ABSTRACT
This chapter focuses on the modern phenomenon arising in the world of project financing—crowdfunding and its meaning for the development of nonprofit organizations (NPOs). Crowdfunding is one of the latest and most powerful methods to finance projects, products, or even businesses. It is a trend with the goal of expanding the possibilities of effective multisource funding for NPOs. This chapter explains the development of crowdfunding and the reasons of its success and the advantages, disadvantages, and possible risks related to crowdfunding in NPOs. It reviews also the crowdfunding regulations in Europe. Then it follows with the presentation of basic crowdfunding models and the comparison of successful crowdfunding platforms. Crowdfunding can be successful only on condition that the activities the NPO offers are beneficial for the community and thus contribute to society’s sustainable development. Crowdfunding as a new fundraising tool has not been addressed enough in scientific literature yet, and we are just beginning to gain knowledge of it. Now it also should be the center of attention for science and research to secure sustainability; unfortunately, only little research exists in this area, even internationally.
