Crowdfunding is becoming more and more commonplace these days, the United Nations is now looking at philanthropic crowdfunding in order to see what this process can do in order to fund the organization’s Sustainable Development Goals (SDGs).
The UN Dispatch looked at a study conducted by the Saïd Business School, University of Oxford’s, which says that philanthropic crowdfunding could potentially be a viable strategy for the international organization.
The UN’s estimates that making their SDGs, their 17 ambitious international goals, possible would costs about $5-$7 trillion annually, with about $4 trillion of that to go in developing countries in the world. According to the UN, they fall short of about $2.5 trillion, and with only 11 years left before 2030, the organizations are turning to experts for new ideas.
The authors of the study say that thinking like a startup and launching a crowdfunding platform would be good for the UN, particularly for gaining the financial resources needed for their projects that meet their SDGs.
The report notes how crowdfunding has been growing rapidly recently, and expects that it will continue on that track. Crowdfunding campaigns managed to raise at least $144 billion, in 2016 alone, with $560 million coming from donations. China drives the global growth of crowdfunding, but US is the leader when it comes to donation-based funding. In 2016, the Asia-Pacific accounted for $103 billion of crowdfunding, but only $165 million were donations, while the Americas managed to account for twice as much in donations; $339 million, despite raising only a third for crowdfunding; $35 million.
Estimations from the report say that global charitable giving sits at about $400 billion, with crowdfunding figures suggesting great growth.
The UN’s currently existing SDG-related crowdfunding platforms, the reports say, doesn’t match up with best practices, strategic choices, or even industry standards. It notes, however, that key changes would create a viable platform for SDG philanthropic crowdfunding, one that’s primarily aimed at social entrepreneurs and cooperation for the development of social-innovation projects.
In a 2016 articles for the Guardian, Executive Director Blair Glencorse, Accountability Lab, notes that an SDG crowdfunding process is the responsibility of those in the developing world, and would require oversight and coordination, but extant models do, as well.