The story of the bullied school bus
monitor Karen Klein receiving $600,000 in donations is a fascinating
one to me. It speaks to the turbocharging of social response on so
many levels. Not the least of which is how people now view so called
crowdsource funding sites such as Indiegogo.com, the site used to
raise the enormous donations for the bullied grandmother.
Crowdsourcing is fundraising for the
21st century. Put your request for money on a well
established, well connected website and hopefully enough visitors
will see your request and feel compelled to donate funds. Even if
only a dollar or two is given, the total return can be mind boggling
when multiplied across all the social networks.
The request can be a compassionate
appeal to fund treatment for a cancer victim, a vacation for a
bullied grandmother, a new band that needs money for equipment, a
start-up brewery looking for venture capital, a new product or
anything really. Indiegogo caters to all of this.
Indiegogo is in the fundraising
business. They provide the merchant credit card account and collect
the money people donate after being motivated by your appeal. They
typically charge a 4% fee as long as your appeal is successful. An
additional 3% is charged to cover the credit card transaction fees.
In the case the of the grandmother, the appeal was for $5000 to be
collected in 30 days.
As of this writing the bullying video
has attracted $600,000 and still has 28 days to run ! It is likely to
be the largest amount of money Indiegogo has raised to date as far as
I can tell. It is likely that $42,000 will be charged in fees and the
remaining funds will be deposited in the bank account of Max Sidorov.
The Toronto man who manages the fundraising account. Mr. Sidorov has
promised to pass all this money along to Karen Klein to use as she
chooses.
Signup for Indiegogo is free and you
can do so using your Facebook account. You also need a valid bank
account where the funds you collect will be deposited. There are no
limits or restrictions on what you can raise money for. Indiegogo
allows you to choose different collection methods. If you do not
reach your funding goal, you can opt to have all the money returned
to those who donated or you can choose to keep the money regardless.
Indiegogo uses an algorithm, much like
Google's search engine, to determine the ranking or wow factor of
your particular appeal for money. That algorithm took immediate
notice, when millions of visitors paid attention to he bullied
grandmother video on YouTube
Indiegogo is originally launched in
2008 by wall street analyst Danae Ringelmann at the Sundance Film
Festival with the idea of atracting funding for independant movie
projects. Now based out of San Francisco, California, It recently
received $15 million in venture capital funding making it one of the
worlds largest crowdfunding sites.
Now a well respected and well connected
website with over 200,000 visitors per month. Alexa ranks it the 3544
th most important site on the internet, Indiegogo has over 18,500
influential websites linkng to it . The site won a “Webby award”
for excellence and for setting the standard for innovation and
creativity on the internet. in 2010. Having access to such a powerful
website for free is extremely compelling for the budding
fundrasiser.
Aside from all the wonderful things they do for fundraising, Crowdsourcing sites do raise some
ethical concerns. For one thing, what if a campaign turns out to be
scam ? There are no checks and balances to make sure if a request for
money really is valid especially when these requests are mixed of
“for profit “ ventures.
Government registered not for profit
charities must abide by strict rules and regulations but sites like
Indiegogo face no such restrictions outside of public pressure. It is
possible for compassionate people to be taken in by others pretending
to be sick or dying simply by how polished the appeal is and by the
peer pressure of friends and acquaintances.
Regardless, Crowdsourcing does put
funding right at the fingertips of the individual, it totally
democratizes the process of raising money. If you want to be
altruistic, and offer support to causes you truly believe in such as
Bullying, its totally up to you.
Crowdsourcing is here to stay.