U.S. charities, like many individuals and entities trying to raise funds for special projects, are embracing crowdfunding.
At the same time, many brand-name nonprofits are concerned that individuals unaffiliated with an organization may be the ones pitching a proposal on crowdfunding sites, depriving the charity of an opportunity to train volunteers about its mission and what it wants to tell donors.
Another issue for nonprofits is that they usually don’t know who contributes to them through crowdfunding sites, often because the sites won’t reveal names or will charge for the information. As a result, the charity is unable to build a relationship with donors to encourage them to give more.