How Can Crowdfunding Backfire On A Person?

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Crowdfunding has been a generous platform for most of those that are in dire financial need. There is that business startup that just needs an extra push to get their operations started. They might need to buy a bigger machine for mass production or be able to put in large quantities of orders for raw materials to make the business venture feasible.

Social funding has also helped communities rally to a specific cause that they believe in. There could be an establishment that was looted and burned down by activists that need help getting back up on their feet. There is even an instance where a mosque was burned down and the whole community rounded up support to build it back up again.

There are also natural calamities that could have leveled whole neighbourhoods or even states and the whole country and even the world can support reconstruction through crowdfunding. It can come for hurricanes that make landfall on a densely populated area. There are also instances where volcanic activity has affected lives of communities in its surroundings.

Crowdfunding can backfire

There are legitimate needs for crowdfunding and the community would be more than happy to rally behind it. Of course, this applies to those that have some disposable income to share to others in need especially in business ventures. These have more of a complex nature in them as they are investments and have a return on it on a future date.

But there are people who are using crowdfunding to selfishly pursue their passions and careers but they do not want the struggle that comes with it. It is selfish because there are many people who are able to make ends meet without asking for handouts from other people. Those that do get criticised with their actions as they try to take advantage of other. Here are some ways to filter out bogus projects asking for handouts.

  • When the person in need is educated. Education is vital and those that are fortunate enough to get higher education and even post graduate studies are in a better position to secure job opportunities. Granted that there are still a lot who are struggling but crowdfunding is not the solution to getting hired. You can start a business and use the platform to hurdle over initial capital requirement but asking money because you do not have a job might not be a good idea.
  • When they are asking for money for utilities. When you are asking people for donations so you can pay for your cable and internet connection could very well backfire on your campaign. There might be some people who would be sympathetic and put in a few dollars but most crowdfunding users would denounce the project and call the initiator out for trying to take advantage of those who doesn’t know any better. There are ways to lower down the budget and save up until a job is found and asking for handouts is not the answer.
  • When they have the ability to work. When you are disabled, you have lower chances of finding decent work and some people live off benefits and pension and other aid given to them but making a crowdfunding project just to ask for money to spend when you are fully capable of working is nonsense. This is just laziness and people will see through it.

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This article is written by the Crowdfunders Editorial Team. In Asia, Crowdfunders.Asia is a leading portal on providing news related to crowdfunding, start-up, property and business. It is operated by CoAssets.com. CoAssets is South East Asia’s first listed and largest real estate crowdfunding platform. If you have any Crowdfunding news or stories to share, please email [email protected]

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