What is crowd funding?
Crowdfunding is a term used to describe a collective of people who lend their attention and trust to cooperate and network. They contribute money into a pool, usually online, in order to support the efforts of a person or organization. It can be used for a variety of purposes including raising funds for medical expenses, student tuition, memorial funds, and political campaigns.
It has been used in a non-technological way in communities for thousands of years. It is people chipping in what they can affort to help a person or a cause they trust and believe in. The old version was "pass the hat" and was often done at local churches and community centers.
Crowdfunding is the technological way to pass the hat to your online community. It has benefits and downfalls. One benefit is that you can reach everyone in your network at the click of a button. The network is infinite, and as long as people keep sharing your cause with their networks, the possibility of reaching your funding goal is high. The downfall is that the word doesn't spread itself. You need to be committed to sharing your cause, and encouraging others to share it too.
This is the manifesto of Crowd Funding, written by Alberto Falossi, February 2010