Article -> Article Details
Title | donations for medical treatments,donation for education,donation for women empowerment |
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Category | Business --> Business Services |
Meta Keywords | donation for child development,donation for disabled children,donation for autism,donation for natural calamities,donation for senior citizens,Best crowdfunding website,online fundraising websites,No 1 crowdfunding websites |
Owner | venky siva |
Description | |
Crowdfunding concept
in India can boom with transparency In today’s scenario, the crowdfunding sector
has evolved as a big business globally. Even though the platforms focus on
raising funds through donations, none of them prioritise their focus on the
outcome success (impact assessment) or provide transparency on the utilisation
of the donated funds (utilisation transparency). Most platforms are devoid of
clarity about the veracity of the benefactor, the cause fulfilment of the
donation and to what extent the impact purpose was fulfilled. There is rarely,
if at all, any proof of non-duplicitous use of the money collected. As a
result, for instance, one individual can raise funds on various platforms for
the same cause, and get away with it. Thus, with most well-known crowdfunding
platforms, there is an inherent risk of fraud and / or misuse of funds because
there is no transparent trail of outcome and impact results, until the last
mile. Yes they all tell you who benefits in the case of individual causes, but
not the success of the impact or outcome. In the
crowdfunding sector, beyond the fundraising episode, what happens to the money
is between the donor and the fundraiser. While the funds collected would go to
the individual at the face of the crowdfunding campaign, the impact and outcome
of the donation keeps the donor guessing / clueless. The crowdfunding industry
in India alone is worth several millions of dollars, even if it is hard to
quantify the business to a near-exact number. When there is a lot of money
being transacted without adequate transparency, the need for outcome
measurement and impact visibility becomes that much more urgent. The
other glaring issue is that most of these platforms regularly target the same
set of donors. So, there is a sort of a cyclical monotony in this act of
crowdfunding. This set of donors can be broadened by beginning to show
transparency and focussing on outcomes. A more sustainable option would be to
take the narrative away from raising funds, which is only a component of the
crowdfunding and charitable fundraising activity. When dealing with individual
cases one never knows whether the impact is verified and relayed back to the
donors. Raising
funds is of course a major part of donor-led platforms and remains the most
visible part of the appeals and campaigns. But a significant amount of effort
and focus needs to point towards the outcomes, impact and beneficiary level
transparency. The
crowdfunding sector has been unregulated until now, and this will change soon.
The Reserve Bank of India has come up with recent guidelines to control or
regulate the payment aggregator business, which is what crowdfunding platforms
operate on. The guidelines introduced new capital adequacy norms for these
aggregators, but the onus is misplaced on capital adequacy rather than on
transparency adequacy. In other words, a company that has more capital in its
balance sheet can continue doing crowdfunding business rather than those that
showcase transparency adequacy. Smaller platforms that do not and cannot comply
with these norms are likely to go out of
business. The RBI’s move is laudable when it applies to e-commerce sector,
where the smaller capital inadequate marketplaces need urgent regulation to
uphold consumer rights, but may not apply to crowdfunding businesses en masse. Know more at: http://www.fisamtrust.com/ #crowdfundingchennai #donationforcriticalsurgeries
#donationformedicalsurgeries #donationformedicaltreatments
#crowdfundingwebsites #donationforeducation #donationforwomenempowerment
#donationforchilddevelopment #donationfordisabledchildren #donationforautism
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#Bestcrowdfundingwebsite #onlinefundraisingwebsites #No1crowdfundingwebsites |