In response to the ridiculous flat out crazy lawsuit that I blogged about earlier today, Indiegogo has released the following statement:
As the largest crowdfunding platform operating in nearly 200 countries Indiegogo exists to provide crowdfunding opportunities worldwide, and a frivolous lawsuit doesn’t change Indiegogo’s commitment to this creative and popular campaign.
Thanks to Indiegogo for passing that along.
Which I know leads to your next question: What the heck is crowdfunding?
Crowdfunding is exactly like it sounds: a collective effort from any number of people to network and pool money and other resources together to support a common effort. The efforts can range from charitable projects to political campaigns and are usually done via the internet. The idea is that there is strength – as well as momentum – in numbers.
As it applies to nonprofits and tax exempt organizations, crowdfunding allows groups to raise funds in a relatively cheap and easy manner. Generally, those organizations utilize a third party platform (like Indiegogo) which keeps some of the take as an administrative fee. That structure means that starting a giving campaign is a relatively risk-free endeavor. But choosing your platform carefully is very important: in addition to credibility issues, you’ll want to consider whether your campaign or project is allowed. Some platforms, like Kickstarter.com don’t allow charity or cause funding. Others, like Donorschoose.org (strictly for education-based projects) are registered as a 501(c)3 organization so that donors receive a gift receipt for tax purposes.
How successful is crowdfunding? About $1.5 billion was raised in 2011 by 452 crowdfunding internet sites, according to a report by Crowdsourcing.org; that number is expected to double in 2012. With those kind of dollars and that kind of growth, you can see why cases like the one faced by The Oatmeal matter. Stay tuned as this one develops.
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