What is Crowdfunding?
Crowdfunding is the raising of funds through the collection of small contributions from the general public (known as the crowd) using the Internet and social media. Crowdfunding has its origins in the concept of crowdsourcing, which is the broader concept of an individual reaching a goal by receiving and leveraging small contributions from many parties.
The key to crowdfunding in the present context is its inextricable link to online social networking and its ability to harness the power of online communities in order to extend a project’s promotion and financing opportunities. The non-profit sector was the first to successfully employ crowdfunding in its present online form.