A New York Times article suggests that crowdfunding is drawing donors, particularly younger donors, away from legacy charities such as the Red Cross and Save the Children.
While charitable crowdfunding is growing, legacy charities revenues have not. Many younger donors appear to believe that “direct giving” benefits the donee more than giving to institutional charities. Crowdfunding generates impulse donations and the donors do not appear concerned as to whether the projects being supported are financially effective.
Perhaps the legacy charities need to adopt crowdfunding as one of the methods of raising funds. (Some have already.)