SA Crowdfunding Blog

Monday, 11 June 2012 19:52

Research Funding through Crowdfunding

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An interesting use of the internet for raising capital is to channel money for research funding. If there is a cause that is in the mainstream of the public interest, procuring necessary resources can be an easy sell for those who arrange crowdfunding. There are factors that must be addressed to the satisfaction of any proposed investors to ensure that the campaign is a success.

 Establish Non Profit Status

 Although it is not always possible, becoming a non-profit has obvious good points. It not only has tax saving ramifications, but non profit funding is more desirable to those sending donations, many times, and it makes the research seem more legitimate. Non profit funding may have different guidelines than crowdfunding for other causes. It is important to have a legal professional and an accountant involved to be certain all matters meet the strict requirements.

 Establishing Awareness

 Just because an item is in the news doesn't mean that all the facts have been put forth for the public's edification. Presenting the facts, as they are known, is the first step toward asking for research funding. In the event the research is to be for learning more about a disease or looking for a cure, people want to know how many are affected by it, or can be affected by it if nothing is done to stop its spread.

Organizing a Winning Team

 The worst mistake that can be made when asking for research funding is to not have anyone on board, or ready to come on board, whose skills qualify them to address the issue at hand. One person of renown can make the difference in whether the masses will support research or not. Any name that is tossed out should be legitimate and verifiable, and any support personnel should have credentials to support their inclusion on the team.

Clear Goals and Expected Results

Research funding is a difficult situation to quantify or place a timeframe for completion of any goals. It is often uncertain that solutions, treatments, or cures can be produced, if that is the mission. If research funding is just to establish feasibilities, it may not get the respect of the community, so it is very important to have reasonable expectations and set goals before requesting assistance.

Guaranteeing results is a very risky proposition that can lead to loss of confidence. By its name, research should be understood to take time to complete study before worthwhile solutions or actions can be taken. Promises should be that the team will work diligently and efficiently towards the end goals if they receive the research funding.

Reporting and Publishing Information

Before anything gets underway, the team should be committed to reporting the results of the crowdfunding first, and when the research funding initial goal is reached, updates on progress must be kept up to date throughout the research process.

In some cases, the government may intervene with research funding of its own. One reason why non profit funding and crowd source funding are important is they often kick in before the government makes a decision to act. Results may come months earlier when research gets an early start.

Another consideration in research funding is how many different entities are after the same donations. If others begin a campaign first, it may be more reasonable to consider banding together rather than competing. Comparing existing resources might prove that the campaign will be more worthwhile with a combined effort.

Support for many worthy causes has been declining because of worldwide economic woes. This is another reason why crowd source funding is a necessary player in appropriation of funds for research. It is a much harder sale to get research funding through venture capital than crowdfunding. 

Read 5622 times Last modified on Monday, 11 June 2012 21:06
Ben

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