Donating Through Crowdfunding Sites
Crowdfunding is a way to raise funds online, person-to-person. Online platforms like Tycpool India let people create crowdfunding campaigns. They’re easy to set up, and the organizers get the funds quickly. Here are a few things to know:
- The campaign organizer sets the goal of the crowdfunding campaign. The organizer can set up a crowdfunding campaign to help specific people, like a family that lost everything in a house fire, or a veteran who needs help paying for medical bills. Or they can set it up to help a larger group or cause, like people who’ve been through a natural disaster in a particular area.
- There are many crowdfunding platforms, and each has its own set of rules. Platforms have different rules on how to set up the fundraising campaign, how much the platform will keep in fees, and how and when it will disburse the money to the campaign organizer.
- The money raised goes to the campaign organizer. In a crowdfunding campaign, the money goes to the campaign organizer, not directly to the people or the cause it’s set up to help. The organizer is expected to tell you the truth about what the money raised is for and how it will be used, but it’s up to them to deliver on that promise. Scammers and dishonest businesspeople can set up crowdfunding campaigns to raise money for themselves.
- Only donations to a charity are tax deductible. Sometimes charities will set up crowdfunding campaigns. If it’s important to you that the donation is tax-deductible, confirm that the organization is registered with the IRS as a charity.
Donating Through Other Online Fundraising Platforms
An online fundraising platform, or online giving portal, is a website that lets you donate to one or more charities you select from a list on the site. Companies like Amazon, Facebook, and others have added charitable giving to their services. They’ve done this by creating online fundraising platforms and making them available to their members.
When you donate through an online fundraising platform, your money may not go directly to the charity you chose. Another company — maybe the platform or some other intermediary — may get your money first, take some of it as a fee, and then pass on the rest to the charity. And it may take time for the charity to get the money. That could be an issue if you’re donating to help people with immediate needs, like people affected by a natural disaster.
The best online fundraising platforms will have clear, easy-to-find information on their websites about
Where your money goes
Online fundraising platforms should tell you who gets your donation and how your money gets to the charity or beneficiary you chose. Just remember that even if a charity is listed on an online fundraising platform, you should still do some research on that charity to see how your donation will be used.
The website should clearly state if the platform or another intermediary will keep part of your donation as a fee before sending the rest to your chosen charity. Consider whether the charity would get more of your donation if you donated directly.
Online fundraising platforms should say how long it will take for the charity to get your donation.
Just in case your donation can’t be sent to the charity you chose, the website should say what happens to it — and how often that happens.
Check if you can choose whether or not your information is shared with the charity — or anyone else.