How the Crowdfunding System Works in India

Crowdfunding in India has emerged as a powerful tool to raise funds for personal needs, creative ventures, and social impact initiatives. For NGOs in particular, crowdfunding platforms bridge the gap between grassroots needs and a global community of donors. Here's how the system works:

NGOs and individuals start by selecting a crowdfunding platform that aligns with their cause. There are India-based platforms like:

• Impactify.NGO – specifically for grassroots NGOs

• Milaap

• Ketto

• GiveIndia

Each platform has its own guidelines, fee structures, and donor network.

A campaign page is created with:

• A clear title and compelling story

• Details about the cause, beneficiaries, and objectives

• Photos and videos for authenticity

• The funding goal and timeline

• Payment gateway integration

Platforms often offer templates and support to help campaigns look professional and engaging.

Promotion is key to crowdfunding success. Campaigns are shared via:

• Social media (WhatsApp, Instagram, LinkedIn, etc.)

• Email newsletters

• Local press or influencers

• Supporters and volunteers

The more visibility the campaign gets, the higher the chances of reaching its goal.

Donors can contribute easily via:

• UPI

• Credit/Debit cards

• Net banking

• Wallets (depending on the platform)

Donors often receive automated receipts. NGOs with 80G registration can offer tax benefits.

To build trust and keep donors engaged:

• Regular updates are posted on the campaign page

• Impact stories, videos, or receipts are shared

• Donor thank-you messages or acknowledgments may be sent

Once the goal is reached (or at regular intervals):

• The platform disburses the funds to the NGO’s verified bank account

• A platform fee (typically 5–10%) may be deducted

• NGOs are often required to submit fund usage reports

• NGOs must be registered entities in India

• PAN, 12A, and 80G certificates are usually required

• For foreign donations, FCRA registration is mandatory

• Campaigns must comply with RBI and IT laws on digital payments and fundraising

• Direct connection with donors

• Lower fundraising costs than traditional methods

• Digital reach across India and globally

• Builds a loyal supporter base