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Crowdfunding to Overcome a Personal Financial Crisis

Follow these steps to learn how crowdfunding can help you overcome a personal financial crisis

Crowdfunding proves to be an influential force and it continues to expand into different industries. It captivates the interest of individuals and organizations alike. But what’s the appeal? The crowdfunding model empowers anyone to rally support for a cause or project that they believe in. From crowdfunding for medical bills after emergency surgery to raising funds for a new business venture, it lends itself to people who take the initiative to help themselves.

Finding Yourself on the Verge of a Financial Crisis

Life can turn on a dime, for better and unfortunately, for worse. Unexpected personal disasters come in many forms—getting in a car accident, watching a fire destroy your home, and losing your job when you have a chronically ill child at home, to name a few. And they can be draining physically, emotionally, and financially.

More often than not, we see individuals and families fall victim to personal financial crisis due to an event or situation that is out of their control. Losing control of your finances can make the ground beneath you feel unstable. And when you also have a family to support, the financial strain intensifies.

Now you may be wondering, how can a personal financial crisis be avoided? The unfortunate truth is that it can’t. But you can be prepared to combat the financial repercussions. Equip yourself with tools like crowdfunding that can help you find both monetary and emotional support when you need it most.

Use Crowdfunding to Take Control of Your Finances

Social crowdfunding is an increasingly popular way to seek emergency financial assistance when disaster strikes. If you are struggling with your finances, crowdfunding is your solution. With the power of social media, online fundraisers can quickly gain traction within your online networks and beyond, drawing the funds necessary to cope with a difficult situation.

When it comes to crowdfunding platforms, there are a handful to pick from. But before you decide, it is important to know what you can expect when using the platform. YouCaring and GoFundMe are two of the top platforms in the social crowdfunding scene. While the two platforms both allow anyone to create a campaign page with a description, photos, and integrated social sharing, they have a few noticeable differences.

The most noticeable difference is their fee structure. Like most other crowdfunding platforms, GoFundMe charges a platform fee. This means that they take 5% of your donations as payment for using their platform. What makes YouCaring different is that they do not charge a platform fee. Instead, they rely on donations, just like the people they serve.

Another major difference between the two platforms is their focus and how they aim to serve their users. While GoFundMe may allow someone to raise money for a potato salad, YouCaring promotes campaigns that make a real impact in someone’s life. And their free fundraising model is in line with their mission to support personal and charitable causes through Compassionate Crowdfunding™.

Other differences include the types of features that the platforms offer their users. For instance, GoFundMe provides 5-minute email support to answer questions. However, YouCaring offers real time chat support and coaching.

Key Ways to Find More Support for Your Emergency Crowdfunding Campaign

Often people think that if they start a crowdfunding campaign then the donations will automatically start rolling in. Unfortunately, this is not the case. If you want to raise a significant amount of support, then you need to put in some effort on the back end. But don’t waste time looking for potential donors in the wrong places. There are strategic ways to secure more supporters.

Start with Who You Know

Reach out to friends, family, neighbors, and coworkers for support. Share your campaign through both email and social media channels. Remind people that if they are not able to donate right now, they can still support your campaign by sharing it with their social networks.

Extend Your Reach

Connect with people who are interested in similar causes to your own. Use Facebook to browse groups that relate to your cause in some way. Then engage with the group by asking questions or advice. Once you have established a relationship, start sharing your campaign too. You can use these groups or other online forums to leverage more support for your campaign.

Use Your Donors

If you have reached a plateau in your fundraising efforts, try engaging your audience in a new way. Social media contests can help rally your audience to complete an action. For instance, try hosting a contest that asks people to share your campaign link in a well-written Facebook post. Make it clear that the person with the most shares on their post wins.

With a little work behind the scenes, you can extend your campaign’s reach.

Paige Kutilek is an associate content manager at YouCaring. Her writing is focused on the crowdfunding industry and other related topics. She strives to create content that helps people, especially during times of hardship.

About Joseph Hogue

An investment analyst by profession, I run two blogs (Crowd101 and PeerFinance101) in personal finance, peer lending and crowdfunding. I've been on both sides of the table as a lender and a borrower and am excited to be a part of the peer movement. With the power of the internet, people are helping other people manage debt and raise money in ways never before possible.

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