Crowdfunding is a tried and tested way of raising money via the internet for a project or cause that requires financial support. Originally crowdfunding was a way that entrepreneurs could raise funding to get a new business venture off the ground, but as crowdfunding is becoming more popular, community and environmental groups are using it as a practical way of raising funds for social projects that benefit people and/or the local environment such as play areas and nature reserves.
As crowdfunding becomes more widely known bigger companies and financial institutions are now taking an interest and I highlight three new initiatives below, one from a supermarket giant and two from high street banks. If you are thinking of raising funds for a project via crowdfunding and one of the initiatives below meets your criteria then it is well worth considering putting your project through that crowdfunding platform, however, there is of course no certainty of receiving any funding from these companies so if you do apply and get support then treat it as a bonus.
My other funding news item this month is around support for communities wanting to take on running a local pub. Having recently moved to the Isle of Wight I have seen the sad closure of several village pubs. Pub closure has a real impact on the local communities, particularly if there is no other pub in the vicinity. So, this support offered by the Plunkett Foundation with funding from the Government and a new charity supporting community business is to be welcomed.
Small food and drinks businesses have the chance to show off their products and campaign for funding through Backit – a Tesco and Seedrs run crowdfunding platform.
Tesco will review the campaigns and will provide advice and mentoring from industry experts. There is a £2000 minimum target with no maximum. The costs to the business are 1.4% (=20p) payment processing from Stripe the payment provider.
The offer is open to all UK businesses and might be useful for small Isle of Wight businesses who are developing their local produce ideas. Details and further information can be found here.
Barclays is using Spacehive and crowdfunding to encourage young people running crowdfunding campaigns that develop their skills. If you are 16 – 24, they could pledge up to half of your funding target up to a total of £500. The idea of the fund is to develop skills such as marketing, creating videos, pitching to businesses as well as improving your local area.
And mentioned in a previous blog, Santander through their Changemaker Fund is putting up to £200,000 to support social enterprises, community groups and small charities in the UK that help disadvantaged people in local communities.
The Community Pub Business Support programme is a unique two-year programme established to help support community ownership of pubs in England. The programme has a value of 33.62 million and is jointly funded by Department of Communities Local Government and Power to Change.
The programme is being led by the Plunkett Foundation and is well worth investigating if your community has lost or about to lose your pub.
As always please let me know how you get on if you do apply for any of these funds.
Photo Credit: Pete’s November travels on the Isle of Wight.
© Pete Johnstone.