Donation-based Crowdfunding is a type of crowdfunding is commonly used by foundations or organizations for philanthropic acts, and funding their project or cause. It is done online and can provide convenience for both foundation or organization, and the donor.
Although it is innovative and helpful, it is not a replacement for the traditional way of donating. Actually, it is there to widen the range and scope of the people who are reaching the message, and strengthen the culture of bayanihan; because any deed, whether it is big or small can make a great impact.
Through donation-based crowdfunding you part take in making the world a better place by helping these people who are in need of financial assistance.
Equity-based Crowdfunding lets backers invest and receive interest from the project or cause they funded. This type of crowdfunding allows private company to exchange their shares for capital.
Lending-based Crowdfunding is a type of crowdfunding where the backers is repaid by the crowdfunder over a period of time for their investment.
Reward-based Crowdfunding enables the backers to contribute to projects, and receive rewards in exchange for their contribution. The reward they will receive can either be an acknowledgment, tangible things such as free artwork or album, or experience like meeting the creator. This type of crowdfunding is also the most common type of crowdfunding.