in the organization
- Keep executive salaries reasonable
- Operate transparently via open accounting etc.
- When achieving profitability, commit a material portion of profit to a charity perpetually.
If you want to launch your crowdfunded project on a platform that can also help you engage in philanthropy, then WeGiveWeGrow might be the place for you. And if you’re interested in becoming a backer on a crowdfunding site that is focused on not just raising money, but also on the social good, through charitable giving, you can sign up to be a Giver.