What is Crowdfunding?

Crowdfunding is the practice of funding a project or venture by raising money from a large number of people who each contribute a relatively small amount, typically via the internet. Crowdfunding is a democratic way to raise money because it taps into a large number of people for a small amount of money each rather than relying on one big funding source which is the traditional approach to financing projects or ventures. A crowdfunding campaign generally has a goal or a target amount of money to raise which is set before launching the campaign.

There are three primary types of crowdfunding ; donation-based, rewards-based and equity crowdfunding. Any crowdfunding where the funders get no reward for their payment is donation-based and an example of this would be crowdfunding to support a disaster relief effort. Rewards-based crowdfunding is where individuals contribute in exchange for a “reward”, sometimes in the form of a product. Equity-based crowdfunding allows contributors to be part-owners of your business – investors contribute cash in exchange for a portion of the business in which they are investing.

Women for Election is running a crowdfunding campaign that is a mixture of donation-based and rewards-based. You can donate without receiving any product, in which case all of your donation goes to Women for Election. Or you can buy a perk, in which case we may have to cover the cost of the perk and we will receive the remainder. Many of the perks in the Women for Election crowdfunding campaign have been very kindly donated ensuring that we receive the maximum possible of your donated amount.