Small businesses and organisations may not have enough funds to launch a massiveCSR program in Singapore. But there are ways to gather a significant amount without breaking their banks. The answer is crowdfunding.
Crowdfunding in Singapore is one of the easiest ways to raise funds. Students, church groups, and small communities conduct crowdfunding to fund their charity projects.
This article will tell everything you need to know about crowdfunding in Singapore:
All You Need To Know About Crowdfunding In Singapore
Perhaps, you have already heard the word crowdfunding at your school, office, or organisation. But what is it really, and how does it work?
What is crowdfunding?
It combines the two words crowd and funding; crowdfunding is a fundraising method where people donate small amounts of money.
What is crowdfunding for?
Contrary to common knowledge, crowdfunding is not for charitable and CSR projects in Singaporealone. They can be for entrepreneurs looking for capital to kick start their businesses.
What are the types of crowdfunding in Singapore?
There are several types of crowdfunding in Singapore; most are for charities, and others are commonly used in business.
1. Donation-based crowdfunding
Donation-based crowdfunding is the most basic type of crowdfunding in Singapore. In this form, the donors or investors contribute money to an organisation or individual without expecting any financial or material gain.
The donation-based crowdfunding platform in Singapore can be offline or online. This method is mostly used in charitable projects, disaster relief operations, and medical sponsorships.
2. Rewards-based crowdfunding
Rewards-based crowdfunding in Singaporeis also one of the basic types of crowdfunding. In donation-based, the donors do not expect anything in return for their contribution; in rewards-based crowdfunding, the donors receive a non-financial item in return.
The rewards can be anything, from raffle tickets and freebie t-shirts to doughnuts and lemonade. For example, a company will sell T-shirts to the public. All the proceeds or profits go to their partner charity or organisation. Fundraisers may also award rewards, such as a new smartphone for donors who would donate SGD1,000 and above.
This method is used for charitable projects, disaster relief operations, and medical sponsorships. It also uses online and offline crowdfunding platforms. The only drawback of this method is it does not belong in the tax deductible donation in Singapore.
3. Equity-based crowdfunding
Also known as security-based crowdfunding, equity-based crowdfunding in Singapore is far different from donation-based and rewards-based crowdfunding. In this method, the donors will contribute money to an entrepreneur in exchange for a share or co-ownership of the business. The money raised will be used as capital for the business.
And unlike the first two types of crowdfunding, the donations are on a larger scale, with a minimum of SGD 50,000. The donation range depends on the entrepreneur.
This method is typically for businesses and not for charities. Equity-based crowdfunding is not considered atax deductible donation in Singapore.
Now that you know what crowdfunding is and its common types, the next part will discuss different crowdfunding ideas in Singapore.
5 Effective Crowdfunding Ideas In Singapore
Witty and unique crowdfunding ideas make your fundraising projects more engaging. The more people engage with it, the more money you can raise for your CSR projects in Singapore.
Here are the most commoncrowdfunding ideas in Singapore:
Raffles is one of the most attractive reward-based crowdfunding in Singapore. In this project, the fundraisers will prepare jackpot prizes for the raffle. It could be as grand as a smartphone TV or as simple as strawberry cake.
To join the raffle, the donors should buy raffle tickets. The more tickets they buy, the more chances of winning the prizes! But remember, the prize cost should be half of the total money raised from the raffle.
2. House party
Organising a crowdfunding house party is just like hosting an ordinary house party. The organisers will prepare food, decorations, games, and other entertainment. The difference is that the guests will have to pay for the entrance fee or ticket for the party.
Moreover, these parties can also be a great crowdfunding platform in Singaporeto explain the charitable projects and communicate with the donors!
Remember, the costs of organising the party should always be lower than the expected money raised from the event.
Auctions are also a rewards-based crowdfunding idea today. People can donate items they think have high value for others for auction. The guests and donors can bid as high as possible for the items they desire. The auction proceeds will go to charitable projects.
Auctions can be done in schools, workplaces, and neighbourhoods to fund aCSR programme in Singapore. Another good thing about this event is it is eco-friendly. As people say, one man’s trash is another man’s treasure. But it doesn’t have to be literal trash. The more unique and valuable the item is, the higher the bids will be!
4. Marathons and walkathons
In marathons and walkathons, the donors can also win prizes, similar to raffles; however, it is not based on luck but the hard work of the donors. Firstly, the donors can donate money by buying participation tickets for the marathon. They would be given shirts as uniforms, wristbands., water bottles, or visors. The first people to finish the race can win a prize or medals!
However, it may need a lot of preparation from the organisers. They should choose the perfect location, weather, and produce merchandise. Nevertheless, these activities promote health and wellness!
5. Odd jobs
Odd jobs can be acrowdfunding platform in Singaporeas well! Instead of donating money, the donors can give their service and energy. For example, kids can devote their time cleaning the yards and eliminating the weeds in the garden in their neighbourhoods. In return, the homeowners will pay for their service. These payments will go to charitable projects.
There are a lot of ways to raise funds and one of them is crowdfunding in Singapore. Small donations, when gathered, become a significant amount enough to help a person or groups of people in need.
Crowdfunding only needs creativity, energy, and engagement from the organisers and the people. Hosting unique and successful crowdfunding events means success in helping others.
Singapore Children’s Society
Are you looking for a partner organisation for your CSR program in Singapore? Visit Singapore Children’s Society to learn more about their projects for children.