Underlying principle of Crowd Funding.

What is Crowd Funding?

Crowd Funding is the offshoot of the age old noble policy of "Give and Take." Somebody helps us. We reciprocate it by helping someone or even more.

The practice of " Giving and Taking" is not new.

Helping others in need and getting help from others, though is not a modern day trend, this has become more popular with the advent of 'DotCom Boom.' Wikipedia was started with the same motive.

"I give my videos to you. You give your Videos to me." is the principle behind YouTube's birth.

Collecting the required iron from the farmers to erect a statue for Sardar Vallabhbhai Patel, Kejriwal's request for funds for his election fund are some of the examples for "Crowd Funding. Presently this trend of Giving and Taking has increased to manifold extend in to varieties of fields.

Asking for help to produce a film, requesting help for printing a book, asking for the help from the famed musicians and artists to arrange quality music concerts are some more activities reflecting the popularity of , Social Crowd Funding.' 

A change from 'Profit 'to Service '.

In the recent years, ' Social Crowd funding' is on the rise.

A poor and meritorious student's aspirations to join IIT melts and vaporizes  hearing that a sum of one lakh rupees is needed for joining and studying his dream course.

The village head goes around the village. As the helping hands grow, Tens swell into hundreds, hundreds in to thousands and thousands in to lakhs.

A big sum is needed to perform the holy marriage celebration of Sri Rama in the the Rama temple of the village. Same story repeats. Financial help pours in.

One donates sugar and cashew nuts. Another donates bags of rice. Milk required comes from another household . Sri Rama navami is celebrated 

with pomp and splendour.

Now it's a widened canvas. 

The concept of Crowd Funding was once restricted to a particular place or a region. Now it has become Worldwide phenomenon.

Sites like Facebook and LinkedIn  have become platforms for Crowd Funding. It's not all. Many websites are established  solely for Crowd Funding.

Who can utilize Crowd Funding?

Anybody who is in need of money or any kind of assistance or a person representing the needy can request for the fund. People with kind heart respond. The money needed is deposited in to the Bank account of the needy.

A street beggar's hunger in India may be satiated by a kind hearted donor in Canada.

The dreary and pathetic conditions in an an elementary school in Maharashtra may move the heart of an industry Mughal in  Washington.

Kindness has no limits and borders.

Investment Crowd Funding.

If the fund collection is done with the motive of using the funds as an 'Investment', it's known as Investment Crowd Funding.

Those Movie producers and talented directors who want to make an offbeat movie and do not possess enough funds, use this Investment Crowd Funding. Many offbeat movies were made with the help of Investment Crowd Funding. After the production is completed, the money is returned back principal  with interest.

Already, Kannada and Hindi movie production houses utilized this Investment Crowd Funding. Many young entrepreneurs who are excited to start a business in a novel way equipped with different entrepreneurial ideas are choosing this concept of Investment Crowd Funding.

Difference between normal business funding and Social Crowd Funding.

If Those who get financial support from individuals or institutions, either offer shares or pay interest against the amount they received. This is normal business funding. On the contrary,  Social Crowd Funding is collecting funds with social responsibility to solve social evils or to correct the irregularities in the society formed with similar thinking of individuals. This collected fund is neither investment nor a loan. It's purely a fund meant for distributing to the deserving needy.

Social Credit Funding is new to India.

In comparison with western countries, though in India Social Credit Funding is not so popular, it's catching up now. Funding websites are also on the increase now.

Crowdfunding is a method of raising capital in small amounts from a large group of people using the Internet and social media. 

Unlike funds from venture capitalists or angel investors, the money raised through crowd funding doesn’t necessarily buy the lender a share, and there is no guarantee that it will be repaid if the venture is successful. Instead, individuals are asked to make micro investments or donations to causes and ventures they believe in, thus allowing the work to be completed. Crowd funding is also known as crowd source capital.

Many people realized their dreams through Crowd Funding. Many could reach their life’s ambitions and objectives through Crowd Funding.

Beneficiaries of Crowd Funding.

A girl named Syama (names withheld.) was born and brought up in the red-light area of Mumbai. She never had the sweet memories of her childhood like the other girls of her age. When the night sets in, Syama’s house becomes a hub of activity. Many Dads pour in. Her mother receives with a smile whatever may be her mental and physical condition. 

Syama’s mother’s aim was to gather enough money for Syama’s education. Her sole objective in life is not to allow her daughter come in to the heinous profession of Prostitution.

Syama as she grew up could understand the conditions around her. She took a firm decision  of studying psychology in America. With her skills in psychology Syama was sure that she can fill the hearts of the helpless sex workers with hope around her. She was also confident of dragging out the sex workers like her mother from  the  murky cesspool of Prostitution.

Syama with her single minded dedication could get through her education with distinction. She was offered a seat in a prestigious university in America. She was also offered a scholarship. Syama’s mother’s savings were inadequate. She fell short of another 5 lakhs.

Then came the momentous moment of Syama’s life. Her application for money needed for her education has been approved by a Social crowd funding site. At the outset though the  funds poured in with slow pace,  gradually the momentum picked up. 

Syama’s required amount of 5 lakhs came in.

Syama took a flight to America with double confidence.

The episode Of Siva Kesavan.

Siva Kesavan, a resident of Himachal Pradesh was an ardent lover of games played on ice surface. He has gained proficiency in the games. He had a dream of taking part in the winter Olympics 2014.

But he was quite depressed  and disappointed to know that his poverty will stand on his way to realize the dream of participating in the winter Olympics. The cost of the equipment required to play the game on the surface of the ice was more than Rs. 10 lakhs, which he cannot afford.

Though the government was approached for help. His request was met with a lukewarm response. On the suggestion of his friends he approached a Crowd funding organization.

SivaKesavan's request was overwhelmingly responded. Donations started pouring in from the sports lovers from all over the world. It goes without saying that Siva Kesavan heaved a sigh of relief.

She was a studious student.

Her strong desire was to study well,to settle well in life and look after her parents. Her thoughts constantly revolved around her parents. One day, a fellow student approached and proposed. But she was not willing to accept his proposal. She refused him flatly. But her fellow student started pestering her day in and day out. But she did not relent.

Her refusal made him mad. Instantaneously he became a monster. He took out a bottle of acid and thrown the acid on her face. 

She fell down. Her entire face was burnt . 

Doctors said that there was no option but for a plastic surgery. The expenditure runs in astronomical sums. She has become a picture of disappointment and helplessness. Her dreams of standing as a support to her old parents were shattered in to smithereens before her.

But her close friends and well wishers did not leave hope. They approached a Crowd funding organization. Kindhearted donors and industrial houses donated profusely. Her plastic surgery was done successfully. She regained her original face. She started again to pursue her cherished goals.

Appeals of different hues and colors.

• Crowd Funding societies and websites receive a host of appeals requesting for finance to meet the seekers' genuine needs. They vary from financial help for buying a camera to a gifted but poor boy to eke out a living.
• A group of NGOs, with an aim to inject confidence and the education to the less privileged residing in the slum areas seek support and monetary help. They conduct awareness lectures and workshops to highlight the importance of Self -reliance in the youngsters so that they can live on their own in future.
• Playing is the birth right of a child. It's a part of the fundamental rights of the future citizens. In tune with the need if the society, another voluntary organization comes up with an appeal to the Credit Funding societies and organizations  to set up a library of different kinds of toys.
• "We aim at planting 10 lakh plants in Delhi to create and spread awareness on the importance of  environment protection and the bad effects of global warming." another appeal from a non profit and social activist group.
• Another directs all it's endeavors to provide sports material to the differently abled people.
• A group of kindhearted souls comes up with a proposal to build a library in Assam.

Seeing all these conditions of appeals one can gauge the degree of poverty in the country. There are innumerable number of people who are not in a position to meet the smallest needs of life.

A bridge between the donors and the needy.

The Crowd funding societies will not pay directly to the genuine needs of the people. After accepting an appeal from a needy person, they speak on the needy's behalf through different media highlighting the needs of the person who appealed for financial or material help.

The applicant for the help should provide all the details pertaining to the proposed project. They also need to mention about their past achievements and future plans of the applicant or the NGOs with all due credentials.

Some Social Crowd funding organizations or websites charge a negligible amount for the services like media coverage and other expenses. 

There are another kind of help seekers, who utilize the well known Social websites like Facebook or some blogs.

Creativity in rendering services.

There are some Crowd Funding societies  functioning by the name "Micro Credit Funding"

Such organizations lend their services as Loans. These loans are not meant for buying luxury goods like Air conditioners or refrigerators or TVs.

Though the government has schemes to finance those who want to build a Toilet or for getting a connection for drinking water , they are not in a position to cater to the needs of all the needy. Most of the times the funds allocated to cater to the needs of the genuine, are being swallowed by the Binamis. 

For getting a tap connection no individual is ready to advance a loan. Even the poorest person needs both the fundamental needs.

Millap

Milap is one such voluntary organization that is doing yeomen service to the needy. It seeks the help of some donors who are willing to lend the money without any interest.The beneficiaries will pay back the loan  within 12 to 36 installments . 

Many facets of Social Service

The aim is service to the deserving needy. It may be in any form it may be for any purpose. The only criteria is to realize and view other's  and societal problems and solve them with a humanistic approach.

Of late, in the state of Tamil Nadu, a new custom has sprung up in Social gatherings. The guests, after the function, while going back receive a small bag. The contents of the bag include a couple of betel leaves, and a sapling.

The originator of this practice was one MullaiVanam.

MullaiVanam is neither a highly educated person, nor a Business school graduate. He is a poor migrant to the city of Chennai, who hails from a far flung village in Tamil Nadu. 

MullaiVanam is an ardent lover of environment. 40 year old MullaiVanam , when he stepped in to Chennai,was a different Chennai. At that time there were houses amidst trees and lush greenery.

Now in the present Chennai, there  is an occasional patch of greenery amidst the houses.

Seeing the deplorable conditions of Greenery, MullaiVanam was moved. Then and there, he took an oath to work for the environment uplift in his own humble way. Everyday MullaiVanam goes around the places and plants saplings in the vacant places voluntarily. Not satisfied with this, MullaiVanam established an organization named "TreeBank", in the year 2008.

TreeBank supplies saplings of different varieties especially Neem and Badam. TreeBank has already supplied 70 lakhs of saplings free to the states like Karnataka , Kerala and AP besides TamilNadu.

As MullaiVanam  has no place for a Nursery, like minded and socially responsible offered vacant places in the premises of their homes for Nurseries.

There are about 10,000 volunteers in TreeBank, who help in collecting used bottles and plastic bags in which MullaiVanam grows the saplings. He and his volunteers collect seeds from the parks and the nearby forests.

Follow up.

MullaiVanam doesn't think that his responsibility is over once he presents a sapling to the people. He notes down the addresses of those who take saplings from him and visits them periodically to check up the progress of the sapling and offers suggestions wherever necessary.

A new trend.

TreeBank has gone one step ahead and started a new trend of distributing free saplings on the occasions like marriages and Birthdays. It's enough, for the organizers of such social get togethers to inform the day and venue of the function. The volunteers of the TreeBank personally reach the place and give the saplings to the organizers.

It's not all. TreeBank's volunteers organize functions and seminars in the schools and colleges to create the awareness in the students about the importance of "Tree growing." 

Pushpendra Pandya's penchant for Books.

A young and energetic Pushpendra an IT employee from Mumbai was pained to see how the habit of Book reading was gradually disappearing in the youngsters of today.This heartfelt pain led Pushpendra to establish a library with 1500 books presented by his friends and relatives in his small 2 bed roomed flat. He sold away his old tables and chairs to the junk stores to accommodate and arrange books.Simultaneously, Pushpendra started a website, Crowd source library. Com.

Pushpendra thoroughly enjoys his library work which he runs during weekends.

Techno Business Festival.

Students of a Business school in Ranchi, were toying with an idea to launch a Techno Business Festival since some time. But the hurdle was Paucity of funds.The students, as a last resort approached a Crowd Funding organization. The organization took the charge and sent invitations to well known philanthropic  industrialists,donors and social activists. The Crowd funding organization requested them to only to grace the occasion, but also to contribute financially to the deserving cause of the students.

An amount of one lakh rupees was collected for the Techno Business Festival.

A combo of personal interests and Social awareness.

Vineet completed his Engineering. But Doing a job was not his immediate priority. His intention was to go to a remote village that was not touched by any governmental welfare schemes or the developmental programmes and direct his endeavors to develop the village and educate the villagers.

But...of course, you guessed it right. Veneet was in a dilemma how to execute his noble intention without an income of his own? But, his spirits were not dampened. Veneet mailed all his friends and well wishers revealing his aims and aspirations. Simultaneously he posted his messages in the Face Book.

He mentioned that if hundred people donate Rs.100 each for two years, he would be in a position to complete his project. It's not all. He promised that he would be reporting all the results that his project brings on a regular basis. He further assured that he would not misuse a single paisa.

Veneet's efforts paid. The moment he received his required amount, he informed all his donors to stop further donating as he already got his target amount.

Ishwar,Srikumar, Anushka and Meenakshi group from Tamil Nadu  had a mission. The group's ambition is to show incredible India through videos to the world. They could realize their ambition through Crowd Funding.

Financial help is not the only way.

In most of the above cases you have seen people or NGOs approaching the Crowd Funding organizations to achieve what they needed.

There are other ways to help the society or the individuals. In this process many are using the technology to achieve their ends. Services other than financial matters can also be Received through 'Social Crowd Sourcing' organizations. 

A few youth from Mumbai developed an integrated traffic Information through Crowd Sourcing organizations. The traffic information provides information to the public,where a traffic jam is there at a particular time due to an accident. Where roads are closed to the public due to a political rally. Which roads are blocked for the public due to a VIP visit for security reasons. The group has prepared a set of proformas for the use of the public. The information provided by the public acts as the mainstay in the functioning of the Traffic information system.

'Traff Line' is the organization that provides the traffic related information to the public. The services offered by this organization are already being used in Mumbai, Thane and Bangalore.

Citizen,a police without uniform.

Maintaining law and order in metropolises is a Herculean task for the police department. crowd sourcing makes the job of the police easier easy . The underlying principle is making the citizen involve. That means every citizen will act as a police without uniform.

Delhi Traffic police made an experiment to involve the public. They appealed the public to inform them of traffic violations through photos and videos. The response was overwhelming . Thousands of photos and videos were uploaded to the website of the Delhi traffic police.

When Bangalore police placed a request in Face Book to let them know about a person who caused a major road accident, the response was beyond imagination. About 30'000 people shared the information.

We all need help.

At one time or other every one of us will face a situation where in we have to look for a helping hand.

Man is not an island. There is no need to feel shy to stretch your hands and beseeching for help. One can ask for help without an iota of hesitation. We can request others to help a person in need.

It's not begging.

It's wrong to believe that asking for help is begging. Asking for help will not lower one's social status.

Social crowd funding is no way connected with begging. Social crowd funding is a part of the noble cultural norm of "Giving and Taking."some one helps us. We return the help by helping someone. If we help four people today, tomorrow these four help another four. This is a chain reaction. This must go on and on.

We are here...

Seeking help through social websites will serve the purpose to some extent. In this regard social websites have certain limitations. Whereas Crowd funding has nether boundaries or limits.

A few voluntary non profit Indian crowd funding websites.

• Ketto is a crowd funding website that acts as a bridge between the donors and the help seekers. This site can be approached for help related to women empowering,education, children welfare etc.
• Bitgiving is a crowd funding website That calls the donors to come up with any amount of donation. Not necessarily big amounts. Even a small amount also counts in helping the needy.It gives more stress to helping acid attack victims.
• Rangde is a social crowd funding website. It lends smaller amounts.Suppose a poor woman is need of money to buy a stitching machine. The website invites those ready to lend money to the needy . You too can lend a part of the amount. The amounts thus collected are lent to the needy. The amount of loan is returned back by installments .
• Orangestreet is a website that acts as a bridge between the donors and the help seekers to arrange social activities.
• Millap is a website that helps in arranging donors for providing self employment,arranging loans for higher education to the students, promoting occupational skills etc The individual who takes the loan should return back once he settles.Though basically is a business crowd funding website, it also lends its support to social activities. Recently a request for help for providing basic facilities in a government school in Bangalore has been accepted. The  website gives a call to the prospective donors.

On the March.

Crowd funding for social causes is quickly gaining in popularity. These sites are redefining how NGOs, non-profits, and student organizations raise money for events and charitable causes. I’ve included a few sites 

Crowd funding, as it was said at the outset that is a way of fund raising by requesting or appealing possible donors or a group of people formed to help the deserving needy.

While the concept of crowd funding  is in the toddling stage in India,in western countries crowd funding is a well established and deep rooted concept.

Here are a few crowd funding websites which made a mark of their own.

Let's start with the most popular crowd funding website Kickstarter.

• Kickstarter,a crowd funding website that deals mostly with technology,design and gaming. This website is hailed as the 'Leader of all the crowd funding websites. It has donated already $ 679m. In the year 2012' this website pledged $83m towards gaming projects. As a crowd funding company it has a well delineated objectives .Its very serious about taking technology and innovation to new heights. Projects which are not capable of rising their own funds, Kickstarter gives all the support that's needed for the project to take wings.
• Indie gogo is a crowd funding website that funds the film makers projects. Though it started at Sundance film festival to help finance the projects of film makers, very soon it has expanded its crowd funding activity to a plethora of projects especially if the project has an inclination towards social purpose. Indiegogo, now finances projects ranging from financing a dance troupe that goes on a tour to a small business that needs a starting investment.
• Gofundme, caters to the personal projects like medical bills,tour costs, etc. it also undertakes the projects of those kindhearted  donors who are in search of worthy and deserving needy. This crowd funding website mainly  concentrates on cause related Campaigns
• Circleup website works mainly with consumer companies. The consumer companies which are ready to give a product to the people. This website funds mostly to the projects in the food industry. To be specific projects related to healthy foods. They prefer to work with small businesses
•  SoMoLend is a crowd funding website that acts as a bridge between the donors and the fund seekers. It's basically caters to the needs of projects which need between $100k and $1m funding. SoMoLend's main partner is Key Bank. This website creates communication between the investors and the borrowers. Borrowers repay a set amount of money for the loan they took through SoMoLend in accordance with the loan agreement. Borrowers are allowed to refuse a loan if the terms are not suitable to them. SoMoLend charges 4 percent towards the funds raised through them and  1.8 percent to the investors towards handling of their portfolio.
•  Kiva is a crowd funding website that provides loans to the people who cannot get loans through the conventional banks. The best part of Kiva is it doesn't take any of the funds towards campaigning charges. It also doesn't charge for the interest generated by the loan. Kiva and micro finance institutions work together. It works on five continents.
•  IgnitionDeck is a crowd funding website with a difference. There are no loans. There are no donors. Any individual with a wordPress website can run a full fledged crowd funding campaign through its website. IgnitionDeck provides a comprehensive administration panel. The panel includes a detailed statistic base needed to the crowd funding campaign.