Our social impact
When it comes to getting social impact projects off the ground, the internet and digital technologies are proving to be a real saviour. Take crowdfunding, for example. It’s shaking up the way capital is being raised for all sorts of ideas, helping to turn them into a reality. It’s not so much a case of going to the bank for a loan or the local government authorities for a grant anymore – crowdfunding is creating all sorts of new sources of finance and giving individuals a chance to invest. It’s proving to be innovative and effective; a different approach to the usual routine.
A new form of funding
Getting cash for a company or organisation, project or idea is a tricky business for most. You may find it’s tough to get funding from one main source – a traditional one, like a bank for example. In the past, it’s meant that some innovations had failed before they even began.
Step in crowdfunding, which is breaking down the barriers, and increasingly helping to transform ideas into action. It works by directly targeting online communities, which are likely to be interested in specific types of projects or causes. What is so different from the traditional forms of funding, is that crowdfunding enables you to reach several financial sources – offering relatively smaller contributions but, which together, make the difference between living your dream and failing to aspire.
Through an online crowdfunding platform, investors can pick a project that they want to get involved in. For some, it may be a project close to their heart, one they passionately support. For others, it may just be about making money for their future.
In fact, crowdfunding tends to do well when it’s focused on something with a story to tell, and that’s where the social mission is an important element. Potential investors need to be interested; they need to have a reason to want to put their money into something. They need to be able to visualise the impact of their investment and the cause it’s contributing to.
For some, this is a fundamental reason they take part in crowdfunding – having grown fed up with banks, and grown hungry for more transparency when it comes to how their money is invested. However, if you’re looking at going down the crowdfunding route for an idea you have, you should look into creating an ‘investor pack’ to provide lots of useful information. Companies like folderprinting.co.uk can help you present it. Although crowdfunding may seem more relaxed than traditional methods, you should not slack on your organisation and preparation.
One of the many social impact sectors benefiting from crowdfunding is the green energy market. Turbulent politics, combined with competing national interests and mounting pressure on state budgets, mean that while governments are supporting efforts to save the planet, the money is not always there for environment-friendly projects. Crowdfunding is, in some cases, helping to fill in the holes – helping to get projects such as community solar and wind farms off the ground, and helping to keep the energy transition on course.
A growing business
Crowdfunding platforms are springing up all of the time, and around the globe. You may have heard of Kickstarter, but there are many others too – some of which are specialising in green energy projects and those with clear social impacts. Rules and regulations differ between countries. So, make sure you do your homework before putting a business or project idea up for crowdfunding – or before you become an investor!
This project was last updated 9 months ago