Crowdfunding has done amazing things for many people, organisations and companies over the last few years. It has allowed people to raise funds and make their projects succeed. However it’s very important to always be on the lookout for scams and fake campaigns being run. To protect yourself from fraud. Here are a few tips to consider when looking to support a cause or project.
1. Project Creators
One of the first and most important steps always would be to research out the individual project creators, company or the organisation behind the campaign. What they show in terms of history and if they ever have had some issues in the past. You can learn a lot about someone just by googling them and reading up on them if there is any information available. In terms of organisations, such as non profits look to check that they are registered online. If there any red flags don’t get involved and put yourself at risk.
2. Is the project realistic?
Anytime someone is promoting something that does not seem realistic, it certainly can raise red flags. Some questions you should always ask yourself and the organisation, is if the goals are achievable with the funds envisioned. Does it make sense, are there realistic chances of the project succeeding? In terms of products and rewards based crowdfunding as an example, you should note if there is a prototype in place. Is there a good plan in motion to get an successful launch from start to finish. If you look at non profit organizations as example, you should review their goals very well and what they plan on doing exactly with the funds in terms of distribution. This should be outlined really well.
3. Communication and Updates
Anyone that contributes on a project or cause, likes to be informed and have their questions answered promptly. This is a sign you should always keep your eye on. To make sure that regular updates are provided by the creators, before during and after the campaign is finished. As well if you post questions, that they are answered quickly and don’t leave any doubts in your stomach. These are a few things you should be on the lookout to stay safe.