Giving Compass' Take:

• Lazar Finker explains that crowdfunding has proven to be a persuasive and successful fundraising tool for philanthropy.

• How have donation platforms changed philanthropy and impact giving? Are you more inclined to donate through a crowdfunding site than through traditional methods? 

• Here's how to finance your social good business through crowdfunding.

Whether it’s for medical expenses or to produce an aspiring artist’s new album, the impact of crowdfunding cannot be ignored. The “traditional” avenues of philanthropy — soliciting donations and support through a nonprofit — seem far less effective when individuals can easily set up a page on a site such as GoFundMe and immediately reach an audience.

I believe that, rather than supplanting traditional philanthropy, crowdfunding fills a distinct niche that can coexist alongside nonprofits.

Humanizing the people that benefit from philanthropy has become especially important in recent years, something that crowdfunding platforms do well. With nonprofits, missions don’t always include provisions for individual support. These initiatives are highly impactful, but leave some people seeking other options. Crowdfunding turns this on its head, giving the beneficiaries the oversight over where the money goes and changes the narrative about what donations can accomplish.

Read the full article about crowdfunding by Lazar Finker at Finker-Frenkel Family Foundation.