A mixed blessing': crowdfunding has changed the way we give, but is it fair and effective?

"Within hours of the Bondi beach terror attack, the money had already begun to pour in. As images of the tragedy flooded social media, people from around the world donated tens of thousands of dollars to the victims, their families and first responders. Passing the hat around the neighbourhood or the local pub has always been a staple response in times of crisis. But today, that instinct to open your wallet has been exponentially supercharged via a digital simulacrum: online crowdfunding platforms."

"GoFundMe fundraisers have since raised more than $3m for Ahmed al-Ahmed, who tackled and disarmed one of the gunmen before he suffered three gunshot wounds to his shoulder. Among dozens of other appeals in the wake of the shooting, $1m has also been raised for the family of the youngest victim, 10-year-old Matilda. And this month, as unprecedented bushfires swept through regional communities in Victoria, crowdfunding campaigns shot up to help families rebuild from the ashes."

"Donating directly to an individual or cause via a crowdfunding platform is a tangible action to alleviate someone's suffering, offering donors a sense of immediate impact that donating to a conventional charity can't easily replicate, Wade says. Since the globally dominant online crowdfunding platform, GoFundMe, launched in Australia in 2015, Australians have donated more than $1.1bn to causes on the platform. Worldwide, more than $40bn has been donated since it was founded in 2010 in the US."

Crowdfunding platforms enabled rapid, large-scale donations after the Bondi beach attack and recent Victorian bushfires, directing millions to victims, families and first responders. Individual campaigns raised notable sums, including more than $3m for Ahmed al-Ahmed and $1m for a 10-year-old victim's family. Crowdfunding provides donors a tangible, immediate way to respond to suffering and can reduce feelings of helplessness. Since GoFundMe launched in Australia in 2015, Australians donated over $1.1bn on the platform and more than $40bn has been donated worldwide since 2010. GoFundMe operates as a for-profit company, charging transaction fees and encouraging optional tips to support its service.

Read at www.theguardian.com