Who should use crowd funding?

Who should use crowd funding is a common question that is easily answered when you look at what crowd funding is intended to do. 

Crowd funding is the technique by which people looking to fund a project ask small groups of people or their fan base for small donations to get a project off the ground or in continual motion.  The benefits of this are avoiding the pitfalls and nonsense of traditional funding with high interest rates and other problems.  It also allows for no interference by traditional investors who might compromise the integrity of a project such as demanding changes in a script or casting in a film. 

So basically anyone or any group that needs some funding are wise to choose crowd funding as a source of capital.  Let us say you want to get a band started but need better instruments.  You might need more recording and audio engineering software or hardware.  Then you would use crowd funding to do so.  You could ask your small fan base for donations.  In exchange you would offer free copies of your albums or even play a benefit concert.

The combinations seem endless but in short, those in need of money are open to crowd funding.

We can also look at groups.  Many animal rights groups are non profit and ask constantly for donations in order to buy new kennels, pet food, veterinary care and more.  These groups burn up capital for any number of expenses including advertising, travel costs, locating the owners of lost animals and there are legal costs.  These groups can benefit from crowd funding by asking the public or their email lists and website visitors.  This little known treat can be the difference from failure and success.

One of the growing forms of crowd funding are sporting events and charities that use sports events to raise more money.  A new team starting out trying to make the grade might need more equipment, space to play, doctor and medical support.  Uniforms, grounds maintenance and more can eat up money and by asking fans or perhaps the townsfolk.  It then leads to greater responsibility and more control over the integrity of the team's goals.

So basically any person or group interested in funding their events are qualified for crowd funding but there are rules to follow and it's best to check with your laws to make sure you're not in violation of any rules or regulations. 

Preparing for crowd funding is equally important.  You'll need to know what to do and how to do it to make sure you're doing things the right way.  This calls for a realistic evaluation of what your goals are and how you'll administer the process as well as the capital you acquire.

Setting up a good battle plan is most important and sticking to it with the proper discipline will avoid the pitfalls.  You need to look at what you want to achieve as in let us say you want to raise money to help clear a field so that it will be safe for hikers.  Clearing the area would help not only hikers but picnic grounds and generate capital for the local community overall.  Normally a municipality might have the responsibility to do this but not always.  It could be just a situation that your community needs this done.  You look at what tools you'll need and if you need to buy or rent them.  How many hours it would take to reach your goals, food for the workers, first aid kits just in case of injury, communication devices and video recording to document what you do.

As you go along you'll need to categorize in detail what goes on so that you can see where money is well spent.  You may need a website or blog to help communicate with the community and those that agree with your efforts.  You'll solicit funds, have a bank account or online account to accept the funds and a way to disperse the funds.

It can be really easy once you get the knack and done right you'll end up with respect and a foothold by which to expand if necessary.

So anyone can use crowd funding but it takes a responsible individual or group to do things just right.