home TECHNOLOGY Why Crowdfunding works for the poor because of no initial outlay

Why Crowdfunding works for the poor because of no initial outlay

Raising funds online through most crowdfunding India platforms such as Impact Guru, is absolutely free. It needs no investment, very little time, and is extremely effective for those who cannot afford any initial outlay for their fundraising activities. This makes it the most appropriate way for individuals of poor financial background to raise money for a variety of causes ranging from medical treatment, education, or even basic household expenses.

Consider this – when a poor person falls ill, they visit the doctor to get diagnosed and get medicines for their illness. When it’s a small illness, the cost is small, but with more serious diseases like cancer, or transplants, or even accidents, they would have to incur huge hospital expenses which are most likely beyond their means. In such a situation, one would first consider putting together all their savings, then asking employers for salaries in advance. Following that, they would either ask relative and friends if they can borrow money, or they would consider taking a loan. If a relative gives you money, you’re forever indebted to them, and would have to spend years repaying their money. When considering a loan, we must remember that not everyone can afford a loan. Even if they were to get a loan, repaying at high interest rates would keep their pockets empty for a long time after – if they’re not able to repay, they would lose their personal assets. The next through would be medical insurance companies, but like loans, insurances too may not be an affordable option for many Indians of weak economic status. As a crowdfunding India platform that has hosted thousands of medical campaigns, we at Impact Guru realize that such situations have lead people to lose their loved ones and family members, and even forego treatment in many cases, due to lack of funds.

In in alternative scenario, think of education. We already know that education in India is a luxury. Economically weaker families tend to have the belief that rather than spending money on the education of a child, making the child earn at a young age would benefit the family more. But we know this isn’t true in the long run.

In such situations, encouraging a crowdfunding India amongst the weaker sections of society can actually help the community directly overcome illiteracy or diseases. Why this more beneficial than any other method of getting money? A family would be able start a crowdfunding  campaign for nothing at all. On platforms like Impact Guru, it takes no more than 5 minutes to launch a campaign, and the site charges no fee, except for a minimal service fee, only after the funds are raised.

So what’s to lose?

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