Crowdfunding is the process of collecting funds for a wide variety of purposes through a collective approach of numerous participants. It is usually in the form of a mass level collection of funds through buyers and sellers both. The funds that are collected are used to support the efforts of the ones who started the process. Today, this funding is done for a number of purposes, charity being one of the most notable ones. A mere example of crowdfunding could be selling t-shirts signed by a popular singer in order to collect charity for blind pupils in schools.
In this example, the sellers and buyers both are pooling in for charity. The seller has either paid the cost of making the t-shirts or has bought them from the wholesale market. The buyer pays for the t-shirt and buys it. Even if not completely, the seller can deduct his cost and donate the overall profit to the cause. Previously used methods of fundraising are now becoming obsolete. The reason why crowdfunding is gaining mass attention is the level of ease and the smaller amount of contribution involved by each individual.
As said before, the internet can play a major role in making a crowdfunding campaign successful. Social media websites such as Twitter and Facebook are of great help in order to promote the campaign. Today, this approach is being used by people all around the globe. Not only for donations but is it also used for funding various activities pertaining to businesses, the educational sector, etc.