Kickstarter

Definition

A Kickstarter is a popular crowdfunding platform that allows individuals and organizations to raise funds for creative projects and ventures by soliciting small contributions from a large number of people. It empowers creators to present their ideas to potential backers and secure the necessary financial support to bring their projects to life, often in exchange for rewards or incentives.

5 Must Know Facts For Your Next Test

1. Kickstarter was launched in 2009 and has since helped fund thousands of creative projects across various industries, including film, music, art, technology, and more.
2. Projects on Kickstarter must reach their funding goal within a set time frame; if they don't meet the goal, no money is collected from backers.
3. Successful campaigns often include engaging video presentations and detailed descriptions to attract potential backers and communicate the project's value.
4. Kickstarter takes a percentage of the funds raised as a fee, typically around 5%, which is applied only if the funding goal is met.
5. The platform emphasizes the importance of community engagement; creators are encouraged to maintain communication with backers throughout the project's development.

Review Questions

• How does Kickstarter function as a crowdfunding platform, and what are its key features that make it appealing to project creators?
  • Kickstarter operates by allowing creators to set up campaigns for their projects, specifying a funding goal and timeline. Key features that make it appealing include the ability to reach a wide audience, offer reward tiers that incentivize backers, and showcase projects through engaging content. This structure helps creators garner support from individuals who believe in their vision and want to see it realized.
• Analyze the advantages and challenges of using Kickstarter for fundraising in nonprofit settings compared to traditional fundraising methods.
  • Using Kickstarter provides nonprofits with access to a broader audience and can generate buzz around their projects through social media sharing. However, challenges include the competitive nature of crowdfunding where many projects vie for attention and funding. Additionally, nonprofits must effectively communicate their mission and project goals in a limited time frame while managing the expectations of backers regarding rewards and project outcomes.
• Evaluate the impact of Kickstarter on innovative project development within nonprofit sectors and its role in shaping community engagement strategies.
  • Kickstarter has significantly impacted innovative project development in nonprofits by providing an alternative funding source that encourages creativity and entrepreneurship. It has enabled organizations to pilot new ideas without relying solely on grants or donations. This model fosters community engagement by inviting backers into the process, allowing them to feel invested in the project's success. As nonprofits leverage Kickstarter's platform, they can build supportive communities around their initiatives while enhancing visibility and support for their missions.

Related terms

crowdfunding:

The practice of raising money from a large number of people, typically via the internet, to fund a project or venture.

backer: An individual who supports a project on a crowdfunding platform, typically by making a financial contribution in exchange for rewards or future products.

reward tiers: Different levels of contributions on Kickstarter that offer backers varying rewards based on the amount they pledge to the project.