Crowdfunding: A growing global market and its challenges
Antoun Massaad
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The global crowdfunding market has seen remarkable growth, valued at over USD 20 billion in 2023, and projected to reach USD 24 billion in 2024. This rise is fuelled by evolving payment technologies, enabling smoother connections between donors and causes.
However, as the sector expands, so do risks, particularly the misuse of funds for terrorism financing. Instances of virtual assets being leveraged by extremist groups like Islamic State of Iraq and the Levant (ISIL) and Al-Qaeda have highlighted this vulnerability.
To combat this, charities must implement regularly and continuously review and strengthen strong governance (including financial controls, risk management policies and procedures), conduct thorough due diligence, and regularly audit their financial controls to ensure funds serve their intended purposes.
With the right safeguards in place, the industry can continue its positive trajectory, ensuring that funds are channelled effectively to where they are most needed.
Ensure your organization is protected from financial risks. Cedar Rose offers comprehensive due diligence and risk management solutions to safeguard your funds and reputation. Contact me to learn more!