The crowdfunding concept got its start over 15 years ago as a means to collect small gifts from a large group of people to support a project, person or organization. Within a short time it grew in both the for-profit and charitable marketplace, to become what is now a well-recognized means of raising funds online.  One of the earliest charity entrants in this space is GlobalGiving.org which began a website that enabled donors to fund grassroots projects from around the world that are working to address a variety of needs such as education, housing and job skills.  As part of our Building Trust Video Series we are pleased to provide a video that features Mari Kuraishi, one of the founders and the current President of GlobalGiving (a BBB Accredited Charity). Under her leadership, the organization has raised over $188 million since 2002 from over 475,000 donors and funded 12,500 projects around the world.      

Donors should keep in mind, however, that not all crowdfunding sites operate in the same way. Below are some tips excerpted from the crowdfunding cover story that appeared in a previous edition of the Wise Giving Guide magazine:

• Charities can be checked

Crowdfunding websites run by charitable organizations (such as GlobalGiving) can provide opportunities to learn more about the organization’s programs, finances and whether they are registered to solicit with state government agencies.  In addition, third-party sources such as reports on Give.org can help donors verify that the charities meet recognized standards.

•  Be especially careful after a disaster or tragedy

Watch out for those seeking to take advantage of high public sympathy immediately after a disaster or tragedy by setting up a crowdfunding project that may have no official connection to any charitable organization and may be using names and photos of victims without the families’ permission. 

• Specialized crowdfunding sites may be more adept

If a crowdfunding sits specializes in a particular kind of activity such as medical funding, school projects or overseas development, there is a greater chance they will have the experience and skills to engage in more oversight over the featured projects. 

• Read the fine print

Crowdfunding sites vary in terms of whether the donors or the project organizer will be charged for site administrative costs and credit card fees.  If a project does not achieve its targeted fundraising goal, sites also vary as to whether the donation will be refunded. 

We are always working with charities to publish or update reports for donors. Visit Give.org or local BBBs to check out any charity before giving. Our recently evaluated charities include: 

• Archaeological Conservancy
• Mr. Holland’s Opus Foundation
• Plan International USA
• Project Survival 

Finally, remember to let us know by going to https://give.org/ask-us-about-a-charity1/ if you are interested in seeing a report on a charity not on the list and we will do our best to produce one.  

H. Art Taylor, President & CEO
BBB Wise Giving Alliance