Crowdfunding is defined (for instance) on this Wikipedia page. It is most commonly used for entertainment media projects, although philanthropic ventures also sometimes use it. Strictly speaking, it also uses crowdfunding platforms like gofundme or the clickandplege site used by the Santiago center. Random begging over the web, or Facebook, which is what BJHN and STM appear to be doing, seems to be a little farther from the definition. However, it seems to me that some of the disadvantages of this method still apply, taken in part from the Wikipedia entry:
[F]failure to meet campaign goals or to generate interest results in a public failure. Reaching financial goals and successfully gathering substantial public support but being unable to deliver on a project for some reason can severely negatively impact one's reputation.Clearly, some of the appeals and proposals we've seen in Scranton have potentially had this effect. Also,
One question I have is why there sems to be no support from a prominent Orange County donor to Catholic projects, Tim Busch. BJHN cannot have escaped Busch's notice, since the group meets in the chapel at his offices and has even used his wine cellar. But apparently for fundraising, BJHN is on its own. Is there some reason why Mr Busch is less hospitable to proposals from BJHN?. . . . By using crowdfunding, creators also forgo potential support and value that a single angel investor or venture capitalist might offer.
- Donor exhaustion – there is a risk that if the same network of supporters is reached out to multiple times, that network will eventually cease to supply necessary support.
- Public fear of abuse – concern among supporters that without a regulatory framework, the likelihood of a scam or an abuse of funds is high. The concern may become a barrier to public engagement.
I think Houston needs to take a much closer look at fundraising practices in Scranton and Irvine.
