Glossary

Donation-based crowdfunding

Donation-based crowdfunding

DEFINITION OF 'Donation-based crowdfunding'

The least complex type of crowdfunding is ‘donation-based’. This is where individuals donate money to a cause, charity or person without expecting anything in return other than the satisfaction of having contributed towards something they feel is worthwhile.

It is typically used by social causes, not-for-profit organisations and arts projects for example, to raise money.