Hey Frugs! Nowadays, it seems like every person has a project that he or she would like to get funded by YOU. With sites such as Kickstarter, Gofundme.com and Givefoward.com, it can be a little overwhelming when there always seems to be a new campaign on your Facebook or Twitter feed. With these sites gaining popularity, you can’t donate to everyone equally. Well, maybe you can donate to them all if you are independently wealthy, but you shouldn’t want to fund a bad project or scam. I wrote down a few things you should consider before donating.
1) Do the numbers add up? If the fundraising campaign asks for $20,000 to fund a new eBook, your spidey senses need to be alerted. EBooks are not that expensive to produce. Make sure to read what the money from the donation campaign is going toward. You may be helping unknowingly the person pay for a trip to Bali. If you’re OK with that risk, then by all means donate. If you’re a bit more detailed about where your money is spent, then you may want to pass on donating.
2) What do you get in return? The smartest crowdfunding campaigns include something for the people who donate. United Kingdom-based website Crowdcube allows for tax breaks. If you donate to a video project, will your name be in credits? If it’s a book, will you be acknowledged in the text? There’s nothing wrong with factoring what you get in return in your decision making.
3) Do you believe in this person? Is this person the one who always tightens his or her wallet during the holiday toy drive and now wants to come begging for a buck for his pet project? Is this person even nice to you? Have they ever had your back? Or, have you helped this person out enough, already? Is this a person who you want to see “win,” or is he or she someone you secretly can’t stand? Seriously. We all have those people in our lives. Now is the time to truly assess your feelings toward that person because once you donate the money, you likely won’t get it back.
Read more at the Frugalista’s blog!