MSP | Crowdfunding Platforms

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Crowdfunding can offer local NGOs and NGO networks operating in humanitarian response contexts a flexible way to mobilise resources directly from individuals and communities, complementing or partially replacing foreign grant funding. One broad category is global donation-based crowdfunding platforms that explicitly support local organisations in the Global South, such as GlobalGiving -hosted community funds, which allow vetted local NGOs to raise funds from international and diaspora donors. The strength of this model lies in its credibility, built-in due diligence, and access to a global donor base; however, competition for attention is high, platform fees apply, and successful campaigns require strong storytelling and digital outreach capacity.

A second category includes regional or locally rooted crowdfunding platforms designed to serve non-profits in specific countries or regions, such as M-Changa in East Africa or LaunchGood for Muslim-led initiatives globally. These platforms often integrate mobile money and local payment systems, making them more accessible to domestic and diaspora donors and reducing reliance on credit cards. Their key strength is cultural and contextual relevance, while limitations may include smaller donor pools and lower average donation sizes compared to global platforms.

Some crowdfunding platforms like GiveDirectly and Kiva are focused on steering funding directly to individuals in need. However, they recruit local NGOs as implementing partners to help identify and vet these individuals as well as monitor the disbursement and use of funds.

Finally, some NGOs explore diaspora-focused crowdfunding systems, using platforms or dedicated microsites to engage nationals living abroad who have strong emotional ties to crisis-affected communities. These systems can generate relatively unrestricted funding and rapid response support, but they require careful governance, transparency, and regular communication to maintain donor confidence.

Across all crowdfunding models, success depends on clear accountability, compelling communication, and investment in digital skills. While crowdfunding rarely replaces institutional grants entirely, it can provide flexible, locally controlled income that strengthens organisational autonomy and resilience.


PROS and CONS

Pros: Access to new sources of funds; opportunity to reach donors much more directly; possibility of funding special campaigns and projects; opportunity to connect with diaspora communities worldwide; little to no upfront costs

Cons: High level of competition in the platforms (including possible scams that can discredit the platform; difficulty in forecasting income; may require high-quality marketing material; contributors might favour direct implementers over more indirect actors like NGO networks and hubs.

SELECTION CONSIDERATIONS

Platform profile: Does the crowdsourcing platform’s focus areas align with that of the NGO or the network (i.e. is it built to serve a particular type of organisation, geographic area or sector)? Does it currently feature similar NGOs/networks/projects in its list of funded organisations? Does the platform favour innovative and entrepreneurial grantees over more traditional charities and non-profits?

Donor profile: Where are financial contributors to the platform based? Are the donors more institutional or individual in nature? Would their interest align with the organisation seeking funds? Is there a significant diaspora community that uses the platform?

Funding modalities: How are funds disbursed to the organisations using the platform? Is disbursement totally flexible or contingent on demonstrated progress? What are the expectations in terms of reporting and fund tracing? Are there upfront requirements to become affiliated with the platform? How much of a commission does the platform take on donated funds?

Eligibility requirements: Can the platform include beneficiaries based in the country where the NGO or network operates? Do they fund non-profits?  Do they require sending funds to a USD (or other currency) bank account? Are the receiving organisations vetted and, if so, how?

EXAMPLES

Global platforms that specialise in fundraising for non-profits in the developing world include Global Giving and Why Donate. More general fundraising platform like GoFundMe and GoGetFunding allow both individual and institutional fundraising. These websites are full of specific examples. For instance, the Columbia-based Fundacion Ninos de las Andes has been able to raise over $600,000 through Global Giving campaigns.

Regional fundraising platforms active in multiple countries include LaunchGood in the Middle East, M-Changa in Africa, HIPGive in Latin America and GiveAsia in that continent.   

An example of partnership between a crowdfunding platform focused on individual donations and a non-profit is the collaboration between Give Directly and Lwala Community Alliance in Kenya where the latter will “deliver essential community-based health services alongside the cash transfers” for the $1.8m campaign.

A non-profit launching Income Generating Activities (see above) could also tap into loan-based crowdfunding platforms like Kiva o finance the start-up capital costs of the IGA.

Diaspora crowdfunding platforms are an emergent form of donor and lender. For instance, the 2Africa platform is specifically targeting communities of African expatriates in the Global North to steer their donations toward trusted local partners.

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