Discover the benefits of crowdfunding with Milaap compared to traditional fundraising methods. Learn how Milaap’s…
Written by:
Anoushka Pinto
Crowdfunding has revolutionised the way people support various causes, from medical emergencies to social initiatives like animal rescue and child welfare. It has particularly transformed the fundraising landscape for non-governmental organisations (NGOs), offering a convenient, transparent, and engaging way to connect with donors.
Fundraising is crucial for the financial stability of most NGOs, often involving events, grant writing, and direct mail solicitations. However, crowdfunding stands out for its ability to quickly generate funds. For NGOs, crowdfunding opens doors to a larger audience, amplifying their mission in ways traditional methods cannot. This method offers them the opportunity to raise funds and promote their causes, while donors enjoy the satisfaction of contributing directly to positive change.
To succeed in crowdfunding, NGOs need effective strategies and a reliable platform like Milaap. These platforms allow NGOs to pitch their causes, outline their missions, and set specific fundraising targets. They are user-friendly and designed for seamless transactions, providing real-time updates on fundraising progress. This transparency not only shows donors the impact of their contributions but also inspires potential donors to help reach the goal.
NGOs can leverage crowdfunding to achieve their missions without the need for extensive staff or big-budget marketing campaigns. Crowdfunding offers an alternative way to secure funds, whether through online platforms or in-person events that combine offline and online donations.
Why NGOs Partner with Milaap for Social Crowdfunding
- 0% Platform Fee: Keep 100% of the raised donations (excluding standard gateway transaction fees) to maximize your project’s direct impact.
- Automatic 80G Generation: Save administrative time with automated delivery of 80G tax-exemption certificates to your supporters.
- FCRA-Compliant International Giving: Accept international donations securely with built-in compliance checks for verified FCRA NGOs.
- Dedicated Campaign Managers: Access support from specialized fundraising experts who help optimize your campaign story, graphics, and outreach strategy.
Why NGOs turn to crowdfunding to raise funds
Healthcare treatment and support
Crisis or emergency support
Natural disaster relief
Research funding
Educational programs
Social justice initiatives
Animal welfare
Environmental conservation
Advocacy efforts
Need help raising for your non-governmental organisation?
What are the benefits of crowdfunding to raise funds for NGOs?
Quick and easy setup
Crowdfunding platforms enable NGOs to launch campaigns quickly with step-by-step instructions. Some platforms charge no fee to start, while others offer paid options with additional features, providing flexibility for organisations with varying needs and budgets. With Milaap, you can set up your fundraiser effortlessly, in 3 simple steps.
Cost-effective fundraising
Crowdfunding is often more cost-effective than traditional fundraising events, which can have high overhead costs. This makes it an attractive option for NGOs looking to maximise their fundraising efforts. Milaap is a free fundraising platform for all, which means 0% platform fee.
Reach a large audience
Once a campaign is launched, it can be shared through social media, reaching both current and new audiences. Many platforms also accept international donations, broadening the reach of your fundraising efforts. To receive foreign funding, all NGOs must register under the Foreign Contribution Regulation Act (FCRA).
Raise funds quickly
Crowdfunding is a fast way to raise money, especially when strategically promoted through social media, email, and word of mouth.
Build donor confidence
Sharing your NGO’s story through compelling text, images, and videos helps build trust with potential donors. Donors can follow your progress and stay updated, increasing their likelihood of contributing.
Engage with donors
Crowdfunding allows you to directly communicate your mission to donors, fostering engagement, sharing, and support for your cause.
Access to new donors
Crowdfunding campaigns have the potential to tap into a global pool of potential donors, amplifying the reach of your fundraising efforts.
Social proof, a powerful motivator
When potential donors see others supporting a cause, they are more likely to contribute. This bandwagon effect can significantly boost contributions and make crowdfunding a compelling fundraising option.
Effective marketing tool
In addition to raising funds, crowdfunding also serves as an effective marketing tool, spreading awareness about your cause and engaging a wider audience. Milaap offers user-friendly features for sharing fundraisers on social media platforms like Facebook and Instagram, helping you maximise exposure to your network.
Testing audience reactions
Crowdfunding campaigns provide an opportunity to test various stories, videos, and other content to see what resonates most with your audience, allowing for strategic refinement of your messaging.
Brings people together
Crowdfunding unites people around a common purpose, fostering a sense of community and shared success.
Amplify your impact
Small donations add up quickly, making a significant impact. Crowdfunding can help you reach fundraising milestones that make a tangible difference.
Spread awareness
In addition to raising funds, crowdfunding campaigns can educate the public about the causes they support, increasing awareness and understanding.
Spread awareness
In addition to raising funds, crowdfunding campaigns can educate the public about the causes they support, increasing awareness and understanding.
Need help raising for your non-governmental organisation?
Benefits of using Milaap to raise funds for your NGO
Zero-fee platform
Milaap is a free fundraising platform, which means we charge no fees for setting up campaigns nor for accepting donations.
Global reach and donors
We accept donations globally in multiple currencies.
Quick donations
We offer the widest range of payment options among crowdfunding platforms: UPI, Paytm, QR codes, wallets, net banking, credit/debit cards, and direct bank transfers.
No time constraints
Milaap fundraisers have no time limit. In fact, fundraisers can be stopped or paused at any time.
Responsive support
Milaap offers top-notch support with their dedicated User Engagement team, ensuring a smooth and transparent experience for both organisers and donors.
No minimum fundraising goal to receive funds
You can withdraw and receive whatever amount is raised, after deducting payment gateway fees.
Withdraw funds at your convenience
When you request a withdrawal, Milaap’s Trust and Verification team checks your cause and expense documents. Once everything is verified, the withdrawal is reviewed and approved within 24 hours. You can withdraw funds in one or more instalments.
How to start a crowdfunding campaign for your NGO on Milaap
You can start your crowdfunding campaign in two ways:
Do-it yourself (DIY)
Crowdfunding unites people around a common purpose, fostering a sense of community and shared success.You can create your campaign page directly on their website in just a few steps. This option allows you to write your own story, set your fundraising goal, and manage your campaign all by yourself.
Request a callback
If you need some help setting up your campaign, you can request a callback on Milaap’s website. A Milaap representative will reach out, gather your details, and set up your campaign page for you.
Need help raising for your non-governmental organisation?
Things to keep in mind when starting a crowdfunding campaign
You can start your crowdfunding campaign in two ways:Starting a fundraiser for your NGO is a big step, but with thoughtful planning and execution, it can greatly benefit your cause. Follow these steps to create a campaign that connects with your audience and meets your goals:
Find the right crowdfunding platform
Selecting the right platform is crucial. Look for ones that specialise in social causes, as they attract donors who are specifically interested in NGO initiatives. Milaap enables you to set up a fundraiser within minutes, and you can easily raise funds for any social or community cause. Read more about choosing the right platform for your needs, here.
Consider your audience
Identify your average donor. Where do they live? What are their preferences? Choose a platform that aligns with your audience’s needs and is trusted by them. Milaap’s community consists of over 30 lakh donors from 130 countries worldwide.
Peer-to-peer fundraising
Platforms offering peer-to-peer options allow your supporters to create their own fundraising pages. This can amplify your campaign’s reach and effectiveness. Milaap’s platform enables users to create support campaigns for causes they care about. This allows users to endorse the cause and track donations generated through their efforts. At the same time, NGOs can identify their key supporters and the sources of incoming funds.
Planning your campaign
Set clear goals: Define specific, measurable, and achievable fundraising goals.
Understand legalities: Ensure compliance with relevant laws and regulations, including tax-exempt (Section 80G) status and Foreign Contribution Regulation Act (FCRA).
Write a compelling story: Engage your audience with compelling storytelling to inspire donations. Milaap has an inbuilt story assistance feature that can help you craft the perfect story.
Generate pre-launch momentum: Pre-launch efforts like collaborating with influencers, creating content, sharing beneficiary journeys and success stories,sets the stage for a successful campaign.
Executing your campaign
Launch your crowdfunding campaign: When all requisites such as goal, eye-catching visuals, detailed information and supporting documents are in place, your campaign can go live.
Promote your campaign: Use social media and emails to spread the word. Encourage your supporters to share your campaign. Milaap provides you the tools for seamless social media sharing.
Build a strong team: Assemble a dedicated team of staff, volunteers, and supporters to plan, execute, and promote your campaign.
Engage donors: Keep your supporters updated with regular progress reports. Share stories and milestones to keep them invested in your cause.
Matching donations: Promote matching to double donations. Inform your donors about this option to maximise your fundraising potential. Milaap facilitates matching donations via Milaap Impact Partners (grants by companies or individuals) to certain fundraisers that meet the sponsor’s criteria.
Express gratitude
Thank your supporters for their contributions, and provide transparent reports on how the funds will be used.
Learn and improve
Analyse data from your campaign to uncover insights and improve future efforts.
Need help raising for your non-governmental organisation?
Crowdfunding mistakes to avoid
Insufficient information
If your fundraiser lacks clear details about your NGO and its objectives, potential donors might hesitate. Leaving them to guess where their contributions will go can discourage them, possibly leading them to leave your campaign page without donating. Transparency is key to attracting potential donors, so be sure to clearly state how their contributions will be used.
Neglecting social media
Regularly sharing updates about your campaign and broader mission on social media is crucial. Social platforms are powerful tools for self-promotion, so make sure to announce your campaign multiple times across all channels. Also, don’t underestimate the impact of email—over half of crowdfunding campaign donations come from email outreach.
Failure to keep donors in the loop
Keeping your donors updated is essential. They want to see the impact of their contributions towards achieving your goals. Share photos, tell stories, and express gratitude to show them their support matters. Campaigns receive more donations when regularly updated.
How can NGOs receive foreign donations on their Milaap fundraiser?
Your fundraiser on Milaap allows donations from supporters worldwide. You can opt to receive funds solely from donors in India, based on your organisation’s legal status. It’s important to note that registered NGOs can accept foreign contributions if they have an active FCRA (Foreign Contribution Regulation Act) account.
The FCRA came into effect in 2010, and regulates the acceptance and utilisation of foreign contributions by individuals, associations, or companies. It ensures that foreign funds are used responsibly and not for activities against national interests.
When you receive foreign donations through Milaap, the funds can only be transferred to an NGO’s FCRA-registered bank account or to a 501(c)(3) charity in the US. To ensure compliance and avoid regulatory issues, Milaap restricts the remittance of foreign funds without a valid FCRA certificate. Read more about FCRA, here.
Need help raising for your non-governmental organisation?
Challenges of crowdfunding for NGOs
Crowdfunding provides numerous advantages, yet NGOs must also recognize the potential obstacles they may encounter.
Unsuccessful campaigns
Not every crowdfunding endeavour achieves its target. Many fall short, which can be disheartening and demotivating for the team. To mitigate this risk, comprehensive planning is essential.
Dependency on crowdfunding
Depending heavily on one source of income, such as crowdfunding, leaves an organisation vulnerable to unexpected changes. Donations can fluctuate, making it crucial for NGOs to have diverse revenue streams.
Reputation risks
Mismanaged campaigns or failure to deliver on promised outcomes can harm an NGO’s reputation. Transparency is key to building and maintaining trust with donors
Fee structures
Some crowdfunding platform fees can be high, consuming a significant portion of the funds raised. NGOs should account for these fees in their budgeting and fundraising goals.
Competition
With numerous campaigns vying for attention, it can be challenging for a non-profit’s campaign to stand out.
Resource intensity
From planning and execution to donor management and fulfilment, the process can be demanding, especially without the right software.
Frequently Asked Questions (FAQs)
1. Does Milaap charge NGOs a platform fee for fundraising campaigns?
Milaap follows a 0% platform fee model for fundraising campaigns, including many NGO-led campaigns.
This means:
- NGOs can retain the funds raised on the platform.
- Standard payment gateway and banking charges may still apply.
- A larger portion of donor contributions can go toward the organization’s programs and initiatives.
NGOs should review the latest platform policies and fee structure before launching a campaign.
2. Can NGOs accept international donations through Milaap?
Yes. NGOs may be able to receive international donations through Milaap, subject to applicable Indian regulations.
Typically, NGOs receiving foreign contributions must:
- Possess a valid FCRA registration or applicable regulatory approval.
- Comply with Foreign Contribution Regulation Act (FCRA) requirements.
- Complete any platform-specific verification processes.
International donors can contribute through supported global payment methods where applicable.
3. Does Milaap automatically generate tax-exempt (80G) receipts for donors?
For eligible NGO campaigns, Milaap can facilitate the issuance of donation receipts associated with Section 80G tax benefits.
Key points:
- The NGO must possess a valid 80G registration.
- Necessary tax and compliance details must be provided during onboarding.
- Eligible donors may receive tax-compliant donation receipts electronically.
- The availability of tax benefits is displayed on qualifying campaigns.
This helps simplify compliance for NGOs while making it easier for donors to claim eligible tax deductions.
Crowdfunding has made fundraising for nonprofits accessible and cost-effective. By leveraging storytelling, social media, and transparency, nonprofits can maximize their impact. With advancing technology, nonprofits will have more opportunities to enhance their missions and create lasting change.
With Milaap, NGOs can reach a larger audience, engage supporters meaningfully, and make a real difference. Start your fundraiser today and make your social cause a reality!
Milaap Impact
8,693
Total number of NGO causes on Milaap
₹189 Cr+
Total funds raised across all NGO causes on Milaap
In times of need, support means everything, and with Milaap, you need not look any further. Milaap enables you to set up a fundraiser for any medical emergency within minutes, and you can easily raise funds for treatment expenses.
Do you know someone who could benefit from fundraising? Simply refer them to us and we’ll be happy to lend a hand.
Visit www.milaap.org or call us on +91 9916174848 to get started now.
For more information, write to us at cx@milaap.org.
