Is it possible to crowdfund your living expenses The short answer is yes. There are many ways to crowdfund expenses such as vet bills and washing machines. MoneyMagpie understands how quickly life changes, so we want to show you how to crowdfund those unexpected moments.
What is crowdfunding? How can you crowdfund?
What is crowdfunding?
Crowdfunding allows individuals and businesses to raise funds for their business ventures, medical expenses or other living expenses. Crowdfunding is a collection of small donations made by many people, all contributing towards the same target amount. Crowdfunding is usually done over a shorter period of time, usually within a few months. It often makes use of social media to draw attention to the cause. Social networks allow fundraisers to keep track of their progress and share it with supporters all through the fundraising process. This also allows the fundraiser to be shared to other people, resulting in a wider reach for the project.
What are you able to crowdfund?
MoneyMagpie has previously discussed how to crowdfund medical expenses. We now want to show you how to crowdfund personal expenses. Personal expenses could include mortgage payments, replacing broken white goods (fridges etc), vet bills, and many other things. MoneyMagpie understands that life can be unpredictable and leave you short of cash if something happens. Crowdfunding could be an option for you. Crowdfunding can help you raise large amounts of money in a short time frame. It may also be more convenient than asking your family and friends for assistance with daily living expenses.
Currently, the UK has around 18% of its residents living in poverty before housing costs have been deducted. 22% of the population lives in poverty after housing expenses are deducted. It’s easy to see why some people might need additional help with personal finances, especially if they live on the edge of poverty.
Who should you use?
Crowdfunding is not easy. There are many sites to choose from. It is worthwhile to do your research before you make your decision.
Here are a few of our suggestions for you to consider.
GoFundMe, one of the most popular funding websites, is a great example. It was launched in 2010 and has since grown to be one of the most popular online funding sites with more than 120 million donations. It has an easy-to-use interface that allows users to send thanks notes and withdraw funds from their dashboard.
GoFundMe is not like other sites. However, it does charge a platform fee and a processing fee at 2.9% + 25p. They also allow you to fundraise as long as you wish, with no deadlines or time limits.
JustGiving was established in 2000 and has raised over PS5 billion for charities around the globe. It has received over 152 million donations. JustGiving has raised over PS5 Billion for causes worldwide. This is why 95% of British postcodes donated to the site. JustGiving is similar to GoFundMe in that it doesn’t charge any platform fees and charges the same processing fee at 2.9% + 25p for each donation.
How to make Crowdfunding successful
You’ve decided that you want to crowdfund your life expenses. How can you make it work effectively and have a big impact?
Complete your page:
Make sure to fill out everything when you create your crowdfunding page. This is where you can create a summary of your fundraising efforts. Keep it short and sweet, as it will be shared on social media. If you are raising money for your dog’s urgent surgery, say “We’re fundraising money to pay for vet bills”.
You can set a target to give you a goal and allow potential donors to see how far you are from your goal.
Add photos – Most sites allow you to upload a cover photo. A picture of your sick dog could encourage people to donate, as they will know how much you care about them.
Tell potential donors your story. Share it with them. What information would you like to find out before you donate to someone? Perhaps the effect it will have on someone’s life or how the money will go. Explain why you need extra support. These things will help people understand why you need it.
Promote your campaign
When it comes to increasing the reach of your campaign, social media is your friend. JustGiving states that your first Facebook post can bring in PS100 in donations, so you should make use of it if you have the opportunity. You can create a page on Facebook for your fundraiser that will allow you to post updates and connect with more people. Twitter allows you to share your fundraising information with your followers. They may then retweet it to their followers, increasing the reach of your fundraiser.
Keep your employees informed:
Regular updates to your fundraising page will make people feel more involved in your cause and encourage them to give more. To show the impact that donors’ money can make in your life, share photos and videos.
Host a party
It doesn’t matter if you have a launch party or an ending of campaign party. This is a great way thank donors and get new donors to your cause. You don’t need to host a huge event. Just invite them over for tea and chat. You can tell them about the positive impact your donation has made on your life, and you can thank them for it.
MoneyMagpie: How to Crowdfund Your Living Costs
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