Crowdfunding Generation Gap?

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.)

Read it here: http://www.nytimes.com/2014/02/08/your-money/crowdfundings-effect-on-venerable-nonprofits-raises-concern.html?_r=1

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About JeffKoeppel

I am a corporate/securities attorney in the Washington, DC area. Prior to joining the firm, I was a Senior Attorney Advisor in the Division of Corporation Finance at the U.S. Securities and Exchange Commission. I am a member of the Bars of the States of Maryland, New York and the District of Columbia. You can also follow this blog on LinkedIn at: http://www.linkedin.com/pub/jeffrey-a-koeppel/0/63/5a9
This entry was posted in Charity, Congress, Crowd Fund Act, Crowd Fund Act of 2012, Crowd Funding At the Margins, Crowd Funding Platforms, Funding Portals, Legislative Intent, Tax and tagged , , , , , , , , , , , , , , , , , , , , , , , , . Bookmark the permalink.

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