How can crowdfunding contribute to the UN Sustainable Development Goals and social change?

2 The alignment with the SDGs

Crowdfunding can support the achievement of the SDGs in various ways. For instance, donation-based crowdfunding can directly support charitable and humanitarian causes such as poverty, hunger, health, education, gender equality, and human rights. Reward-based crowdfunding can promote sustainable consumption and production, as well as innovation and entrepreneurship in sectors like renewable energy, clean water, sanitation, and circular economy. Equity-based crowdfunding can stimulate inclusive and sustainable economic growth and decent work for all, especially marginalized groups. And debt-based crowdfunding can facilitate access to affordable and clean energy, as well as infrastructure and industrial development in rural areas.

3 The challenges of crowdfunding

Crowdfunding can be a time-consuming and resource-intensive endeavor, as it requires a well-crafted story, a realistic budget, a diverse network, and an effective communication and marketing strategy. Additionally, it is uncertain and competitive, as it depends on the interest and trust of the crowd, the availability of the platform, and the legal and regulatory environment of the country or region. Furthermore, crowdfunding is vulnerable and accountable, as it exposes the project or venture to public scrutiny and feedback, as well as potential fraud or failure to deliver on promises.

4 The best practices of crowdfunding

Crowdfunding can be a rewarding and impactful way of raising money for social change, if done correctly. It is essential to do research and planning to understand your target audience, value proposition, funding goal and timeline, rewards or returns, and platform of choice. You should also communicate your vision, mission, and objectives, your social and environmental benefits, and your evidence of progress and results. Engaging with your community is key to building trust; reach out to existing and potential backers, share updates and feedback, acknowledge and appreciate their support, and fulfill obligations and commitments.

5 The examples of crowdfunding

Crowdfunding can take many forms and shapes, depending on the context and the goal. For example, Kiva is a platform that connects lenders and borrowers around the world, with a focus on microfinance and social impact. It has enabled over 1.9 million people to lend over $1.6 billion to over 3.9 million borrowers in 77 countries, supporting projects in sectors such as agriculture, education, health, and women empowerment. Kickstarter is another platform that helps creators and innovators to bring their ideas to life, with a focus on arts and culture. Indiegogo allows anyone to raise money for anything, with a focus on entrepreneurship and innovation. GoFundMe enables people to raise money for personal or social causes, with a focus on compassion and solidarity. All of these platforms have enabled millions of people to pledge billions of dollars to a variety of projects related to the SDGs and social change.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?